Dr. Dale Rogers, professor of supply chain management at Arizona State University, enjoys venturing off the well-worn path and investigating research questions and topics that have received little to no attention from his fellow academics.
Case in point: While everyone else was focusing on forward logistics in the late 1990s and early 2000s, Rogers was looking at reverse logistics, co-writing one of the first books about the subject. In fact, he was so early to the study of the discipline that he has since been dubbed, “the father of reverse logistics.”
Similarly, while many have studied how macroeconomic trends affect logistics, Rogers helped create the Logistics Managers Index, which shows how logistics serves as a leading indicator for the rest of the economy.
Finally, many practitioners and researchers have looked at how to cut costs and improve efficiency in the supply chain. In contrast, Rogers’ most recent book, Supply Chain Financing (co-written with Rudolf Leuschner of Rutgers University and Thomas Choi of Arizona State) discusses how supply chain management can fund the rest of the organization.
While being known as a bit of a maverick, Rogers has always been open about how much he owes to his mentors, especially the late Donald J. Bowersox, legendary logistics professor at Michigan State University. Like Bowersox, Rogers is dedicated to raising up the next generation of supply chain thinkers, including his own son Zachary Rogers who teaches supply chain at Colorado State University.
This sense of curiosity and desire to help educate and advance others is what led to Rogers being presented with supply chain’s highest honor: CSCMP’s Distinguished Service Award.
Rogers took some time to reflect on his career with Supply Chain Quarterly’s Managing Editor Diane Rand a the CSCMP EDGE Conference in September.
NAME: Dale S. Rogers
TITLE: ON Semiconductor Professor of Business at the Supply Chain Management department at Arizona State University
EDUCATION: bachelor’s degree, MBA, and Ph.D. from Michigan State University
PREVIOUS EXPERIENCE: Professor of Supply Chain and Logistics Management at Rutgers University; Professor of Supply Chain and Logistics Management, University of Nevada
LEADERSHIP: Director of the Frontier Economies Logistics Lab and the Co-Director of the Internet Edge Supply Chain Lab ASU; Principal Investigator of the $15 million CARISCA Project at Kwame Nkrumah University of Science and Technology in Kumasi, Ghana; Director of Global Projects for ILOS–Instituto de Logística e Supply Chain in Rio de Janeiro, Brazil; Board Advisor to Flexe, Enterra Solutions, and Droneventory; founding board member of the Global Supply Chain Resiliency Council and Reverse Logistics and Sustainability Council; serves on the board of directors for the Organización Mundial de Ciudades y Plataformas Logísticas
HONORS: CSCMP Distinguished Service Award and International Warehouse and Logistics Association Distinguished Service Award
RESEARCH AREAS: reverse logistics, sustainable supply chain management, supply chain finance, and secondary markets
What first sparked your interest in supply chain management?
I was an MBA student at Michigan State concentrating in finance, and somebody told me, “There is this thing called material and logistics management, and Michigan State is the best in the world at this thing.” I thought, gee, I was a math teacher in the Lansing Public School district, which was in great decline. I would like to be in a profession where I am not at risk of being laid off, so I switched [my concentration]. And I really fell in love with it. Dr. Bowersox, who taught a class I was in, remembered me, and he brought me back home to Lansing a couple of years after I graduated. I worked for his company, and then I got my doctorate under him. That was really the beginning of it.
You were one of many prominent supply chain academics who were taught by Dr. Bowersox. How did he influence your own work?
He actually changed how I think. He was always in a hurry and was always pushing [his students] to be in a hurry with him. He could see the simple truth in a big complex thing, and he sort of taught us how to do that. In that way, he kind of taught us how to be faculty. You know, it was really kind of a thing: All of his Ph.D. students ended up being pretty successful. It is an honor to have gotten to be one of them.
Well, having a wonderful mentor…
It really matters.
It really does matter. So, one of your main areas of focus for many years has been reverse logistics. How has reverse logistics, and the industry’s attention to it, changed over the years?
