The SupplyChainBrain Podcast: Recent Episodes
Bob Bowman
The SupplyChainBrain Podcast features in-depth conversations with industry practitioners, academics, consultants and other experts on every aspect of supply-chain management and international trade. Available for streaming or downloading.
Billions of federal dollars committed to building and maintaining the nation’s transportation infrastructure — and what do we have to show for it?
Even supply chains that are largely confined to one region are affected by global events.
A new agreement aims to scale lithium-ion battery cell production in the United States.
The “vested” model for creating successful supply chain relationships is more than 25 years old. How’s it holding up?
A new platform draws on the principles of genetics to supercharge inventory decisions across warehouse networks.
Should the federal government prop up the ailing U.S. commercial shipbuilding sector with subsidies?
When it comes to ensuring data security and compliance, manufacturers’ AI systems are woefully unprepared for hostile threats.
In decades past, manufacturers fled the U.S. for Asia in search of lower production expense. But sourcing decisions today are a lot more complicated than that.
How can manufacturers manage the risk of depending on a single supplier for critical raw materials?
In an era of dazzling technology, are we forgetting what really makes supply chain organizations run?
When it comes to meeting customer expectations for delivery in the e-commerce era, the shortest distance can be the biggest challenge.
Advanced manufacturing promises to transform rural America. But the primary education system must step up to support it.
E-commerce is responsible for an explosion in the number of alternative parcel delivery networks.
When it comes to assessing business health, is the logistics real estate market a mirror for the economy at large?
High tariffs aren’t enough to bring manufacturing back to the United States. What will it really take to make that happen?
The order-management lifecycle is ripe for automation — especially in the form of artificial intelligence.
On this bonus episode of The SupplyChainBrain Podcast, Editor-in-Chief Bob Bowman is joined by industry thought leader Bart De Muynck, to tackle the eternal question in supply chain management: What do shippers want?
Artificial intelligence — especially agentic AI — is making traditional category management smarter.
The United States’ dependence on basic minerals from China and other foreign sources is a huge problem, both from an economic and defense perspective.
On this bonus episode of The SupplyChainBrain Podcast, SupplyChainBrain editor-in-chief Bob Bowman speaks with Gary van Tassel, director of terminal and distribution center operations at software provider INFORM.
The U.S. economy appears to be in decent shape – but there could be some dark clouds massing on the horizon.
On this bonus episode of The SupplyChainBrain Podcast, SupplyChainBrain editor-in-chief Bob Bowman speaks with Maneet Singh, CIO and chief digital officer of Odyssey Logistics, about the prospects, promise and limitations of artificial intelligence.
When it comes to innovations in warehouse technology, “state of the art” is a constantly moving target.
SupplyChainBrain editor-in-chief Bob Bowman talks with Jim de Vries, founder of Enhance International Group, who is serving as project manager and program investigator for a new survey of defense supply chains,.
If you’ve been paying attention to the tech news in the several years, you might have acquired the impression that artificial intelligence is on a steady unstoppable climb.
On this bonus episode of The SupplyChainBrain Podcast, SupplyChainBrain editor-in-chief Bob Bowman speaks with Curtis Spencer, chief executive officer of Bloodhound Tracking Device, Inc.
On this bonus episode of The SupplyChainBrain Podcast, SupplyChainBrain editor-in-chief Bob Bowman speaks with Mario Cordero, chief executive officer of the Port of Long Beach.
Maximizing warehouse efficiency is about more than acquiring shiny new automation systems.
The plight of ethnic Uyghurs in China runs much deeper than it might appear at first glance.
Science has given us the tools to trace products all the way back to origin. But are businesses willing to make use of them?
How is the second Trump Administration enforcing laws against forced labor in global supply chains?
Supply chain managers are in a risky business. Does the insurance industry have their back?
If picking the right systems for automating logistics is a journey, how do you even get out the door?
There’s always been procurement in supply chains — but today’s CPO is a whole different animal.
Is the “person” you’re talking to on that kiosk screen an actual human? Or a metahuman?
A lot of manufacturers and users of radio equipment aren’t ready for looming new regulations on cybersecurity by the European Union.
Today’s foodservice fleets not only have to respond to disruptions — they need to do it in real time.
High tariffs are a major concern for traders, but the bigger problem is just figuring out what they’re going to be.
Doing business in California? Get ready for a tough new greenhouse gas emissions-dislcosure law.
The global trading system is in a state of chaos. Will American manufacturing benefit from it?
Dikembe Mutombo was born in the Democratic Republic of the Congo and came to the U.S. — despite an initial ambition to attend medical school — to play basketball in the NBA.
Robots are proving to be a boon to autonomous operations in the distribution yard — but the quest for the “perfect” robot is a futile one.
Just about every logistics operation can benefit from modern-day automation. But how do they go about selecting the right vendor and the right systems?
There are a number of scenarios in which freight consolidation makes sense. But getting the most out of the exercise can be tricky.
How do we increase career opportunities for women in engineering and supply chain positions?
What kind of industrial policy should the U.S. adopt in the post-free trade era? Second of a two-part discussion.
Think violations of environmental standards and human rights in supply chains are limited to places far from U.S. shores? Think again.
How is one of the world’s largest pharmaceutical companies promoting sustainability and regulatory compliance throughout its extensive supply chain?
Can Mexico keep attracting manufacturers in a time of political and economic uncertainty?
The global battery supply chain must be purged of its reliance on forced labor and child labor.
You’ve acquired a new piece of technology for the supply chain. How do you make sure that you’re getting the most out of it?
The future of procurement lies with artificial intelligence — and big changes are coming.
Modern-day supply chains are obsessed with the goal of becoming resilient. But is that enough?
When it comes to the concept of supply chain “orchestration,” artificial intelligence is the new conductor.
The omnichannel has been with us for a long time. But does that mean that retailers are truly “channel-agnostic”?
Understand quantum physics? Neither do we. But you might be able to grasp quantum computing.
A contract manufacturer is riding the trend of shifting production from China to Mexico.
Automation promises to bring huge rewards to the modern-day warehouse. But doing it right is no simple task.
How does the world’s largest retailer protect itself against a slew of supply chain disruptions?
Call smaller warehouses finally afford the automation they need to complete with larger operators?
In an uncertain economy, how are small to medium-sized businesses tackling the challenge of inventory management?
Call smaller warehouses finally afford the automation they need to complete with larger operators?
Every business transformation needs a solid strategy. And every strategy needs a laser focus on execution.
Forget about those rare Black Swans and unexpected supply chain disruptions. In parcel shipping, certain headaches are a constant.
Are manufacturers engaged in a mass exodus from China? And if so, where are they going?
The occurrence of cyberattacks on global supply chains is hardly news. But their frequency might come as a surprise.
The U.S. can’t have a vibrant “bio-based” manufacturing sector without an equally strong source of domestic materials to support it.
How do we solve the problem of obsolete electronic components in the aviation and defense industry?
We haven’t stopped the importation of cotton produced in China with the use of forced labor.
Time is running out for the healthcare supply chain to fully comply with the Drug Supply Chain Security Act.
Are robots that are modeled after the human form the best choice for warehouse operations?
Want to keep your warehouse workers in a tough labor market? Give them the right tools to do their jobs.
What exactly is so smart about “smart” connected products — and just what are they connected to?
Total logistics costs rose by as much as 80% over the past year. Are shippers in for more of the same in the coming months?
North America needs a domestic supply chain for electric vehicle batteries — but it has to be sustainable and ethical.
Who is this strange individual called a Chief Supply Chain Officer? And what does it take to become one?
When it comes to setting priorities for managing the modern-day supply chain, executives can’t have it all.
The foodservice industry faces a huge challenge in becoming environmentally sustainable.
There has never been a greater need for reducing costs in global supply chains than right now.
3D printing is just hitting the acceptance curve for wide-scale adoption by manufacturers.
Are businesses keeping up their commitment to corporate giving and social responsibility?
A new report card on forced labor in apparel supply chains gives brands and manufacturers mostly failing grades in their efforts to put a stop to it.
A typical warehouse consists of multiple information systems. How do they work together smoothly?
As manufacturers look to shift production to North American, Mexico appears to hold all the cards. But is there a joker or two in the deck?
How often does a major construction project come in on time and on budget? Why is the answer “hardly ever”?
Most organizations still have a long way to go before they can declare their supply chains to be “zero waste.”
For all its advantages, the digitization of supply chains has one disconcerting drawback: It makes them more vulnerable to hackers and cyber thieves.
Tariffs on Chinese importers are a response to that nation’s unfair trade practices. But who’s footing the bill?
Beyond finding the right suppliers, procurement’s main mission back in the day was to save the company money. Oh, for simpler times.
What does it take to achieve supply chain digitization? And for that matter, what does that even mean?
U.S. industry is fervently hoping for a resurgence in domestic manufacturing. Application of artificial intelligence is the key.
When it comes to same-day delivery, Amazon has set the bar high. Is it realistic for smaller e-tailers to match that promise?
Setting out on the journey to digitize your supply chain? It’s a long and winding road.
How can employees cut costs at the same time they’re providing an attractive environment for their frontline logistics workers?
Will three big recent funding measures entice manufacturers to shift production from China back to the U.S.?
Automakers have put themselves squarely on the road to electrification, but there could be speed bumps ahead.
A lot has happened in the 10 years since Patagonia, the big designer of apparel and gear for outdoor recreation, published a book about its 40 years of being in business.
The Biden Administration’s sanctions on sales of advanced technology are having a major impact on the global electronics supply chain.
Is the age of globalization coming to an end? If so, what will the future of trade look like?
Will the latest evolution of artificial intelligence create a fount of information — or misinformation?
Is it time for the U.S. to take a more aggressive approach to China’s plan for global economic dominance?
A marketplace for recycled plastic is using blockchain for authenticating material origins. But is the technology sustainable enough for that purpose?
The structural flaws of global supply chains were exposed by COVID-19. But the origins of those problems date back much further than the pandemic.
You’ve chosen a provider of supply chain planning software. How do you ensure that the initiative will succeed?
You’re out to obtain new software for supply chain planning. How can you be assured of making the right choice?
When it comes to unethical behavior by one’s supply chain partners, no matter how deep up the tiers you go, ignorance is no excuse.
Recently the Trellix Advanced Research Center discovered two major vulnerabilities in Cisco network devices, exposing them to possible cyberattack.
What does it mean to turn the procurement function into a “growth engine” for the business?
Warehouse workers are getting harder to find, hire and retain. What do they really want?
Smart glasses have been slow to catch on with consumers, even among the earliest adopters of technology. Not so in the warehouse.
As manufacturers shift production away from China, can they turn to “friendly” alternatives?
Environmental, social and governance (ESG) compliance is no longer just a selling point for responsible manufacturers and their supply chains. It’s a mandate.
The conversation we’re having today about supply chain finance is a lot different than that of just a few years ago.
For global high-tech manufacturers, is the pendulum swinging from outsourcing back to insourcing?
COVID-19 triggered a radical transformation of the workforce across all industries, but the impact on the supply chain sector has been especially acute.
How can we tell that the logistics industry holds so much promise for investors? It’s where the money is.
When it comes to manufacturing product for the world, China is now longer a low-cost country.
A maker of emergency vehicles has managed to surmount its own set of supply chain emergencies.
A new mandatory report card for carbon emissions by ships of greater than 5,000 gross tons has huge implications for the commercial maritime industry.
China is losing its luster as a low-cost source of manufacturing. Is Mexico an alternative?
Sales and operations planning (S&OP) was created way back in the 1980s. But it is relevant to today’s world of supply chain disruptions and uncertainty?
All those warehouses that have survived up to now on old-school manual processes? They’re not working anymore.
The success of any global supply chain starts with procurement. But a lot of companies are getting that function wrong.
Government and private industry alike have set ambitious targets for the production of electric vehicles. But will their efforts be short-circuited by a broken battery supply chain?
In the seesawing relationship between ocean shippers and carriers, who’s up right now? And who’s down?
In these times of global crisis, there’s never been a greater need for the socially responsible organization.
If only the fashion industry were as up-to-date with its supply chain as it is with consumer trends in apparel.
The life of the drayage trucker in “normal” times is a difficult one. And these times are anything but.
Will the Biden Administration meet its goal for electric vehicle production in the U.S.? Don’t count on it.
Quantum computing has arrived. But is it mature enough to solve brutally complex supply chain problems?
For U.S. importers, the hurdles for proving that their supply chains are free of forced labor are getting higher all the time.
Don’t hold your breath waiting for global supply chains to return to some state of “normal” anytime soon.
Can all of the interests that make up an urban environment come together to solve the problem of freight congestion?
Geopolitical and economic winds are buffeting all international traders. But small and medium-sized businesses are most vulnerable to the storm.
Blockchain technology is well advanced within some industry supply chains, but healthcare isn’t among them.
