Supply Chain Monthly
Current News
  

The idea for a professional organization of distribution managers was first conceived in May 1962, to meet an urgent need for continuing education and to provide an opportunity for an interchange of ideas in this rapidly growing profession that has come to be known today as supply chain management.

Today, CSCMP serves more than 100,000 members and engaged followers.

Who better to declare a holiday than the one true, professional association that has been serving the supply chain industry and the professionals that work within it for the past 56 years.

Happy Supply Chain Professionals Day!  Join the fun!  Post on social media with #ThisIsSupplyChain and tag @CSCMP!

 

 

 

  

With the rise of e-commerce, CSCMP seeks to help companies and supply chain professionals find solutions to their inventory management challenges, especially in urban areas. 
 
ONE OF MY ROLES AS CSCMP’S PRESIDENT AND CEO is to chair the U.S. Department of Commerce’s Advisory Committee for Supply Chain Competitiveness. The committee is important, because it makes recommendations to the administration on what the country needs to do to improve its competitiveness on the global supply chain stage.

 

One of the key questions facing us is how to adapt the country’s infrastructure and supply chains to meet the rise of e-commerce. E-commerce currently accounts for about 14 percent of total retail sales, and supply chain costs for the e-commerce channel are 25 to 30 percent of sales. If e-commerce grows to say 30, 40, or 50 percent of total retail sales, how will we deal with that?
 
One area in particular that the committee is concerned about is urban freight congestion. The demand for urban freight delivery is climbing dramatically at the same time that service standards are tightening. But the operating environments in cities are neither prepared nor designed for this change. This fact threatens to compromise the performance of supply chains and the delivered cost of goods to U.S. consumers.

 

In the face of this challenge, supply chains leaders are gearing up to figure out how to better position inventory and manage the flow of goods. One response has been the emergence of a “nested” system of distribution that includes large distribution centers (DCs) at the periphery of metropolitan regions feeding smaller ones closer to end users. As a result, the average number of DCs used by U.S. supply chains has tripled in less than five years, but the average DC square footage has declined.

 

This is why supply chain management is such an important element of modern business around the world. We are at the forefront not only of keeping all of commerce, in all of its various forms, focused on the customer and lowest total delivered cost, but also of creating new ways to deliver value to those that we serve, within our company and to the ultimate customer.

 

At CSCMP, it is our job to help you keep up with these emerging trends through local roundtable events, our CSCMP publications, and our annual EDGE Conference and its related Supply Chain Exchange, which take place September 15–18, in Anaheim, California. The educational sessions and keynote addresses at the conference will keep attendees abreast not only of future methods of distributing products but also help them control their costs, cultivate and acquire the needed talent, and develop and embrace the new technologies that will help them do their job more effectively and efficiently. Meanwhile the Exchange will introduce them to new companies and new technologies that will undoubtedly be imported into our supply chains of the future.
 

  
Better & Faster: Get Better at Adapting & Faster at Finding Ideas
 
Described as an "intellectual can of Red Bull" by Association Week and "on the forefront of cool" by MTV, Jeremy Gutsche (GOOCH-AY) will share his unique perspective on creating a culture of innovation & making change happen.
 
Jeremy’s mission is to help people find better ideas faster so that they can find their true calling. By leveraging scientific research, Jeremy hopes to help people better understand chaos and innovation in order to thrive instead of struggling in ever-changing environments.

Join Jeremy and more than 3,000 supply chain professionals at supply chain's premier event™ in Anaheim, California by registering today! Now through May 31, 2019, you can register for EDGE at the member rate of $1,895 PLUS receive one year of membership for FREE. Use the code BOGO19 at checkout.
  

Due to tight capacity in 2018, shippers increasingly engaged the spot market at budget-breaking prices. Today, capacity is plentiful and spot rates are 20-30% below contract rates. While the swing in pricing over the past 12 months has been unusually pronounced, shifting rates are part and parcel of working in the freight world. As we enter the produce season, shippers are preparing for the capacity pendulum to swing back once again, resulting in more reliance on the spot market.

 

Moving large amounts of spot freight is challenging for enterprise shippers. The average spot load can take hours to manage, taxing limited resources with intensive manual work for everything from pricing and booking to load acceptance, planning, and scheduling. Additionally, shippers often rely on historical rates because they can’t see current market conditions, resulting in missed opportunities for flexibility, savings and service improvements.

