Get a worldwide view at CSCMP's 2010 Annual Global Conference
CSCMP's Annual Global Conference will live up to its name with a keynote address focusing on the future of global trade. The Honorable Carlos M. Gutierrez, former secretary of the U.S. Department of Commerce and former chief executive officer and chairman of the board for Kellogg Company, will kick off the conference on September 27 in San Diego, California, USA.
Gutierrez started his career at Kellogg's by selling cereal to small grocery stores in Mexico City and eventually worked his way up to be the youngest CEO in the company's 100-year history. In 2005, President George W. Bush appointed him to be the 35th secretary of the U.S. Department of Commerce. In that position, he played a key role in the passage of CAFTA-DR, a trade agreement that expanded opportunities for U.S. exports throughout Latin America. Gutierrez now is the chairman of Global Political Strategies, an international consulting firm that focuses on geopolitics, global economics, and helping companies expand their international market opportunities.
The conference's focus on global trade continues the following day with a general session called "The Impact of the Panama Canal on Global Shipping." The presentation will be given by Alberto Alemán Zubieta, CEO of the Panama Canal Authority, and Professor Yossi Sheffi of the Massachusetts Institute of Technology. The closing session will feature scientist and futurist Jack Bacon, speaking on "Nonlinear Thinking for the Nonlinear World."
In addition to the general sessions, the conference will offer 20 educational tracks on topics ranging from "Accelerating Supply Chain Transformations" to "Best Practices in Manag ing and Optimizing Inventory" to "Third-Party Logistics—Getting the Strategy Right." Attendees can opt to participate in small-group discussions moderated by topic experts. The conference will also provide the opportunity to tour near-by logistics facilities, check out leading-edge technology and equipment at the "Supply Chain of the Future" exhibit, offer training at new pre-conference workshops, and more. For more information, visit cscmpconference.org.
Directory of executive recruiters is now online
You thought the recession would make it easier to find the perfect candidate to fill that important supply chain position ... but you're still looking. Or maybe you're the one searching for a new job in the "jobless recovery." Either way, working with an executive recruiter may help you find the right person or position sooner than you could on your own. But how do you find a recruiter who understands the needs of supply chain managers?
CSCMP's new online directory of executive recruiters is the place to go for that information. Located on CSCMP's web site under the "SCM Careers" tab, the directory lists global executive recruiting firms that specialize in customer service, inventory management, logistics, materials and information management, traffic and transportation, and warehousing. CSCMP does not endorse any of the recruiters but only lists firms that devote at least 80 percent of their time to supply chain management and logistics positions.
The directory, updated twice yearly, is available at no charge. Users who are not CSCMP members, however, must register before they are able to download it. Recruitment firms that are members of CSCMP or have used the Council's Career Center Services qualify for a free listing. Those that do not meet those criteria pay US $350 for a six-month listing. To be in the directory, firms must fill out a form. The deadline for submission for the next edition is August 9, 2010.
"State of Logistics Report" can help you move forward
For many, it may be a little painful to look back on 2009. But understanding where we were can often help us assess where we should be. For this reason, CSCMP's "State of Logistics Report" offers valuable data and analysis.
Released annually in June, the "State of Logistics Report" looks at the overall performance of the U.S. supply chain. The report tracks all costs associated with moving goods through the United States, such as transportation and inventory-carrying costs.
Not surprisingly, economist and report author Rosalyn Wilson found that logistics costs dropped considerably last year, falling from 9.3 percent in 2008 to 7.7 percent of U.S. gross domestic product in 2009. But the news is not all bad. The data also show improvement beginning in the fourth quarter, pointing to the recovery that is now under way.
This big picture can provide practitioners with a context for understanding their own organizations' performance and improve their own operations, said Rick Blasgen, CSCMP president and CEO. "This research presents data for company leaders to be able to capitalize on the recovery as it occurs, such as restructuring their distribution networks to maximize efficiency and minimize miles, investing in technologies to facilitate 'green' transportation, and improving real-time data flows to increase visibility and enhance productivity," he said.
CSCMP members can download the report for free at cscmp.org/memberonly/state.asp. Nonmembers can purchase the report for US $395.
Journal of Business Logistics announces two new editors
Dr. Stanley E. Fawcett of Brigham Young University and Dr. Matthew A. Waller of the University of Arkansas have been named co-editors of CSCMP's peer-reviewed academic journal, Journal of Business Logistics (JBL). Their terms will begin on January 1, 2011, and will run until December 31, 2015.
The primary responsibilities of the JBL's editors are to maintain the journal's academic integrity, identify and solicit manuscripts consistent with its objectives, manage the publication's review process and physical production, and identify and implement improvements.
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
The practice consists of 5,000 professionals from Accenture and from Avanade—the consulting firm’s joint venture with Microsoft. They will be supported by Microsoft product specialists who will work closely with the Accenture Center for Advanced AI. Together, that group will collaborate on AI and Copilot agent templates, extensions, plugins, and connectors to help organizations leverage their data and gen AI to reduce costs, improve efficiencies and drive growth, they said on Thursday.
Accenture and Avanade say they have already developed some AI tools for these applications. For example, a supplier discovery and risk agent can deliver real-time market insights, agile supply chain responses, and better vendor selection, which could result in up to 15% cost savings. And a procure-to-pay agent could improve efficiency by up to 40% and enhance vendor relations and satisfaction by addressing urgent payment requirements and avoiding disruptions of key services
Likewise, they have also built solutions for clients using Microsoft 365 Copilot technology. For example, they have created Copilots for a variety of industries and functions including finance, manufacturing, supply chain, retail, and consumer goods and healthcare.