Every supply consists of two crucial elements: physical goods, and the digital systems that make it possible to move them. How can they be made in work in harmony?
The wallets are open: Companies are investing heavily in software for optimizing the supply chain. But will the trend continue?
It’s tough enough starting a company. But for a female entrepreneur in the world of parcel logistics, it’s equally vital to promote diversity within the industry.
It’s great to have all that supply chain data at your fingertips — but can you do anything with it?
Warehousing and transportation providers need solutions for coping with what looks to be a long-term shortage of labor.
Environmental, social and governance (ESG) standards are becoming essential to the success of global supply chains.
3D printing, also known as additive manufacturing, has been touted for years as a revolution in goods production — one that’s able to meet the demands of today’s picky consumer. So why hasn’t it made more progress to date?
The U.S. is around 80,000 commercial truck drivers short of what’s needed to meet current demand. And requirements for the future will send that number soaring.
Trade in agricultural products between the U.S. and Mexico is massive: the U.S. ships nearly $20 billion in farm exports to Mexico each year. But that relationship could be in jeopardy .
The $1.2 billion Infrastructure Investment and Jobs Act passed by Congress and signed into law by President Biden late last year has been heralded by some as the solution to the problem of how to repair and expand the nation’s crumbling and antiquated system of roads, rails, ports, airports and waterways. One can only hope.
Inventory management poses a huge challenge to retailers today — but it’s also the key to matching supply with demand in difficult times.
Can global businesses meet ethical standards for behavior even as they’re struggling to survive?
You might say that Dr. Lisa Williams had accomplished quite enough in her academic career.
The global shortage of microchips has had a devastating impact on multiple industries, not least automotive manufacturers, who are expected to have lost some $210 billion in 2021 because they couldn’t get enough chips to drive the systems in their vehicles. But how did we get to this state of affairs?
Megan Preston Meyer was enjoying a highly successful career as a supply chain expert for numerous companies. Something was missing, though — what she calls “the stories that data doesn’t tell.”
The supply chain is hanging out the “Help Wanted” sign. But where will we find the right people?
How has PepsiCo Beverages of North America, with more than $22.5 billion in net revenue, 65-plus manufacturing sites and 420 distribution centers, managed to keep operations going during the COVID-19 pandemic?
Are workers’ rights in the mines of the Democratic Republic of the Congo being sacrificed to the world’s hunger for cobalt?
Think it will be difficult to bring back manufacturing to the United States? Getting out of China isn’t so easy either.
It wasn’t too long ago that we began seeing signs of a return of manufacturing from China back to the U.S. Has someone flipped the script?
Over the years, the technology of robotics in the warehouse has evolved from something that’s nice to have to an absolute necessity.
Are we on target for making zero-emission vehicles account for half of all cars sold in the U.S. by 2030? Not without enough rare earth minerals to build them.
A lot of factors go into the success or failure of consumer brands, but one of them stands out today: the supply chain.
You might think that the recent spate of supply chain disruptions would have caused a stampede of manufacturers out of China, or at least prompted them to diversify sourcing. But that hasn’t been the case.
Artificial intelligence promises huge benefits to the logistics sector — so why is it so slow in being fully adopted there?
No aspect of business is as frustrating as hitting it big with customers, yet not being able to get product to them.
How do you set up and maintain critical supply chains in some of the world’s most difficult environments?
Quantum physics is a mystery to most everyone, but that doesn’t stop innovators from attempting to apply quantum technologies at a practical level -- in this case, cybersecurity.
So manufacturing is coming back to the U.S. after all? Guess it depends on whom you ask.
The Trump Administration unceremoniously withdrew the U.S. from the Trans-Pacific Partnership among 12 Pacific Rim nations before the pact was even officially born. Along with it went the potential for key protections of American intellectual property rights.
When it comes to global supply chains, resilience is the buzzword of 2021. But are companies doing more than talking about it?
The lessons of the pandemic forced shippers to take a fresh look at the way they deal with carriers.
End-to-end visibility of data and product is essential to the efficient operation of consumer packaged goods supply chains. Unfortunately, many are running blind.
A review of critical supply chains uncovers major weaknesses in the consumer packaged goods sector.
Despite its success in rushing COVID-19 vaccines to market, the biopharmaceutical supply chain is far from perfect.
Shifting U.S. population patterns, caused in large part by the COVID-19 pandemic, are posing a new challenge for e-tailers looking to stay close to customers.
The COVID-19 pandemic appears to be subsiding. How should logistics providers and shippers be readying themselves for the “new normal”?
The latest edition of the E-Tailers’ Almanac offers a glimpse of what 2021 holds in store for online merchants.
If you think your business is in a comfortable place and securely on the road to continued profitability, you might need to think again.
The consumer products giant Unilever plc is promising a “living wage” for all of its supply-chain workers by the year 2030. Can it make good on that pledge?
Thanks to the pandemic and heavy customer demand, parcel shipping is currently mired in “chaos.”
At a time when warehouses are under intense pressure to process and ship product to demanding customers, how can we keep warehouse workers safe?
For all the attention that we pay to the movement of goods from origin to destination, do we ever give thought to the communities that lie in their path?
Meet a woman of color who has broken down barriers in the railroad industry — among many other accomplishments.
The ports of Los Angeles and Long Beach, along with supporting distribution facilities and infrastructure in the area, are suffering from severe congestion. What’s the cause — and the solution?
With the pandemic still raging and the U.S. domestic economy slumping, how will President Biden address critical issues of international trade?
When it comes to pursuing supply-chain sustainability and social responsibility, has the pandemic caused companies to take their eye off the ball?
For e-tailers selling their wares on Amazon.com, a lot of obstacles stand in the way of success — sometimes even Amazon itself.
When it comes to efficient distribution of the COVID-19 vaccine and other drugs, the pharmaceutical supply chain is falling short.
Blame the glitches in rolling out COVID-19 vaccines on any number of factors, but is there a quick solution to the obstacles encountered on the distribution end?
It takes more than the issuance of sincere P.R. statements to ensure real diversity in the business world today.
Retailers selling over the internet can’t hope to compete without a reliable and effective direct-to-consumer (DTC) model for fulfillment. But setting one up is anything but easy.
If you’re a business that’s outsourcing services, don’t think for one moment that you’re shedding responsibility for the health and safety of a vendor’s staff when they show up on your premises.
The failure of consumers to recycle their personal devices could lead to shortages of the precious metals needed to build new products.
Many of the supply-chain shortages caused by the coronavirus pandemic have one thing in common: a lack of plastic and cardboard containers to put them in.
If U.S. manufacturing is to compete with cheap overseas production, it needs to attract a younger workforce with technology chops.
The humble conveyor is no longer the symbol of warehouse automation. The robots are here.
We’ve seen countless iterations of technology for automating warehouses and factories over the decades, but somehow the conveyor remained the essence of that evolution. Until now. Autonomous mobile robots (AMRs) are increasingly supplanting conveyors in the warehouse. They’re far more flexible and varied in the tasks they can perform, and more suitable for meeting the demanding needs of omnichannel retailing. On this episode, we discuss the development of AMRs with Wes Reid, senior vice president of products and operations with IAM Robotics. We learn how these units are serving warehouses large and small. And we tackle the question of whether humans will have a role to play in the increasingly automated warehouse of the future. Hosted by Bob Bowman, Editor-in-Chief of SupplyChainBrain.
This episode is sponsored by IAM Robotics.
Show notes:
A blog post from IAM Robotics: “The Rise of Autonomous Mobile Robots.”
The 17 “rare earth” minerals that are essential to so many high-tech products today, from electric cars to magnets and military systems, aren’t literally rare, but their mining and production is.
Easier said than done: that pretty well describes the task of shifting manufacturing out of China and back to the United States.
Easier said than done: that pretty well describes the task of shifting manufacturing out of China and back to the United States.
Artificial intelligence is everywhere in global business today, especially in the supply chain. But what exactly is this thing called “AI”?
For transportation providers in the e-commerce era, the choice is clear: disrupt, or be disrupted. The motivating force is, of course, Amazon.com, which has shown distinct signs in recent years of desiring to take over multiple transportation and logistics functions in support of its dominant e-commerce business. Existing transportation providers will either have to respond, or get out of the way. Like it or not, disruption is in their future. On this episode, we speak with Timothy Leonard, executive vice president of operations and technology with TMW Systems, about how transportation and logistics providers can wake up and respond to the Amazon challenge. It's not just small carriers that are threatened. They need to take an innovative approach to accessing and managing data, and band together into communities that will protect their business from absorption by the Amazon behemoth. The age of sedate, contract-driven transportation is dead. Time for a new strategy that aims, not just at survival, but dominance.
E-commerce retailers today aren't just focusing on the products they sell. They're also paying close attention to the boxes they come in. The term ''unboxing experience'' describes how consumers feel when they open the carton that contains an online order. Sellers used to be content with shipping items in plain brown boxes, their priority being to keep costs down. Now, however, they're looking for ways to differentiate themselves from the competition, and burnish their brands. So it only makes sense that they would turn their attention to the box and its accompanying packaging materials. On this episode, we learn of the innovative approaches that e-tailers are taking toward the once-overlooked shipping box. Our guest is Ken Chrisman, president of the product care division of Sealed Air. He explains why unboxing has become so vital to brand identity, and he explains how retailers are measuring consumer reaction (and, most importantly, emotion) to the experience of opening the box. It's all about eliciting ''mood boosts'' on the part of the buyer.
The Northern American Free Trade Agreement is 25 years old, but whether it lives to see another year is an open question. Nafta came under intense fire from both major candidates during the 2016 U.S. presidential campaign. But it was candidate Trump - and now President Trump - who was most critical of the treaty. Depending on the day, he has sworn to repeal it, walk away from it, renegotiate it or modernize it. But whatever the Administration ends up doing, Nafta is unlikely to survive in its current form. So what might a Nafta 2.0 look like? On this episode, we get some idea of its future from Alex Koff, partner in the Venable LLP law firm. He offers insights into how changes to the agreement might impact manufacturers, law and consumers. And he discusses how Nafta might be revised to account for technology that didn't exist at the time it was first ratified.
It takes more than deep water to accommodate a modern-day containership. Sometimes you have to raise a bridge as well. The Bayonne Bridge was constructed in 1931 to connect New Jersey with Staten Island. And while it was the largest arch bridge in the world at the time, it wasn't high enough to allow for passage of the new generation of mega-containerships. So the Port Authority of New York & New Jersey undertook a $1.6bn project to elevate the roadway. The initiative required four years of permitting and another four for construction, but that was relatively quick for a project of this scale and cost. On this episode, we find out how the bridge reconstruction was planned, funded and executed, and what it means to the Port Authority of New York & New Jersey. We speak with Bethann Rooney, assistant director of port performance initiatives at the Port Authority at the Port Authority, and Peter Keyes, vice president of New York operations with Moran Towing Corp. They explain what it takes for a major port to keep pace with the requirements of today's global container services. And they consider the question: Just how big are those ships going to get?
In the era of the Internet of Things, we're playing catch-up with the huge volume of data that the phenomenon is generating. Need to track high-value goods throughout the supply chain? No problem. Their cost has long justified the time, resources and technology involved. Now, however, we have the Low-Power Wide-Area Network (LPWAN), which allows for long-range communications between lower-value goods and equipment. In the past, those items might have been tracked inadequately or not at all. On this episode, we examine the benefits and impact of the LPWAN with Michael Orr, vice president of sales and partnerships with network operator Sigfox. He provides a picture of the modern-day Internet of Things ecosystem, identifies gaps in visibility, addresses the issue of network security, and offers his view of how the technology of smart devices will evolve in future. ''I see the market as essentially infinite,'' he says. ''Everything will be connected in the next five to 10 years.''
Forget about the old style of business networking. ''Social'' networking has brought a whole new meaning to the term. Social networking is fast becoming a must-have skill in the business world both for career advancement and for managing day-to-day operations. More specifically, it's a critical element in procurement and supply chain. Just ask Tania Seary, founder of Procurious, the online business network for procurement and supply-chain professionals. She returns to the podcast to talk about the new era of networking, and why it's now an indispensable quality for today's procurement executive. She also reveals the secret of being a ''Procurement Network Guru.'' Says Seary: ''It's just the most valuable, cost-effective way to drive change in your day-to-day role that you can get.'' Forget about the old style of business networking. ''Social'' networking has brought a whole new meaning to the term. Social networking is fast becoming a must-have skill in the business world both for career advancement and for managing day-to-day operations. More specifically, it's a critical element in procurement and supply chain. Just ask Tania Seary, founder of Procurious, the online business network for procurement and supply-chain professionals. She returns to the podcast to talk about the new era of networking, and why its now an indispensable quality for today's procurement executive. She also reveals the secret of being a ''Procurement Network Guru.'' Says Seary: ''It's just the most valuable, cost-effective way to drive change in your day-to-day role that you can get.''