I think people have begun to see that it is an important strategic variable. Over the last year, we really saw a shift in e-commerce, and returns became a more important part of managing your supply chain. Also, I think people have discovered that returns and overstocks can be quite profitable. The secondary market in the U.S.—think about [the retail stores like] Ross Stores, Marshalls, HomeGoods, and all the factory outlets—those were originally designed to be a drain for stuff that didn’t sell or got returned but those are very profitable businesses. A lot of times you can buy for very low cost, and then you can sell for less.
As an analogy, I always tell people to think back to your college experience, where you probably bought that new science textbook for—well, I am old so I was going to say $75, but it is now probably $200.
It’s like $250. I have a college student.
$250. Then you sell it back for $20, and then the bookstore sells it for $175. For the bookstore, that is a great deal, right?
A wonderful deal.
So, there is a lot of money—a lot of profit—in reverse logistics that is then transformed into the secondary market.
In what ways are we still struggling in terms of reverse logistics?
Well, there is not as many really great reverse logistics [IT] systems. There hasn’t been a lot of digitization in reverse logistics actually.
Maybe now is the time for some good innovation.
I think this is a really great time for some of the startups.
Shifting gears: Last year the book you co-authored on supply chain financing came out. Can you briefly explain what supply chain financing is?
So, the purpose of the supply chain has always been: make, source, deliver, return, and so on. But today, a lot of times, the best source of capital is found within the supply chain, so supply chains are being used to fund the organization and sometimes vice versa. For example, if you think about the Apple model, they’ve got about 10 days’ worth of inventory globally. Do they only have 10 days? No. They’ve probably got more, but they are sticking it at the supplier, so they are using their supply chain to facilitate really good financials for Apple.
How did your interest in this area develop?
Well, I was teaching at Rutgers [University] at the time in New Jersey, and we went over to Midtown Manhattan, and we visited Colgate-Palmolive. They were so nice to us. They had a supply chain finance department, and they had all their people there to talk to the old professor. They kept using an acronym I didn’t understand, “FTG.” I thought maybe that was a financial thing. I didn’t know what it was. I said, “What is that?” And they said, “Oh sorry Dale, it is ‘fund the growth.’” So, Colgate is an old company. Their stock price is not going up a lot or down. You can max out on your debt capital very easily. So, the best capital to fund growth in emerging economies is found in the supply chain. That really piqued my interest.
How are you helping to mentor and influence the next generation of supply chain thinkers?
Well, you know, one of them, [my son Zac Rogers,] grew up in my house. So maybe he is more mentoring me these days. It really is fun because a lot of the young academics have exceptional toolsets, and they can really do stuff that an old man doesn’t know how to do. It is sort of a mutual thing. I really enjoy getting to work with them. There is a lot of really bright young faculty in supply chain that are coming through. This is a really exciting time.
How do you like collaborating with your son?
That is pretty fun most of the days. He is a smart kid. He does the [Logistics Managers Index] with me, and he does more work than me on it. He knows a bunch of stuff I don’t, so it has been really fun. What a gift to get to work with your son.
You have been involved in Executive Education programs all over the world. Why are these international assignments so important to you, and how have you benefited from them?
Truthfully it is a two-way street because whenever you teach in one of those, you usually learn stuff from the class. I really enjoy getting to see the world a little bit as well. It is fun, it is profitable, and it is also a really nice learning tool for me. I have students all over the world.
Lastly, what is one of your proudest career achievements would you say?}
Well, I have to tell you, this Distinguished Service Award is a real gift. But, you know, getting to be one of the early guys on reverse logistics, that’s a cool thing, and getting to be early on supply chain financing, that is also a cool thing. Truthfully the whole deal has been kind of a blast. It is really a great job. Eventually maybe somebody is going to come to my classroom, and say, “Sorry Dale, you’ve got to go home.” But until they do, I am going to keep doing it.
The practice consists of 5,000 professionals from Accenture and from Avanade—the consulting firm’s joint venture with Microsoft. They will be supported by Microsoft product specialists who will work closely with the Accenture Center for Advanced AI. Together, that group will collaborate on AI and Copilot agent templates, extensions, plugins, and connectors to help organizations leverage their data and gen AI to reduce costs, improve efficiencies and drive growth, they said on Thursday.
