The Council of Supply Chain Management Professionals (CSCMP) released the 30th Annual State of Logistics Report™ this morning during a press conference at the National Press Club in Washington, D.C., CSCMP collaborates with global strategic management consulting firm A.T. Kearney, as the author and researcher, and with Penske Logistics continuing its longstanding role as presenter of the report.
Amid a booming economy, United States Business Logistics Costs (USBLC) rose 11.4% to reach $1.64 trillion, or 8% of 2018’s $20.5 trillion gross domestic product (GDP).
The report notes that supply chain capacity is tight enough that a number of major companies have reported in their Securities and Exchange Commission (SEC) filings that they exceeded their 2018 supply chain budget spending.
Click "Learn More" to access the report and learn:
- Why supply chain costs are rising
- How innovations drive today’s state-of-the-art supply chains
“This highly anticipated report contains statistics and industry insights that will not only help our members do their jobs better, but also better prepare them for the business demands ahead. Not only do we definitively reveal the cost of logistics in the United States, but we also discuss technology and other forward-thinking applications for leaders to use as they improve their overall supply chain performance.”
- Rick Blasgen, president and chief executive officer of CSCMP
As a member of CSCMP, your personal feedback is vital to the products and services we provide to supply chain management professionals worldwide.
If you haven't yet completed the Annual Council of Supply Chain Management Professionals (CSCMP) Member Survey 2019, please take a moment to do so.
For more than 15 years we’ve trusted our member feedback in this high-level satisfaction survey which provides valuable trending information. Your participation is voluntary and confidential.
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We thank you for your contribution to our continued success!
Capacity in the domestic full truckload (FTL) market is as tight as it’s ever been. Although recently the surge in rates has started to plateau slightly, the industry outlook for the foreseeable future is for continued imbalance in supply and demand in the market. As a result, shippers must become more efficient in how they award lanes and become more attractive to carriers.
The most mature shippers are implementing segmentation schemes and other processes that try to create win-win propositions for themselves and their carriers.
This article looks at 4 things that all Supply Chain leaders should be asking their Logistics teams to be sure they are doing the things necessary to secure valuable capacity.
Read CSCMP's latest Hot Topic, FTL Rate Increases? 4 Questions for Your Logistics Team, written by Glen Goldbach, PWC.
Transportation risk in the supply chain is ever present. Losses incurred in this space often impact the bottom line, and at their worst are catastrophic. While federal oversight of the transportation industry, led by the FMCSA, has made strides in improving overall safety on the road, many risks remain that shippers are exposed to and must manage themselves – especially in the absence of a strong national hiring standard.
It's critical that supply chain leaders focus on and assign resources within their organization to innovate in the risk management space. Approaches to risk management vary widely. We believe the best risk management programs include two key attributes:
1. They use data to inform carrier selection requirements and quality thresholds.
2. They use data and technology to collect data and to automate decision making in real time.
Read CSCMP's latest Hot Topic, Innovation in Transportation Risk Management - written by Lorin Seeks, Director, Quality and Compliance, Convoy.
CSCMP is holding a video contest to select a moderator for the EDGE 2019 keynote panel “The Gig Economy and the Millennial’s Journey to Change the World” held on Tuesday, Sept. 17, 2019, in Anaheim, California.
The panel, featuring successful entrepreneurs Seema Bansal, Chieh Huang and Eric Termuende, will explore the evolving working landscape, how young entrepreneurs are influencing supply chain management and the ways millennials plan to affect positive world change.
To enter the contest, submit a 90-second video providing a compelling elevator pitch on why you would be the perfect moderator for this panel. Send in your videos by June 23, 2019, for a chance to win!
The winner will moderate the panel, receive one complimentary registration to EDGE 2019, hotel lodging, a $600 travel stipend and be featured in CSCMP’s magazine and newsletters.
To qualify, you must be a member of CSCMP at the time of submission.
CSCMP Corporate Memberships allow companies to provide access, insight and perspective to their entire team. Corporate members receive all the benefits of a Professional Membership, plus special pricing and exclusive services tailored to meet your specific needs and create value for your organization.
EDGE’s unbiased, curated content is one of the many reasons to attend supply chain's premier eventTM! EDGE 2019 hosts 22 tracks and 100+ educational session topics. Each session topic is thoughtfully constructed to not only address trends and hot topics, but to provide lasting, applicable solutions and answers.
Click "Continue Reading" to view sessions to add to your EDGE 2019 event schedule and SAVE $300 on your EDGE registration!