How do U.S. executives view the future of manufacturing? Some of the answers are contained in a new report from the accounting and consulting firm of Grant Thornton LLP. In a survey of more than 375 U.S. manufacturers, it asked them to detail the major forces that are shaping their industries. They were also invited to describe the steps they're taking to adapt to those changes. On this episode, we get the details from Jeff French, Grant Thornton's national managing partner for consumer and industry products. Based on the firm's research, he lays out the four critical priorities for manufacturers today, as well as their number-one concern for the future. And he discusses both the political and technological factors that promise to radically transform manufacturing in the years ahead. Are manufacturers reshoring operations back to the U.S.? What's the impact on labor? It's a time of deep uncertainty but that's no excuse for inaction.
A new wave of protectionism is threatening the stability of global supply chains. A worldwide backlash against free trade and globalization is posing new risks for supply chains. That's the conclusion of a new report from the Atlantic Council and Zurich Insurance Group. It examines a variety of geopolitical trends that could have a significant impact on economic growth, and, as a result, global supply chains. The report zeroes in on three main scenarios: the rise of protectionism in an interconnected world, the impact of conflict in the Middle East on the availability and price of energy, and the scarcity of water and food. On this episode, we take a deep dive into the study with Nick Wildgoose, global supply chain product leader with Zurich. He offers advice on what companies should be doing to buffer themselves against these three critical areas of risk. But judging from the results of a recent Business Continuity Institute study on business resilience, most are likely to suffer serious supply-chain disruptions anyway.
Can the cloud protect us from cyber attacks? Or does it just make us more vulnerable? The early days of cloud computing raised deep concerns among I.T. experts about cybersecurity. Wasn't it riskier to shift systems and data to shared servers that lay beyond the firewall? What's more, system designers seemed to be doing little to insure security in the cloud. But that attitude is changing. Today, the cloud can serve as a potent weapon against security breaches and ''threat actors.'' So says Jeff Schilling, chief security officer with Armor Defense, Inc. On this episode, he talks about recent advances in cloud security, and how the technology can help to ''censor, contain and eradicate'' hackers and cyber thieves. He offers advice to companies on what they should be doing to protect their data, funds and intellectual property in the cloud. He lays out the biggest vulnerabilities that still exist in I.T. systems. And he suggests an answer to the unsettling question: Is anybody truly safe?
More and more women today are stepping up as entrepreneurs. What will it take for them to succeed? The world of entrepreneurs has largely been dominated by men. Now, that's beginning to change. According to the U.S. Census, there's been more than a 30-percent jump in female business owners. Still, their path to success might be somewhat different than that of men. On this episode, the second of two focusing on entrepreneurship, we speak with author, marketing expert and serial entrepreneur Felena Hanson. She's the founder of Hera Hub, a shared workspace and community for female innovators. With six locations around the world and growing, it supports hundreds of aspiring business executives in more than 16 industry segments. The author of Flight Club Rebel, Reinvent and Thrive: How to Launch Your Dream, Hanson talks about what it takes for women to thrive in the often cutthroat world of business startups, the qualities that an entrepreneur needs to have, and why she believes that ''woman will be responsible for the next wave of prosperity in the U.S.''
The entrepreneur has taken on near-mythic status in modern-day society. But who is this individual really? You can't deny the importance of the entrepreneur: the individual who challenges conventional wisdom, and makes something new and transformational. We look up to the individual who pursues a goal with relentless passion, builds a business from its beginnings in a humble garage, and realizes smashing success. But the entrepreneur can also be a difficult person, one who doesn't subscribe to the norms of human behavior. On this episode, we speak with Joe Carlen, founder of Value Guards and author of A Brief History of Entrepreneurship - The Pioneers, Profiteers, and Racketeers Who Shaped Our World. He sketches out a nuanced view of this unique individual, whose contributions to society can be immense, but who might also cross some ethical lines along the way. One thing is certain: it's about more than just making money.
Can't wait to ditch that old phone, computer, car or sweater? You're a victim of planned obsolescence. As consumers, we often bemoan the poor quality of products, blaming manufacturers for deliberately designing them with a short lifespan. Then we scramble to buy the latest version of the hot new item. Planned obsolescence is a reality, and it's killing the earth, says Kamila Pope, a Brazil-based lecturer, researcher and lawyer with a specialty in environmental and bio-law. On this episode, she talks about her new book, Understanding Planned Obsolescence: Unsustainability Through Production, Consumption and Waste Generation. Pope relates how we became a consumer society, the survival of which depends on continuous growth (and consumption). And she lays out the price we're paying for our acquisitive ways. How about putting corporate executives in jail for making products that are designed to last only a short time? That's what regulators in the European Union and Brazil apparently want to do. But can an economy based on sustainable and long-lasting products survive?
How long can our society get by without trucks? How about five days? A new documentary, Be Prepared to Stop, presents a portrait of the trucking industry in crisis. Chief among its woes is the nation's crumbling infrastructure, with no solution in sight for funding critical repair, maintenance and construction of roads, highways and bridges. But the film goes even further, to show us the everyday lives of truckers, as well as key issues related to driver safety, and the failure of government to act on multiple fronts. As the film puts it, ''America's 'Check Engine light' is on.'' On this episode, we speak with the filmmakers, co-director and executive producer Jennifer Clymer, and co-director and producer Marijane Miller. They recall how they became aware of the industry's dire plight, what they learned in making the movie, and what steps need to be taken now. It's all about adopting a nationwide view of citizens' self-interest or, as the filmmakers put it, ''the ultimate connectivity movie.''
The so-called platform economy promises to drastically change the nature of work. Is that a bad thing, or a good thing? Call it the ''platform'' or ''gig'' economy: the blending of powerful computing with the growth of networks, digitizing the means by which work is assigned and carried out. Uber and Airbnb are obvious examples, but there are an estimated 1,800 other active platforms today, with many more to come. What happens, though, when work is intermediated by a digital platform? What's the impact on wages, job security and other aspects of traditional employment? The Institute for the Future is looking for answers, in its Workable Futures Initiative. The idea is to spark a productive conversation about a trend that is in danger of outpacing our ability to understand its long-term impact on society. On this episode, we speak with Devin Fidler, research director for the Institute for the Future. He describes the work of the initiative, and its mission to discover the potential for ''positive platforms.'' He also discusses the implications of a system governed by algorithms, raising the possibility of a ''self-driving'' company that is managed entirely by software. In such a world, what's the fate of the traditional American worker?
In the age of the omnichannel, is there any hope for traditional retail chains? The signs aren't especially encouraging. Old-line retailers such as Sears, Roebuck & Co., Kmart Corp. and J.C. Penney Co., Inc. have struggled to stay profitable while battling competition from two directions: big-box giants such as Wal-Mart Stores Inc. and Target Corp. on one side, and the e-commerce wave, led by Amazon.com, on the other. It's the latter trend, however, that has done more to transform retailing in recent years. Today, the traditional brick-and-mortar retailer is expected to maintain multiple fulfillment streams, including ship from store, pick up in store, ship direct from suppliers and deliver to homes and businesses. What's more, all of those channels must be seamlessly blended to provide for a consistently excellent customer experience. How can they do it? On this episode, we get answers from Diego Pantoja-Navajas, vice president of product development with Oracle Warehouse Management Cloud. He stresses the need for an integrated approach to fulfillment, both from a systems and business-process standpoint. Old-line retailers that can achieve that goal, he says, stand a chance of survival after all. It's all about ''retail reinvention.''
The blockchain has emerged from the shadows. Now it might hold the key to transforming global supply chains. The blockchain was originally intended as a system of record for the digital cryptocurrency bitcoin. Now, however, the blockchain finds itself poised to play a much larger role in global commerce and, especially, the supply chain. The blockchain provides all partners in a transaction with a secure, distributed ledger that allows them to see the same information at the same time. The open-source software protects against discrepancies in the record, as well as fraudulent manipulation of the data, while eliminating inefficiencies in data management. Among the key players in developing blockchain on a broader scale today is IBM. On this episode, we speak with Brigid McDermott, the company's vice president of blockchain business development and ecosystem. She explains how the blockchain works, why it's such a radical concept in global business, and how it's likely to evolve. ''Blockchain,'' she says, ''is about trust.''
How can a new company break into the venerable freight-forwarding business? Technology holds the key. For decades, freight forwarding was dominated by a host of smallish, regional firms, many of them family-owned and passed down through generations. Later, the function got swallowed up in the global mega-providers who offer a whole range of logistics services. That has made it tough for new entrants to succeed. Now, however, the doors appear to be opening, thanks to technology. Turns out there's plenty of room for a startup that's out to digitize and automate a business that has long been highly paper-intensive. On this episode, we speak with Ryan Petersen, CEO and founder of San Francisco-based Flexport. He recounts how he built the company with little or no up-front money from big investors, and how it has grown beyond expectations over the past four years. Petersen also offers advice to others who seek to break into the highly regulated business of logistics with new service models. It might be one of the last sectors to be transformed by technology and data.
The cash-to-cash cycle is a key metric for measuring the efficiency of a supply chain. But many companies seem unable to deploy it with success. ''Cash-to-cash'' is defined as the period from when a company spends its first dollar on materials for a product, to when it gets back a dollar of revenue from the buyer. It's an extremely useful tool for assessing the way in which product gets to market, as well as the producer's bottom-line profitability. But many companies have a tough time implementing it. On this episode, we speak with Jay Fortenberry, a former executive with Honeywell, John Deere and Toyota. He has developed a ''cash-to-cash series'' model that claims to save companies millions of dollars through the removal of supply-chain inefficiencies. Turns out you can have a strong return on investment, but not be consistently generating cash. And the ability to do that, says Fortenberry, ''is imperative for the survival of a business.''
So the major driver behind all those lost American jobs is free trade? Not so fast. Trade has indeed caused many manufacturers to shift their operations offshore. And there's no denying that a hefty portion of the U.S. manufacturing base has been decimated over the past couple of decades. But is the first trend really to blame for the second? On this episode, we hear a nuanced perspective on why domestic production jobs have disappeared. Michael Hicks, professor of economics and director of the Center for Business and Economic Research at Ball State University, says the real reason behind most job losses is higher worker productivity, not trade. And that's primarily a result of advances in automation, coupled with more efficient supply chains. Hicks also points out that U.S. manufacturing output today is higher than it's ever been. But what do we tell those workers who have lost lucrative plant jobs?
Going up against the behemoth that is Amazon.com, does the smaller e-commerce provider have a chance? The answer is yes, provided that the small or medium-sized e-tailer can find a way to match Amazon's level of service, as well as differentiate its product in the marketplace. On this episode, we get some tips on how that daunting task might be achieved, in our conversation with Dan Coll. He is senior manager of e-commerce fulfillment with FedEx Supply Chain. Coll discusses how smaller entities can carve out market niches by focusing on what he calls ''the unboxing experience.'' It's all about giving customers what they want, in selection, convenience and product quality. Or maybe what they didn't even realize they could have. Long live the little guy!
Somebody out there is talking about your product. And you had better be listening. Social media can be the bane of a brand's existence. Justified or not, a complaint can quickly go viral on Twitter, Facebook, Instagram and the like, causing irreparable damage to a company's reputation. But there's a positive side to the explosion of social media. Through the techniques of social listening and social sensing, companies can get a better understanding of how buyers are reacting to their products, and what the marketplace really looks like. On this episode, we speak with Juan Camilo Dorado, director of advanced analytics with ToolsGroup. He discusses how social media, the cloud, machine learning and artificial intelligence are combining to furnish companies with an unprecedented wealth of information about buyers and markets. He also addresses the challenge of translating that raw data into quantifiable metrics that allow merchandisers to understand true demand patterns, now and in the future.
Companies today need to cut costs, speed up fulfillment processes and manage growth. All the while providing ''the perfect order.'' It's a tough set of challenges to meet. Scrambling to keep pace with rising customer demands, supply-chain managers are unable to step back, take a breath and review the most basic processes. And there's little room for error. A few bad data entries can result in a late or incorrect order, costing the supplier millions of dollars in product-replacement and expediting fees. On this episode, we talk solutions with two executives from Esker, a provider of document process automation: sales director Dan Reeve, and business development manager Jeremy Deuchars. They offer guidance on how companies can embark on the road to automation, who should oversee the initiative, and who holds the purse strings. In the process, we learn why so many companies continue to fall short of the goal of ''the perfect order.''
American manufacturing is in need of a reboot. Steven L. Blue calls it ''Manufacturing 2.0.'' That's the title of his new book, in which he imparts guidance on how to create a competitive yet humane manufacturing environment. His experience in the matter is more than academic; Blue is chief executive officer of Miller Ingenuity, a global producer of locomotive and freight-car parts. He takes a dim view of the concept of ''Smart Manufacturing,'' at least to the extent that it overlooks the human element in crafting an optimal work environment. Blue also talks about why many American CEOs have become ''fat, dumb and happy,'' and why companies should strive to build cultures ''by design, not default.'' Maybe there's hope for a resurgence of American manufacturing after all.
