So you think you're ready to be chief supply chain officer?
The focus for supply chain leaders is not just on managing costs, but also on maximizing a company's profitability by improving asset productivity and even identifying new sources of revenue generation.
David MacEachern is a director with the executive search firm Spencer Stuart and is the leader of the firm's global transportation and third-party logistics practice.
Ten years ago, a company's logistics leader toiled in relative obscurity in the back office. That role was viewed as being narrow in scope and having limited strategic value to the organization, and it had little visibility to top management.
Today, the role of supply chain leader has been thoroughly transformed. In many of the world's most successful organizations, top supply chain managers have broad responsibility for all decisions about fulfillment, logistics, customer service, and related technology. The supply chain leader also serves a critical strategic role in overseeing spending on everything from procurement through delivery of finished goods, which can represent 50?70 percent of a company's total costs. The focus for supply chain leaders is not just on managing costs, however, but also on maximizing a company's profitability by improving asset productivity and even identifying new sources of revenue generation.
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[Figure 1] Characteristics of an effective supply chain executiveEnlarge this image
Mismanaging the supply chain can have dire consequences for a company. With so much at stake, the supply chain leader at many companies today has been elevated to the executive committee, manages a global team, and may command compensation well into the seven figures.
As the scope of responsibilities for supply chain executives has grown, the characteristics and experience required for the top leader have changed, and the career path for supply chain leadership has taken a dramatically different course—one that increasingly must include international assignments and broader exposure to the business.
So, are you prepared for a supply chain officer's role? To get a better handle on your readiness for the job, it may help to understand the emerging profile for the top supply chain leader. Given the increasingly strategic nature of the role, it's not surprising that the skills and experience required for top supply chain executives (summarized in the box at left) are many of the same qualities I look for when recruiting executives for CEO and other key management positions. Here is my list of must-have qualities:
Leadership: First on the list is leadership. The nature of the position requires that supply chain executives be able to build collaborative interpersonal relationships and, in turn, earn credibility for themselves and for the function across the entire organization. Top supply chain leaders need to be team builders and people managers. They have to be excellent communicators and influencers, able to consistently communicate their strategic vision across multiple audiences. They need to be motivators who can manage teams across distances. This includes engaging people who may be in far-flung operations or employees of external partners.
Global orientation: With the emergence of China, India, Eastern Europe, and other parts of the world as international commerce centers, supply chain executives must manage complex relationships in these markets as well as in more traditional ones. This requires having a truly global mindset. In fact, I can think of very few supply chain assignments where a global orientation was not deemed critical.
Many executives benefit from having firsthand experience with the cultures and consumer expectations in countries where they do business. If an overseas assignment is not realistic at this point in your career, cultivate a global mindset through thoughtful international travel and by working closely with overseas colleagues and partners to understand their priorities and concerns.
Integrated operational excellence: Today's supply chains are more dispersed; processes and systems are therefore more complex. Organizations need executives who are knowledgeable about functions throughout the supply chain and who can leverage that knowledge to capitalize on business opportunities.
The successful supply chain executive also must possess broad, general business experience in buying, planning, manufacturing, and delivering. I look for executives who have a history of managing multiple initiatives simultaneously and a breadth of experience across their business and even in other industries. These leaders are able to see the big picture as well as manage day-to-day details.
Strategic thinking: Supply chain leaders need to be strategic thinkers who are able to position their organizations for the future. They must be comfortable establishing and articulating long-term supply chain strategies in rapidly changing environments. They must be able to manage the constantly moving components of the supply chain, anticipating problems and opportunities before they arise.
Supply chain management today is shifting away from functional responsibility to the larger role of driving an organization's financial strategy to influence the company's success. How can supply chain executives develop strategic thinking skills? First, they must thoroughly understand the drivers of their business and the role of the supply chain in achieving their organizations' strategic and financial objectives. Working with outside consultants and adopting best practices from within a specific industry and beyond is another way to hone strategic thinking skills.
Technically savvy: Today's supply chain talent must have a solid grounding in technology. Ultimately, technology makes everything happen and brings everything together—it's the prime enabler of the supply chain. A supply chain leader doesn't have to be a technophile, but he or she must be able to manage technology and work closely with technology teams to understand a company's IT capabilities and identify opportunities to improve supply chain processes.
Preparing yourself for the new profile
Today, the demand for leaders with broad supply chain and business experience far exceeds their availability. Companies face intense competition for experts in the areas of sourcing and procurement, manufacturing and production, distribution, logistics, and end-to-end supply chain management.
