An improving economy and a strong lineup of speakers and presentation topics drew more than 3,100 supply chain professionals to this year's Annual Global Conference in Philadelphia, Pennsylvania, USA. Participants enjoyed three days of educational seminars along with the "Supply Chain of the Future" exhibition, which showcased cutting-edge supply chain technology, equipment, and services.
Not able to go to the conference this year or unable to get to all of the sessions you would have liked to attend? The following roundup of some of the conference's sessions and events will help you fill in some of those gaps.
For additional information on this year's Annual Global Conference as well as the upcoming 2012 conference (which will take place from September 30-October 3 in Atlanta, Georgia, USA) visit the conference's website: cscmpconference.org.
CSCMP bestows awards for excellence
CSCMP recognized a number of special achievements at the Annual Global Conference. Here is a brief rundown of the awards that were presented for excellence in business and academics.
The 2011 Distinguished Service Award was presented to Dr. James R. Stock, Frank Harvey Endowed Professor of Marketing, University of South Florida. Stock has left a profound mark on the field through teaching, mentoring students, authoring textbooks, conducting research, editing journals, and educating supply chain professionals. (For more about Dr. Stock, see "Dialogue".)
Haritha Metta received the Doctoral Dissertation Award for her paper "A Multi-Stage Decision-Support Model for Coordinated Sustainable Product and SC Design." Metta is currently the revenue management science analyst for Carnival Cruise Lines.
David Graham Hyatt of the University of Arkansas and Nicholas Berente of the University of Georgia received the E. Grosvenor Plowman Award for their paper "Proactive Environmental Strategies in the Supply Chain: An Exploration of the Effects of Cross-Sector Partnerships." The Plowman Award is given to the best research paper presented at CSCMP's Supply Chain Management Educators' Conference.
The Bernard J. La Londe Best Paper Award was given to R. Glenn Richey, Anthony S. Roath, Judith M. Whipple, and Stanley E. Fawcett for "Exploring a Governance Theory of Supply Chain Management: Barriers and Facilitators to Integration." The La Londe Award is presented for the most valuable paper in the Journal of Business Logistics.
Ahold USA, Del Monte, and ES3 LLC received the Supply Chain Innovation Award for their collaborative direct-to-store program. The program created a shared, collaborative warehouse for manufacturers and retailers, which helped to reduce costs and carbon usage, improve speed to shelf, and increase on-shelf availability of product.
New board officers announced
In addition to being an educational event, CSCMP's Annual Global Conference also serves as the association's annual business meeting. As part of those proceedings, members elected the following officers to its board of directors:
Board of Directors Chair: Nancy W. Nix, executive director of the EMBA Program and professor of supply chain practice at the Neeley School of Business, Texas Christian University
Immediate Past Chair: Keith Turner, vice president marketing and sales, Alcoa World Alumina, ALCOA
Board Chair-elect: Rick J. Jackson, executive vice president, Mast Global Logistics Inc., a subsidiary of Limited Brands Inc.
Board Vice Chair: Heather L. Sheehan, vice president, indirect sourcing and logistics, Danaher Corp.
Secretary and Treasurer: Ted Stank, Bruce Chair in Logistics at The University of Tennessee
Here are summaries of just three of the nearly 200 educational sessions that sparked interest at the annual conference. CSCMP members can learn more about these and other sessions by downloading the presentation slides from CSCMP's website. Slides are available at the "2011 Session Presentations" section under the "Educational Events" tab. A member login is required.
Panel offers talent-development tips
When it comes to finding, developing, and retaining supply chain talent, managers have plenty to worry about, as attendees at the "Talent Crisis in Supply Chain Management" session made clear.
But moderator and executive search consultant Timothy Stratman and panelists Ty Gent of Pepsico, Rebecca Lyons of Johnson & Johnson, Jarrod Goentzel of the Massachusetts Institute of Technology, and Stewart Lumsden of the search firm Spencer Stuart were able to offer a host of suggestions and helpful ideas to the standing-room-only crowd.
Just a few of their recommendations:
Companies should look for the following characteristics in their supply chain managers: the ability to drive change and build an effective organization, a global perspective, "commercial sense," problem-solving skills, and the ability to innovate.
Today's young, entry-level employees tend to feel entitled when it comes to salary and perks. Telling them they have to "pay their dues" will not get you far. Give them challenges and opportunities to make concrete contributions that make a difference to the company, its customers, and society at large, and both employer and employee will benefit.
A supply chain or logistics degree is helpful, but you can also hire bright people who have a broad business understanding and leadership skills, and then teach them about warehousing, transportation, inventory, and so on. "We can teach you about supply chain. We want to know what you're going to do with it," said Gent.
Rotate trainees and rising stars through different functional areas. That way they'll find out what interests them most, and you'll learn where their talents lie. Help them understand that lateral moves through various supply chain functions rather than constant promotions will pay off later when they oversee a wider range of functional areas.
Getting to "one version of the truth"
It seems clear enough that all parts of a business ought to work toward the same goals. But supply chain professionals have long struggled with cross-functional collaboration and making decisions that benefit the entire supply chain.
In a session titled "A New Supply Chain Paradigm," executives from the sporting goods manufacturer and distributor Easton-Bell Sports and the pharmaceutical and medical device maker Hospira discussed their efforts to use a relatively new set of data tools to help their companies develop a common basis for decision making.
Both companies are using a set of software tools to gather and analyze company data that will offer what the tool's developer, Competitive Insights, calls "one version of the truth."
