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.
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.