In the supply chain field, we have many challenges on the talent front. Most of what we are collectively doing is devoted to being more attractive to a limited talent pool than our competitors are. But the real key to success in the talent arena is to expand the talent pool itself.
To listen to some academics, nothing matters but the bright young people earning university degrees. Degreed professionals are important, but we also need many thousands more nondegreed workers. We have to recognize that 75 percent (give or take) of supply chain jobs do not require a four-year degree from a university—but that doesn't mean all of those jobs are limited to toiling in a dank, dark warehouse, either. Our problem is that we are failing to create an ongoing stream of qualified and motivated people to fill those nondegreed jobs: people who enter the field on purpose rather than by accident or as a last resort. Sadly, the many programs directed at training forklift drivers and order pickers present a limited, and borderline negative, view of the rich and intricate tapestry of opportunities the supply chain profession provides.
Here in Ohio, we are developing a program that is designed to inform and to attract high school audiences to consider supply chain careers—whether they are interested in Ohio State University, a community college, a vocational education program, or a little training/certification so that they can go to work—and to ensure there will be jobs for them to go to. Our vision is to acquaint young people with the possibilities offered by the profession and divert them into appropriate developmental channels, early enough that they can enter the field educated, trained, and ready to be productive.
We think this will deliver competitive advantage. It will also continue to fill the talent pipeline so that we are not constantly fighting the talent shortage battle. It will give more people decent jobs at decent wages, often in communities in which there are not many traditional opportunities.
Art van Bodegraven
Managing principal
Van Bodegraven Associates
Powell, Ohio, USA
Open students' eyes to SCM as a profession
Recently I taught a seminar for the Executive Master of Business Administration (MBA) program at California State University's Fresno-Craig School of Business. The purpose of this one-day workshop was to introduce the discipline of supply chain management to the MBA students in a way that integrates traditional business topics such as finance, accounting, management, and manufacturing into an enterprisewide, systemwide view. My curriculum was based on the eight SCPro building blocks (created by CSCMP) and the Guiding Principles of the Lean Fulfillment Stream (from LeanCor).
The feedback from the students was overwhelmingly positive, and it inspired me to write to you. We have been talking about the talent crisis in supply chain and logistics; meanwhile, the discipline is not taught at enough universities. In fact, some schools have even cut their logistics programs due to low student enrollments. Why? The natural conclusion would be that students and young professionals don't find the field interesting or promising as a career. After my experience teaching, I respectfully disagree and believe the problem to be the low level of marketing we do for supply chain and logistics. After I taught my students about the amazing diversity of our profession, the opportunities for supply chain professionals to be seen as "Most Valued Player" at their companies, and the success stories of Amazon, Walmart, Macy's, and others, I saw their eyes lighting up one by one. The students' feedback speaks for itself:
"I have learned most of what I now know about supply chain management through this brief, yet very informative course. Before this class, I thought of SCM as only having to do with transportation. I have learned that I have a lot to learn, and a good reason to learn it. Thank you for the enlightening class."
"Thank you for the awesome class last week, it was a really interesting topic that has not been covered enough in our MBA program or undergraduate courses. During this program I have become increasingly interested in operations and SCM. I would like to find direction in my career to take the necessary steps into the field."
So where are the future generations of supply chain professionals hiding, you ask? At every business school around the world! All we need to do is teach them the secrets of our profession with enthusiasm, and our talent crisis will be a tale of the past.
Susanna Sterling-Bodnar
Director, Supply Chain Solutions
LeanCor Supply Chain Group
Florence, Kentucky, USA
CSCMP's annual conference inspired new ideas
Last year, when a friend invited me to join CSCMP and attend the Annual Global Conference in Denver, I decided to go and experience more of what my friend promised was a great organization.
I can tell you that it was even better than promised. So full of passionate, great leaders and members! I could see the energy flowing out of the people gathered together to network and learn about the supply chain.
The learning was great, the networking could not have been better, and the general sessions opened my mind to an explosion of ideas. I came home full of energy and ideas, and charged with innovation and enthusiasm.
As a Mexican national, hearing Felipe Calderón speak about the great future opportunities for Mexico was pretty relevant to me. (A big thanks to the team who took me backstage for a photo with him, that was awesome!) The story of Tesla Motors was so inspirational. I was already intrigued by their story and what I think is their potential to make history, but hearing about the struggles, challenges, and opportunities they have faced really put a human face on this great supply chain and innovation story.
The biggest impact for me came from Mike Rayburn's keynote presentation about innovation. The company I work for is big in innovation. I can tell you that all the innovation training, reading material, and videos I have seen over the last couple of years came to life when I heard Rayburn deliver his innovation message.
Coincidentally, during a networking lunch the Monday prior to Rayburn's talk, I was talking to a student about innovation. I remember saying, "I wish I was innovative, but I'm not." After hearing Rayburn, the innovation message really hit home. I could not sleep for a few nights after the conference because so many ideas kept coming into my head, and I had to get up and write them down.
I was wrong. I am innovative, we are all innovative—we simply need to give ourselves permission to be that way.
Today, I'm working on three innovation-related projects! I have presented one supply chain-related innovation idea to my company. Additionally, my friend who invited me to join CSCMP, some other supply chain professionals, and I together have created a roundtable for Peoria, Illinois, USA. All of these things happened because I gave myself permission to check out what CSCMP was all about. Needless to say, it was the best education investment I have made so far.
Keep up the great work, CSCMP team, and see you in San Antonio!
Javier R. Zarazua
Undercarriage Black Belt—Strategic Sourcing
Caterpillar Inc.
Peoria, Illinois, USA
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.