Here’s our roundup of events at the Council of Supply Chain Management Professionals’ annual CSCMP EDGE 2021 conference held in September in Atlanta, Georgia.
After going to a virtual format last year during the pandemic, the Council of Supply Chain Management Professionals’ annual EDGE conference was back in person this year. Attendees at the event, held in Atlanta, Georgia, in September, came both to gain a glimpse of the future of the discipline and to find solutions that they could implement today.
While there, attendees enjoyed keynote sessions, educational seminars, the annual Academic Research Symposium, networking receptions, and the Supply Chain Exchange Exhibition, which showcased supply chain technologies, equipment, and services.
Not able to attend the conference this year or unable to sample everything that was offered? This roundup will help you fill in some of the gaps.
CSCMP’s 2021 awards recognize industry excellence
Every year at its annual conference, CSCMP honors individuals and organizations that are helping to push the supply chain discipline to new heights. The following are some of the recognitions given out this year.
2021 Distinguished Service Award was presented to Dale Rogers, ON Semiconductor professor of business in the supply chain department at Arizona State University.
The 2021 inductees into CSCMP’s Supply Chain Hall of Fame were Rogers and John “Jock” Menzies, founder of American Logistics Aid Network (ALAN).
Gail Rutkowski, the outgoing president of the National Shippers Strategic Transportation Council (NASSTRAC), was honored for demonstrating excellence in transportation and/or logistics strategies with the NASSTRAC Shipper of the Year Award, which was renamed the Gail Rutkowski Transportation Excellence Award, in her honor.
Gleb Mikulich, a supply chain specialist at the supply chain software company ToolsGroup received the 2021 Emerging Leader Award for outstanding supply chain professionals age 32 and under.
Rebekah Brau of Brigham Young University won the Doctoral Dissertation Award for her paper “Integrating Systems, Processes, and Human Judgment: Three Essays on Value Creation with Supply Chain Analytics.”
Bernard J. La Londe Best Paper Award was given to Travis Tokar of Texas Christian University and Brent D. Williams and Brian S. Fugate, both from University of Arkansas, for “I Heart Logistics—Just Don’t Ask Me to Pay for It: Online Shopper Behavior in Response to a Delivery Carrier Upgrade and Subsequent Shipping Charge Increase.”
Marat Davletshin and Susan Golicic of Colorado State University received the E. Grosvenor Plowman Award for their research paper, “The Ties that Pay: The Impact of Buyer-Supplier Network Closure and Gender Diversity of Boards of Directors on Sustained Revenue Growth.”
2021Teaching Innovation Award was presented to Shane J. Schvaneveldt, Francois Giraud-Carrier, and Evan Barlow of Weber State University for their submission entitled: “Exploring Supply Chain Disruptions: An Active Learning Exercise for Connecting High School Students to SCM.”
CSCMP session sampler
With three keynote presentations and over 100 educational sessions, CSCMP EDGE 2021 attendees had a wide variety of educational opportunities to choose from. Here are highlights of just a few.
Supply chain miracle. The development of the COVID-19 vaccine in nine months has been hailed as a medical miracle. Just as much of a miracle? Building the supply chain that manufactures and distributes that vaccine. Jim Cafone, vice president of strategy and business operations for Pfizer, detailed the challenges the company faced during the opening keynote session.
From the beginning of the pandemic, Pfizer’s focus was on collaboration and how the company could contribute to eradicating the pandemic. “We never used the word ‘compete,’” said Cafone. “We were willing to share our tools and insight with anyone we could.” This commitment to collaboration included a willingness to share Pfizer’s significant global manufacturing capacity.
The biggest hurdle was the need for speed. Decisions were made in a rapid-fire fashion and traditional timeframes were crunched. For example, instead of developing the new manufacturing process in a standard, serial fashion, all of the stages occurred in parallel. This reduced the creation of the manufacturing process from 24 months to six.
Reshore or onshore? That is the question. Many executives are growing concerned about their dependence on other nations for critical goods and supplies. As a result, a number of companies are assessing whether reshoring should be part of their future strategic plans.