Another part of the new practice will be educating clients how to use the technology, using an “Azure Generative AI Engineer Nanodegree program” to teach users how to design, build, and operationalize AI-driven applications on Azure, Microsoft’s cloud computing platform. The online classes will teach learners how to use AI models to solve real-world problems through automation, data insights, and generative AI solutions, the firms said.
“We are pleased to deepen our collaboration with Accenture to help our mutual customers develop AI-first business processes responsibly and securely, while helping them drive market differentiation,” Judson Althoff, executive vice president and chief commercial officer at Microsoft, said in a release. “By bringing together Copilots and human ambition, paired with the autonomous capabilities of an agent, we can accelerate AI transformation for organizations across industries and help them realize successful business outcomes through pragmatic innovation.”
Census data showed that overall retail sales in October were up 0.4% seasonally adjusted month over month and up 2.8% unadjusted year over year. That compared with increases of 0.8% month over month and 2% year over year in September.
October’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were unchanged seasonally adjusted month over month but up 5.4% unadjusted year over year.
Core sales were up 3.5% year over year for the first 10 months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023. NRF is forecasting that 2024 holiday sales during November and December will also increase between 2.5% and 3.5% over the same time last year.
“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” NRF Chief Economist Jack Kleinhenz said in a release. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”
Despite that positive trend, market watchers cautioned that retailers still need to offer competitive value propositions and customer experience in order to succeed in the holiday season. “The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under invest in their stores,” Nikki Baird, VP of strategy & product at Aptos, a solutions provider of unified retail technology based out of Alpharetta, Georgia, said in a statement. “They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.”
A similar message came from Chip West, a retail and consumer behavior expert at the marketing, packaging, print and supply chain solutions provider RRD. “October’s increase proved to be slightly better than projections and was likely boosted by lower fuel prices. As inflation slowed for a number of months, prices in several categories have stabilized, with some even showing declines, offering further relief to consumers,” West said. “The data also looks to be a positive sign as we kick off the holiday shopping season. Promotions and discounts will play a prominent role in holiday shopping behavior as they are key influencers in consumer’s purchasing decisions.”
Third-party logistics (3PL) providers’ share of large real estate leases across the U.S. rose significantly through the third quarter of 2024 compared to the same time last year, as more retailers and wholesalers have been outsourcing their warehouse and distribution operations to 3PLs, according to a report from real estate firm CBRE.
Specifically, 3PLs’ share of bulk industrial leasing activity—covering leases of 100,000 square feet or more—rose to 34.1% through Q3 of this year from 30.6% through Q3 last year. By raw numbers, 3PLs have accounted for 498 bulk leases so far this year, up by 9% from the 457 at this time last year.
By category, 3PLs’ share of 34.1% ranked above other occupier types such as: general retail and wholesale (26.6), food and beverage (9.0), automobiles, tires, and parts (7.9), manufacturing (6.2), building materials and construction (5.6), e-commerce only (5.6), medical (2.7), and undisclosed (2.3).
On a quarterly basis, bulk leasing by 3PLs has steadily increased this year, reversing the steadily decreasing trend of 2023. CBRE pointed to three main reasons for that resurgence:
Import Flexibility. Labor disruptions, extreme weather patterns, and geopolitical uncertainty have led many companies to diversify their import locations. Using 3PLs allows for more inventory flexibility, a key component to retailer success in times of uncertainty.
Capital Allocation/Preservation. Warehousing and distribution of goods is expensive, draining capital resources for transportation costs, rent, or labor. But outsourcing to 3PLs provides companies with more flexibility to increase or decrease their inventories without any risk of signing their own lease commitments. And using a 3PL also allows companies to switch supply chain costs from capital to operational expenses.
Focus on Core Competency. Outsourcing their logistics operations to 3PLs allows companies to focus on core business competencies that drive revenue, such as product development, sales, and customer service.
Looking into the future, these same trends will continue to drive 3PL warehouse demand, CBRE said. Economic, geopolitical and supply chain uncertainty will remain prevalent in the coming quarters but will not diminish the need to effectively manage inventory levels.
That result came from the company’s “GEP Global Supply Chain Volatility Index,” an indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. The October index number was -0.39, which was up only slightly from its level of -0.43 in September.
Researchers found a steep rise in slack across North American supply chains due to declining factory activity in the U.S. In fact, purchasing managers at U.S. manufacturers made their strongest cutbacks to buying volumes in nearly a year and a half, indicating that factories in the world's largest economy are preparing for lower production volumes, GEP said.
Elsewhere, suppliers feeding Asia also reported spare capacity in October, albeit to a lesser degree than seen in Western markets. Europe's industrial plight remained a key feature of the data in October, as vendor capacity was significantly underutilized, reflecting a continuation of subdued demand in key manufacturing hubs across the continent.
"We're in a buyers' market. October is the fourth straight month that suppliers worldwide reported spare capacity, with notable contractions in factory demand across North America and Europe, underscoring the challenging outlook for Western manufacturers," Todd Bremer, vice president, GEP, said in a release. "President-elect Trump inherits U.S. manufacturers with plenty of spare capacity while in contrast, China's modest rebound and strong expansion in India demonstrate greater resilience in Asia."