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
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.”