A strong lineup of speakers and presentation topics drew thousands of supply chain professionals from 38 countries to this year's CSCMP Annual Global Conference in Atlanta, Georgia, 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.
Don't forget to mark your calendar for the 2013 Annual Global Conference October 20?23 in Denver, Colorado, USA, where we will celebrate CSCMP's 50th anniversary. (For more information, go to cscmpconference.org.)
CSCMP bestows awards for excellence
CSCMP RECOGNIZED a number of special achievements at its annual conference. Here is a brief rundown of the awards that were presented for excellence in business and academics.
The 2012 Distinguished Service Award was presented to Ann M. Drake, chief executive officer and chairman of DSC Logistics. Drake was recognized for her efforts at breaking down barriers for women in the field and for her roles as a leader, a mentor, a pioneer, and ambassador for the logistics and supply chain management professions.
Xiang Wan, assistant professor of supply chain management at The University of Tennessee, received the Doctoral Dissertation Award for his research, entitled Product Variety, Service Variety, and Their Impact on Distributors.
The Bernard J. La Londe Best Paper Award was given to Brent D. Williams and Matt A. Waller from the University of Arkansas for their article "Top-Down Versus Bottom-Up Demand Forecasts: The Value of Shared Point-of-Sale Data in the Retail Supply Chain." The La Londe Award is presented for the most valuable paper in the Journal of Business Logistics.
Convermex, Dal-Tile, Transplace, Werner Co., and Whirlpool Corp. received the Supply Chain Innovation Award for their collaborative efforts to consolidate low- and high-density freight across companies onto the same vehicle, reducing costs and demand for transportation resources.
In addition to these awards, CSCMP will be introducing the CSCMP Young Professionals Emerging Leader Award at next year's conference.
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 CSCMP's board of directors:
Board of Directors Chair: Rick J. Jackson, executive vice president, Mast Global Logistics Inc., a subsidiary of Limited Brands Inc.
Immediate Past Chair: Nancy W. Nix, executive director, EMBA Program and professor of supply chain practice at Texas Christian University
Board Chair-elect: Heather L. Sheehan, vice president, indirect sourcing and logistics, Danaher Corp.
Board Vice Chair: Ted Stank, Bruce Chair of Business and professor of supply chain management, The University of Tennessee
Secretary and Treasurer: Kevin F. Smith, president and chief executive officer, Sustainable Supply Chain Consulting
A list of board members and committee chairs is available here.
CSCMP session sampler
Here are summaries of just some 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 "2012 Session Presentations" section under the "Educational Events" tab. A member log-in is required.
Keynote speakers share wisdom and practical advice
The keynote speakers at the CSCMP Annual Global Conference offered both wit and wisdom, along with plenty of practical advice in presentations that clearly resonated with the audience of logistics and supply chain professionals.
In her October 1 acceptance speech, Ann Drake, the recipient of CSCMP's 2012 Distinguished Service Award, focused on changes in supply chain management and success factors for the future. Drake said the most important changes she has seen in her long career include the recognition by top executives of the importance of logistics and supply chain management; the increasing participation by women in the profession; the growth in importance of global supply chains; and the shift from transactional relationships to long-term strategic relationships with customers. As for the future, she said, success will come to organizations that emphasize intellectual capital, enthusiastically adopt new technologies, and expand relationships up and down the supply chain. In short, "Think big, think new, and think together," she said.
Next up were Arthur Blank, co-founder of The Home Depot and owner of the National Football League's Atlanta Falcons, and Shahid Khan, chief executive officer (CEO) of auto parts maker Flex-N-Gate Corp. and owner of the NFL's Jacksonville Jaguars. In a lively session moderated by Mike Regan, president of Tranzact Technologies, the two executives recounted how they built their companies from the ground up and discussed their philosophies of business innovation and leadership.
Blank, for example, explained how close observation of customers' behavior informed The Home Depot's supply chain and merchandising decisions. He summed up his management philosophy this way: "Hire the best people, give them the resources they need, give them a vision and help them to take the long-term view, imbue them with the company's culture, and give them reason to have pride in the company."
Khan, who rose from an immigrant dishwasher to a CEO, largely focused on people management. In times of economic trouble, he said, "the key resource we have is intellectual capital." During the recession, he noted, his company consolidated operations and found ways to reduce costs while continuing to promote product and process innovation. As a result, Khan said, Flex-N-Gate achieved record sales over the past few years.