Accenture and Avanade say they have already developed some AI tools for these applications. For example, a supplier discovery and risk agent can deliver real-time market insights, agile supply chain responses, and better vendor selection, which could result in up to 15% cost savings. And a procure-to-pay agent could improve efficiency by up to 40% and enhance vendor relations and satisfaction by addressing urgent payment requirements and avoiding disruptions of key services
Likewise, they have also built solutions for clients using Microsoft 365 Copilot technology. For example, they have created Copilots for a variety of industries and functions including finance, manufacturing, supply chain, retail, and consumer goods and healthcare.
Another part of the new practice will be educating clients how to use the technology, using an “Azure Generative AI Engineer Nanodegree program” to teach users how to design, build, and operationalize AI-driven applications on Azure, Microsoft’s cloud computing platform. The online classes will teach learners how to use AI models to solve real-world problems through automation, data insights, and generative AI solutions, the firms said.
“We are pleased to deepen our collaboration with Accenture to help our mutual customers develop AI-first business processes responsibly and securely, while helping them drive market differentiation,” Judson Althoff, executive vice president and chief commercial officer at Microsoft, said in a release. “By bringing together Copilots and human ambition, paired with the autonomous capabilities of an agent, we can accelerate AI transformation for organizations across industries and help them realize successful business outcomes through pragmatic innovation.”
That result came from the company’s “GEP Global Supply Chain Volatility Index,” an indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. The October index number was -0.39, which was up only slightly from its level of -0.43 in September.
Researchers found a steep rise in slack across North American supply chains due to declining factory activity in the U.S. In fact, purchasing managers at U.S. manufacturers made their strongest cutbacks to buying volumes in nearly a year and a half, indicating that factories in the world's largest economy are preparing for lower production volumes, GEP said.
Elsewhere, suppliers feeding Asia also reported spare capacity in October, albeit to a lesser degree than seen in Western markets. Europe's industrial plight remained a key feature of the data in October, as vendor capacity was significantly underutilized, reflecting a continuation of subdued demand in key manufacturing hubs across the continent.
"We're in a buyers' market. October is the fourth straight month that suppliers worldwide reported spare capacity, with notable contractions in factory demand across North America and Europe, underscoring the challenging outlook for Western manufacturers," Todd Bremer, vice president, GEP, said in a release. "President-elect Trump inherits U.S. manufacturers with plenty of spare capacity while in contrast, China's modest rebound and strong expansion in India demonstrate greater resilience in Asia."
Even as the e-commerce sector overall continues expanding toward a forecasted 41% of all retail sales by 2027, many small to medium e-commerce companies are struggling to find the investment funding they need to increase sales, according to a sector survey from online capital platform Stenn.
Global geopolitical instability and increasing inflation are causing e-commerce firms to face a liquidity crisis, which means companies may not be able to access the funds they need to grow, Stenn’s survey of 500 senior e-commerce leaders found. The research was conducted by Opinion Matters between August 29 and September 5.
Survey findings include:
61.8% of leaders who sought growth capital did so to invest in advanced technologies, such as AI and machine learning, to improve their businesses.
When asked which resources they wished they had more access to, 63.8% of respondents pointed to growth capital.
Women indicated a stronger need for business operations training (51.2%) and financial planning resources (48.8%) compared to men (30.8% and 15.4%).
40% of business owners are seeking external financial advice and mentorship at least once a week to help with business decisions.
Almost half (49.6%) of respondents are proactively forecasting their business activity 6-18 months ahead.
“As e-commerce continues to grow rapidly, driven by increasing online consumer demand and technological innovation, it’s important to remember that capital constraints and access to growth financing remain persistent hurdles for many e-commerce business leaders especially at small and medium-sized businesses,” Noel Hillman, Chief Commercial Officer at Stenn, said in a release. “In this competitive landscape, ensuring liquidity and optimizing supply chain processes are critical to sustaining growth and scaling operations.”
With six keynote and more than 100 educational sessions, CSCMP EDGE 2024 offered a wealth of content. Here are highlights from just some of the presentations.