Continue reading and learn about hot sessions like:
- A Look Down the Road—Carrier CEOs Speak, Transportation & Logistics Track
- Weaving a Seamless Supply Chain with Communication, Cross-Training and Goal Alignment, C-Level Discussion Forum Track
- Tech Talks: Secrets to Success from Top Technology Companies, Global Supply Chain Track
Enhance your EDGE experience and attend a facility tour on Wednesday, September 18. Tours have limited seating and are on a first-come, first-served basis. Book your tour in advance! Tour participants must be fully paid EDGE registrants.
Disneyland® Resort Supply Chain Tour - At the Disneyland® Resort Anaheim Distribution Center and Service Garage, you’ll learn how the Disney cast of transportation services delivers magical memories to their guests and keeps the magic moving all around the resort.
Port of Long Beach Boat Tour - Aboard this 90-minute, narrated excursion, you will get close to operations at the second-busiest port in the nation. See towering cranes, the most advanced and green terminal in the world, new infrastructure projects such as the Gerald Desmond Bridge Replacement, and possibly even catch a glimpse of local marine life. You'll also learn about a variety of groundbreaking green programs the port has implemented to reduce the environmental impact of operations.
Reserve your facility tour seat when you register for EDGE 2019.
Now that the dust has settled, and shippers have had time to regroup, it’s time to take a step back and see how shippers are moving forward using the lessons learned from this past year.
Register now to join NASSTRAC, CSCMP and TranzAct Technologies on Thursday, June 20 at 3:30 p.m. CDT for a live presentation of the Perfect Storm Webinar series, Part 6 “Getting Better as a Result of the Storm”.
CSCMP Corporate Member, Redwood Logistics, will be hosting the event in downtown Chicago, IL.
After the presentation, NASSTRAC will be hosting a “Sip and Ship” networking reception, where you will be able to meet and speak directly to the panelists and network with industry peers.
- John Coyle III, Senior Director, Customer Supply Chain & Logistics, Morton Salt, Inc.
- Tim McKinstry, Area Vice President, Midwest division, YRC
- Eric Weidl, Co-Founder, Dock411
- Jim Vrtis, Chief Innovation Officer, Truckstop
Mike Regan, Co-Founder and Chief Relationship Officer, TranzAct Technologies, Inc.
CSCMP will again be offering the SCPro™ Bridge Exam and review session at EDGE! The SCPro™ Bridge Exam leverages the knowledge and credentials already earned by supply chain professionals by incorporating previously achieved professional credentials with CSCMP's SCPro™ Level One Certification.
Eligible participants must have either an advanced degree or a related supply chain or logistics credential. Those that pass the exam will leave conference with the SCPro™ Level One designation.
How do AI & blockchain provide value to supply chains? Listen to Shari Diaz, IBM, and Theresa Cetnarowski, CSCMP, discuss the future of supply chain with AI and blockchain. They will provide insight into your top questions around the application of these technologies in the supply chain now and beyond.
Less than 10% of today’s supply chain data is effectively used, and most companies are virtually blind to the 80% of data that is dark or unstructured. These limitations make it difficult to optimize supply chain operations – and the business is exposed to unnecessary disruptions, delays and risks, as well as increased costs.
Learn how you can use the power of AI and blockchain to drive greater supply chain visibility and mitigate disruptions.
As we roll through 2019, it’s not too early to begin thinking about the next decade of supply chain management activity.
What will the 20’s decade bring?
Where will our industry be in 2030?
The inaugural Logistics 2030: Navigating a Disruptive Decade report focuses on the all-important transportation process which has recently created significant cost, capacity, and service challenges for freight shippers. Key areas of investigation include transportation strategy, financial investment, talent management, and technology adoption.
In each area, we analyzed the current state of affairs versus future expectations. Inside the report you will find survey results, participant quotes, and a detailed interpretation of the results, including five action items to prepare your transportation operations for 2030. We believe you will find the report valuable for developing long-range transportation plans for your organization.
This report is a CSCMP member benefit and not available for purchase. Thank you for your membership.
Thank you to CSCMP member Aaron Terrazas, Director of Economic Research at Convoy.com for contributing this article.
This June, the United States economy marks the 120th consecutive month of economic growth. The economic expansion that began in June 2009 is now the longest period of sustained growth in American history.
It is a nervous anniversary. With each passing month, the voices of doubt become louder – questioning how long the good times can continue. Recent economic data has added fuel to that fire. Traditional warning signs of a turning point in the economy, such as the yield curve, have been flashing for some time.
