When Ann M. Drake takes the stage at CSCMP's Annual Global Conference to accept the Distinguished Service Award, she will be the 47th person to receive the association's highest honor.
In 1994 she became one of the first women to run a major third-party logistics (3PL) company when she took over as chief executive officer and chairman of DSC Logistics. Since then, DSC has grown to become a nationwide network of integrated logistics and supply chain operations.
Drake's efforts at breaking down barriers—both for herself and for others—are part of the reason why she was chosen for the award. "Ann Drake is a person who is continually making contributions to the supply chain discipline, giving of herself to the people in the industry," said Rick Blasgen, CSCMP president and chief executive officer. "She is the epitome of what the Distinguished Service Award embodies—a leader, a mentor, a pioneer, and an extraordinary, energetic ambassador for the logistics and supply chain management professions."
In addition to leading DSC Logistics, Drake holds many volunteer positions. She is vice chairman of the Business Advisory Council for the Northwestern University Transportation Center. She also serves on the Board of Directors of the A.M. Castle Company, the Board of Governors for Chicago's Metropolitan Planning Council, and the Board of Governors for The Committee of 200, a global organization of women business leaders. Earlier this year she received the Alumni Merit Award from Northwestern University's Kellogg School of Management and in 2009 was named "Industry Leader of the Year" by the Illinois Institute of Technology. Recently she agreed to serve as transportation and logistics strategy leader for Chicago Mayor Rahm Emanuel's Plan for Economic Growth and Jobs.
Drake earned her undergraduate degree from the University of Iowa and her Master of Business Administration degree from the Kellogg School of Management.
CSCMP presents the Distinguished Service Award annually to an individual who has made significant contributions to the art and science of supply chain and logistics management.
Plan ahead with CSCMP
It's not too early to start thinking about ways to expand your supply chain knowledge in 2013. Here are some workshops and programs from CSCMP that can help you develop the skills and expertise you need to succeed in your job.
Fundamentals of Supply Chain Management: This course provides an introduction to supply chain management for those who are new to the field, managers who have taken on broader supply chain responsibilities, and experienced specialists who want to know more about the end-to-end supply chain. (March 11-12, May 20-21, and November 12-13)
Sales and Operations Planning: This workshop focuses on the key role that supply chain management plays in facilitating sales and operations planning activities, processes, and outcomes. (April 8-9)
Transportation: Challenges and Solutions: This program explores different transportation modes and types of carriers, the effects of globalization on transportation, current obstacles to meeting performance objectives, the changing shipper/carrier relationship, and emerging trends. (April 22-23)
From Strategy to Reality: How SCM Turns Corporate Ideas into Results: This high-level workshop offers a comprehensive overview of the strategic options and alternatives for supply chain management that corporations should consider. (May 6-7)
Distribution Center Planning and Operations: This workshop looks at both the high-level planning and the detailed execution needed to run an efficient distribution facility. (June 11-12)
Relationships and Collaboration Meet Performance Metrics: In two consecutive one-day sessions, participants will learn about tools and techniques for building, maintaining, and rescuing business relationships as well as how to create high-trust, high-performance alliances. (August 1-2)
Sourcing and Procurement: This workshop covers the essentials of sourcing and procurement in an integrated context. It emphasizes strategic sourcing, supplier relationship management, contracts, and setting priorities for sourcing and procurement management and staff. (September 9-10)
All workshops will be held at CSCMP's headquarters in Lombard, Illinois, USA. To register, click here.
Doctoral Dissertation Award recognizes research on product variety
Many industries have used product variety over the last few decades as a way to increase sales and profits. While that may be beneficial for manufacturers, little is known about how it affects the distributors that handle those products. That was one of the main reasons Dr. Xiang Wan, assistant professor of supply chain management at the University of Tennessee, chose to focus his doctoral dissertation on the impact that product and service variety has on soft drink distributors' supply chains.
His research, titled "Product Variety, Service Variety, and Their Impact on Distributors" will receive CSCMP's 2012 Dissertation Award at the Annual Global Conference. Comprising three separate essays, Wan's paper uses a series of empirical analyses to look at the effect of product variety on sales and the influences of product and service variety on both demand and costs.
"The main purpose of my dissertation is to help practitioners solve practical supply chain management problems," said Wan. "The soft drink industry provided an excellent forum for studying how product variety influences operational and sales performance." Although the study was based on a data sample from soft drink distributors, the research method, analysis procedure, and estimated results may be applied to other distribution channels with large logistics networks as well as to industries with a high degree of product variety, he added.
Wan received his doctorate in supply chain management from the Robert H. Smith School of Business at the University of Maryland, where he has won awards for teaching and research.
CSCMP's Doctoral Dissertation Award is presented annually to the author of a submitted doctoral dissertation in a logistics- or supply chain-related field. The selected work must demonstrate significant originality and technical competence while contributing to the logistics and supply chain knowledge base.
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.