 

Fortunately, new technology is unlocking the potential of on-demand freight. Not only is this technology widely available, it also offers the promise of being viable at scale, enabling enterprise shippers to participate in the spot market like never before.
 
Read CSCMP's latest Hot Topic, The Road to On-Demand Freight & How It's Positioned to Transform Logistics, written by Bill Driegert, Sr. Director, Uber Freight.

  

There’s no doubt that a state-of-the-art transportation management system (TMS) has a proven ROI. According to ARC Advisory Group, in addition to realizing greater visibility and efficiency, TMS users can save an average of 5–10 percent of their annual freight spend. As TMS prices have decreased over time—and capabilities have increased—businesses of all sizes can now afford to deploy the technology.

 

TMS platforms are more affordable and accessible than ever due to technology advances and the growth of cloud applications. At one time, the TMS was only accessible to the largest businesses and budgets, and its main capabilities were tracking and basic rate and customer management functions. Now, modern TMS systems encompass all aspects of the supply chain, from the time the order is placed through invoicing, and every step in between.
 
Read CSCMP's May Hot Topic, How a Modern Transportation Management System Can Save Your Company 5-10% in Freight Spend, written by Greg Carter, Chief Technology Officer, GlobalTranz.

The Council of Supply Chain Management Professionals (CSCMP) will release the 30th Annual State of Logistics Report™ during a press conference at the National Press Club in Washington, D.C., on  Tuesday, June 18, 2019. CSCMP collaborates with global strategic management consulting firm, A.T. Kearney, as the author and researcher, with Penske Logistics continuing in its longstanding role as presenter of the report.
 
Meet this year's esteemed panel of supply chain industry experts:
- Marc Althen, President Penske Logistics
- Stevan (Steve) B. Bobb, Executive Vice President & Chief Marketing Officer, BNSF Railway
- Ken Braunbach, Vice President Inbound Transportation, Walmart-Supply Chain
- Jill Donoghue, Vice President of Supply Chain, Bumble Bee Seafoods, LLC
- Derek Leathers, President & Chief Executive Office, Werner Enterprises
- Michael Zimmerman, Partner, A. T. Kearney
- Kevin Smith, President of Sustainable Supply Chain Consulting and Panel Moderator
 
 
This report is available for $295 to non-members. Complimentary access to this report is a CSCMP member benefit, and it will be available to CSCMP members on Tuesday, June 18, after it is released.

 

Visit cscmp.org for details cscmp.org for details.
 
 
   
Logistics Services (Panama) S.A.
      
RateLinx
   
CSCMP Awards and Recognition
  

Samuel Adenekan, Operations Coordinator at Agility Logistics.
 
Congratulations also to the following students from the University of Tennessee – Knoxville for achieving the SCPro™ Level One Certification in April:
 
• Nicholas Brink
• Logan Payette
• Nick Lauerman
• Ryan Smith 
• Matthew Miller 
• Jackson Frizzell
• Thomas White
• Aizhou Zou
• Gavin Renshaw
• Tanner Holden
• Sullivan McInturff
• Kendall Grafton
• Whittney Lee
 
SCPro™ Certification is CSCMP’s supply chain certification developed by and for the industry’s thought leaders.

 

Ready to join their ranks?  Click “Learn More” for information on CSCMP’s supply chain certifications or email us at scpro@cscmp.org

Trimble Transportation and CSCMP are holding an essay contest for young professionals and students.
 
This call for essays is an opportunity to demonstrate your ability to think futuristically and deliver potential solutions to the industry.
 
To apply, you’ll need to thoughtfully answer the following question by June 15, 2019:
"What is the biggest challenge currently affecting supply chain management and logistics, and how do you propose to solve it?"
 
To qualify, you MUST be a young professional or student member of CSCMP (age 32 or under) at the time of submission.
 
The winner will receive one complimentary registration to EDGE 2019, hotel lodging, a $500 US stipend and an announcement at the Future Leaders Reception during CSCMP EDGE.
 
