Bruce Abels, the recently retired president of Saddle Creek Corporation, looks back on a life that has been characterized by service, both professionally and personally.
You've worked and strived your whole career in the supply chain management profession. You've honed your craft and have proven yourself to be a Most Valuable Player. But the months have cascaded into years, and the years into decades, and there comes a moment in your life when you decide to call it a career. You know deep down that it's time to pursue another calling.
Bruce Abels, 62, recently answered that call. On June 30, 2007, he retired from Saddle Creek Corporation, a third-party logistics company (3PL) in Lakeland, Florida, after serving as president for 15 years.
Under his stewardship, Saddle Creek's revenues exploded from $12 million annually to nearly $170 million. The company grew from 130 employees to roughly 1,800 and experienced annual compound growth in sales of 17 percent. Indeed, Abels helped transform Saddle Creek into a 21st century corporate contender.
Name: Bruce Abels Title: Recently retired after 15 years as president, now nonemployee vice chairman Company: Saddle Creek Corporation, Lakeland, Florida
CSCMP member for more than 30 years; speaker at numerous CSCMP Annual Conferences
BA in philosophy, St. Joseph's Seminary and College, Yonkers, New York
MBA in management from Pace College, New York, New York
Graduate, American Management Association's Course for Presidents
Industry experience: Distribution, logistics, executive positions at Nestlé, Sweetheart Cup Company, American Can Company, Unit Distribution, Saddle Creek Corporation
Co-founder, Warehousing Education and Research Council (WERC)
Vice chairman, International Warehouse Logistics Association (IWLA)
Certified Logistics Professional (CLP) awarded by IWLA
Volunteer for community causes, including Central Florida Speech and Hearing Center and Volunteers in Service to the Elderly
A few weeks before Abels' retirement, I traveled to the Sunshine State to talk with him about his extraordinary career, his unique life, and his post-retirement dreams.
True calling
Born in Pensacola, Florida, Bruce Abels was the oldest of five children, all boys. When he was three years old, his family headed north to New York, where his father had accepted a job with Standard Oil of New Jersey (Esso) in New York City.
Abels learned the importance of responsibility from his dad, Arthur, a former U.S. Navy lieutenant. His mother, Colette, was a homemaker and devout Catholic. The teachings of the Catholic Church profoundly influenced and shaped his life.
The future president of Saddle Creek Corporation's career path started out humbly. As a teenager, he stocked shelves at a supermarket and worked in a bakery and at a Boy Scout camp. His devotion to duty was evident from the start. "When I was 15," he remembers, "I took 30 Scouts camping in the wilderness. It was a lot of responsibility. People trusted me to watch out for their kids, and I wasn't going to let them down. That's just the way I am, and I was that way even then."
Abels attended a Catholic elementary school, but his parents decided to send him to public high school. Despite the secular setting of his secondary education, he felt a spiritual calling to the priesthood. He enrolled in St. Joseph's Seminary and College in Yonkers, New York, where he earned a Bachelor of Arts degree in philosophy. But he decided to leave the seminary at age 22, a change that led him to pursue what turned out to be his true calling: logistics and supply chain management.
One day after graduation, Abels walked in the front door at Nestlé in White Plains, New York. Two-and-a-half hours later, he walked out with a job. "I'll never forget the man who hired me," he recalls. "John Martell was bright and funny, and one of the best bosses I've ever had."
Two years later, Abels was offered a job as the assistant brand manager for Nestlé's Crosse & Blackwell brand. He jumped at the chance to do something different. In 1971 he moved into logistics and was sent to Atlanta, Georgia, to manage Nestlé's regional distribution center (DC). "I was 26 years old and had my first line job," he explains. "I was fascinated with the warehouse business, and because I worked for Nestlé, I thought that all warehouses smelled good!"
After a year in Atlanta, Abels was promoted to regional distribution manager and shipped out to Chicago, Illinois, to run six DCs. But one year into that job, he was fired. "I was absolutely stunned," he admits. "I was driven home in my company car, in shock. How was I going to explain this to my father? But looking back, I probably deserved it. I didn't handle the politics of an aggressive sales force very well."