On October 2, investor T. Boone Pickens and Andrew Littlefair, president and CEO of Clean Energy Fuels, conducted a wide-ranging discussion on energy, economics, and public policy. Pickens' dry Texas wit and strong opinions were on display as he opined about the presidential candidates' energy policies, the need for energy independence, and alternative fuels for truck fleets. Pickens asserted that the availability of new, more efficient engines and the growing number of natural gas fueling stations would help to bring more fleets into the natural gas fold.
When catastrophe strikes, being "overprepared" pays off
Thinking about the unthinkable can make you uncomfortable, but it's the only way to ensure successful responses when a catastrophe occurs.
That was one piece of advice among many that came out of a session titled "Catastrophic Events: The Ultimate Supply Chain Resiliency Test." Jock Menzies, president of the American Logistics Aid Network (ALAN), led the discussion about the supply chain stresses inherent in disaster response and recovery.
David Kaufman, director of policy and program analysis at the U.S. Federal Emergency Management Agency (FEMA), pointed out, "We have a self-interest in the nation's resilience in the face of catastrophic events." In truth, he went on, the top concern isn't really the catastrophic event itself, it's the consequences that follow disasters and create additional, long-term problems.
Some questions teed up by the panel that should give everyone pause:
In the absence of power, how do we deliver potable water, or any other essential services or commodities, through the "last tactical mile?"
Things cannot return to normal until the private sector restores operations. What, then, does the private sector need from the government to help it get up and running in the wake of a disaster?
Nobody likes to consider worst-case scenarios, but what happens if the "maximum of maximums" happens? How will you recover?
How can you leverage regional, national, or international size and scale to create effective local response?
Sandra G. Carson, vice president of enterprise risk management and compliance at Sysco, offered this advice: "You've got to be willing to take the criticism for being overprepared, because there is no defense for being underprepared."
U.S. Navy offers lessons for the private sector
As Commander, Naval Supply Systems Command, the U.S. Navy's Rear Admiral Mark Heinrich must deliver supply chain support for "America's Away Team" around the world. With more than 100 ships typically under way at any time, the stakes are high and "mission execution is key," Heinrich said in a session on performance-based logistics.
Heinrich noted that better relationships with suppliers allow the Navy to "perform in a more cost-wise manner." He then offered some advice on building supplier relationships that was based on the Navy's experience. Just three examples:
Suppliers' return on assets is a critical parameter, which implies that buyers must carefully consider the term of a contract. "Too short, and companies can't invest. Too long, and you drive out competition."
Alignment is about behavior, and that means providing incentives for beneficial results and penalties for inadequate performance. One incentive buyers could use: creating an opportunity for suppliers to make more money if they deliver greater value. Another is to break apart a bundle of business activities, and have the supplier compete for the now separate services.
Consistent and transparent governance is important, but the buyer should be careful not to demand an excessive degree of oversight. Insight can easily stray toward intrusion, Heinrich said.
Advice on maximizing your career potential
The subject of career advancement drew a standing-room-only crowd to a session titled "Maximizing Your Career Potential: You Are More in Charge Than You Think." Under the guidance of session moderator (and **italic{Supply Chain Quarterly} columnist) Tim Stratman, senior executives from a third-party logistics company, a manufacturer, and an executive recruiter spoke candidly about their own experiences and offered advice on how attendees could keep their own career plans on track.
Staying at least four or five years in a company is important, but longevity alone is not enough to prove your worth, said Ray Greer, president of BNSF Logistics. It's necessary to stay through a complete business cycle and be able to demonstrate how you managed through it, he said. Greer also recommended being able to correlate what you do with its impact on customer satisfaction, profitability, and company growth.
Building strong relationships internally is critical, said Mike Duffy, Cardinal Health's executive vice president, global manufacturing and supply chain, medical segment. This is particularly important when competing with a colleague for a promotion; you want the mutually supportive relationship to continue regardless of who gets the job. Duffy, who was a supply chain executive at Gillette prior to joining Cardinal, said that moving to a new industry and bringing a different perspective can be very beneficial. But he cautioned against damaging relationships with new colleagues by overlooking or discounting their company- and industry-specific knowledge, or by talking too much about your previous company.
Beware of spending too much time promoting yourself, warned David MacEachern, a partner with the executive search firm Spencer Stuart. "Some people spend more time marketing their careers than managing them," he said. Build a solid foundation of accomplishments, but don't be constantly pestering your superiors for recognition, he advised.
The venture-backed fleet telematics technology provider Platform Science will acquire a suite of “global transportation telematics business units” from supply chain technology provider Trimble Inc., the firms said Sunday.
