Your personal energy is the foundation of everything you do as a supply chain professional. Here's some advice on how to take care of yourself so you can be at your best.
Supply chain professionals know how to use a variety of resources to get products and materials to the right location, at the right time and at the right cost. Sometimes, though, we forget that we ourselves are a resource—in fact, the greatest resource we have. We need to manage ourselves with the same mastery we apply to our work. That's because our personal energy is the foundation of everything we do as supply chain professionals. Without sufficient energy, it will be harder to maintain the degree of focus and mental acuity we need in order to excel in our jobs.
There is good reason, then, to manage our personal energy with great care. But not everybody thinks that way, and many busy, time-pressured supply chain professionals are facing a personal "energy crisis," so to speak. To avoid that trap, it's helpful to think of energy as a three-faceted resource. Those facets are: physical energy, intellectual energy, and emotional energy. Let's take a look at some ways to enhance and maintain each of them.
Physical energy
Physical energy allows you to function well, and to feel good both physically and mentally. The key here is to make sure you have enough of this type of energy. This is easier said than done, admittedly. Where to start? Getting enough rest should be a priority. That may seem self-evident, yet it can be hard to make rest a priority when there are so many demands on our time. Everyone should target between seven and eight hours of sleep time. Make a point of going to bed at the same time every night and getting up at the same time every morning. Variations on the weekend should be minimal; wake up later if you desire more rest, but still try to go to sleep at the same time.
The quality of your rest is important as well. Benjamin Franklin's quote, "Fatigue is the best pillow," is true, yet you do not want to get to the exhausted state before you get your rest. Exhaustion can lead to illness. But being just a little tired at the end of the day, from exercise plus a full day of work, will help you sleep more soundly. Exercise, in fact, is necessary for anyone who wants to maintain physical energy. Exercise helps you focus better when you're awake, and it helps reduce your stress levels. Furthermore, being fit helps you resist illness. Getting exercise does not require fitness club memberships, expensive equipment, and time-consuming classes—although they can be very helpful for some people. You can get the benefits of exercise simply by walking at lunch, taking the stairs instead of an elevator, and/or parking at the far edge of the lot and walking a longer distance to your office. Many supply chain professionals, moreover, have the benefit of working in an environment that allows for walking around on the job. Take advantage of that opportunity and move around to "recharge your battery."
Stress has an impact on physical energy. Sometimes stress is our friend; it can pump us up and help us move forward. Everyone can think of a stressful time that got the heart racing and the juices flowing! Stress, however, must be managed, or it will become a drain on your physical energy. To counteract stress, you must make time to relax. Relaxing can include spending time with family and friends, or engaging in hobbies, sports, meditation, and so forth. What qualifies as relaxation is specific to each individual. What one person finds relaxing—say, playing on an after-work baseball team—another person may find stressful. Find what works for you.
Lastly, physical energy requires fuel. This means you need to eat nutritious foods at the right times and in the right amount. Always eat breakfast. Have it include some protein and produce, which will keep you going through the morning. Eat snacks. Do not wait until you are hungry to keep your body fueled! And be sure to eat the right amount. Eating too much at once will make you sluggish and tired; too little, and you'll feel weak and have difficulty staying focused. Stay hydrated, and drink water throughout the day.
When you think about physical energy, remember the old computer-programming adage: garbage in, garbage out. You are only going to feel good if you treat your body well. If you don't get the rest, exercise, and fuel you need, you will not have the physical foundation for the intellectual and emotional energy that makes a great supply chain professional.
Intellectual energy
Intellectual energy allows you to be "on," or at your best. When intellectual energy is high, the ideas flow and productivity rises. Intellectual energy lets you use and develop the skills you need in your current role. It allows you to be a passionate and effective supply chain professional.
There are many ways to experience surges of intellectual energy. It happens when you attend engaging educational conferences, when you are tackling a new problem, or when you learn a new skill. You'll also feel intellectual energy when you spend time reflecting on, planning, and devising strategies.
To get the full benefits of intellectual energy, it's necessary to have a good physical energy base. You must be rested, properly fueled, and physically well to maintain and get the most from intellectual energy.
Emotional energy
Emotional energy allows a supply chain professional to be a leader. Call it charisma, call it enthusiasm, call it quiet strength—it comes in different forms for different people. Your colleagues acquire your emotional energy and become motivated. They respond to your vision and needs, and they follow you.
Exceptional supply chain professionals make more emotional energy than they consume. Being a "net exporter" of emotional energy is important: That excess energy gets absorbed by team members who need to feel the strength you can provide when they are depleted (just as you will need to depend on the extra energy and enthusiasm others bring on those occasions when you feel depleted).
Unfortunately, there are some people who never give off a positive emotional energy flow. Instead, they suck the emotional energy out of the team. They can turn even fun events into negative occasions. We all know them, and we all avoid them when possible.
Make healthy choices
It's important to recognize that many things in business and life lie outside your control. This fact runs counter to what many of us have been told. It is dangerous to believe that ANYONE has (or can acquire) omnipotent control. This is a fantasy that absolutely drains energy.
While you can't control how others choose to behave and think, you can manage your own behavior and mindset. You can make changes to your lifestyle that will add to your physical energy. You can make choices that feed your intellectual energy. Last, you can provide positive, emotional energy and consistently model your values in your workplace. Good people will see and feel the message, and they will be inspired to follow.
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.”
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.
2024 was expected to be a bounce-back year for the logistics industry. We had the pandemic in the rearview mirror, and the economy was proving to be more resilient than expected, defying those prognosticators who believed a recession was imminent.
While most of the economy managed to stabilize in 2024, the logistics industry continued to see disruption and changes in international trade. World events conspired to drive much of the narrative surrounding the flow of goods worldwide. Additionally, a diminished reliance on China as a source for goods reduced some of the international trade flow from that manufacturing hub. Some of this trade diverted to other Asian nations, while nearshoring efforts brought some production back to North America, particularly Mexico.
Meanwhile trucking in the United States continued its 2-year recession, highlighted by weaker demand and excess capacity. Both contributed to a slow year, especially for truckload carriers that comprise about 90% of over-the-road shipments.
Labor issues were also front and center in 2024, as ports and rail companies dealt with threats of strikes, which resulted in new contracts and increased costs. Labor—and often a lack of it—continues to be an ongoing concern in the logistics industry.
In this annual issue, we bring a year-end perspective to these topics and more. Our issue is designed to complement CSCMP’s 35th Annual State of Logistics Report, which was released in June, and includes updates that were presented at the CSCMP EDGE conference held in October. In addition to this overview of the market, we have engaged top industry experts to dig into the status of key logistics sectors.
Hopefully as we move into 2025, logistics markets will build on an improving economy and strong consumer demand, while stabilizing those parts of the industry that could use some adrenaline, such as trucking. By this time next year, we hope to see a full recovery as the market fulfills its promise to deliver the needs of our very connected world.