Things eventually began to look up for the diligent young man, both professionally and personally. Abels got a call from Sweetheart Cup Company in Chicago, and before long, he was working for the family-owned business as the director of distribution.
While working at Sweetheart, Abels began dating the love of his life, Joan. They'd met while both worked at Nestlé, and despite the distance, their relationship bloomed. Joan eventually moved to Chicago, where she became Abels' wife.
As Abels was streamlining the warehouse operations at Sweetheart Cup, he received an enticing offer from his former boss and mentor, John Martell, to come work for American Can Company in Connecticut. He and Joan headed back east in 1973, and he began a six-year stint as director of distribution operations for American Can's paper and plastics disposable divisions.
At that time, the company had 17 factories and thousands of SKUs (stock-keeping units), and customers had to place separate orders with factories to get what they wanted. This led to long lead times and poor in-stock performance. But Martell had envisioned a solution, and Abels was to play a critical role in the plan, which to this day remains one of his proudest professional achievements. "John articulated a grand plan of creating a nationwide network of locally based, consolidated DCs from which customers could order their entire product mix," Abels explains. "The changes he was proposing were substantial and would be extremely disruptive. But they would ensure adequate inventory levels and drive sales increases. I built and led the team that opened the DCs and rolled out these revolutionary processes."
Leader, mentor, manager
Another milestone in Abels' career—one that has had a profound impact on warehouse professionals around the globe—was co-founding the Warehousing Education and Research Council (WERC) in 1977. He was the organization's first president and served for three terms. Abels has been such a fixture at WERC, in fact, that he is affectionately known among his peers as the association's "President for Life."
In the early 1980s, American Can Company sold the divisions where Abels worked, a change that resulted in the loss of hundreds of jobs, including his. The United States was also in the grip of a severe recession, and he was out of work for a year. He consulted for a small chain of hardware and lumber stores near his home, helping them to considerably lower their costs. Abels continued his search for a staff position, however, and in 1982 landed the top job at Unit Distribution, a 3PL in Jacksonville, Florida.
As president of Unit, he was charged with running the company's warehousing business. He helped it expand from a $15 million company to a $100 million organization in seven years. When the owners sold the company to Chicago-based GATX Corporation, he felt it was time to go.
It was around this time that Abels received a call from Saddle Creek Corporation's founder and chairman, David Lyons, who asked him to do some consulting work. "Bruce consulted himself right into a job," Lyons says. "We were at a point in the history of our company where we needed to bring in some outside talent, and it was clear that he was the perfect match for us. Bruce infused much-needed structure and discipline into our organization, which positioned us for the dynamic growth and success we've experienced under his leadership. We would not be where we are today without Bruce Abels."
Abels' successor as Saddle Creek's president, Cliff Otto, underscores the significance of those contributions. "Bruce implemented the necessary operating and financial disciplines to take the company to the next level and beyond," he explains. "He not only possesses exceptional business skills, he knows how to guide and direct his staff. And he genuinely cares about the people who work here."
Just as Abels had mentors who guided him throughout his career, he in turn mentored others. "I learned more in the three-and-ahalf years that I worked directly for him than I did prior or since," says Tom Patterson, Saddle Creek's senior vice president, warehouse operations. And it wasn't just individuals who benefited from Abels' guidance; he also helped many small businesses to develop competitive know-how. "Bruce fostered a friendly, competitive environment with other companies our size," Patterson continues. "More importantly, he professionalized the 'mom and pop' warehouses."
Says CSCMP's president and CEO, Rick Blasgen, about Bruce Abels' legacy: "Bruce is one of the few senior 3PL leaders who has been successful in both manufacturing-company logistics and in 3PLs. He keenly understands the supply chain management discipline. Bruce's experience and his willingness to listen and learn over the years have helped him see the total picture. He is always sincere and always willing to make time for others. He has had a profound, positive impact on many of today's leaders within the supply chain community."
