Workshop looks at transportation's role in business success
Many people think of transportation as a discrete operation that simply carries out orders handed down from other departments. But, as CSCMP's new workshop, "Transportation's Role in Supply Chain," makes clear, transportation is important not only to effective supply chain management but also to overall business success. In this one-day program, supply chain professionals will gain a firm understanding of the value of transportation in the supply chain. Those in transportation, meanwhile, will learn how they and their operations contribute to overall business success.
The course is designed for new supply chain professionals; intermodal operations and shift workers; supply chain coordinators, managers, and supervisors; and truck drivers. It will be offered for the first time at CSCMP's headquarters in Lombard, Illinois, USA (near Chicago) on November 15. The cost is US $395 for members and US $495 for nonmembers. For more information, visit cscmp.org/events/transportation-role/index.asp.
The passing of a giant: Dr. Donald J. Bowersox
It was with great sadness that CSCMP learned of the passing of Donald J. Bowersox on July 4, 2011, after a recurrence of cancer. Dr. Bowersox not only helped to establish this organization but also developed the very concept of supply chain management.
Dr. Bowersox was an eminent academic and the last living founder of the National Council of Physical Distribution Management (NCPDM), the forerunner of what would become the Council of Supply Chain Management Professionals. He was elected NCPDM's second president in 1964 and received the organization's second Distinguished Service Award in 1966. He remained deeply involved in CSCMP, frequently speaking at educational conferences and offering guidance on programming and research until his death at age 79.
After receiving his bachelor's, master's and doctoral degrees from Michigan State University (MSU), Dr. Bowersox spent four decades at the school as a teacher, researcher, writer, and administrator. It was there, beginning with a doctoral thesis that eventually became a seminal text in logistics, that he established himself as one of the leading thinkers in distribution and transportation management. Later, he expanded his ideas to encompass other business functions, eventually developing the concept of the supply chain and identifying the enormous potential impact of this new approach to business management.
He wrote the first college textbook on physical distribution management, the first of some 17 books he authored or co-authored. He also wrote more than 250 journal articles. We are proud that among that number were two pieces that appeared in CSCMP's Supply Chain Quarterly—including the cover story for our inaugural issue in 2007, titled "SCM: The Past is Prologue."
Dr. Bowersox will be remembered as an original thinker who paved the way for supply chain strategies into the future. He will be missed by many colleagues, friends, former students, and family as well as by our entire profession.
Haritha Metta receives Doctoral Dissertation Award
CSCMP has named Haritha Metta as the recipient of the 2011 Doctoral Dissertation Award for her dissertation "A Multi-Stage Decision Support Model for Coordinated Sustainable Product and SC Design." Metta, the revenue management science analyst for Carnival Cruise Lines, received her PhD from the department of mechanical engineering and the Institute for Sustainable Manufacturing at the University of Kentucky. She earned her master's degree in mechanical engineering from the University of Kentucky and a bachelor's degree in the same field from Vignana Jyothi Institute of Engineering and Technology in India.
Metta's research interests are in the areas of supply chain design and optimization, with a focus on sustainability and multi-criteria decision making in complex systems. A portion of her dissertation also won the Ann Taylor best paper award at the International Conference on Value Chain Sustainability.
The Doctoral Dissertation Award is given annually for a dissertation in supply chain management or a related field that demonstrates originality and technical competence while contributing to the supply chain knowledge base. The purpose of the award is to encourage research leading to the advancement of supply chain management.
CSCMP committees: Get involved today!
Not all of us can be a pioneer of the profession like Don Bowersox was, but we all can contribute something that will help our peers in some way. One way to give back is to volunteer for one of CSCMP's many committees. It's a great opportunity to share your ideas with like-minded professionals and have a positive impact on the profession.
Opportunities include:
Program Committee: help develop and deliver CSCMP's supply chain management educational concepts.
Education Strategies Committee: serve as a liaison with students, educators, and educational institutions and programs.
Research Strategies Committee: investigate, evaluate, and advise CSCMP on potential research projects that could benefit the supply chain management profession.
Young Professionals Committee: assess the needs of young professionals and students entering the workforce and determine how CSCMP could meet those needs.
Roundtable Advisory Cabinet Members: monitor and assist the activities of individual CSCMP roundtables and the organization as a whole.
Sound interesting? To find out more about these committees and how to get involved, call +1 630.574.0985. If you're a CSCMP member, you can indicate your volunteering preferences in your Member Profile by logging into your account at cscmp.org, clicking on the "Membership" tab on the menu bar to the left, and then clicking on the "My Account" link. Click on the "Other Info" gray tab to access a page that allows you to select your preferences.
JBL changes to benefit both readers and authors
After 33 years of publishing twice a year, CSCMP's Journal of Business Logistics (JBL) is now increasing its frequency to four issues, giving readers more opportunities to discover groundbreaking research in logistics and supply chain management.