It's tough enough stopping the use of conflict minerals from the Democratic Republic of the Congo. How about attacking the larger issue of human trafficking throughout the supply chain? On one hand, the Securities & Exchange Commission's disclosure rule on conflict minerals in manufactured goods can serve as a guide for broadening the fight against human trafficking on a global scale. But expanding that limited rule to incorporate all sources and products won't be easy. Many companies are sitting on the sidelines, instead of undertaking a bold effort to wipe out modern-day slavery the world over. But they can't sit forever. Regulators in the U.S. and elsewhere are toughening up on companies that rely, even inadvertently, on forced labor to make their products. On this episode, we discuss the problem with Kristen Sullivan, sustainability services leader for the Americas with Deloitte. She offers guidance on how companies can approach the issue through the adoption of established standards and frameworks. In the process, they'll reap the benefits of becoming socially conscious, while improving visibility throughout their supply chains.
Big data is threatening to swamp small companies. The good news is that there's more data than ever before with which to manage global supply chains effectively. The bad news is that the cost of that effort can be punishingly high. That's not a problem for big multinationals, but how is a smaller entity supposed to keep up? Storage costs alone can be prohibitive. At least until now: new technologies, along with the declining cost of deploying them, are helping smaller competitors to level the playing field. On this episode, we speak with Don Baptiste, chief executive officer of Trax Technologies, who offers guidance on how companies of all sizes can thrive in the age of Big Data without becoming overwhelmed. We learn how they can get started on initiatives to access, cleanse and analyze the rich trove of data that's being generated both within the organization and by a multitude of supply-chain partners.
Cyber thieves, hackers and terrorists are targeting the Internet of Things. Every device that's connected to the internet is vulnerable. Witness last fall's massive distributed denial of service (DDOS) attack on the internet infrastructure provider Dyn. The incident took down some of the net's most heavily trafficked websites. It was a distressing demonstration of the inadequate security that has been put into place to guard against breaches. And it's not just about stolen credit-card data anymore. The growth of the Internet of Things has made critical systems more open to attack than ever before. Everything from home appliances to automobiles, aircraft and the nation's power grid is susceptible. On this episode, we learn of the scope of the problem from attorney Creighton Magid, partner and head of the D.C. office of Dorsey & Whitney. He explains what manufacturers must do in order to protect their connected devices from intrusion. They need to examine ''the entire ecosystem'' of their products, he says.
At some point, every organization must change in order to survive. How do we combat the natural human tendency to resist it? The ability to manage organizational change lies at the very heart of executive leadership skills. Change is disruptive, to be sure, but it's also essential to the health of a business, educational institution, or any group that has come together with a common purpose. So how can members of an organization be persuaded to go along with change? How can their fears be allayed? How do we tear down functional silos? On this episode, we speak with Dr. Dwayne Hart, vice president of administration and chief financial officer at Grande Prairie Regional College in Alberta, Canada. He offers valuable advice on getting past the barriers that people erect to change. Assisting in the conversation are co-hosts PJ Shelton, deputy sector navigator for global trade and logistics with the Peralta Community College District, and Stacey Heiligenthaler, special education administrator with the Norwalk Public Schools in Norwalk, Conn.
Without effective freight-cost management, you're leaving millions of dollars a year on the table. The age of big data, coupled with the global nature of most supply chains, has made the job of managing freight spend tougher than ever. It's no longer sufficient just to be able to pay one's bills (as if that task were easy). Companies today need to incorporate sophisticated analytics into their freight management. On this episode, we speak with Henry Trujillo, logistics manager with Hewlett Packard Enterprise, about the challenge of freight-cost management in the 21st century. He reveals how HPE is adopting cutting-edge techniques to identify anomalies and excess cost in its global freight spend. Proper cost management, he says, can optimize one's carrier base, while racking up significant savings in the process.
Supply-chain professionals, assuming they sought out the position in the first place, have typically learned the ropes by doing the job. Not anymore. Today, training has become an essential part of the profession. The reason? Supply chain, which used to function largely as a cost center for the organization, has become a key component of corporate profitability. It makes eminent sense that supply-chain managers be equipped with all of the tools needed to do their jobs. On this episode, we get an up-to-date perspective on supply-chain training from Jim Barnes, managing director for ISM Services at the Institute for Supply Management. He talks about the full range of training resources and techniques, including ''boot camps,'' continuing education, virtual learning, mentoring and professional certifications. We'll learn what it takes to be a supply-chain professional today, and what the job might look like in the future.
''It is difficult to make predictions, especially about the future.'' So said a Danish wit nearly 80 years ago. But when it comes to divining the direction of the economy, why try? Economists and money managers stake their reputations on the ability to foresee economic trends, even if they're frequently wrong. Perhaps a more honest approach would be to admit ignorance, then prepare for any eventuality. That's the strategy of portfolio manager Vitaliy Katsenelson, chief investment officer with Investment Management Associates, Inc., a value investment firm based in Denver, Col. On this episode, Katsenelson explains how he chooses stocks while avoiding the kind of commitments that can blow up when things don't pan out as expected. He also lays out two possible scenarios for the U.S. economy in the coming year: one if interest rates rise, the other if they remain low. The trick, Katsenelson says, is planning for an ''I Don't Know World.''
Whistleblowers play an essential role in uncovering corporate and government fraud. But they often pay a heavy price for their actions. Michael G. Winston was the executive at Countrywide Financial, the giant provider of single-family mortgages, who called out the company on its fraudulent practices in the early 2000s. The subsequent collapse of Countrywide was a major factor in the crash of the mortgage market and the Great Recession of 2007-08. Winston, who was punished by Countrywide management for speaking out, turned down a $10-million-plus settlement of his lawsuit against the company and its subsequent owner, Bank of America, because it would have allowed the perpetrators to evade culpability in the scandal. He then suffered a shocking loss in appellate court, and was blackballed by the financial industry. On this episode, Winston, dubbed by Salon ''Wall Street's greatest enemy,'' recalls his ordeal, and offers his view as to what should be done to reform the banking, mortgage and financial industries to prevent future fraudulent behavior. For now, however, the latest economic disaster remains what this veteran Fortune 50 executive calls ''the greatest unpunished crime in recorded history.''
The new era of retail isn't just about the internet. Welcome to the world of the pop-up store. Turns out that highlighting products on a website isn't always the most effective way to get your brand in front of the consumer. Buyers want to see, touch and smell the merchandise. And retailers want to promote the notion of constant innovation. Hence the growing popularity of the pop-up, a phenomenon that began with Halloween and Christmas merchandise but has since expanded to include any number of fashion-oriented items. A pop-up might not even be selling anything outright, it could be there to highlight a new product, test new geographies, build brand awareness or mine valuable intelligence about the consumer. On this episode, we examine the evolution of the pop-up with retail strategist Melissa Gonzalez, founder of the Lion'esque Group, a firm of pop-up architects. She traces the history, current state and future of pop-ups. And she addresses a key question about the state of retail today: Is nothing permanent anymore?
The U.K. is making a clean split from the European Union. How will its economy and trading relationships fare in a post-Brexit world? All signs point to a ''hard Brexit,'' a complete severing of ties with the European single market. Opponents of the move say it will lead to economic disaster for the U.K. It all depends, of course, on how one views the situation. Is the U.K. leaving the E.U., or joining the rest of the world? Has the E.U. been a help or hindrance to the country's economic state? On this episode, we hear a relatively positive view of Brexit from John Manners-Bell, founder and chief executive of Transport Intelligence. He suggests that the U.K.'s imminent economic independence could open up access to new markets and opportunities, while freeing the nation of the E.U.'s stultifying bureaucracy. But will Brexit trigger additional defections from the troubled E.U.? And might Scotland, which voted to remain in the single market, make another try at breaking free from the U.K.?
Forget about trade friction between the U.S. and China. Now it's a global trade war. As more and more aggrieved countries jump into the game, we find ourselves in a world of retributive duties and other government actions against the ''dumping'' of goods in export markets. It's not just the U.S. fighting with China. South Africa, India, Malaysia and Taiwan have also filed grievances. And China is responding in kind. On this episode, we welcome back attorney William Perry, now with the international law firm of Harris Moure, who explains how the policies of nominal trading ''partners'' have escalated tensions and undermined global commerce. Protectionism can have serious unintended consequences on the economy, Harris argues. Action against a single imported item can end up threatening thousands of jobs in another sector, and possibly entire domestic industries. Perry also offers his view on whether the World Trade Organization is still effective and relevant.
You can't optimize your logistics network if you don't know how much you're spending on it. That was the challenge confronting Blount International, Inc., a global maker and marketer of equipment and replacement parts for the forestry, lawn and garden, farm, ranch and concrete-cutting industries. On this episode, we speak with Alfredo Camacho, Blount's director of global logistics. He explains how the company tackled the problem of inadequate visibility of its army of logistics providers. What began as an effort to better manage freight payment and auditing became an initiative that allowed Blount to restructure its carrier base, achieve greater visibility of spend, negotiate better contracts with logistics partners, and streamline the entire settlement process.
It takes a big port to handle a big ship. Can East Coast ports meet the challenge of handling the new generation of mega-container vessels? Container lines are engaged in a frantic race to build ever-larger ships, which promise to have a ripple effect throughout the global transportation network. For their part, ports must invest billions of dollars in new and expanded facilities in order to accommodate the big ships. They need deeper water, longer berths, taller cranes, bigger container yards and improved connections to trucks and trains. Such projects also have the potential to alter the competitive landscape. On this episode, we speak with Andy Saporito, deputy director of the port department of the Port Authority of New York and New Jersey, and Capt. Eric Wiberg, marketing manager with McAllister Towing and Transportation Co. They talk about how U.S. East Coast ports are taking advantage of the big-ship trend, as well as the impact of the recent widening of the Panama Canal.
The U.S. Department of Transportation is applying a surprisingly light hand to the regulation of driverless vehicles. Not that DOT intends to cede its authority to oversee the new technology. On the contrary. But a new proposed policy, replacing one from three years ago, allows automakers and designers some wiggle room in how they meet the agency's strict safety standards. For example, DOT has laid out a 15-point safety assessment that's entirely voluntary in nature as long as the end result satisfies the agency's requirements. On this episode, we speak with Katie Thomson, partner in the law firm of Morrison Foerster. She is a former senior counsel at both DOT and the Federal Aviation Administration, with extensive experience in parsing the legal and regulatory ramifications of driverless vehicles. Thomson also weighs in on certain key questions yet to be resolved, such as the proper balance of regulatory authority between states and the federal government, and legal liability for accidents involving driverless cars.
The Trans-Pacific Partnership agreement, and free trade generally, are political poison these days. But what's the cost of rejecting the 12-nation treaty? In the presidential election season, the TPP has come under fire from both major political parties, a state of affairs that threatens to reverse years of progress toward free trade. The Office of the U.S. Trade Representative is pushing the agreement as a means of ''leveling the playing field for American workers and American businesses.'' Other supporters say the TPP is essential to countering the growing influence of China in Asia and the world at large. But opponents blame trade agreements for the steady erosion of U.S. manufacturing jobs over the past several decades. On this episode, we hear a spirited defense of TPP and the doctrine of free trade, from Sue Welch, chief executive officer of Bamboo Rose, a provider of software for business-to-business digital marketplaces. She describes the multiple consequences of a failure by the U.S. Congress to ratify TPP, and offers a realistic appraisal of the agreements chances.
There's just too much data out there for a human to make sense of. Can artificial intelligence save the day? The question is especially relevant for logistics providers. One study finds that ocean carriers will lose at least $5bn this year, in large part due to a glut of unneeded capacity. Clearly they need to do a better job of matching supply and demand, and the age of Big Data offers a tempting solution to the problem. But Big Data can also lead to Big Chaos, unless providers have a means of sifting through that mass of information and interpreting it properly. That's where artificial intelligence and machine learning come in. On this episode, we speak with Adam Compain, founder and chief executive officer of ClearMetal, who outlines recent advances in A.I. and talks about how it can be used to enable true ''predictive logistics.'' Humans, it seems, just aren't up to the task anymore.
Global companies today live or die by the effectiveness of their social compliance programs. The term ''social compliance'' embraces virtually every stage of the supply chain, covering concerns such as workplace safety, slavery and forced labor, child labor and banned materials. So it's not surprising that many companies have experienced failures in that area. At the same time, the rules, regulations and standards for operating conscientious supply chains are more stringent than ever. The failure to comply with them can lead to injury, illness and death, not to mention lasting damage to a wayward company's brand. On this episode, we speak with Cheryl Layne, customer success director with Amber Road, who discusses how companies can collaborate with suppliers and other supply-chain partners to minimize lapses and violations. Today, she says, they must be able to track production from the raw-material stage all the way to the end customer. This episode is sponsored by Amber Road.