“Learning how you can make better decisions on sourcing onshore and offshore is critical,” noted Harry Moser, founder and president of the nonprofit organization Reshoring Initiative during an educational session.
To help make the decision-making process easier, the Reshoring Initiative has developed a total cost of ownership (TCO) tool that looks at 29 cost factors and includes freight rates from 17 countries. This free, customizable tool is available online at reshorenow.org.
Warehouse space shortage to continue. Soaring e-commerce shopping rates have combined with building delays in many regions to cause a crunch in the supply of new warehouse space, explained a panel of real estate experts during a session on industrial real estate.
The pandemic has triggered a “firestorm” of demand for distribution centers (DCs), due to increased online shopping, a corresponding jump in product returns, and a shift from just-in-time inventory management to greater stockpiling of goods, said Stephanie Rodriguez, vice president of leasing and development for Duke Realty.
Despite all the challenges, demand for warehouse space will continue to rise because of basic economics, said John Morris, executive managing director at the real estate firm CBRE. Transportation costs represent between half and two-thirds of logistics spending, so retailers are highly motivated to rent DC space close to their customers, he said.
Consumer-focused supply chain. The supply chain is increasingly shaping the consumer experience and playing a significant role in customer satisfaction. That realization needs to start guiding how companies structure their supply chain operations, according to a panel of experts who presented at CSCMP. “We should all be thinking about the consumer marketplace, not just retailers,” said Terry Esper, associate professor of logistics at The Ohio State University.
According to Esper, taking a consumer-centric approach to the supply chain does not mean that companies should abandon their focus on their direct customer. Instead, they should adopt a perspective similar to bifocal glasses, with one lens focused on their customer and one lens on the consumer.
The shift to consumer-centricity, however, will not necessarily be easy. It will require a cultural change, including different key performance indicators.
Ocean freight tsunami. It’s been a rough ride for ocean freight of late. Container ships wait for days to dock at ports, and labor shortages keep containers from being unloaded. Even once the containers are unloaded, there aren’t enough drivers to haul them away. And there doesn’t appear to be an end in sight, according to panelists who presented during a session on the problems facing ocean freight at CSCMP EDGE.
“Until consumption starts to slow down, we won’t see relief,” said Joshua Bowen, senior director of trade development at CEVA Logistics.
The panelists suggested transportation providers to use air freight to help with capacity issues, look for third-party solutions, invest in transloading to add capacity, and find a way to keep trucks moving by making driving more “trucker friendly.”
For importers and exporters, the panel advised leaning into relationships with providers, building trust by being transparent and living up to your commitments, and finding locations where you can ground containers and get them off the maritime terminals.
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.”
Census data showed that overall retail sales in October were up 0.4% seasonally adjusted month over month and up 2.8% unadjusted year over year. That compared with increases of 0.8% month over month and 2% year over year in September.
October’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were unchanged seasonally adjusted month over month but up 5.4% unadjusted year over year.
Core sales were up 3.5% year over year for the first 10 months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023. NRF is forecasting that 2024 holiday sales during November and December will also increase between 2.5% and 3.5% over the same time last year.
“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” NRF Chief Economist Jack Kleinhenz said in a release. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”
Despite that positive trend, market watchers cautioned that retailers still need to offer competitive value propositions and customer experience in order to succeed in the holiday season. “The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under invest in their stores,” Nikki Baird, VP of strategy & product at Aptos, a solutions provider of unified retail technology based out of Alpharetta, Georgia, said in a statement. “They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.”
A similar message came from Chip West, a retail and consumer behavior expert at the marketing, packaging, print and supply chain solutions provider RRD. “October’s increase proved to be slightly better than projections and was likely boosted by lower fuel prices. As inflation slowed for a number of months, prices in several categories have stabilized, with some even showing declines, offering further relief to consumers,” West said. “The data also looks to be a positive sign as we kick off the holiday shopping season. Promotions and discounts will play a prominent role in holiday shopping behavior as they are key influencers in consumer’s purchasing decisions.”
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.