To support that increase in publication dates, JBL's new editors—Matthew Waller of the University of Arkansas and Stanley Fawcett of Brigham and Young University— have implemented a faster turnaround process for reviewing submissions and moving them through the editorial review process. Authors are now able to submit their articles and revisions electronically. Additionally Waller and Fawcettt have expanded the Editorial Review Board to incorporate more assistant and associate editors with a broader variety of specialty areas. Finally, there will be a number of special topic calls for papers each year to help increase the body of knowledge for particular disciplines within supply chain and logistics.
The new publisher of the JBL, Wiley and Sons, is now providing a searchable database of articles by keyword. This search function should help readers' research efforts considerably. To access past issues of JBL, see the Wiley Online Library.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
Economic activity in the logistics industry expanded in August, though growth slowed slightly from July, according to the most recent Logistics Manager’s Index report (LMI), released this week.
The August LMI registered 56.4, down from July’s reading of 56.6 but consistent with readings over the past four months. The August reading represents nine straight months of growth across the logistics industry.
The LMI is a monthly gauge of economic activity across warehousing, transportation, and logistics markets. An LMI above 50 indicates expansion, and a reading below 50 indicates contraction.
Inventory levels saw a marked change in August, increasing more than six points compared to July and breaking a three-month streak of contraction. The LMI researchers said this suggests that after running inventories down, companies are now building them back up in anticipation of fourth-quarter demand. It also represents a return to more typical growth patterns following the accelerated demand for logistics services during the Covid-19 pandemic and the lows of the recent freight recession.
“This suggests a return to traditional patterns of seasonality that we have not seen since pre-COVID,” the researchers wrote in the monthly LMI report, published Tuesday, adding that the buildup is somewhat tempered by increases in warehousing capacity and transportation capacity.
The LMI report is based on 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).
That hiring surge marks a significant jump in relation to the company’s nearly 17,000 current employees across North America, adding 21% more workers.
That increase is necessary because U.S. holiday sales in 2023 increased 3.9% year-over-year as consumer spending grew even amidst uncertain economic times and trends like inflation and consumer price sensitivity. Looking at the coming peak, a similar pattern is projected for this year, with shoppers forecasted to drive a 4.8% increase in holiday retail sales for 2024, Geodis said, citing data from Emarketer.
To attract the extra workforce, Geodis says it will offer competitive wages, peak premium pay incentives, peak and referral bonuses, an expedited payment option, and flexible schedules. And it’s using an AI-powered chatbot named Sophie to serve as a virtual recruiting assistant.
“We acknowledge the immense responsibility we have to our customers to deliver exceptional service every day, and this is especially true during peak season,” Anthony Jordan, GEODIS in Americas Executive Vice President and Chief Operating Officer, said in a release. “Because peak season is the most business-critical sales period of the year for many of our retail clients, expanding our workforce is vital to ensure we have a flexible, dynamic team that can handle anticipated surges in demand.”
With the economy slowing but still growing, and inflation down as the Federal Reserve prepares to lower interest rates, the United States appears to have dodged a recession, according to the National Retail Federation (NRF).
“The U.S. economy is clearly not in a recession nor is it likely to head into a recession in the home stretch of 2024,” NRF Chief Economist Jack Kleinhenz said in a release. “Instead, it appears that the economy is on the cusp of nailing a long-awaited soft landing with a simultaneous cooling of growth and inflation.”
Despite an “eventful August” with initial reports of rising unemployment and a slowdown in manufacturing, more recent data has “calmed fears of a deteriorating U.S. economy,” Kleinhenz said. “Concerns are now focused on the direction of the labor market and the possibility of a job market slowdown, but a recession is far less likely.”
That analysis is based on data in the NRF’s Monthly Economic Review, which said annualized gross domestic product growth for the second quarter has been revised upward to 3% from the original report of 2.8%. And consumer spending, the largest component of GDP, was revised up to 2.9% growth for the quarter from 2.3%.
Compared to its recent high point of 9.1% in July of 2022, inflation is nearly back to normal. Year-over-year growth in the Personal Consumption Expenditures Price Index – the Fed’s preferred measure of inflation – was at 2.5% in July, unchanged from June and only half a percentage point above the Fed’s target of 2%.
The labor market “is not terribly weak” but “is showing signs of tottering,” Kleinhenz said. Only 114,000 jobs were added in July, lower than expected, and the unemployment rate rose to 4.3% from 4.1% in June. Despite the increase, the unemployment rate is still within the normal range, Kleinhenz said.
“Now the guessing game begins on the magnitude and frequency of rate cuts and how far the federal funds rate will be reduced,” Kleinhenz said. “While lowering interest rates would be good news, it takes time for rate reductions to work their way through the various credit channels and the economy as a whole. Consequently, a reduction is not expected to provide an immediate uplift to the economy but would stabilize current conditions.”
Going forward, Kleinhenz said lower rates should benefit households under pressure from loans used to meet daily needs. Lower rates will also make it more affordable to borrow through mortgages, home improvement loans, car loans, and credit cards, encouraging spending and increasing demand for goods and services. Small businesses would also benefit, since lower intertest rates could lower their financing costs on existing loans or allow them to take out new loans to invest in equipment and plants or to hire more workers.