Rick Blasgen, President and CEO of the Council of Supply Chain Management Professionals, talks about the value CSCMP provides and invites supply chain professionals worldwide to join the organization.
The Council of Supply Chain Management Professionals (CSCMP) is your home for all things supply chain management. Headquartered in Lombard, Illinois, USA, CSCMP is the preeminent worldwide professional association dedicated to the advancement and dissemination of knowledge and research about supply chain management. With over 8,500 individual members and 115 corporate members representing nearly all industry sectors, governments, and academic institutions from 67 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management.
Simply put, CSCMP is about "connecting, developing, and educating the world's logistics and supply chain management professionals."
CSCMP operates on a not-for-profit, self-supporting basis. An organization "by the discipline, for the discipline," we're volunteer-driven on many fronts. The organization is led by an elected group of officers, and our board of directors and committees are made up of dedicated professionals who willingly give of their time, their expertise, and their resources to help drive our community forward in countless ways. They, along with our staff, produce unbiased research and a plethora of publications and timely content, design and deliver our online and face-to-face educational and certification programs, develop and produce our conferences, and keep the organization current and relevant.
Many industry groups have advocacy arms and conduct lobbying efforts to support their agenda. We at CSCMP do not lobby; rather, we serve the community at large. We do not take political positions, yet we fight hard to influence both public and private opinion about the value of our field and what it does to elevate the world's standard of living. For example, I chair the Advisory Committee on Supply Chain Competitiveness for the U.S. Department of Commerce. CSCMP also publishes the annual "State of Logistics Report," the definitive and widely read study of logistics costs and trends in the United States.
Person to person
CSCMP offers many other valuable programs and resources, and you can learn about them at cscmp.org. But I'd like to talk now about some of the other ways the organization provides value to you, your team, your company, or your institution.
As befits a global organization, CSCMP is open to all and serves individuals representing a wide variety of geographic, experiential, and educational backgrounds. We work hard to ensure that the organization develops the diversity of its members, and that both the organization and its members benefit from that diversity. Our goal is an enthusiastic membership that views interactions with CSCMP as a true partnership that is professionally and personally fulfilling.
One of CSCMP's primary "value propositions," if you will, is that our members come together to share insights into the latest supply chain management trends, best practices, opportunities, and challenges. There are so many ways we, as a professional society, are able to connect members who can help each other. For example, I recall receiving a request from a member in Europe who needed some information about rail freight activity. He asked if I knew of anyone who might help. I connected him with another of our members who had the exact expertise needed. The European member later called to tell me that the connection had played out perfectly: He had not only gotten valuable information from the discussion, but his company also had hired the rail expert.
We have many similar examples of how our organization connects people who can share knowledge and information. I'm proud of our members' willingness and commitment to take a call, provide advice or feedback, deliver a solution to a problem, or make an introduction to another CSCMP member. The unwavering attention given by busy people to those in need in our community is remarkable and worthy of applause.
Today it's easy to use the Internet to conduct research and to use social media like LinkedIn to connect with people. I understand the value that social media provides. But when you need more than a name and a job history on a website, when you need a referral to a fellow member with the right knowledge and experience who is willing to advise you or a vetted connection through a trusted colleague, that's when our association's broad and deep resources can make all the difference. We know who can help and how to bring you together.
We recognize that for logistics and supply chain professionals, resources like time and money for professional development and education are increasingly limited. But we encourage you—and your company—to view membership in CSCMP not just as something that provides benefits for an individual (although it certainly does that) but also as a long-term investment in developing critical knowledge within the discipline, supporting academic programs, encouraging students' interest in the field, producing valuable research and publications, and bringing supply chain knowledge into the boardroom. Companies that support the organization financially and by giving their employees the resources to participate on committees and to attend the annual conference and local roundtable meetings will reap great benefits for themselves while supporting the development of the discipline. Supply chain excellence is firmly established as a critical competitive advantage, so supporting the development of supply chain leaders makes good business sense.
It's our responsibility to ensure that our members and prospective members know we're working hard for them and delivering value for their hard-earned membership dollars. In fact, the proceeds from memberships, conference registrations, and fees for certifications, educational programs, and publications all make it possible for CSCMP to continue to connect, develop, and educate the world's current and future logistics and supply chain professionals.
We hope you will consider becoming a member of the Council of Supply Chain Management Professionals and supporting this dedicated group of logistics and supply chain professionals. Membership and contact information as well as details about our many programs and services are available at cscmp.org. I look forward to hearing from you.
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.”
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.
2024 was expected to be a bounce-back year for the logistics industry. We had the pandemic in the rearview mirror, and the economy was proving to be more resilient than expected, defying those prognosticators who believed a recession was imminent.
While most of the economy managed to stabilize in 2024, the logistics industry continued to see disruption and changes in international trade. World events conspired to drive much of the narrative surrounding the flow of goods worldwide. Additionally, a diminished reliance on China as a source for goods reduced some of the international trade flow from that manufacturing hub. Some of this trade diverted to other Asian nations, while nearshoring efforts brought some production back to North America, particularly Mexico.
Meanwhile trucking in the United States continued its 2-year recession, highlighted by weaker demand and excess capacity. Both contributed to a slow year, especially for truckload carriers that comprise about 90% of over-the-road shipments.
Labor issues were also front and center in 2024, as ports and rail companies dealt with threats of strikes, which resulted in new contracts and increased costs. Labor—and often a lack of it—continues to be an ongoing concern in the logistics industry.
In this annual issue, we bring a year-end perspective to these topics and more. Our issue is designed to complement CSCMP’s 35th Annual State of Logistics Report, which was released in June, and includes updates that were presented at the CSCMP EDGE conference held in October. In addition to this overview of the market, we have engaged top industry experts to dig into the status of key logistics sectors.
Hopefully as we move into 2025, logistics markets will build on an improving economy and strong consumer demand, while stabilizing those parts of the industry that could use some adrenaline, such as trucking. By this time next year, we hope to see a full recovery as the market fulfills its promise to deliver the needs of our very connected world.