When was the last time you sat down and talked with a customer? For many supply chain professionals, the answer is likely to be "not lately," or worse yet, "rarely, if ever."
That's not surprising, really; supply chain professionals are often considered specialists who aggressively pursue cost and efficiency primarily by working with suppliers and within their companies' four walls. Few companies, moreover, have truly embraced supply chain management's role in driving profitable growth and increasing sales.
But if you want to significantly improve your chances of becoming a senior leader—and perhaps lead an entire supply chain organization or even run a business—getting to know the customer is essential. After all, without customers, you don't have a business.
Let's say you are one of several executives being considered for a big promotion. Imagine that a closed-door conversation is under way about potential candidates for the job. After discussing the top three candidates, one of the key decision makers has this to say: "We are fortunate to have three strong choices; every one of these candidates has a demonstrated track record of success. However, Joe is the only one who has significant customer and market experience. A couple of years ago, he developed a performance goal that required him to visit at least one customer per month. In the beginning, Joe asked a friend of his in the sales organization if he could 'tag along' on a customer visit simply to learn and observe. I know for a fact that these days, Joe is being invited to attend customer meetings. This guy understands the customer and really adds value."
Are you Joe? Let's hope that you are, because this vignette is based on a true story. The real-life Joe is now a senior vice president of supply chain for a large company. Joe distinguished himself by getting to know the customer. Before that, he was seen as an "inside guy" who did a great job "behind the scenes." He knew, however, that to achieve his aspirations, he would need to broaden his experience. Although getting out into the field to meet customers was uncomfortable at first, Joe ultimately learned a lot about his company's customers and how a supply chain professional with passion can add value to the customer relationship.
Don't succumb to stereotypes
Now, with Joe's experience in mind, take a look at your own career objectives and goals for 2010. Are any of them related to enhancing revenue, customer acquisition, market share, or customer satisfaction? If you do have customer-related goals, that's great! Your company appears to embrace supply chain management's role in driving profitable growth. If you do not, don't worry; that doesn't mean you never will. The traditional role of the supply chain executive is evolving, albeit slowly, in many companies and industries.
To help push this change forward, it may be beneficial to ask ourselves, why do supply chain professionals sometimes believe that customers are "off limits"? After all, supply chain management embodies the entire business system. The last time I looked, the customer was a major part of this system. Are we hindered by the stereotype of a supply chain professional being primarily an internal player who is analytically oriented and maybe even introverted? Do we, perhaps, have a negative stereotype of the sales profession, which typically handles face-to-face customer meetings? Do we see them as nonanalytical extroverts who will promise anything to make the sale?
These are important questions. If you are candid with yourself, you can ask them with courage, face the answers objectively, and do something to dismantle the stereotypes that are holding you back from direct customer contact.
An important step is to recognize that stereotypes about sales and supply chain management being incompatible are not logical. The best supply chain leaders have terrific people skills that enable them to get things done, often without formal authority. Successful supply chain executives have great influencing skills, and they persuade others by connecting with their hearts and minds. Think about it: Doesn't this sound a bit like the description of an effective sales executive? Don't you "sell" your ideas and plans to other people every day?
Build your "brand"
Even after recognizing the similarities between sales and supply chain management, some of us may still feel apprehensive about engaging directly with customers. We may feel uncomfortable moving into an unfamiliar area. Maybe we are concerned that we might make a mistake and look bad. But taking this risk is worth it in the long run; it will help each of us build a personal "leadership brand" that includes a strong personal relationship with customers.
Your leadership brand comprises all the associations that people make when they think about you. Like any good commercial brand, it can be a source of great equity—or, if not developed and managed properly, a drag on your career. Think of a great brand that you admire. What goes through your head when you hear that company's name? What associations do you make with its products?
Personal brands operate the same way. Imagine that right now, 200 people who have interacted with you hear your name. What associations do they make? Are they associations you desire for yourself?
Certainly, you want those associations to be positive: "Jane is a strong leader and a risk taker; I'm confident in her ability to get results." Now, what if we add this association: "Jane understands customers." Imagine what will happen when all of the people who interact with Jane have that same customer-focused association whenever they think of her. My bet is that Jane's career will be a long and successful one.