Warehousing expert and WERC co-founder Ken Ackerman concurs. "Bruce is a very strategic thinker and great communicator. He is a natural leader."
But the measure of a corporate soldier's success is not only what the generals think about him but also what the guys on the front lines have to say. It's clear that Bruce Abels has their respect. "This company has flourished under Mr. Abels' leadership," says Frankie Barber, a lead warehouseman in Saddle Creek's Lakeland packaging operations and a 15-year employee. "He realized that those of us who worked in the warehouses were the backbone of the organization. He has always treated us with the same respect that he treated everybody else with. I don't have a college degree, but I'm smart enough to know a true leader when I meet him."
Willing to serve
Abels has also racked up some impressive educational and professional credentials. He earned a masters degree in business administration (MBA) from Pace College in New York, is a graduate of the American Management Association's Course for Presidents, and was awarded a Certified Logistics Professional (CLP) designation from the International Warehouse Logistics Association (IWLA). In addition, he currently serves as IWLA's vice chairman. Abels has been a CSCMP member for more than 30 years; during that time, he has been active in three roundtables, chairing two of them. He has also been a speaker at numerous CSCMP annual conferences.
Although he has officially retired from the president's post at Saddle Creek Corporation, Bruce Abels is not quite ready to punch out yet. Along with spending time with his wife Joan and his daughter Jennie, who has also pursued a career in logistics, Abels plans to stay involved in community service. He is active in his community of Lakeland, and he volunteers for a variety of caring causes, serving as board chair for the Central Florida Speech and Hearing Center and for Volunteers in Service to the Elderly.
Abels intends to remain active in the world of business, too. Saddle Creek has retained him in the role of nonemployee vice chairman, and he plans to do consulting work. He also hopes to take a seat on the board of directors of a for-profit company.
Looking back over the years, Abels muses on the theme that connects each of his many accomplishments. "The one thing I'm most proud of in my career," he says, "is that I have never once made a decision that put my own interests ahead of my company. If you're going to work in the supply chain profession, you have to put others ahead of yourself. You must be willing to serve."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
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.”
Third-party logistics (3PL) providers’ share of large real estate leases across the U.S. rose significantly through the third quarter of 2024 compared to the same time last year, as more retailers and wholesalers have been outsourcing their warehouse and distribution operations to 3PLs, according to a report from real estate firm CBRE.
Specifically, 3PLs’ share of bulk industrial leasing activity—covering leases of 100,000 square feet or more—rose to 34.1% through Q3 of this year from 30.6% through Q3 last year. By raw numbers, 3PLs have accounted for 498 bulk leases so far this year, up by 9% from the 457 at this time last year.
By category, 3PLs’ share of 34.1% ranked above other occupier types such as: general retail and wholesale (26.6), food and beverage (9.0), automobiles, tires, and parts (7.9), manufacturing (6.2), building materials and construction (5.6), e-commerce only (5.6), medical (2.7), and undisclosed (2.3).
On a quarterly basis, bulk leasing by 3PLs has steadily increased this year, reversing the steadily decreasing trend of 2023. CBRE pointed to three main reasons for that resurgence:
Import Flexibility. Labor disruptions, extreme weather patterns, and geopolitical uncertainty have led many companies to diversify their import locations. Using 3PLs allows for more inventory flexibility, a key component to retailer success in times of uncertainty.
Capital Allocation/Preservation. Warehousing and distribution of goods is expensive, draining capital resources for transportation costs, rent, or labor. But outsourcing to 3PLs provides companies with more flexibility to increase or decrease their inventories without any risk of signing their own lease commitments. And using a 3PL also allows companies to switch supply chain costs from capital to operational expenses.
Focus on Core Competency. Outsourcing their logistics operations to 3PLs allows companies to focus on core business competencies that drive revenue, such as product development, sales, and customer service.
Looking into the future, these same trends will continue to drive 3PL warehouse demand, CBRE said. Economic, geopolitical and supply chain uncertainty will remain prevalent in the coming quarters but will not diminish the need to effectively manage inventory levels.
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."