But the most important data points – unemployment, growth and inflation – remain solid, if undeniably softer than a year ago.
Amid the noise of incoming data and the 24-hour news cycle, three uncomfortable truths merit keeping in mind over the weeks and months ahead.
First, there is nothing mechanical about the lifespan of the business cycle. While the longest expansion in U.S. history is now at a decade and counting, other countries have experienced much longer periods of sustained growth: Australia has not had a recession in almost 30 years. Within the United States, there is a wide diversity of local economic experiences: A handful of oil-producing states experienced a short-lived recession in 2014-15 while the rest of the country was still growing.
Second, economists are notoriously bad at predicting the precise timing of recessions too far in advance (as many CEOs love to remind us). But, there is usually a reasonably accurate sense of where imbalances have built up in the economy and which sectors are exposed to risks from a sudden shock. For at least two years now, polls of economists have regularly pointed to trade risks as a potential spark for the next recession when it does eventually arrive.
Third, while we like to think of the economy as alternating between opposing states of expansion and contraction, reality is more complicated. Unlike economists’ charts, there are no bright lines in time or shaded bars in the soil dividing booms from busts. Instead, economic activity ebbs and flows. There are periods of slowing – if not outright contacting – economic activity short of recessions, as any trucker will attest to over the past few months.
Policy uncertainty clouds the economic horizon, and can harm business’ ability to make long-term investments. No recession is identical and, despite the universal desire to see patterns across time, recessions have become too infrequent and too idiosyncratic to claim repeated, causal relationships behind them.
It’s not a foregone conclusion that the U.S. economy is overdue for a recession. With better access to timely data, our economic policymakers and business leaders should be better able to respond in real time to subtle shifts in economic conditions, making it particularly hazardous to make definitive long-term calls. The longest expansion in United States history cannot go on forever, but it’s not over just quite yet either.
Follow Convoy Freight Research for more perspective on the transportation industry.
The overall LMI score for May 2019 is 56.7, down from April's reading of 57.9. It is the lowest score in the history of the index and down significantly from this time a year ago when it registered at 72.6. With that being said, May's score is still above 50.0, which indicating growth (albeit at the slowest rate in over 2.5 years).
Warehousing Capacity and Transportation Capacity are both reported to be contracting. Warehousing Capacity has been contracting for most of 2019, but this is the first time in the history of the LMI that we have seen a contraction in Transportation Prices. Transportation metrics have been the most dynamic over the history of the LMI®. With an index score of 48.6, Transportation Prices (-3.58) are contracting for the time in the history of the LMI®. This is a far cry from May 2018 when this metric was growing a rate of 94.0. The change index used by the LMI® ranges from 0-100, so to go from growing at essentially the fastest rate possible to contracting in the span of 12 months suggests a significant shift in the market. This decrease came with Transportation Capacity (-4.73) still reporting solid (if slightly decreased) rates of growth at 67.29.
As was speculated last month, there may have been an inflection point in April 2019, with the rate of growth in Transportation Capacity surpassing that of Transportation Prices (which is not contracting). In March/April 2018, the index score for Transportation Price was 65 points higher than for Transportation Capacity. Today, Transportation Capacity is higher by 18.7 points.
Thank you to CSCMP member Roderick Chambers, Liberty Advisor Group - Business Threat Intelligence, for contributing this article as follow-up information for the Exploring Supply Chain Management Risk event held at CSCMP in May 2019.
Supply chains and secure technology are critical to global business operations, and they are also a high-value target for cybercriminals. The cybersecurity of a supply chain is only as strong as its weakest link, and a security breach in any part of the supply chain will likely harm the rest of the supply chain. Three of the most highly publicized cyber-attacks and data breaches – Home Depot, Target, and U.S. Office of Personnel Managemet – have been penetrated by infiltrating a supplier’s network and using it as a gateway to the target’s systems. These high-profile cases underline the importance of applying a holistic review of your supply chain. Managing supply chain risk starts with creating a framework for how your supply chain operates, and ideally, through a top-down strategy.
Cybeta™ offers a suite of Cybersecurity products and services designed to help you keep your business off the Cyber ‘X’. Based on decades of U.S. Intelligence experience detecting and thwarting the activities of even the most advanced attackers, Cybeta is built by reverse engineering the actual processes that hackers use to exploit technology and your business. Our products deliver the intelligence you need to predict, pre-empt and prevent future threats and cyber-attacks.
-Threat Beta (Predictive Indicator)
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-Cybeta Overwatch (Live Alerting & Secure Vendor Program)
| Cybeta – Business Threat Intelligence Division