 
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Connect
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.
Accelerate your team’s performance with CSCMP & NASSTRAC. Connect your supply chain and your top performers to CSCMP & NASSTRAC and you will:
 - Gain access—to a community of 7,000+ global members; 75% of whom are director-level or above
 - Connect—via our 60+ global roundtables with 250+ annual events from tours to educational sessions
 - Keep talent current and relevant
 - Gain access to CSCMP’s industry-leading State of Logistics™ Report
 
  
CSCMP designed the Supply Chain Exchange Exhibition to provide a platform for companies and organizations to meet and partner with the right solutions provider. Nearly 60% of EDGE attendees are director level or above, so join the decision makers from the organizations you target at EDGE 2019 in Anaheim, California, September 15-18! Don’t miss the opportunity to connect with them by becoming a vendor of the Supply Chain Exchange.

As a Supply Chain Exchange vendor, you can:
 
 - Display your innovative products to 3,000+ leaders spanning the end-to-end supply chain
 - Establish your products and services as the solution for organizations’ pain points
 - Reconnect with long-time customers
 - Establish new contacts and develop new business
 
Don’t miss out on showing your products and services to the right folks. Reserve your booth today before we sell out of premium exhibit space!

Get more information about the exhibition and view the current floor plan.
  
CSCMP Member & CEO of Nexterus, Sam Polakoff, just announced his latest novel, Shaman, available October 2, 2019. Sam is a third-generation family business owner and a CSCMP of 30+ years who has a successful, second career as an author.  
   
Naylor Association Solutions
   
Educate
  
Presented by CSCMP Corporate Member, nVision Global
 
The key to a business’s success—regular performance analysis and introspection. Shippers who wish to grow their trade rapidly must incorporate programs/tools/services that provide detailed and intelligent analysis report of their business performance. Detailed Analysis Reports of Logistics processes bring excellent Return on Investment for companies worldwide. At nVision Global, we recognize this demand for Business Intelligence tools to development a technology that provides you the power to drive improved efficiency and lower supply chain costs.
 
Register to attend our FREE webinar on Wednesday, May 22, 2019, and we will send you a complimentary e-book that demonstrates how a cloud-based TMS provides real-time visibility and manages global shipments from creation to delivery.
 
Date: Wednesday, May 22, 2019
Time: 12:00 PM to 1:00 PM ET
  
The 5th Annual Petrochemical Supply Chain & Logistics Conference & Exhibition takes place on June 11-12 at the George R. Brown Convention Center in Houston, Texas. Situated within Downstream 2019, the event will bring together 700+ senior level supply chain professionals from major integrated and independent Petrochemical companies, Rail providers, global shippers, trucking & 3pl’s, barge, ports and innovative technology providers, and service companies all of whom play an active role in the global Petrochemical Supply Chain industry.
 
See the world-class agenda and secure your pass now – passes are complimentary for all owner-operator companies.
 
Here are the three reasons you can’t afford to miss the 5th Annual Petrochemical Supply Chain & Logistics Conference 2019:
 
 - More than 700 Supply Chain Professionals Under One Roof – with more than 35% Petrochemical Producer attendee make-up, it is not just CP Chem who are sending groups. ExxonMobil has already confirmed a team of 20+ decision makers to attend. Others include Huntsman, Dow Chemical, BASF, NOVA Chemical, Formosa, LyondellBasell and more
 
 - The best industry networking opportunities, globally – with more than 10 hours of dedicated networking via refreshment breaks, seated lunches and networking drinks receptions, as well as 1-2-1 meetings. You’ll make more genuine connections at PSC 2019 than you would anywhere else. This is a business meeting you can’t afford to miss.
 
 - Industry leading presentations and interactive panel discussions – Collectively tackle the industry’s greatest challenges by contributing to audience Q&A and demonstrating thought leadership. Hear from the industry’s best as they confront core issues and supply best practises.
NASSTRAC’s annual meeting, The Shipper’s Voice, will be held in Washington, D.C., on June 10-11, 2019, at the Mayflower Hotel.

We have a great line-up of education sessions covering everything from tariffs to industry trends. Check out the full educational agenda.

We also think it is vitally important for NASSTRAC members to come together to discuss the issues they are facing daily and help direct our advocacy—one of the primary benefits of NASSTRAC membership.

