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."
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.