The 2014 recipients of CSCMP's Emerging Leader Award, Susan Conley and Mengxiao (Michelle) Zhang, are destined to make a mark in the supply chain profession.
The next generation of supply chain leaders, the best and the brightest under the age of 30, will transform the field of supply chain management and send it in new directions. To identify, recognize, and nurture those future leaders, the Council of Supply Chain Management Professionals (CSCMP) last year launched its Emerging Leader Award.
This year's award recipients, Susan Conley and Mengxiao (Michelle) Zhang, were chosen because of their personal achievements and their record of accomplishment to date in the supply chain profession, as evidenced by awards, peer recognition, industry publications, and recommendations, according to John Bowersox, Young Professionals Committee chair and a member of CSCMP's board of directors. Conley and Zhang were presented with their awards at CSCMP's 2014 Annual Global Conference in San Antonio, Texas, USA.
CSCMP's Supply Chain Quarterly asked each of the award winners about her career goals and aspirations.
SUSAN CONLEY
Susan Conley is in her second term of employment with the industrial equipment manufacturer Caterpillar Inc. After receiving a bachelor's degree in industrial engineering with a minor in business administration from Bradley University in 2006, she worked for Caterpillar in logistics planning and engineering within the service parts group. In 2010 she left to earn a Master of Engineering in Logistics and Supply Chain Management from the Massachusetts Institute of Technology-Zaragoza International Logistics Program in Zaragoza, Spain. With that degree in hand, she returned to Caterpillar's logistics division, where she now works as a program specialist. Through working on two major initiatives—the integration of a major mining acquisition into Caterpillar's service-parts business, and increasing collaboration with the company's dealer network—she has developed her management skills and understanding of supply chain strategy.
What attracted you to the supply chain management profession?
In a lot of ways, I fell into the profession. There were so many things I could do with my engineering degree. I'm the sort of person who needs to be challenged. When I was hired by Caterpillar, it just happened that my first job was in their logistics division. It wasn't until after several years of working that things finally clicked, and I decided this was a profession I really wanted to pursue. Supply chain has been a great fit for me because it's a fairly specialized field, yet there's always so much more I can learn. I've also had the privilege of working and studying with a great group of very diverse supply chain professionals and mentors, which has been very enriching for me personally.
What was your biggest surprise about the supply chain field when you entered the work force?
How different it is from academic study. For my undergraduate degree, I took classes in operations planning, inventory management, network modeling, marketing, and finance, but they didn't excite me. In real life, supply chain is much more exciting ... and far more connected and challenging than what I learned in school. It's straightforward to build a linear program when you're given all the costs and variables, but it's much more difficult when you have to try to identify and estimate them yourself.
If you had to speak to a college class of supply chain majors, what advice would you give them?
Get hands-on experience with the operations side of the business. When I first graduated, I wanted a more corporate-feeling job where I would be working in an office on a computer. Luckily, I had the opportunity to spend several months at a distribution center working with hourly associates and learning about the challenges they face every day. When many of your activities are analyzing data, building spreadsheets, and answering e-mails, it's really easy to forget that you're doing all of that so that your operation keeps running efficiently and your customers get their products.
Is there any area of study where you wish you had more knowledge or preparation?
Transportation. I had no idea how complicated it could be to ship something commercially. Especially when crossing borders, the cost and legal implications can be tremendous. I still feel I have a lot to learn in this area, but at least now I have a better appreciation for the complexity.
Where do you see yourself 10 years from now?
I'd love to be in a position that lets me grow, diversify, and leverage my supply chain experience but also puts me more into a leadership and mentoring role. There's so much happening now that could change the industry. I'm excited to be a part of supply chain's evolution and to provide guidance and advice to the next generation as my mentors have for me.
MENGXIAO (MICHELLE) ZHANG
Mengxiao, or "Michelle," Zhang currently works as a team lead in lean logistics and operations for the consulting and third-party logistics company LeanCor Supply Chain Group. In 2009 she graduated with a Bachelor of Engineering in logistics management from Lanzhou Jiaotong University in China. She then earned a master's degree in business logistics engineering at The Ohio State University in 2010.
Following graduation from Ohio State, she worked briefly for Saint-Gobain Autover before joining the LeanCor Supply Chain Group in 2011. At LeanCor, she has been involved in such areas as data analysis, vendor management and implementation, transportation management, and Lean/Six Sigma project management and problem solving.
Why did you go into supply chain management?
My major in college was logistics management, and I earned my master's degree in the Master in Business Logistics Engineering program at Ohio State. So working at a logistics company upon graduation was kind of expected. But the company I am working for, LeanCor, is not just a third-party logistics company. This company emphasizes understanding total logistics cost from a "supply chain value stream" point of view. ... As a LeanCor associate, I have been given the opportunity to work very closely with our customers' purchasing/sourcing, demand planning, warehousing, cross docking, and plant shipping and receiving departments. Working with them on a daily operational basis has helped me understand supply chain management better and more clearly.
Based on your own experience, do you have any advice for young professionals about how to succeed in supply chain management?
Young professionals, for the most part, lack experience. I have found that working in the industry and talking to people "at the gemba" (a Lean Management term that means "where the work is being done") to be the perfect way to gain experience and knowledge. Supply chain is such a huge area. It requires one to always be humble, patient, and still so that learning can happen, which then leads to practical understanding. These experiences will surely help us on our future career paths when we have more analytical or managerial roles. In these future roles, we will need to solve real problems or even develop a strategic plan. Because we were at the gemba, we learned, we understand, and we respect those who taught us.
Do you see any differences between supply chain management in China and the United States?
China is heavily relying on railway transportation; about 60 percent [of freight transportation is by rail]. Infrastructure development plays a very important role there. In the United States, road transportation has a larger market share, and the infrastructure was completed decades ago. In China, there is also a need for more government regulation and industry cooperation to help the market and companies in these fields improve and grow. There are so many small logistics companies in China running their businesses their own way. This creates issues and problems in a less-than-mature and less-developed industry.
I would say that the term "supply chain" is still new in China. But more companies have started focusing on understanding supply chain and the value stream point of view, rather than breaking things down into silos as they used to. Lean and Six Sigma have become more noticeable in recent years as more and more foreign companies are pushing this philosophy in their China divisions. This is how U.S. supply chain professionals can really offer some help. There are definitely opportunities in China for U.S. supply chain companies in training, education, and consulting.
Do you have any predictions about where the profession is headed in the next decade?
I would say our profession will rely more and more on technology in the next decade. ... [T]his trend and change is unstoppable and will only get stronger. In the past decade we've seen how new technologies such as WMS (warehouse management systems), ERP (enterprise resource planning) systems, MRP (manufacturing resource planning) systems, TMS (transportation management systems), and RFID (radio frequency identification) have changed the game. With the faster speed of new tech innovations, such as alternative fuels and 3-D printing, I am sure we will become even more dependent on technology. This, in turn, will help the whole industry to be more fast-paced and customer-centered, develop greater resiliency and flexibility, and be proactive in risk management.
Where do you see yourself 10 years from now?
Ten years from now, I hope to be a successful project manager and consultant who has a perfect understanding, solid knowledge, and sound hands-on experience of every aspect of the supply chain.
Additionally, I hope to develop in-depth knowledge of the six "Cornerstones," which is how CSCMP organizes and interprets these same concepts. With this knowledge and experience, I could be a great resource internally for my team and externally for my customers whenever they need advice or solutions for the challenges they're facing in their supply chain.
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.