One of the issues we will be discussing at the event and on the following day of Hill visits is the Twin 33' Initiative. The case for a policy change to approve the use of twin 33’ trailers where we now use twin 28’ trailers is clear. The U.S. population has almost doubled in the past 50 years, and there are 75 million more vehicles on the road today than there were in 1990. Domestically, e-commerce sales have grown from $42 billion in 2002 to $446 billion in 2017. In addition, DOT forecasts a 45 percent increase in freight volumes by 2045—further exacerbating the freight industry’s ongoing capacity and workforce shortages.

Twin 33-foot trailers have 18% more capacity than twin 28-foot trailers and would immediately improve the efficiency and safety of truck operations across the nation’s congested freight network, benefiting taxpayers and travelers in the following ways:
 - Twin 33’ trailers would result in 4,500 fewer truck crashes annually.
 - Twin 33-foot trailers will reduce congestion with 3.1 billion fewer vehicle miles traveled, and 53.2 million hours saved due to less congestion.
 - This creative capacity solution, which would maintain current federal weight restrictions, would also reduce wear and tear on existing infrastructure.
 
No other highway policy solution has so many positive benefits for shippers, consumers, and taxpayers with no added government expense.

Register today at nasstracspringmeeting.org.
 
 
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By Shawn Winn, Chief Operating Officers of Supply Chain Visions, a Management Consulting firm
 
Just as every team fumbles the ball sometimes, every supply chain gets disrupted at one point or another. The trick is to be prepared beforehand so that you know how to respond. This preparation will not only help you get back up and running faster but may also lead to a competitive advantage.
 
WHETHER IT IS FOOTBALL, SOCCER, OR HOCKEY, successful teams know how to respond not only when the game is going well but also when play has been disrupted. No team knows where, when, or how a fumble, interception, or turnover will happen, but managing these disruptions must be part of its game plan.

 

Similarly, in the business world, we cannot fully predict when a disruption—such as a natural disaster, a labor strike, or a failed trade agreement—will occur, but we need to have an effective supply chain risk management plan for responding to it. Without a clear plan and strategy, these risks can overwhelm our operations.

 

Every team then—whether on the playing field or in the market place—should have considered possible disruptive scenarios and have practiced plays to respond to them. A hurricane, fire, labor strike, or failed trade agreement may be incredibly more disastrous than poor aim with a ball, but it is no less expected and should be prepared for.

 

When one team is not prepared for a disruption and the other team is, it increases the other team’s competitive advantage. Those that have practiced plays at the ready are more likely to respond quickly to a disruption and come out ahead, whether that involves recovering the ball, regaining control of the puck, or getting operations back in order before losing any customers.

 

In fact, the best teams will use these plays not just as defensive maneuvers but as potentially offensive ones as well. They will look not just at how to recover from a disruption but how to best take advantage of it as well. In American football, this shows up as an interception returned for a touchdown. In hockey or soccer, it is a breakaway chance made possible by an intercepted pass. In the business world, it can come from winning new customers because you are the first company back up and ready to respond to their needs. In every game, the competition’s mistakes present golden opportunities for offensive success.
 
In other words, supply chain risk management should involve preparing not just a defensive strategy for responding to unforeseen disasters, but also an offensive strategy for how to capitalize when competitors fumble their response. A resilient supply chain will not only keep you running while the competition is down, it will also help you ramp up growth when the competition is weakest. To prepare for the fumble, supply chain managers will need to create an effective supply chain risk management plan that clearly lays out their overall strategy, spells out the response plans for different risks, and empowers people to respond effectively.
 

  
Thank you to CSCMP Member Robert Martichenko, a CSCMP Distinguished Service Award Recipient, for contributing this White Paper to the CSCMP Community.
 
Our care for people isn’t at odds with our business pursuits or our public responsibilities. It is compatible with, even essential to, those goals.


The purpose of this white paper is to identify the importance of making work more meaningful and to clarify what it means to actually do that.
 
We have learned that people respond with hope and excitement when they realize that a more humane and meaningful workplace is possible. And when they actually experience such work, when work is made more human, they truly step forward, engage, and contribute in inspiring and crucial ways necessary for enterprise success. They query, test, learn and improve. They collaborate, plan, build and innovate. They solve, and they serve. Meaningful work creates the conditions for people to give and do their very best.
 