This "one version of the truth" can be especially helpful for companies such as Easton-Bell Sports, which consists of different brands, including Easton, Bell, Giro, and Riddell. To make decisions across these multiple businesses, the company needed to be able to manage substantial amounts of data—especially because it has a large number of stock-keeping units (SKUs) and a wide range of customers, according to B. Lewis Hornsby III, vice president, global logistics/fulfillment. By persuading multiple functions to use the same sets of data, Easton-Bell has helped to get all parts of the company "on the same page," Hornsby said. As a result, there is less debate over such things as managing SKU obsolescence.
Similarly, Hospira had historically struggled with getting data out of its network, according to James Hardy, senior vice president of operations. "We had the data in many systems," he said. "Production management, sales, and warehouse management [data] were all in different systems."
By pulling all that data into one system, Hospira gained insight into costs and profitability by product line and customer. "We've learned a lot," Hardy said. "We found some things we thought we were doing well where we were [actually] not doing as well as we should." For example, the data analysis showed that if one channel fulfilled orders once a week instead of three times a week, the company could save $3 million a year.
Chiquita's "Undercover Boss" inspired by supply chain experience
When Fernando Aguirre, Chairman and CEO of Chiquita Brands International, walked out on stage for his presentation at CSCMP's Annual Global Conference, he was pulling a pallet jack loaded with boxes of bananas. He then proceeded to demonstrate, to appreciative laughter, that he knew how to operate the equipment.
That set the tone for an interesting and inspiring speech by the executive, who rose from modest circumstances in Mexico to eventually head the giant produce grower and seller. Aguirre told his life story, including how his parents, mentors, and managers influenced the course of his career. He also peppered the presentation with scenes from his experience on the television show "Undercover Boss," including stints harvesting lettuce, driving a forklift in a warehouse, and working with an import coordinator at one of Chiquita's offices. Aguirre's personal experience with supply chain operations and the people who make them work proved to be "life-changing and inspirational" and influenced some of the changes he has implemented at the company, he said.
He also talked about his leadership philosophy, "LEAD"—learn, execute, adapt, and direct—and how a company's success depends on the "passion and commitment" of employees. Aguirre arrived at Chiquita six years ago, tasked with rescuing the company from bankruptcy. He quickly recognized that company employees lacked a sense of purpose and commitment. In response, he instituted a corporate mission to improve nutrition worldwide, as well as programs to recognize individual and team contributions, improve productivity, and open up direct communication between employees at all levels worldwide.
Go "Pro" with new certification program
CSCMP unveiled its new SCPro professional certification program in supply chain management at the Annual Global Conference. The program provides global supply chain professionals with a way to demonstrate their skill level and mastery of end-toend supply chain functions.
The program consists of three levels:
Level One: Cornerstones of Supply Chain Management. SCPro Level One covers the entire end-to-end supply chain with a focus on building customer relationships. This level is open to candidates who have either a bachelor's degree or four years of relevant experience.
Level Two: Analysis and Application of Supply Chain Challenges. This level tests a candidate's ability to thoughtfully analyze real-world case studies and formulate supply chain solutions that improve the supply chain in both the short and the long term.
Level Three: Implementation of Supply Chain Transformation. The highest SCPro designation requires the candidate to apply practical supply chain skills through an independent project. It marks the candidate as a leader who is valuable not only within his or her organization but also to the profession as a whole.
"The certification will enable professionals to demonstrate to their employers that they are the kind of leaders who will positively impact their organizations' bottom lines," said Judy Schieve, manager of certification programs. "When a candidate completes all three levels of the program, he or she will also have a portfolio of work to augment the professional experience."
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Inclusive procurement practices can fuel economic growth and create jobs worldwide through increased partnerships with small and diverse suppliers, according to a study from the Illinois firm Supplier.io.
The firm’s “2024 Supplier Diversity Economic Impact Report” found that $168 billion spent directly with those suppliers generated a total economic impact of $303 billion. That analysis can help supplier diversity managers and chief procurement officers implement programs that grow diversity spend, improve supply chain competitiveness, and increase brand value, the firm said.
The companies featured in Supplier.io’s report collectively supported more than 710,000 direct jobs and contributed $60 billion in direct wages through their investments in small and diverse suppliers. According to the analysis, those purchases created a ripple effect, supporting over 1.4 million jobs and driving $105 billion in total income when factoring in direct, indirect, and induced economic impacts.
“At Supplier.io, we believe that empowering businesses with advanced supplier intelligence not only enhances their operational resilience but also significantly mitigates risks,” Aylin Basom, CEO of Supplier.io, said in a release. “Our platform provides critical insights that drive efficiency and innovation, enabling companies to find and invest in small and diverse suppliers. This approach helps build stronger, more reliable supply chains.”
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is 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).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.
That percentage is even greater than the 13.21% of total retail sales that were returned. Measured in dollars, returns (including both legitimate and fraudulent) last year reached $685 billion out of the $5.19 trillion in total retail sales.
“It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face,” Michael Osborne, CEO of Appriss Retail, said in a release.
Specifically, the report lists the leading types of returns fraud and abuse reported by retailers in 2024, including findings that:
60% of retailers surveyed reported incidents of “wardrobing,” or the act of consumers buying an item, using the merchandise, and then returning it.
55% cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks.
48% of retailers faced occurrences of returning stolen merchandise.
Together, those statistics show that the problem remains prevalent despite growing efforts by retailers to curb retail returns fraud through stricter returns policies, while still offering a sufficiently open returns policy to keep customers loyal, they said.
“Returns are a significant cost for retailers, and the rise of online shopping could increase this trend,” Kevin Mahoney, managing director, retail, Deloitte Consulting LLP, said. “As retailers implement policies to address this issue, they should avoid negatively affecting customer loyalty and retention. Effective policies should reduce losses for the retailer while minimally impacting the customer experience. This approach can be crucial for long-term success.”