You don't become a leader just by being appointed to a specific position. It requires skill, a willingness to listen, and traits like honesty, empathy, and tact.
Over the years, I have given many presentations about career development at the Council of Supply Chain Management Professionals' (CSCMP's) Annual Global Conference. It's a pleasure to be a part of the conference, and I thoroughly enjoy the opportunity to connect with supply chain professionals who have a wide variety of experience and responsibility.
At the most recent conference in San Antonio, Texas, I received quite a few questions about career-path and leadership progression:
"When is the right time to assume a leadership role?"
"Given that I don't actually manage people today, is it still possible to develop and demonstrate my leadership potential?"
"How do I progress from a mid-level manager to the C-suite?"
When it comes to leadership development, there is no time like the present. Even the most junior professionals can lead and inspire those around them. I've seen hourly employees whose job is to clean bathrooms and break rooms demonstrate inspirational leadership. Unfortunately, I've also witnessed senior leaders do just the opposite.
Leadership is all about accomplishing important things through others. Whenever you inspire, challenge, and encourage others, you are leading. Whenever you put the team first, refusing to take individual credit, you are leading. Whenever you take a stand, even though it's unpopular, you are leading. You can do these sorts of things no matter what position you hold.
The primary difference between leading at the top of an organization versus leading at lower levels is the scale and impact. Senior leaders impact large numbers of people. They can inspire a company to completely transform itself; they can also drive a company into bankruptcy. In fact the leadership skills that are used at the top are essentially the same as those that are used at lower levels; they are just being applied on a larger or smaller scale. Some basic leadership skills can be used at any time and at any level in the organization. Just by using these skills, you set yourself apart as a leader. But as we will see, effective leadership requires not just skill but also certain character traits and the right mindset.
Leadership = listening + initiative
If you are interested in developing your leadership skills, the best advice I can offer to all supply chain management professionals is to lift your head up from your own work and listen to what is going on around you. You are part of a complex organization with multiple goals. You should know how your role fits into the bigger picture. Listen, ask questions, and listen some more. Listening and asking questions will bring knowledge and insight.
When you combine that knowledge and insight with initiative, you begin demonstrating leadership. Leaders see what needs to be done, and they make it happen. Leaders literally take the lead. When you see an opportunity arise, ask to make the project your responsibility. Initiative demonstrates that you have the desire to increase the scope of your job. It shows that you want to work with others to get something accomplished. It is a sign of leadership that will be noticed by the people who make promotion decisions.
Cultivate healthy relationships
It bears mentioning that I sometimes see newly minted managers exhibit a few negative traits that seasoned executives typically do not employ. Some new managers, for example, think they have to use intimidation, incite fear, and require blind loyalty. Perhaps these new managers are not confident in their ability to produce results by using the finer skills of leadership. I do not typically see these tactics being used at higher levels of management. That's because when they are used, one of two things happens: Either experience teaches these managers that those behaviors do not work in the long run, so they adopt more sophisticated leadership methods, or they do not get invited to the C-suite.
Instead of fear and intimidation, leadership depends on healthy 360-degree relationships with those you work with, for, and among. Leaders will find opportunities to solidify existing relationships and create new ones with peers not just in their own area but also throughout the organization and their industry. I once heard someone say, "Leadership is a contact sport." He meant that being a good leader requires you to be creatively and continuously interacting with others. Good leaders realize that the time to make a friend is not when you need one.
One great relationship for aspiring leaders to cultivate is with a mentor. A mentor relationship can be formally assigned or it can develop organically. If your organization does not have a formal mentor program, ask someone to be your mentor informally. It may seem counterintuitive, but asking someone to help you is an act of leadership, not an act of weakness. Leaders admit they do not know everything, and they always want to know more and become better.
Leaders, in turn, are mentors to others. Starting out, you can informally mentor someone, such as a newly hired peer or someone who you think may ascend to your position someday. Often these relationships are informal and are not explicitly called "mentor relationships." Regardless of the label, you are leading someone else to better job performance.
The fundamental three
There are many more leadership qualities that could be discussed, but three are so fundamental that no article on leadership would be complete without them: honesty, empathy, and tact. Let's consider each of them.
Honesty. It is nearly impossible to lead if people do not trust you. Leaders should be honest in their dealings with everyone around them regardless of how much higher or lower their position may be. Treat everyone as equals. If you do not treat them honestly, your goals and your credibility will suffer.
Empathy. Leaders see a situation from the other person's perspective, and they try to discover the other person's motivations. Leaders convey facts and arguments using the language and perspective of their audience. They acknowledge their audience's situation. The whole idea is to impart information, ideas, and reasoning in a way that others will understand. Some people feel that empathy is a weakness and a sign that someone can be easily swayed. It is not. Empathetic leaders are simply acknowledging their employees' story, not altering theirs.
Tact. All successful diplomats possess the skill of tact. Their success depends on getting differing sides to reach common ground. They have to be tactful while still conveying difficult messages. Likewise, a good business leader can say difficult things in ways that make others hear the message without being threatened. How you say something can be just as important as what you say. Leaders think before they speak.
You do not need to be a CEO to demonstrate honesty, empathy, and tact. Leadership can start now, no matter what your current position. It is a mindset, not a job title.
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.