Considering all this, our objective as authors is to understand and offer an approach to creating meaningful workplaces that restore soul, humanity, and even love to the workplace. A lofty goal perhaps, but our goal nonetheless, and one that is critically important today.
Thank you to CSCMP member Michelle Kingsbury for contributing this article.
 
Capacity, driver shortages, government mandates, fuel costs and freight damage are not just buzzwords, but real transportation dilemmas that need solutions.

Capacity is decreasing due to a stronger economy, aging fleets and retiring drivers. To increase capacity in existing trucks or railcars, fill the containers without sacrificing your product by damaging it.

Driver shortages are predicted and trending. The industry is not attracting the younger generation due to wages, lifestyle and regulations. Owner/Operators cannot afford to outfit their rigs with ELD's or experience the downtime dictated by new regulations. A shipper needs to understand the impact of hours of service on a driver when they aren’t ready with their loads. A shipper does not want to be branded as an undesirable pick-up.

Government mandates for safety purposes are good for the general public, but wreaks havoc on the daily logistics of drivers, shippers and those juggling the planning for each load. The costs to drivers and ultimately shippers contribute to bad will and result in customer dissatisfaction. Fuel costs continue to fluctuate, so sending out too many trucks or railcars only adds to this cost. You can make your day easier by having to schedule and monitor less outgoing loads.

Freight damage used to be the expected norm. Damage can be an issue of the past helping maintain customer expectations.
 
An innovative shipping solution that will address these transportation concerns and fill your truck/rail/ocean container by double stacking—damage free is a Load Saver shipping frame. Additional benefits include a reduction in shipments (one third or more), carbon footprint and material handling.
 
For examples and information on how this would help your shipping needs, connect with Michelle via the CSCMP Member Directory or email her directly at michelle@cctshippingframes.com.
   
Naylor Association Solutions
   
Roundtables

During the month of May, the Council of Supply Chain Management Professionals (CSCMP) hosted several events as part of their Member Appreciation Month series.

 

The final event of the series is Supply Chain Risk Management; the event is scheduled for Thursday, May 23, and will be hosted at CSCMP Headquarters in Lombard, Illinois. 

 

This day-long event will feature leading experts who will provide insight and best practices for measuring risk level, assessing potential threats, and driving enterprise value. By improving your ability to organize, manage, and govern the risk management function, you will be better prepared to protect your company's assets, brand reputation, and competitive advantage

 

You won’t want to miss this incredible opportunity to hear from companies such as Supply Chain Visions, USG, IHS Markit, and Convoy, Inc.!
 
Learn more and register to attend at cscmp.org.


 
CSCMP Jacksonville Roundtable
Ready or Not: Disasters and Your Supply Chain - May 29, 2019

 

Speaker presentation with tour of Harley Davidson. The talk is about previous hurricane events (focus on Matthew/Irma), Jacksonville’s importance as a launch point during Maria, unanticipated effects to supply chains from disasters and an easy way businesses can understand their risk, the current predictions for this year’s hurricane season, and how organizations can get involved in disaster relief (through ALAN or other organizations).
 
Learn more and register to attend.
 
 
CSCMP Milwaukee Roundtable
U.S. Commercial Real Estate and the Supply Chain - May 30, 2019

 

Join the Milwaukee Council of Supply Chain Management Professionals with our host—Phoenix Investors, LLC—and hear from experienced commercial Real Estate Professionals about what's happening today in the world of Commercial Real Estate and Supply Chain Management, and what they see on the horizon.

 

Topics will include: 1. Trends in the U.S. Industrial Real Estate market. 2. Understanding Leasing and what you need to know when looking to lease Warehouse or Manufacturing space. 3. Factors to consider when partnering with a Third-Party Warehouse and Distribution Logistics Provider.
 
This is an educational event that will provide insightful takeaways for those considering a career in the supply chain space and for Supply Chain Professionals looking to find the best fit for their supply chain space needs. Special Note: This event coincides with Jazz in the Park at Cathedral Square. Join us at the CSCMP event and then walk around the corner to Cathedral Square Park to enjoy delicious food and wonderful music at Jazz in the Park!
 
Learn more and register to attend.