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.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.
Specifically, the two sides remain at odds over provisions related to the deployment of semi-automated technologies like rail-mounted gantry cranes, according to an analysis by the Kansas-based 3PL Noatum Logistics. The ILA has strongly opposed further automation, arguing it threatens dockworker protections, while the USMX contends that automation enhances productivity and can create long-term opportunities for labor.
In fact, U.S. importers are already taking action to prevent the impact of such a strike, “pulling forward” their container shipments by rushing imports to earlier dates on the calendar, according to analysis by supply chain visibility provider Project44. That strategy can help companies to build enough safety stock to dampen the damage of events like the strike and like the steep tariffs being threatened by the incoming Trump administration.
Likewise, some ocean carriers have already instituted January surcharges in pre-emption of possible labor action, which could support inbound ocean rates if a strike occurs, according to freight market analysts with TD Cowen. In the meantime, the outcome of the new negotiations are seen with “significant uncertainty,” due to the contentious history of the discussion and to the timing of the talks that overlap with a transition between two White House regimes, analysts said.