Recent months have seen major car recalls by GM and Ford Motor Co. They're just the latest in a seemingly endless series of failures. Can this trend be stopped? Automotive recalls are serious business. Past component and system failures have resulted in multiple injuries and deaths. Even when the problem doesn't threaten passenger safety, it can have huge ramifications for manufacturers and brand reputation. On this episode, we speak with Robin Hopper, senior vice president of product management with Intelex Technologies Inc., a provider of software for managing environmental, health, safety and quality issues for regulatory compliance. He explains why system failures and subsequent recalls keep happening, how the growing complexity of global supply chains is at least partly to blame, and what steps carmakers can take to increase quality assurance and improve communications with both suppliers and consumers. Recalls might be inevitable, but their frequency and severity can be controlled through better supply-chain management.
Everyone agrees about the importance of adjusting to change. So why do so many companies fail in that effort? We're in the Age of Disruption, notwithstanding the tendency of modern-day marketers to overuse that word to the point where it becomes meaningless. Real disruption is roiling companies and industries everywhere, and executives and employees need a plan to cope with it. On this episode, we speak with Shane Cragun, co-author with Kate Sweetman of Reinvention: Accelerating Results in the Age of Disruption. Their new book offers basic principles, strategies and a set of tools for confronting radical change in the business world. We learn how forward-looking companies can survive an endless series of tidal waves, the ones that have succeeded, and a few that have failed despite the fact that they saw the change coming. It's a matter of learning to swim, or be swept away.
There's not an aspect of modern life that won't be affected by advances in robotics and artificial intelligence in the coming years. But the impact will be especially felt in transportation and distribution. The science of robotics has made huge leaps in recent years, to the point where robots are taking over an increasing number of tasks that once were the exclusive province of humans. And the future promises to be even more disruptive. One study predicts that by the year 2050, up to 47 percent of all current employment will be affected by robotics and automation. To explain the trend and its implications on the workplace, we speak on this episode with Joe Brusuelas, chief economist with the audit, tax and consulting firm RSM US LLP. He is the author of a recent analysis that appeared in The Real Economy, RSM's monthly economic publication devoted to business issues for the middle market. Brusuelas talks about the economic and regulatory drivers behind the new wave of robotics, and explains why transportation and warehousing will be particularly hard hit.
The platforms of both major political parties are based on the belief that the actions of presidents have a direct impact on the U.S. and global economy. But is that really so? Of all the issues to be discussed during presidential campaigns, none dominates the debate more than the economy. Presidents and would-be presidents insist that they have the power to create jobs, drive growth and spur investment on both Wall Street and Main Street. On this episode, we hear a contrary view. Our guest is financial adviser and author Jonathan Citrin, who makes the argument that we wildly over-inflate the ability of the president to influence the economy. He speaks of ''the myth of the economic commander-in-chief.'' Listen to a lively debate about whether there's really any correlation or causation between presidential actions and economic performance. And find out why Citrin believes that ''things are more out of control than we think.''
The boom in e-commerce is a global phenomenon, but each country has its own unique requirements for ensuring the smooth flow of shipments to the buyer. Canada is no exception. Given its proximity to the U.S., American companies might tend to underestimate the need for intimate knowledge of the Canadian e-commerce landscape. There are issues of currency, language, packaging requirements, units of measurement and vast distances between urban centers to consider. On this episode, we speak with John Costanzo, president of Purolator International, who details the ins and outs of shipping e-commerce orders to and within Canada. He talks about why some U.S. companies have failed to penetrate the Canadian marketplace. And he offers valuable tips and strategies for succeeding in this unique environment, including an explanation of what constitutes a ''Canadian-like'' transaction.
The ''sharing economy'' is supposed to empower workers and usher in a new era of job satisfaction. Can it deliver? The answer lies in understanding just what this new work regime is replacing. And the answer to that can be found in the title of a new book called The Vanishing American Corporation: Navigating the Hazards of a New Economy. Author Jerry Davis, Professor of Management at the University of Michigan's Ross School of Business, joins us on the episode to detail the transformation of the American workplace. He's concerned about the rise of the ostensibly independent worker, driven by ventures such as Uber, Lyft, Airbnb, Facebook and LinkedIn. The traditional corporation, he says, provided job security, health insurance and an open career path all keys to a vibrant middle class. What does the modern-day ''gig'' economy have to offer in its absence? Might it be leading to even more social inequality?
The aerospace giant Pratt and Whitney plans to double production of a new and innovative jet engine by 2020. Proper supply-chain management will play a huge role in the success of the venture. Pratt and Whitney, a subsidiary of United Technologies Corp., has orders for more than 7,000 of the new engines, which are more powerful, more fuel-efficient, quieter and result in fewer emissions. The model is the centerpiece of the company's bid to increase its presence in commercial aviation. But success hinges on tight coordination with an army of suppliers upstream, and aircraft manufacturers downstream. On this episode, we're joined by Sam Abdelmalek, vice president of global supply chain, who outlines the company's journey in developing the new engine. It's the product of a decade-long effort, costing billions of dollars. Abdelmalek talks about the challenges that Pratt Whitney has already encountered in building the ''game-changing'' engine, as well as its bid to take a more proactive and preventive approach to dealing with suppliers. ''Supply chain is now a critical part of our success,'' he says.
The U.S. trade deficit is continuing to decline but don't blame imports for the widening gap. In fact, in trade figures published by the U.S. Census Bureau for the month of June 2016, imports were actually down by 2.9 percent from a year earlier. The problem is that exports dropped by an even greater margin of 5.2 percent. Blame a strong dollar and weak commodity sales, among other factors. On this episode, we delve into the trends behind the numbers with Chris Rogers, research analyst with Panjiva. He identifies the weakest areas of U.S. trade, based on such factors as currency exchange, interest rates, competition from Chinese manufacturers and the impact of the U.K.'s decision to withdraw from the European Union. And he discusses the prospects for future improvements in the nations balance of trade.
The age of the driverless commercial truck is coming. It's just a question of when. Someday you'll look in your rear-view mirror and see an 18-wheeler bearing down on you with no one in the cab. But there's nothing to fear, according to Gary Girotti, executive vice president of Chainalytics. He believes the technology already exists to make self-driving trucks safe and viable for everyday use. What's more, he says, they're a solution to the driver shortage problem, and are 15 percent more fuel-efficient than traditional trucks. So what's holding them back? It's largely a matter of public perception, Girotti says. (Which wasn't helped by the recent fatal crash of a supposedly self-driving Tesla Model S.) He joins us on this episode to discuss the development of the driverless truck, and when it might become a regular sight on roads and highways. ''I would feel much safer if the computer was driving the truck [rather] than a human being,'' he says.
When it comes to assessing the impact of business practices on the environment, the bar is being raised. Mere sustainability is no longer enough: now its all about becoming ''net positive.'' The idea isn't new, but has recently taken off with establishment of the Net Positive Project. It's the product of a collaboration among Business and Social Responsibility (BSR), Forum for the Future and the Sustainability and Health Initiative for NetPositive Enterprise (SHINE), based at the Center for Health and the Global Environment at Harvard's T.H. Chan School of Public Health. On this episode, we speak with two principals behind the effort: Eric Olson, senior vice president of BSR, and Zoe Le Grand, principal sustainability adviser to Forum for the Future. They explain how the project intends to promote net-positive activities, which companies are already on board, and how supporters plan to attract additional participants. Currently there's no multinational that can claim a net-positive impact on the environment, society and the global economy. But such an entity isn't that far in the future, according to Olson and Le Grand.
The long-term impact of Brexit on European supply chains is yet to be determined, but some early results are in. Just days after the U.K.'s controversial vote to leave the European Union, the Institute for Supply Management polled procurement executives to learn how they felt about the move. According to ISM, it was the first publicly available analysis of the impact of Brexit on U.S. companies, drawing on data collected directly from them. Two weeks after the historic June 23 vote, we spoke with ISM chief executive officer Thomas W. Derry about the results of that survey. He joins us on this episode to discuss how supply chains and distribution strategies in Europe might shape up in the post-Brexit era. Surprisingly, the ISM report reveals relatively little concern over the impact of Brexit on U.S. procurement managers. At the same time, it addresses potentially explosive issues such as the health of financial markets, currency movements, capital spending and labor-use patterns. Discover how U.S. companies might have to shift their European distribution strategies without Britain being part of the E.U. In addition, Derry shares his view about whether Brexit represents an about-face of the decades-long trend toward globalization.
What stands in the way of a solution to the nation's crumbling, outdated and inadequate transportation infrastructure? Judging from the decades of debate surrounding the issue, the obstacles are immense. Legislators can't seem to agree on a way to fix crumbling roads, bridges and highways, let alone built new infrastructure. The sticking point, as usual, is the argument over how we'll pay for the work. But there are also questions about where the money should go, and how eligible projects should be selected. On this episode, we speak with Beth Osborne, vice president for technical assistance with Transportation for America. A transportation policy veteran, she was formerly acting Assistant Secretary for Transportation Policy at the U.S. Department of Transportation. She also oversaw DOT's successful TIGER competitive grant program for infrastructure investment. Now she has a four-point plan for solving the crisis. It's contained in her new report, published by The Century Foundation's Bernard L. Schwartz Rediscovering Government Initiative, which provides a path to funding key transportation projects, while ensuring that taxpayers get a higher return on their investment.
Employment rules and regulations have failed to keep pace with innovation in the American workforce especially with regard to the growing number of independent workers. There are approximately 40 million independent workers in the country today, but uncertainties surrounding their status make them vulnerable to exploitation, and hinder employers' efforts to hire them. An outdated regulatory system is to blame, says Gene Zaino, chief executive officer of MBO Partners. He joins us on this episode to propose a new way of treating the self-employed, in a manner that will clarify issues such as taxation and benefits, while addressing employer concerns about drawing on this pool of talent. Zaino is calling for a ''Certified Self-Employed'' (CSE) classification, which would essentially allow independent workers to become employees of their own companies. In the event, it would protect them against exploitation while unleashing the potential of the entrepreneurial spirit. No more ''one-size-fits-all'' approach to the manner in which government and business treat workers. Is it workable?
The recall of a single food ingredient can have massive implications for manufacturers and retailers, ranging over multiple supply chains. Take the May 2016 recall of sunflower seeds, triggered by the discovery of Listeria, a bacteria that can cause multiple serious medical issues, especially for pregnant women, children and the elderly. That one action affected dozens of retailers and more than 100 brands and manufacturers, according to Kevin Pollack, vice president of recall with Stericycle ExpertSolutions. He joins us on this episode to discuss the impact of tainted products on public health and supply chains. Such incidents are occurring with alarming frequency, against a backdrop of enhanced public awareness, tighter regulations and more complex supply chains. Pollack offers advice on how companies can reduce the risk of a recall, as well as which steps to take when one occurs. Learn how to combat the dreaded ''multiplier effect'' of supposedly isolated incidents.
The new set of locks at the Panama Canal is open for business. How will it affect North American shipping patterns? A year and a half late, hugely over budget and bearing serious questions about its design and construction, the widening of the Panama Canal is finally complete. When first announced a decade ago, the project promised to alter the way in which ocean cargoes moved in and out of North America. U.S. West Coast ports, in particular, were expected to lose large volumes of business to their East and Gulf Coast counterparts, with shippers opting for the cheaper (if slower) all-water option from Asia. But what is the actual impact, both short-term and long, of a wider canal? On this episode, we get a perspective from David Egan, head of industrial and logistics research for global commercial real estate giant CBRE. He speculates on who the winners and losers will be specifically, what East Coast ports must do to take advantage of the improved route, and how West Coast ports can defend their market share. But the shift might have begun long before the new locks opened, he says.
U.S. businesses have been given another legal recourse, in their never-ending battle against trade-secret theft. The Defend Trade Secrets Act of 2016 was signed into law by President Obama in May. It provides companies with a civil cause of action, in addition to the federal criminal statutes that are already on the books. The measure is especially important because it allows business to act more quickly than before, with a successful resolution depending on law enforcement's ability to act before the thieves get away with their ''loot.'' On this episode, we speak with Frank Cullen, executive director for U.S. intellectual property policy with the Global Intellectual Property Center of the U.S. Chamber of Commerce. He explains why the law represents a major victory for American business innovators. In addition, he helps us to understand just what constitutes a ''trade secret,'' and reveals some of the findings of a new report by the U.S. Chamber on the global impact of counterfeiting.