A great American story
Author and entrepreneur Fawn Weaver closed out the first day of the conference by telling the little-known story of Nathan “Nearest” Green, who was born into slavery, freed after the Civil War, and went on to become the first master distiller for the Jack Daniel’s Whiskey brand. Through extensive research and interviews with descendants of the Daniel and Green families, Weaver discovered what she describes as a positive American story.
She told the story in her best-selling book, Love & Whiskey: The Remarkable True Story of Jack Daniel, His Master Distiller Nearest Green, and the Improbable Rise of Uncle Nearest. That story also inspired her to create Uncle Nearest Premium Whiskey.
Weaver discussed the barriers she encountered in bringing the brand to life, her vision for where it’s headed, and her take on the supply chain—which she views as both a necessary cost of doing business and an opportunity.
“[It’s] an opportunity if you can move quickly,” she said, pointing to a recent project in which the company was able to fast-track a new Uncle Nearest product thanks to close collaboration with its supply chain partners.
A two-pronged business transformation
We may be living in a world full of technology, but strategy and focus remain the top priorities when it comes to managing a business and its supply chains. So says Roberto Isaias, executive vice president and chief supply chain officer for toy manufacturing and entertainment company Mattel.
Isaias emphasized the point during his keynote on day two of EDGE 2024. He described how Mattel transformed itself amid surging demand for Barbie-branded items following the success of the Barbie movie.
That transformation, according to Isaias, came on two fronts: commercially and logistically. Today, Mattel is steadily moving beyond the toy aisle with two films and 13 TV series in production as well as 14 films and 35 shows in development. And as for those supply chain gains? The company has saved millions, increased productivity, and improved profit margins—even amid cost increases and inflation.
A framework for chasing excellence
Most of the time when CEOs present at an industry conference, they like to talk about their companies’ success stories. Not J.B. Hunt’s Shelley Simpson. Speaking at EDGE, the trucking company’s president and CEO led with a story about a time that the company lost a major customer.
According to Simpson, the company had a customer of their dedicated contract business in 2001 that was consistently making late shipments with no lead time. “We were working like crazy to try to satisfy them, and lost their business,” Simpson said.
When the team at J.B. Hunt later met with the customer’s chief supply chain officer and related all they had been doing, the customer responded, “You never shared everything you were doing for us.”
Out of that experience, came J.B. Hunt’s Customer Value Delivery framework. The framework consists of five steps: 1) understand customer needs, 2) deliver expectations, 3) measure results, 4) communicate performance, and 5) anticipate new value.
Next year’s CSCMP EDGE conference on October 5–8 in National Harbor, Md., promises to have a similarly deep lineup of keynote presentations. Register early at www.cscmpedge.org.
2024 was expected to be a bounce-back year for the logistics industry. We had the pandemic in the rearview mirror, and the economy was proving to be more resilient than expected, defying those prognosticators who believed a recession was imminent.
While most of the economy managed to stabilize in 2024, the logistics industry continued to see disruption and changes in international trade. World events conspired to drive much of the narrative surrounding the flow of goods worldwide. Additionally, a diminished reliance on China as a source for goods reduced some of the international trade flow from that manufacturing hub. Some of this trade diverted to other Asian nations, while nearshoring efforts brought some production back to North America, particularly Mexico.
Meanwhile trucking in the United States continued its 2-year recession, highlighted by weaker demand and excess capacity. Both contributed to a slow year, especially for truckload carriers that comprise about 90% of over-the-road shipments.
Labor issues were also front and center in 2024, as ports and rail companies dealt with threats of strikes, which resulted in new contracts and increased costs. Labor—and often a lack of it—continues to be an ongoing concern in the logistics industry.
In this annual issue, we bring a year-end perspective to these topics and more. Our issue is designed to complement CSCMP’s 35th Annual State of Logistics Report, which was released in June, and includes updates that were presented at the CSCMP EDGE conference held in October. In addition to this overview of the market, we have engaged top industry experts to dig into the status of key logistics sectors.
Hopefully as we move into 2025, logistics markets will build on an improving economy and strong consumer demand, while stabilizing those parts of the industry that could use some adrenaline, such as trucking. By this time next year, we hope to see a full recovery as the market fulfills its promise to deliver the needs of our very connected world.