The recipients of CSCMP's inaugural Emerging Leader Award—Keiko Arai, Florian Schick, and Amanda Tolhurst—talk about their experiences in supply chain management and offer advice to their peers.
The future of supply chain management will be shaped by the best and brightest, those under-30-year-old professionals who will bring new ideas and innovations to the discipline. To recognize individuals who promise to be among the next generation of supply chain leaders, the Council of Supply Chain Management Professionals (CSCMP) recently launched its first-ever Emerging Leader Award.
"The future of our industry lies with today's young professionals who will be tomorrow's leaders," said Rick Blasgen, CSCMP president and chief executive officer, in announcing the award. "It is important that we recognize the contributions of emerging talent and the positive impact they have on our profession today and will continue to have in the future."
The winners of the inaugural award—Keiko Arai, Florian Schick, and Amanda Tolhurst—were honored at CSCMP's Annual Global Conference in Denver, Colorado, USA. They were chosen because of their personal career achievements and their record of accomplishment in the supply chain profession, as evidenced by awards, peer recognition, industry publications, and recommendations, according to CSCMP Young Professionals Committee Chair John Bowersox.
CSCMP's Supply Chain Quarterly Editor James A. Cooke asked the award winners about their careers and aspirations.
KEIKO ARAI
Keiko Arai recently accepted a position in global outsourcing with Bell Helicopter after completing Textron's two-year Leadership Development Program in Integrated Supply Chain Management. Her work experience includes internships with Farmland and Kraft in such areas as logistics, sales, and merchandising.
A Kansas native, Arai received a Bachelor of Science degree in supply chain management with an international business concentration from the University of Kansas. She has studied and worked in Japan, France, Peru, and Mexico and is fluent in Japanese, French, and Spanish.
Arai's passion lies in international business. She hopes to pursue a career in global business expansion and development in emerging markets.
What attracted you to the supply chain management profession?
I read a book in high school called The Travels of a T-Shirt in the Global Economy by Pietra Rivoli and instantly became fascinated by the complexity of supply chain management. I love the continuous-improvement mindset. It's global, "big picture," creative, ever-changing, and cutting-edge.
What was your biggest surprise about the supply chain field when you entered the work force?
Every industry is different and has its own, unique supply chain challenges. There is no "one size fits all" sort of best practice. I interned in the fast-paced food retail industry while in college. After graduating, I took a position in the aerospace industry. I first tried to implement what I learned from the retail world in the aerospace world, ignorant of how different the two industries were from each other. While it takes minutes to produce and pack a box of Oreos, it can take months to years to build an aircraft constructed of thousands of parts. This makes for two completely different supply chains and lead times.
Based on your own experience, do you have any advice for young professionals about how to succeed in supply chain management?
Your direct supervisor plays a tremendous role in your career and development. ... If possible, try to pair yourself up with a supervisor who not only delegates responsibilities well, but can also be your career coach. If professional athletes have coaches, working professionals should as well!
I also think that you should do what you love and are passionate about. ... It's too easy to give up on something you don't care about. You will be more determined, challenged, and fulfilled when you do what you love. Everyone should be doing his or her dream job.
Do people in supply chain management have any misperceptions about today's young professionals?
Yes, but in all honesty, there is a lot of truth to the current perceptions of today's young professionals. The first company I worked for out of college, my manager said to me, "What you know is theory, and what I know is reality." Many young professionals barge in with fresh eyes and new ideas thinking we can immediately make a difference in the company. Yes, we are stubborn, impatient, easily bored, and want to quickly get promoted. With the right manager, such negatively perceived characteristics and attitude can be turned around and used in meaningful projects that will generate impactful results.
How do you think your generation views supply chain management as a profession?
When I was in college, many students viewed supply chain management as "dirty manufacturing work." Working in a manufacturing facility isn't viewed as being nearly as glamorous as working on Wall Street. A lot of people don't realize that supply chain management goes beyond operations management.
Where do you see yourself 10 years from now?
I see myself leading cross-functional teams in global "greenfield" acquisitions and joint-venture projects in emerging markets.