A higher minimum wage in some cases, as much as $15 an hour is a certainty. How can businesses, especially retailers, cope with it? The minimum wage is rising fast, mandated by new laws at the federal, state and local levels. Some retailers are voluntarily raising their own workers' wages, either because they consider the move inevitable, or are looking to polish their brand. They might have even come to the realization that there's a price to be paid for low wages, in the form of high turnover, low productivity and inadequate talent. Voluntary or not, retailers are facing mandated wage increases of between 30 and 40 percent, only a small portion of which can be recovered through higher prices. On this episode, we talk with Deniz Caglar, a principal with PwC's Strategy practice. He shares some strategies that companies can adopt to offset higher wages, and remain profitable. Bottom line: They'll be forced to question their entire business models, and look at operations including the extended supply chain holistically.
Levels of risk in global supply chains continue to rise even as companies' commitment to managing it goes in the opposite direction. A new report by A.T. Kearney and Rapid Ratings International finds that supply-chain risk management has declined as a priority within procurement organizations. Given the rash of supplier failures that occurred during the Great Recession, that's a difficult trend to understand. The top performers have implemented aggressive programs to deal with any number of potential supply-chain disruptions, but many others are falling short in that effort. On this episode, we talk with the co-authors of the new report, Rose Kelly-Falls, senior vice president of Rapid Ratings, and Carrie Ericson, vice president with A.T. Kearney Procurement and Analytic Solutions. They offer an explanation as to why companies aren't paying sufficient attention to risk management, discuss the macro trends affecting global supply chains, and lay out a means of quantifying the financial health of suppliers. Find out why ''theres no glory in supply-chain risk management.''
Struggling to determine whether there's forced labor lurking in your supply chain? There are some new tools available to help you do it. Global companies have long striven to uncover violations of human rights and human slavery in particular throughout the multiple tiers of their supply chains. Two new publications offer benchmarks, assessments and methodologies for achieving success: the Corporate Human Rights Benchmark, and a series of reports from KnowTheChain on the existence of forced labor. On this episode, the second of two covering forced labor and slavery in supply chains, we speak with Pierre-François Thaler, co-founder and chief executive officer of Ecovadis. He returns to the podcast to explain how these new rating systems will work, and how they can provide a competitive incentive for compliance by manufacturers and retailers. He also discusses the latest regulations in this area, and offers tips on how companies can proactively assess, measure and eliminate forced labor from their products. Failure to do so entails severe consequences, and the regulatory regime is only going to get tougher.
Forced labor continues to be a serious issue in global supply chains today and it's extremely tough to root out. The problem exists worldwide, in developed and developing nations alike. Estimates of the number of people engaged in forced labor today range from 21 million to 35 million. Illicit traffickers are profiting from the practice to the tune of some $150bn. So how can this blight on the global economy be erased? In this first of two podcasts on the issue, we speak with Kilian Moote, project director of KnowTheChain at Humanity United. He describes three new reports being released over the summer of 2016, covering the presence of forced labor in information and communications technology, food and beverage, and apparel and footwear. The reports' authors polled global companies in an effort to divine best practices and policies for eliminating forced labor and human slavery worldwide. Moote reveals where the biggest risks lie, and talks about the challenge of identifying the presence of forced labor in global, multi-tier supply chains. When it comes to eliminating the practice, he says, ''We're at the end of the beginning.''
Up in the sky it's a solar-powered plane! But what does it mean for the sustainability of the commercial transportation sector? The Solar Impulse 2 is currently on a 21,747-mile journey around the globe, powered only by the energy of the sun. But the project, 10 years in the making, is about more than proving that a small, specially designed plane can successfully draw on a renewable energy source. The aircraft consists of a wide range of innovative materials, many created by Covestro, a supplier of high-tech polymer products. Richard Northcote, chief sustainability officer with Covestro, joins us on this episode to explain how the company dramatically reduced the plane's weight while installing materials that provide an unprecedented degree of insulation and comfort to the pilots. Even more importantly, the innovative materials used in the Solar Impulse 2 have major implications for the transportation industry as a whole. They're lighter, stronger and more sustainable than anything used in traditional aircraft and ground vehicles. Even carbon dioxide can be used in the production of mattress foam, leading to a 30-percent cut in the use of oil. Find out what the Solar Impulse 2 means for the future of all modes of transport.
Retailers are shelling out huge amounts of money to keep today's omnichannel customer happy. They're spending an average of 18 cents out of every dollar to meet customer expectations of ''buy anywhere, pick up anywhere.'' That's according to a new study from EKN Research in partnership with Aptos, Inc., which set out to determine to true costs associated with the modern-day order-management lifecycle. On this episode, we're joined by Dave Bruno, director of marketing with Aptos, and Sahir Anand, vice president of research and principal analyst with EKN. They explain the findings of the study, which can be found in a new e-book, Threat or Opportunity: Seven Steps to Overcoming the Shockingly High Costs of the Order Management Lifecycle. They explain how retailers are racking up costs as they struggle to balance store fulfillment with online orders, and home delivery with in-store pickup. The complications of the omnichannel aren't going away, they say. And it's about more than just free shipping. Will they be able to stay in the game against Amazon.com, Inc.?
The ride-sharing service Uber is threatening to disrupt, if not dismantle, the taxi business. Will it do the same to the package-delivery sector? Uber, Lyft and similar ride-sharing services fully deserve that already overused word, ''disruption.'' Their success is due in large part to their founders' ability to perceive a failure in the way that traditional taxis have operated. Now, there's talk that the Uber model could be similarly applied to freight transportation. In theory, Uber drivers can just as easily carry packages from retailers to the consumer's door. Perhaps they could even skirt many of the regulations that hamper that business. On this episode, we talk to Scott Nelson, vice chairman and founder of Trax Technologies. He explains why an Uber-like service can't necessarily work for logistics. It's all about the need for ''perfect information,'' he says. At the same time, Nelson offers his view on the real transformation that logistics is undergoing today and how the business can be reshaped to create a ''win-win'' model for buyers and sellers alike.
Too many ships, too much rate discounting, and too many service providers for the market to support: the outlook for ocean carriers is ''pretty bleak indeed.'' Those are the words of Foster Finley, managing director of AlixPartners, who joins us on this episode to discuss the consultancy's new study on the state of the oceangoing container trades. Its conclusion: Carriers' financial state ''will likely worsen in 2016, and the only thing apt to cure the industry's malaise is further consolidation.'' Years of emphasizing market share over profitability, coupled with a relentless increase in vessel size, are taking their toll on carriers. The argument that bigger ships slash operating costs only holds water if supply and demand are in rough balance, and carriers can exercise some measure of discipline in their ratemaking. Neither of those requirements is in evidence today. Rates are far below what carriers need to break even, let alone make back their cost of capital, and overcapacity persists. How did they get into this state of affairs, and what will it take to right the sinking ship?
Does a big grocery retail chain have anything to learn from a leading automaker? Apparently so. Toyota, with its well-known emphasis on Lean supply-chain practices, was a key inspiration for U.K.-based Tesco, when the latter set out to overhaul its processes. In particular, Tesco was determined to align production and inventory with customer needs something virtually every company claims to do, but few have managed to achieve with any degree of success. The company's journey is told in a new book, The Lean Supply Chain: Managing the Challenge at Tesco. Its authors, Barry Evans and Robert Mason, join us on this episode to describe the initiatives that Tesco has embraced over the years to build a world-class supply chain. In the process, they challenge some conventional wisdom that has dominated traditional business practice. Evans has held multiple positions at Tesco and is a senior research associate in the Lean Enterprise Research Centre at Cardiff Business School, where Mason is a senior lecturer in the Logistics and Operations Management section. Learn how Lean Six Sigma can be applied to grocery retailing and the caveats that come with the concept.
Is 3D printing poised to bring about ''the next industrial revolution?'' So says attorney John Hornick, author of a new book on the subject. Titled 3D Printing Will Rock the World, it doesn't mince words about the potential for this emerging technology to transform the manufacturing landscape and consumer purchasing practices. Hornick believes 3D printers are nothing less than ''the most powerful machines human beings have ever invented.'' Is he being hyperbolic, or visionary? On this episode, he explains his reasoning. We discuss the types of industries and products that will be most affected by the 3D printing revolution, the differences between industrial and consumer-grade printers, the state of the technology today, problems of quality and consistency that have yet to be solved, and the ''dark side'' of 3D printing the ability to create perfect knockoffs of products, thereby undermining intellectual property protection.
Supporters of a longtime proposal to privatize the U.S. Air Traffic Control system have failed again. But the issue is far from dead. The latest measure to reauthorize funding for the Federal Aviation Administration included a proposal to remove the ATC from direct agency control. In its place would be a private, non-profit corporation, funded by fees placed on airlines and owners of private aircraft. Supporters argued that the new body is the only way to rescue a dysfunctional FAA, ensure efficient operations, cut costs, streamline procurement and promote safety of the nation's air routes. But opponents countered successfully that a privately run ATC would raise questions of financial stability, accountability and continuity of service to smaller communities. In short, they said, the public would lose. So the idea was kicked out of the latest funding-extension bill. Laying out the arguments against privatization, and guesting on this episode, is Selena Shilad, executive director of the Alliance for Aviation Across America. She explains why the ATC should remain in FAA's hands as well as what should be done to fix the agency's chronic problems of funding and bureaucratic inefficiency.
We might not have to wait that long to see self-driving vehicles become a familiar sight on American roads and highways. By some estimates, the so-called autonomous car won't appear in large numbers until sometime between 2020 and 2030. But there are signs that it could be arriving a good deal sooner than that, with limited production beginning as early as 2018. That's the view of Matt DeWolf, director of product innovation at Runzheimer, a provider of programs and technology in support of mobile workforces. On this episode, he lays out five trends that could speed the arrival of the autonomous vehicle. Technology, competition and supply and demand are all factors that could quickly bring it to market, he says. And there are ramifications for commercial vehicles as well. Find out why DeWolf says that, ''step by step, the autonomous car of the future is coming together.''
Disputes with suppliers can be costly. Now there's a guide to avoiding them and defending against them when they do occur. Legal Blacksmith: How to Avoid and Defend Supply Chain Disputes is the title of a new book by Rosemary Coates and Sarah Rathke, our guests on this episode. Rosemary is president of Blue Silk Consulting and executive director of the Reshoring Institute. Sarah is a trial attorney and partner at the international law firm of Squire Patton Boggs. They have collaborated on a comprehensive guide to forging stable and rewarding relationships between buyers and suppliers. Here, they offer advice on minimizing risk throughout the contracting phase and maintaining harmonious relationships afterward. Their guidance can help companies to manage an aspect of the supply chain that gets too little attention from top executives yet can have devastating consequences when it goes wrong.
The reshoring of manufacturing from China is no longer in question. Whether that work ever makes it back to the U.S., however, is another matter entirely. Rising wages in China, coupled with the cost of maintaining long supply lines, are among the reasons why companies are looking for new locations to make their products. If you believe statements by big retailers such as Walmart, a good portion of that capacity is destined for the U.S. Even some apparel production could be coming back. But the trend is by no means guaranteed to stick. On this episode, we speak with Rosemary Coates, executive director of the Reshoring Institute. She traces the extent of the reshoring phenomenon, while laying out the hidden costs that come with shutting down production in China. You don't, for example, want to be that American executive who was held hostage by Chinese workers in a dispute over severance pay. So what will it take to bring manufacturing back to the U.S.? And, for that matter, what kind of work do we want?
The Paris Climate Agreement resulted in a commitment by 195 countries to enact strict policies to address global climate change. Now manufacturers will have to fall into line. Whether they're prepared to do so is another question entirely. A recent study by West Monroe Partners found that 49 percent of North American supply-chain executives don't view sustainability as a strategic priority. And 64 percent have no plans to adopt sustainability initiatives in the coming years. Like it or not, though, they're going to have to take steps to slash their emissions, and fall into line with the goals of the COP21 meeting in Paris. But what exactly will that take? On this episode, we get some guidance from David South, senior principal with West Monroe Partners. He discusses the results of the firm's study, and lays out the challenges facing small and medium-sized manufacturers in their efforts to go green. Is sustainability a financial burden? Or can it bolster the bottom line?
After years of delay, the automation of importer filings, involving multiple government agencies, is upon us. Say hello to the ''Single Window.'' Despite some last-minute pushback of deadlines, U.S. Customs Border Protection's Automated Commercial Environment (ACE) is about to become a reality. Importers and customs brokers stand to benefit from the streamlined handling of documents. But the real news can be found in another name for ACE: The Single Window. It means that one filing will be sufficient to reach 48 U.S. government agencies nine of which have the power to hold up an import shipment if it lacks the necessary documentation. The road to ACE has long been studded with potholes. Now, though, the importing community will have to come up to speed. On this episode, we're joined by Christopher Logan, president of Livingston International U.S.A., who explains what traders must do to comply with the initiative, when various agencies will fall in line, and what benefits will result. Will we finally realize the dream of a paperless regulatory environment, with a drastic reduction in bureaucracy?