I expect demand for high-level, experienced supply chain executives will outstrip supply for many, many years to come. In the meantime, companies are employing a number of tactics to get the talent they need, including recruiting the best and the brightest from some of the world's leading universities—and they are finding a receptive audience among promising students who see an exciting and rewarding career path in supply chain management. They also are looking for experienced supply chain leaders outside of their own industries. For example, one of my clients, a major oil company, recently recruited a top candidate from the computer industry who had extensive experience managing global manufacturing operations.
Supply chain executives, who traditionally have taken a fairly hands-off approach to managing their professional development, must become more active and thoughtful in planning their careers. Learning the financial drivers of the business, taking international assignments, and getting broad-based exposure to the supply chain, the business units, and other functions within the organization will help them develop the perspective and expertise they need to lead today's global supply chain function. Up-and-coming executives also benefit by seeking mentors within the supply chain function and from the top ranks of management throughout the organization. Leadership seminars and similar types of training can provide great opportunities to develop additional skills.
Supply chain executives who adapt to this emerging career path and build the necessary skills and leadership capabilities will be ready to step into the chief supply chain officer role.
The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.
The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.
One of the top priorities for the new group is developing an early warning pilot focused on the telecommunications supply chain, which is essential for the three countries’ global, digitized economies, they said. By identifying and monitoring disruption risks to the telecommunications supply chain, this pilot will enhance all three countries’ knowledge of relevant vulnerabilities, criticality, and residual risks. It will also develop procedures for sharing this information and responding cooperatively to disruptions.
According to the U.S. Department of Homeland Security (DHS), the group chose that sector because telecommunications infrastructure is vital to the distribution of public safety information, emergency services, and the day to day lives of many citizens. For example, undersea fiberoptic cables carry over 95% of transoceanic data traffic without which smartphones, financial networks, and communications systems would cease to function reliably.
“The resilience of our critical supply chains is a homeland security and economic security imperative,” Secretary of Homeland Security Alejandro N. Mayorkas said in a release. “Collaboration with international partners allows us to anticipate and mitigate disruptions before they occur. Our new U.S.-U.K.-Australia Supply Chain Resilience Cooperation Group will help ensure that our communities continue to have the essential goods and services they need, when they need them.”
Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.
To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.
“Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins,” Chris Leone, executive vice president, Applications Development, Oracle, said in a release. “The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes.”
According to Oracle, specific upgrades feature changes to its:
Production Supervisor Workbench, which helps organizations improve manufacturing performance by providing real-time insight into work orders and generative AI-powered shift reporting.
Maintenance Supervisor Workbench, which helps organizations increase productivity and reduce asset downtime by resolving maintenance issues faster.
Order Management Enhancements, which help organizations increase operational performance by enabling users to quickly create and find orders, take actions, and engage customers.
Product Lifecycle Management (PLM) Enhancements, which help organizations accelerate product development and go-to-market by enabling users to quickly find items and configure critical objects and navigation paths to meet business-critical priorities.
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.
Businesses were preparing to deal with the effects of the latest major storm of the 2024 hurricane season as Francine barreled toward the Gulf Coast Wednesday.
Louisiana was experiencing heavy rain and wind gusts at midday as the storm moved northeast through the Gulf and was expected to pick up speed. The state will bear the brunt of Francine’s wind, rain, and storm damage, according to forecasters at weather service provider AccuWeather.
“AccuWeather meteorologists are projecting a storm surge of 6-10 feet along much of the Louisiana coast with a pocket of 10-15 feet on some of the inland bays in south-central Louisiana,” the company reported in an afternoon update Wednesday.
Businesses and supply chains were prepping for delays and disruptions from the storm earlier this week. Supply chain mapping and monitoring firm Resilinc said the storm will have a “significant impact” on a wide range of industries along the Gulf Coast, including aerospace, life sciences, manufacturing, oil and gas, and high-tech, among others. In a statement, Resilinc said energy companies had evacuated personnel and suspended operations on oil platforms as of Tuesday. In addition, the firm said its proprietary data showed the storm could affect nearly 11,000 manufacturing, warehousing, distribution, fabrication, and testing sites across the region, putting at risk more than 57,000 parts used in everyday items and the manufacture of more than 4,000 products.
Francine, which was expected to make landfall as a category 2 hurricane, according to AccuWeather, follows the devastating effects of two storms earlier this summer: Hurricane Beryl, which hit the Texas coast in July, and Hurricane Debby, which caused $28 billion in damage and economic loss after hitting the Southeast on August 5.