FLORIAN SCHICK
Florian Schick was recently named head of strategy and business development for Merck Serono in Germany. Previously, he was an associate at McKinsey & Company's Supply Chain Management Practice in its Frankfurt, Germany, office. Before McKinsey he spent three years at Pfizer as manager of distribution models and channel strategies.
Schick holds a master's degree in supply chain management from the Massachusetts Institute of Technology in the United States and the University of Zaragoza in Spain. He earned his bachelor's degree in general management from the European Business School in Germany and ITESM in Mexico.
Based on his experience with health-care supply chains in Africa, he wrote his master's thesis on emerging market strategies for pharmaceutical companies. In addition to his native language of German, he is fluent in English and Spanish.
What attracted you to the field of supply chain management?
It was a desire to learn how companies and industries truly work from end to end by achieving a cross-functional understanding. I also wanted to understand how to overcome the "silo thinking" that can be observed in so many organizations.
What was your biggest surprise about the field of supply chain management when you â?¨entered the work force?
That continuous learning is a key to success, and that people skills and "soft" factors do matter. I also think that to prepare decisions properly, analytical tools and capabilities are a prerequisite today. In addition, to be successful at implementing decisions, you must have engagement and commitment across various levels of the organization.
Based on your own experience, do you have any advice for young professionals about how to succeed in supply chain management?
Broaden your horizon across countries and industries. And seek challenges early on in your careers.
Do you have any predictions about where the industry is headed in theâ?¨next 10 years?
I see mega trends like the rise of digitization and "big data" shaping the field. I'm curious about how advanced collaboration between companies in the same and adjacent industries will develop.
Where do you see yourself 10 years from now?
Taking responsibility in and contributing to the progress of the health-care and pharmaceutical industry.
AMANDA TOLHURST
Amanda Tolhurst has been with Whirlpool Corp. for more than seven years. As the senior manager of internal materials operations at Whirlpool's operation in Ohio, she is responsible for the strategic and day-to-day management and delivery of parts to dryer manufacturing lines. Prior to this position she held various supply chain responsibilities at Whirlpool Canada, including management of the forecasting and supply teams and management of distribution operations and outsourced logistics relationships.
Tolhurst holds a Bachelor of Science in logistics and transportation from the University of Tennessee and a Master of Business Administration from the Schulich School of Business at York University. She chaired the Supply Chain and Logistics Association (SCL) of Canada's annual conference in both 2011 and 2012, and received SCL's 2008 President's Award for her work on a network consolidation project at Whirlpool Canada.
What attracted you to the supply chain management profession?
The biggest attraction was the variety of challenges available to someone with a logistics degree—not only with the number of different companies that you could go work for, but the vast number of different jobs within those companies, whether it be forecasting, operations, manufacturing, transportation, customs, customer service, [and many others].
What was your biggest surprise about the supply chain field when you entered the work force?
The biggest surprise about the field was the similarities in how things get from point A to point B across different industries. Although a lot of the basics are the same, it's how well you implement them and challenge yourself to continuously improve that drives success.
Based on your own experience, do you have any advice for young professionals about how to succeed in supply chain management?
The biggest piece of advice that I would give is "be flexible." Be willing to try different areas in supply chain management and also be willing to step outside your comfort zone and do something on the business side to gain wider experience. Never say no to an opportunity to learn something new.
Do people in supply chain management have any misperceptions about today's young professionals?
I do not think there are any major misperceptions. Regardless of age, you have to prove yourself and earn the trust and respect of your colleagues.
Do you have any predictions about where the industry is headed in the next 10 years?
The industry is going to continue to get more creative as technology continues to change how we think and do normal, everyday things. Companies are experimenting with new equipment and new ways of moving products.
How do you think your generation views supply chain management as a profession?
I think more younger people are starting to think of supply chain management as a good career path, which is different than it may have been in the past. It's starting to become a better-known choice for business majors.
Where do you see yourself 10 years from now?
I see myself leading a global supply chain organization that is dynamic, growing, and continuously challenging itself to improve.
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.