Law enforcement is hot on the trail of cargo thieves. But the thieves are hot on the trail of your shipments. It's a constant game of cat and mouse. The cops and insurance companies are forever coming up with new ways to stop theft. And the thieves are adjusting their methods accordingly. One of the best and most recent techniques for nabbing crooks is the ''sting trailer,'' which is equipped with sophisticated monitoring equipment and designed to send out an alert the moment it's violated. The trailer has had a notable degree of success in capturing thieves, but the issue of theft and pilferage remains a serious one. According to the FBI, it's costing industry between $15bn and $20bn a year in losses. On this episode, we get a sense of the scale of the problem from Scott Cornell, theft investigator with Travelers Cos. He answers some key questions: How much is being lost? Who are the thieves? Which types of products are most susceptible? Which parts of the country pose the highest risk? And how can shippers and carriers act to reduce the possibility that they'll be hit?
Winning $1m on Jeopardy! wasn't good enough for IBM's Watson. Now it wants to predict your buying behavior. Having racked up a victory in the game-show arena, Watson is moving on. It has already been applied to clinical decision support for healthcare, with a focus on treating lung cancer. Now, it's venturing into the world of retail. Introduced in November of 2015, the Watson Trend App is turning its computing power to the identification of buying trends in three key areas of retail: consumer electronics, toys, and health and fitness. With its ability to understand natural language, the app monitors the sentiments of tens of millions of online conversations, drawing on some 10,000 sources across popular social media sites. And it goes beyond merely identifying sales trends to reveal why and how consumers are buying. (It has already predicted the initial success of the Apple Watch, Star Wars-themed Lego sets and a high-tech version of Barbie.) On this episode, we speak with Watson Trend App product strategist Justin Norwood, who explains how it works today, and how it might be deployed in future to create personal interactions between consumers and their favorite brands. We also learn how the app could help retailers and consumer-goods manufacturers to devise more accurate demand forecasts.
There's a good chance that your corporate training program isn't up to snuff. Companies might think they have adequate training initiatives for new and continuing employees covering multiple functions. Too often, though, their efforts are falling short. The failure to properly train one's workforce can result in billions of dollars of lost profits from insurance claims, worker's compensation, medical visits, time off work and lawsuits both inside and outside the organization. On this episode, Carol Leaman, chief executive officer of Axonify, talks about what constitutes an effective training program. She answers a number of key questions: What should you be teaching your employees? What are the most effective tools with which accomplish that? How can you make them want to learn? How can you ensure that they're retaining the information? And what steps should you be taking to ensure that good training remains a permanent part of your organization?
Want to make sure that your imports or exports are traveling on a ''clean'' ship? There's a way to do that. Shipping Efficiency.org is an initiative that was launched in 2010 to create a rating database for vessel carbon dioxide emissions. Environmentally conscious shippers can consult the site for reports on more 76,000 commercial vessels in service today, and book their cargo accordingly. But the effort goes well beyond mere reporting. It's an offshoot of the Carbon War Room, created in 2009 by Virgin Group chief executive officer Richard Branson in partnership with RightShip. The objective is to identify private-sector solutions to climate change. Shipping Efficiency.org tackles the ocean shipping sector, which is responsible for more than a billion tons of CO2 emissions each year. In this conversation with Victoria Stulgis, senior associate with Shipping Efficiency.org, we learn of the many actions, both large and small, that vessel owners and operators can take to slash their carbon emissions all the while making their ships more efficient. A retrofit, she says, can help slash an operator's fuel bills by 15 percent. In all, the industry stands to save some $70bn on fuel by the year 2030.
They call it ''free'' trade, but the price of failing to properly manage one's imports and exports can be dangerously high. That's especially the case with the looming prospect of the Trans-Pacific Partnership, the sweeping free-trade agreement negotiated among the U.S. and 11 other Pacific Rim countries. TPP has been submitted for ratification by the U.S. Congress, but U.S. importers and exporters should be preparing to cope with the pact's complexities now. On this episode, we get advice from Gary Baracco, director of global product marketing with Amber Road. He discusses how TPP will place new demands on traders for adhering to rules of origin. Companies looking to take advantage of the agreement will need to engage in sophisticated ''tariff engineering,'' he says. Good supplier-relationship management will be more important than ever. It's especially crucial that manufacturers gain visibility into multiple tiers of suppliers, who might otherwise be responsible for serious breaches in their codes of conduct. Finally, Baracco talks about the challenges of sourcing in new markets such as Africa, and the many factors that go into the decision to alter one's sourcing strategy.
Starting up a business requires brains, heart and money but in the case of the last, not as soon as you might think. There's no lack of ''how-to'' books on how to become a successful entrepreneur. Yet most ventures are doomed to fail, whether because the timing wasn't right, the funding wasn't in place or the partners lacked the patience to see it through. On this episode, we hear from Silicon Valley entrepreneur John Chisholm, who has shepherded two online software companies to success, and invested in dozens of other privately held companies. Now chief executive officer of San Francisco-based John Chisholm Ventures, he is the author of a new book called Unleash Your Inner Company: Use Passion and Perseverance to Build Your Ideal Business. He talks about some of the misconceptions that surround most start-ups, including the impulse to seek funding too early. And he offers a number of tips on how to guide your start-up through the many obstacles that you're bound to encounter on the journey.
Are supply-chain managers finally getting the respect they deserve? A new four-year study by Professor Douglas Boateng of the University of South Africa suggests they are. Surveying a wide range of private- and public-sector organizations, with combined revenues of around $1tr, he found a growing move to bring supply-chain experts into the executive suite. While the position of Chief Supply Chain Officer (CSCO) isn't especially new, its presence hasn't been widespread. Now, that might be changing. A substantial portion of respondents to Professor Boateng's study say they consider supply-chain management as ''crucial for long-term wealth creation.'' Their newfound sense of awareness dovetails with the need for supply-chain managers to do more than cut costs. It also signals a trend toward combining two previously separate disciplines: procurement and logistics. But are there enough individuals out there who can do both jobs? Are they being compensated fairly? And what about that 30 percent of executives who don't consider supply chain to be an essential element of long-term profitability?
Online shoppers are ready for a new wave of innovation in the e-commerce experience and retailers had better be ready, too. The P.R. and social marketing agency Walker Sands Communications recently conducted its second annual study on the future of retail. The effort zeroed in on the technology aspects of online shopping. Key findings focused on three major developments: the use of delivery drones, the shift to mobile payment, and the deployment of virtual reality to create an in-store experience for home-based buyers. Interestingly, a large percentage of respondents declared themselves ready for some of these trends, especially drones. Two-thirds said they expect to receive their first drone-delivered package within the next five years. But are these cutting-edge technologies really practical? How will they transform the face of e-commerce? We get answers from Dave Parro, senior account director and retail technology practice lead with Walker Sands. He also talks about which e-commerce giant will likely prevail in the technology race. And he outlines some of the obstacles that might delay full deployment of these innovations.
Even the most dominant companies in the world need to take a look in the mirror now and then. Intel Corp. is no exception. Back in 2007, the company felt that it was slipping in some key areas, including reliability, customer responsiveness and supply-chain costs as a percentage of revenues. It was time for a serious reassessment. So Intel proceeded to implement a number of key performance metrics, and benchmark itself against the competition. ''We had to get our house in order internally,'' says Sharon J. Hall, our guest on this episode. She is director of equipment planning and procurement, as well as of Intel Resale Corp. Hall discusses how Intel went about evaluating itself, and implementing improvements to the organization where necessary. It adopted five key tenets to which its metrics would be aligned. The result: Intel today has once again been designated a ''Supply Chain to Admire'' by Supply Chain Insights. The effort, says Hall, stemmed from a realization that supply chain can help the company not just to control costs, but to deliver growth.
It's safe to say that no child yearns for a career in supply chain. But schools and educators are working to change that. The shift can be seen at all levels college, high school and even the elementary grades. Until recently, the education system wasn't doing a very good job of producing graduates who were qualified to take on even entry-level jobs related to supply chain, logistics or global trade management. Now, though, schools are starting to listen to the private sector. On this episode, we talk to PJ Shelton, deputy sector navigator for global trade and logistics in the San Francisco Bay Area, and director of the Centers for International Trade Development. She assesses the state of supply-chain education at all grade levels. She explains how colleges are starting to do a better job of aligning their programs with the needs of business. And she talks about how high school and elementary kids can be made aware of the rich possibilities offered by a career in supply chain. Maybe there's hope for closing that looming supply-chain talent gap after all.
Today's fashion industry is obsessed with getting product to store shelves quickly, changing out assortments constantly, and charging rock-bottom prices. But there's a price to be paid for that behavior. So says Maxine Bédat, chief executive officer of Zady, Inc., an advocate of the concept of ''slow fashion.'' The company has launched a year-long research effort to examine the impact of traditional fashion supply chains on people and the environment. At the same time, it's spearheading a new way of making and selling clothing one that supports decent wages and humane treatment for factory workers, while minimizing the industry's impact on oceans, drinking water, forests and climate change. Apparel is the second-most polluting industry in the world today, Bédat says, and she's determined to change that state of affairs. She talks about how Zady is emphasizing ''quality over quantity,'' and whether the practices of a relatively small apparel maker can be extended to much larger entities. Success, however, will require a major overhaul of apparel supply chains.
When it comes to teaching the complexities of supply-chain management, is digital learning as effective as the traditional in-class experience? Actually, it's a little late to be asking the question. ''Virtual'' teaching experiences are becoming increasingly common in all areas of education. And they deliver some real benefits. Supply-chain professionals looking to hone their skills don't have the time to physically attend classes. In fact, some of the world's largest companies are relying on remote learning to improve their executives' leadership skills. But are there trade-offs to be considered? Can a professor really interact in a meaningful way with multiple students in a virtual environment? We address these questions in this episode with two guests: Alan Todd, founder of the digital learning platform CorpU, and Steve Tracey, executive director of the Center for Supply Chain Research at Penn State. They offer some surprising observations about the ability of students of all ages to absorb knowledge through digital media. In the future, says Todd, ''all higher education will be blended learning.''
Corporations pay lip service to enforcing human rights and fair working conditions in offshore factories. But the deaths and injuries continue. An estimated 2.3 million deaths each year, in fact, from work-related accidents or diseases. Many are the result of unsafe factory environments, despite efforts by original equipment manufacturers to ensure that their suppliers are meeting high standards for ethical behavior. Recently the European Union announced financial support for the Group of Seven's Vision Zero Fund, a multi-donor initiative that provides cash for fire inspection and enforcement of safety regulations in factories worldwide. But our guest on this episode, Pierre-François Thaler, co-founder and chief executive officer of EcoVadis, believes that effort is inadequate. It's not enough money, he says, and it's the wrong approach. Here, he explains his reasoning, and offers advice as to what companies really need to do, in order to ensure that factory workers are being treated in a fair and safe manner despite the lack of visibility that many companies have to all partners within their multi-tier supply chains.
Can playing a game help supply-chain managers cope with the uncertainties of the real world? Experts would say yes. As far back as the early 1960s, professors at MIT's Sloan School of Management developed the Beer Game, which despite its frat-friendly name was a sober attempt to demonstrate the principles of supply-chain management. Since then, academics and practitioners have developed a number of so-called ''serious'' games and simulations to address the complexities involved in achieving the proper balance between supply and demand. The latest version is SCI Impact, developed by Sterling Simulation in partnership with Supply Chain Insights. It extends the concept of the Beer Game to encapsulate the realities of entire supply chains. Pairs of teams compete to see who can dictate the most effective inventory and ordering policies in response to shifts in demand. On this episode, we get an introduction to SCI Impact from Paul Rohrbaugh, president of Sterling Simulation. He talks about the history of gamification in supply-chain management, what his new game hopes to accomplish, and how it might evolve in future.
Commercial delivery drones are in our future or so we're told. What will it take to make them a reality? Drone technology is advancing quickly. Amazon.com is well along in its development and testing of drones for delivery of packages. And now Wal-Mart says it wants to start testing drones as well. Soon, it seems, the skies will be filled with these futuristic flying machines. First, though, there are some practicalities that need to be addressed. Chief among them is a proposed ruling by the Federal Aviation Administration that places onerous restrictions on commercial drone operators. And there are economic factors to be considered. Can online merchandisers really operate drones in a profitable fashion? On this episode, we get answers from Lisa Ellman, partner in the law firm of Hogan Lovells. A former advisor to President Obama on drone policy, she fills us in on the progress of retailers' efforts to make drones an everyday part of our online shopping experience.
