Supply chain specialist or generalist: Which is right for you?
Specialize, and you might get "locked in" to a particular area of responsibility. Broaden your knowledge and experience, and you could move further up the career ladder.
Supply chain management is a complex and challenging discipline. With so many functions involved (procurement, manufacturing, demand planning, inventory, and logistics, to name just a few), there are many potential areas of career specialization.
Specialization can be a good thing, and it plays an important role in supply chain management. By having specialists in key areas of the supply chain system, companies can make impressive gains in efficiency, effectiveness, customer satisfaction, and market expansion.
If you are a specialist, it often implies that you are an expert in a certain area of the supply chain system. In effect, you become the "go to" person for critical issues and challenges related to this specific realm of knowledge. Your particular skills and expertise can make you a valuable contributor to the success of the enterprise. Moreover, your deep knowledge in a key supply chain dimension can position you as a "big fish in a small pond." There is absolutely nothing wrong with becoming a specialist—if you do so as a result of a conscious decision.
However, depending on your career goals, there may be drawbacks to remaining a specialist. You could be cast as a "one-trick pony"—someone who is exceptionally capable in one area but appears to have no desire or, worse yet, lacks the ability to branch out into other areas. Another risk is being perceived as primarily an individual contributor—someone who performs very well in her own role but has limited ability to affect circumstances outside her specialty. In my work, I have often seen this perception arise when an executive has difficulty managing people. That is when you may hear comments like: "Joe is a great individual contributor; however, he really struggles when he tries to manage others. As long as we keep Joe where he is, he should do well."
Potentially the biggest risk of being a specialist is that you could become marginalized as business priorities rapidly evolve. This can happen when an industry's structure, technology, markets, or other dimensions radically change. This type of change may result in your company placing different weight on your particular role and area of expertise. I've seen this happen when companies are acquired, and the acquiring company changes a business's strategy and go-to-market model. A particular specialty that was highly valued prior to an acquisition may end up much lower on the priority list post-acquisition.
When it's time to broaden your credentials
The time will come in your career when you should consciously decide whether you want to continue as a specialist or broaden your experience, perspectives, and impact on your company. If you are currently a specialist but your ultimate goal is to ascend to the management ranks, then you should begin doing two things: 1) develop knowledge and experience in other areas within or outside of supply chain management; and 2) develop your people and leadership skills. Your mindset needs to transition from "I am a supply chain specialist with some generalist skills" to "I am a strong generalist business executive who leverages his supply chain expertise and experience to set strategy, lead people, and develop organizations."
As a general rule, the higher you go up the organizational hierarchy, the more you need to shift from specialist to generalist. While specialists tend to manage a narrow set of processes and information, generalists must be able to see the broader implications of decisions by focusing on strategic direction and on the people and processes needed to win.
I don't wish to imply that it's only management that needs to maintain a broader perspective. The ability to understand higher-level strategy is important in any role. If you don't know how your special area of expertise fits in with your company's ultimate goals, you could miss an opportunity to make a greater contribution to the company's success. Worse yet, your actions could be misaligned with the company's strategic direction and could actually inhibit overall progress.
To move up the career ladder, you will need to broaden your skills and perspectives. If you are in the early stages of your career, you can start by sharing your knowledge and experience with others. Is there someone in your department you can help to cross-train? Are there new hires you can assist in assimilating into your organization? By taking on initiatives like these you will develop leadership skills like mentoring and coaching.
Seek out opportunities to work in less familiar areas within your supply chain organization. This will let you see how your current role and that of other positions overlap or diverge. You can also volunteer for special-project teams at the corporate level and join ad hoc committees. These initiatives will give you insights into the larger strategic and organizational challenges facing the business.
A bolder step toward broadening your capabilities is to move into a completely new function like marketing, sales, or finance. Even accepting a lateral move will provide invaluable experience and demonstrate your willingness to tackle unfamiliar terrain. By doing so, you will evolve into a better-rounded executive.
Managing people directly or indirectly is a must for a generalist. To do it well requires more than intellect; it requires emotional intelligence, or EQ. High EQ is most often what differentiates the best leaders from everyone else. Leaders with high EQ are self-aware and in control of their emotional impulses. They are perceptive and can empathize with others. They have strong social skills and know how to make big things happen through others. This may be the greatest hallmark of strong generalists: They don't define success based on their own contributions. It isn't about them, it is about their organization.
Unlike our intelligence quotient (IQ), which is fixed in our adulthood, our emotional intelligence quotient can be developed with effort and focus. Even if you cannot claim today to be someone with a strong EQ, you can certainly become that kind of person in the near future. It is well worth the effort, because EQ turbocharges your career like nothing else.
Here are some key career accelerators that leverage EQ: 1) learning how to build and maintain strong relationships internally and externally; 2) developing influence skills that allow you to capture the heads and hearts of others; 3) developing exceptional communication skills that allow you to connect with your audience regardless of the setting; and 4) developing your self-awareness by learning how your personality and leadership style can be subtly and quickly adjusted to fit changing circumstances.
For a specialist who has mastered a specific supply chain dimension, one of the most difficult aspects of moving into management is embracing the ambiguity that comes from moving outside his or her comfort zone. But consider again the power of this declaration: "While earlier in my career I was a supply chain specialist with some developing general business skills, I have now become a strong generalist business executive who leverages his supply chain expertise and experience to set vision, lead people, and develop exceptionally strong organizations." Sound exciting to you? If it does, then make the decision to move from specialist to generalist today. If you want it badly enough, then begin working now to make it happen.
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
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.”
Third-party logistics (3PL) providers’ share of large real estate leases across the U.S. rose significantly through the third quarter of 2024 compared to the same time last year, as more retailers and wholesalers have been outsourcing their warehouse and distribution operations to 3PLs, according to a report from real estate firm CBRE.
Specifically, 3PLs’ share of bulk industrial leasing activity—covering leases of 100,000 square feet or more—rose to 34.1% through Q3 of this year from 30.6% through Q3 last year. By raw numbers, 3PLs have accounted for 498 bulk leases so far this year, up by 9% from the 457 at this time last year.
By category, 3PLs’ share of 34.1% ranked above other occupier types such as: general retail and wholesale (26.6), food and beverage (9.0), automobiles, tires, and parts (7.9), manufacturing (6.2), building materials and construction (5.6), e-commerce only (5.6), medical (2.7), and undisclosed (2.3).
On a quarterly basis, bulk leasing by 3PLs has steadily increased this year, reversing the steadily decreasing trend of 2023. CBRE pointed to three main reasons for that resurgence:
Import Flexibility. Labor disruptions, extreme weather patterns, and geopolitical uncertainty have led many companies to diversify their import locations. Using 3PLs allows for more inventory flexibility, a key component to retailer success in times of uncertainty.
Capital Allocation/Preservation. Warehousing and distribution of goods is expensive, draining capital resources for transportation costs, rent, or labor. But outsourcing to 3PLs provides companies with more flexibility to increase or decrease their inventories without any risk of signing their own lease commitments. And using a 3PL also allows companies to switch supply chain costs from capital to operational expenses.
Focus on Core Competency. Outsourcing their logistics operations to 3PLs allows companies to focus on core business competencies that drive revenue, such as product development, sales, and customer service.
Looking into the future, these same trends will continue to drive 3PL warehouse demand, CBRE said. Economic, geopolitical and supply chain uncertainty will remain prevalent in the coming quarters but will not diminish the need to effectively manage inventory levels.
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."