If you want your personal brand to include a strong customer-focused association, then you will need to get out of your office and spend time in the market. Ask your supporters to look for opportunities to meet customers. Ask to attend sales and marketing meetings to observe and get to know the people who provide customer access. Open your mind to a new opportunity to grow. Most importantly, don't be afraid to venture into new territory.
It has often been said that what you conceive and believe you can achieve. If you believe you belong in the customer's office, you will get there. It is up to you to make it happen.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
Jason Kra kicked off his presentation at the Council of Supply Chain Management Professionals (CSCMP) EDGE Conference on Tuesday morning with a question: “How do we use data in assessing what countries we should be investing in for future supply chain decisions?” As president of Li & Fung where he oversees the supply chain solutions company’s wholesale and distribution business in the U.S., Kra understands that many companies are looking for ways to assess risk in their supply chains and diversify their operations beyond China. To properly assess risk, however, you need quality data and a decision model, he said.
In January 2024, in addition to his full-time job, Kra joined American University’s Kogod School of Business as an adjunct professor of the school’s master’s program where he decided to find some answers to his above question about data.
For his research, he created the following situation: “How can data be used to assess the attractiveness of scalable apparel-producing countries for planning based on stability and predictability, and what factors should be considered in the decision-making process to de-risk country diversification decisions?”
Since diversification and resilience have been hot topics in the supply chain space since the U.S.’s 2017 trade war with China, Kra sought to find a way to apply a scientific method to assess supply chain risk. He specifically wanted to answer the following questions:
1.Which methodology is most appropriate to investigate when selecting a country to produce apparel in based on weighted criteria?
2.What criteria should be used to evaluate a production country’s suitability for scalable manufacturing as a future investment?
3.What are the weights (relative importance) of each criterion?
4.How can this methodology be utilized to assess the suitability of production countries for scalable apparel manufacturing and to create a country ranking?
5.Will the criteria and methodology apply to other industries?
After creating a list of criteria and weight rankings based on importance, Kra reached out to 70 senior managers with 20+ years of experience and C-suite executives to get their feedback. What he found was a big difference in criteria/weight rankings between the C-suite and senior managers.
“That huge gap is a good area for future research,” said Kra. “If you don’t have alignment between your C-suite and your senior managers who are doing a lot of the execution, you’re never going to achieve the goals you set as a company.”
With the research results, Kra created a decision model for country selection that can be applied to any industry and customized based on a company’s unique needs. That model includes discussing the data findings, creating a list of diversification countries, and finally, looking at future trends to factor in (like exponential technology, speed, types of supply chains and geopolitics, and sustainability).
After showcasing his research data to the EDGE audience, Kra ended his presentation by sharing some key takeaways from his research:
China diversification strategies alone are not enough. The world will continue to be volatile and disruptive. Country and region diversification is the only protection.
Managers need to balance trade-offs between what is optimal and what is acceptable regarding supply chain decisions. Decision-makers need to find the best country at the lowest price, with the most dependability.
There is a disconnect or misalignment between C-suite executives and senior managers who execute the strategy. So further education and alignment is critical.
Data-driven decision-making for your company/industry: This can be done for any industry—the data is customizable, and there are many “free” sources you can access to put together regional and country data. Utilizing data helps eliminate path dependency (for example, relying on a lean or just-in-time inventory) and keeps executives and managers aligned.
“Look at the business you envision in the future,” said Kra, “and make that your model for today.”
Turning around a failing warehouse operation demands a similar methodology to how emergency room doctors triage troubled patients at the hospital, a speaker said today in a session at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
There are many reasons that a warehouse might start to miss its targets, such as a sudden volume increase or a new IT system implementation gone wrong, said Adri McCaskill, general manager for iPlan’s Warehouse Management business unit. But whatever the cause, the basic rescue strategy is the same: “Just like medicine, you do triage,” she said. “The most life-threatening problem we try to solve first. And only then, once we’ve stopped the bleeding, we can move on.”
In McCaskill’s comparison, just as a doctor might have to break some ribs through energetic CPR to get a patient’s heart beating again, a failing warehouse might need to recover by “breaking some ribs” in a business sense, such as making management changes or stock write-downs.
Once the business has made some stopgap solutions to “stop the bleeding,” it can proceed to a disciplined recovery, she said. And to reach their final goal, managers can use the classic tools of people, process, and technology to improve what she called the three most important key performance indicators (KPIs): on time in full (OTIF), inventory accuracy, and staff turnover.