Trimble's other core transportation business units — Enterprise, Maps, Vusion and Transporeon — are not included in the proposed transaction and will remain part of Trimble's Transportation & Logistics segment, with a continued focus on priority growth areas following completion of the proposed transaction.
Terms of the deal were not disclosed but as part of this agreement, Colorado-based Trimble will become a shareholder in Platform Science's expanded business. Specifically, Trimble will have a 32.5% stake in the newly expanded global Platform Science business and will receive a Platform Science board seat. The company joins C.R. England, Cummins, Daimler Truck, PACCAR, Prologis, RyderVentures, and Schneider as a key strategic investor in Platform Science along with financial investors 8VC, Activant Capital, BDT & MSD Partners, Softbank, and NewRoad Capital Partners.
According to San Diego-based Platform Science, the proposed transaction aims to enhance driver experience, fleet safety, efficiency, and compliance by combining two cutting-edge in-cab commercial vehicle ecosystems, which will give customers access to more applications and offerings.
From Trimble customers’ point of view, they will continue to enjoy the benefits of their Trimble solutions, with the added flexibility of the Virtual Vehicle platform from Platform Science. That means Virtual Vehicle-enabled fleets will receive access to the Virtual Vehicle Marketplace, offering hundreds of new and expanded applications, software, and solution providers focused on innovating and improving drivers' quality of life and fleet performance.
Meanwhile, Platform Science customers will enjoy the added choice of Trimble's remaining portfolio of transportation solutions which will be available on the Virtual Vehicle platform, the partners said.
"We believe combining our global transportation telematics portfolio with Platform Science's will further advance fleet mobility and provide our customers with a broader portfolio of solutions to solve industry problems," Rob Painter, president and CEO of Trimble, said in a release. "Increased collaboration between the new Platform Science business and Trimble's remaining transportation businesses will enhance our ability to provide positive outcomes for our global customers of commercial mapping, transportation management, freight procurement, and visibility solutions. This deal will result in significant synergies along with tremendous opportunities for employees to continue to grow in a more-competitive business."
The acquisition comes just five months after Platform Science raised $125 million in growth capital from some of the biggest names in freight trucking, saying the money would help accelerate innovation in the commercial transportation sector.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
Economic activity in the logistics industry expanded in August, though growth slowed slightly from July, according to the most recent Logistics Manager’s Index report (LMI), released this week.
The August LMI registered 56.4, down from July’s reading of 56.6 but consistent with readings over the past four months. The August reading represents nine straight months of growth across the logistics industry.
The LMI is a monthly gauge of economic activity across warehousing, transportation, and logistics markets. An LMI above 50 indicates expansion, and a reading below 50 indicates contraction.
Inventory levels saw a marked change in August, increasing more than six points compared to July and breaking a three-month streak of contraction. The LMI researchers said this suggests that after running inventories down, companies are now building them back up in anticipation of fourth-quarter demand. It also represents a return to more typical growth patterns following the accelerated demand for logistics services during the Covid-19 pandemic and the lows of the recent freight recession.
“This suggests a return to traditional patterns of seasonality that we have not seen since pre-COVID,” the researchers wrote in the monthly LMI report, published Tuesday, adding that the buildup is somewhat tempered by increases in warehousing capacity and transportation capacity.
The LMI report is based on 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).
That hiring surge marks a significant jump in relation to the company’s nearly 17,000 current employees across North America, adding 21% more workers.
That increase is necessary because U.S. holiday sales in 2023 increased 3.9% year-over-year as consumer spending grew even amidst uncertain economic times and trends like inflation and consumer price sensitivity. Looking at the coming peak, a similar pattern is projected for this year, with shoppers forecasted to drive a 4.8% increase in holiday retail sales for 2024, Geodis said, citing data from Emarketer.
To attract the extra workforce, Geodis says it will offer competitive wages, peak premium pay incentives, peak and referral bonuses, an expedited payment option, and flexible schedules. And it’s using an AI-powered chatbot named Sophie to serve as a virtual recruiting assistant.
“We acknowledge the immense responsibility we have to our customers to deliver exceptional service every day, and this is especially true during peak season,” Anthony Jordan, GEODIS in Americas Executive Vice President and Chief Operating Officer, said in a release. “Because peak season is the most business-critical sales period of the year for many of our retail clients, expanding our workforce is vital to ensure we have a flexible, dynamic team that can handle anticipated surges in demand.”