There's more to reshoring than simply moving a factory from Asia back to the U.S. Higher wages for Chinese factory workers, coupled with the headaches of maintaining long supply lines, are prompting manufacturers to relocate plants closer to markets in the western hemisphere. In some cases, that means a return to the U.S. But there's an important link in the supply chain that needs to come back as well: the ability to recycle, repair, refurbish or dispose of excess, obsolete and defective parts. The two main pieces of the reverse supply chain post-industrial recovery and post-consumer recycling must be situated close to the point of manufacture. Producers need to set up a locally based ''ecosystem'' of partners and resources to make it all work. On this episode, Linda Li, chief strategy officer with the Li Tong Group, returns to the podcast to talk about the challenges that technology and telecommunications companies face when they attempt to set up remanufacturing and recovery operations in the U.S. not the least of which are far more stringent environmental regulations than in Asia. How can that hurdle be overcome?
Are you certain that your sensitive exports aren't falling into the wrong hands? In today's world of global, multi-tiered supply chains, it can be a challenge determining who the end buyer really is. In the case of certain high-tech products, or items for military use, regulators demand that companies maintain the highest possible degree of vigilance. But complying with the rules is getting tougher all the time. These days, there are hundreds of lists containing the identities of denied parties. What's more, companies can be punished for selling to suspicious buyers that aren't on any list. They can even be in violation of the law for disclosing the wrong information in a speech. On this episode, Ken Harris, head of denied-party screening with Descartes Systems Group, talks about what companies must do to ensure that their products or sensitive information aren't going astray. The potential fines and penalties, both civil and criminal, make it essential that exporters demonstrate an extraordinary level of care.
It's a dangerous world out there for global supply chains. Earthquakes, tsunamis, floods, labor stoppages, terrorist threats and general congestion all conspire to hinder the flow of product to market. The situation calls for a renewed commitment to risk management and, most of all, supply chain resilience. Joining us on this episode is MIT professor Yossi Sheffi, director of the school's Center for Transportation and Logistics, and author of the new book The Power of Resilience: How the Best Companies Manage the Unexpected. Sheffi reveals how leading companies are protecting themselves against supply-chain disruptions. He lays out some of the key elements of a successful resilience initiative just in case your company is one of the many that have yet to make a serious effort in that area. Learn why it's just possible that Intel's Andy Grove was right when he said that ''only the paranoid survive.'' Welcome to the 100th episode of The SupplyChainBrain Podcast!
The Reshoring Initiative would like to slap the ''Made in U.S.A.'' label on a lot more products. Can it succeed? The organization's mission is to convince companies to bring manufacturing jobs back from China to the U.S. Recent economic trends in China, including a growing labor shortage and rising factory wages, are helping to make that dream a reality. At the same time, China's recent devaluation of the yuan appears to be drive by a desire to make its manufacturing exports more competitive. So are the jobs really coming home? On this episode, we speak with Reshoring Initiative founder and president Harry Moser. He discusses the group's efforts and talks about some recent successes. And he addresses the real challenges that stand in the way of a wholesale shift of manufacturing to the U.S. The big question: does the U.S. have the people and the skills to handle a big influx of work from China? For that matter, what will those returning jobs look like? Will automation undermine the benefits of reshoring for American workers?
A message to procurement managers: Your job is about to be transformed ''almost beyond recognition.'' Those are the words of Kai Nowosel, managing director of the Sourcing Procurement Practice of Accenture Strategy. On this episode, he talks about the big changes that are coming to procurement, spurred by developments such as digital platforms, sophisticated analytics and the Industrial Internet of Things. All of this promises to boost procurement's position in the organization, beyond its traditional role as a cost-cutter. Expect procurement managers to gain new respect in the executive suite, Nowosel says. Hear what a select group of high-level executives, academics and technology providers thinks the future holds for procurement. And discover how a combination of technology and business-process change will create ''the marketplace on steroids'' all in just five to seven years.
U.S. West Coast ports are being ''held hostage'' by longshore labor. So says one noted economist. Diana Furchtgott-Roth is a former chief economist with the U.S. Department of Labor. Today, she serves as director of Economics21, in addition to acting as senior fellow at the Manhattan Institute for Policy Research. She believes it's time for a change in the way that longshore labor is regulated. The National Labor Relations Act, which currently governs activities by U.S. dockworkers, doesn't prevent them from bringing port operations to a halt at will. But their actions as in the case of the recent slowdown at West Coast ports can have serious consequences for the U.S. economy. Furchtgott-Roth says ports should fall under the same law that governs rail and airline labor, and prohibits strikes under the theory that those sectors are vital to interstate commerce and the nation's economy well-being. Disputes under the jurisdiction of the Railway Labor Act are settled through mediation and, if necessary, a board of arbitrators selected by the President of the U.S. Ports, she says, are no less crucial to commerce than railroads and airlines, especially at a time when international trade is so vital to the nation's interest. But is a change in the law politically feasible?
This is a ''watershed year'' for cybercrime, according to a new survey on the topic. Yet many companies are falling short in their efforts to battle it. The state of corporate cybercrime protection is mixed at best. Government agencies and boards of directors are taking an increased role in the adoption of good preventive practices, according to a new survey by PwC, CSO, the U.S. Secret Service, and the CERT Division of the Software Engineering Institute at Carnegie Mellon University. On the other hand, many companies still aren't fully aware of the threat presented by hackers, terrorists and foreign governments. Shockingly, one in five of the surveyed executives said they aren't worried about the risk that cybercrime poses to their supply chains. Even some of the more forward-thinking organizations haven't progressed very far on the maturity curve. On this episode, we discuss the implications of the survey with PwC partner Quentin Orr. He outlines the various kinds of cyber threats, addresses the critical issue of third-party risks, and reports on the level and types of corporate investment in people, process and systems. Finally, he answers the key question: Given the sophistication and persistence of cyber-criminals today, is there any hope?
Are robots taking over the warehouse? The science of robotics has long been critical to manufacturing. It has had less of a presence in the logistics sector, where automation has often taken the form of state-of-the-art conveyors, sorters and systems limited to directing the picking process. One reason for the disparity is safety. Another is cost. But all that might be about to change. New robots are being developed that can perform some of the numbingly repetitive tasks that have been the responsibility of humans. One of the newest companies on the scene is Fetch Robotics, which has developed two models of robots that can pick from inventory and efficiently move items to the shipping area. On this episode, we speak with Fetch chief executive officer Melonee Wise, who traces the development of robotics in logistics environments. She also discusses the changing public perception of robots, which in their early days were seen as a threat to the jobs (and even the lives) of people. Only in the last decade or so, she says, has that view begun to change. Increasingly, robots are being developed that can work side by side with humans. But just how smart are these machines? And are they fated to edge out people entirely?
Change in the organization is inevitable. So how do you get your employees to stop blocking it? Shifting consumer markets, a constant stream of new products, technological innovation, personnel changes, economic upheaval, mergers and acquisitions: they all contribute to the ceaseless march of transformation within every business. Yet managers find themselves battling the natural human tendency to avoid it. Such reluctance is entirely understandable, given the increasingly shaky nature of job security today. But companies must find a way to confront people's fears and enable change. On this episode, we speak with Renée Robertson, founder and chief executive officer of Trilogy Development, a consulting firm specializing in talent development. She outlines her strategy for effecting change in business, including a reliance on internal coaches. She explains where those individuals can be found, where they sit in the organizational chart, and what their job entails. Maybe change isn't so scary after all.
Multi-tiered manufacturing supply chains can end up in some unexpected places including prisons. The use of unauthorized subcontractors, even prison labor, is a disturbingly common practice in China and elsewhere in Asia. The problem surfaced a few years back, when an Oregon woman discovered a hastily scribbled note in the Halloween decoration kit that she had purchased at a local Kmart. The writer purported to be a laborer in a Chinese prison. And while the source of the note was never traced, it highlighted a pervasive problem of which many retailers and original equipment manufacturers are unaware. Greg Hallahan, senior director with FTI Consulting, is an expert on the problem of unauthorized subcontractors in Asia markets. He joins us on this episode to detail the severity of the trend, caused by lax supplier vetting on the part of buyers. He also shines a light on the practice of rigged bidding among suppliers who are nominal competitors. (You'll never guess what the number-one product made in Chinese prisons is.)
What's going on behind the veil of secrecy that masks China's economy? Recently we've seen a steep plunge in share prices on China's stock markets, signaling the bursting of a bubble that was long in forming. Meanwhile, questions persist about the condition of China's banks, which have long been rumored to be saddled with large amounts of non-performing loans. Does all of this threaten China's economic future? Can the nation sustain its massive investments in infrastructure, both at home and abroad? And how is the yuan, which China recently devalued, performing against the dollar these days? On this episode, we hear from one of the leading experts on China, David Dollar, senior fellow in the John L. Thornton China Center at the Brookings Institution. He helps us to understand what's behind China's recent economic woes, how serious they are, and what impact they might have on the nation's quest to become the world's largest economy.
Another short-term extension of funding for transportation infrastructure improvements? This story is getting old. The Senate Committee on Commerce, Science and Transportation has come up with a six-year transportation bill, the Comprehensive Transportation and Consumer Protection Act of 2015. That's not to be confused with the DRIVE (Developing a Reliable and Innovative Vision for the Economy) Act, which came out of the Senate Environment and Public Works Committee. Ideally, these measures would be successfully combined into a comprehensive, multi-year bill that nails down funding for transportation projects once and for all. But don't get your hopes up. Meanwhile, Congress has passed yet another extension of the Highway Trust Fund, but only until the end of the year. Have we made any progress at all, since enactment of the last big transportation bill in 2012 (which, by the way, didn't include a long-term funding solution)? On this episode, Joshua Schank, president and chief executive officer of the Eno Center for Transportation, returns to the podcast with an update on a perennially contentious issue. It's time to come up with a new way of paying for transportation projects, he says. But what will that look like? Nobody can seem to agree.
Is there slavery in your global supply chain? Are you sure about that? Governments want to know. The first major attempt to curb modern-day slavery through legislation was the California Transparency in Supply Chains Act of 2010, which took effect in early 2012. It served as a template for the United Kingdom Modern Slavery Act of 2015. Both require companies to disclose the presence of slavery or human trafficking anywhere in their supply chains, or face stiff penalties for failing to do so. Our guest on this episode is attorney Maureen Gorsen, partner in the Environment, Land Use Natural Resources Group of Alston Bird LLP. She discusses how companies can comply with the two laws, and gain visibility into activities of which they might previously have been unaware. As with any human rights violations, it can be tough to uncover such occurrences within complex, global supply chains. Nevertheless, companies will have to step up their game. These initial laws represent only the beginning of what's sure to be a more comprehensive effort on the part of governments to put a stop to slavery once and for all.
The race is heating up over who will dominate the world of ''last-mile'' delivery of online retail orders. It's a crowded field, to be sure. Competitors range from internet giants such as Amazon.com, Google and eBay to traditional brick-and-mortar retailers such as Walmart, Macy's and just about every major department store imaginable. The nature of the service is up for grabs as well. In addition to home delivery, retailers and e-tailers are offering options such as secure lockers, in-store pickup and postal service locations. Finally, there's new technology to be considered. Will drones and driverless vehicles play a part in the delivery model of the future? What about on-demand passenger services such as Uber and Lyft? Our guest on this episode is Rob Howard, founder and chief executive officer of Grand Junction, Inc. He runs down the multitude of players that are jockeying for position in the modern-day delivery market, and discusses their various strengths and weaknesses. Who will make it to the finish line? And what do consumers really want?
What can automobile manufacturers to do stop the endless flood of recalls, some of which result in injury or death to drivers and passengers? There's been no letup of incidents in recent years. The recall of airbags by the Japanese manufacturer Takata Corp., affecting more than 53 million cars worldwide, is only the latest to hit the headlines. In recent years we've seen the failure of brakes, electrical systems, locks, steering mechanisms and even, apparently, floor mats. The trend toward globalized supply chains, involving multiple tiers of suppliers, only makes the problem more complex. On this episode, we're joined by Evan Hirsch, partner at the global consulting firm Strategy. He offers a perspective on why product failures and recalls continue to happen, and what original equipment manufacturers and their suppliers can do to reduce such incidents. Perfection is impossible, but there's plenty of room for improvement, says Hirsch.
It's enough to scare the daylights out of retailers: $1.75tr in lost revenue due to overstocks, out-of-stocks and preventable returns. Welcome to ''The Ghost Economy.'' The term comes from new research conducted by IHL Group on behalf of OrderDynamics. It looks at the costs that retailers rack up by failing to understand what's happening in their businesses today. The problem rests in large part with the additional challenges posed by e-commerce and the advent of the omnichannel. Many retailers have yet to coordinate their efforts across all channels, resulting in pockets of inventory that drag down the bottom line. They just can't seem to match supply with demand. On this episode, we speak with Kevin Sterneckert, chief marketing officer with OrderDynamics, who explains how retailers got into this mess, and how they can escape it. No need for an exorcist: just a comprehensive approach to customer and inventory data, updated far more frequently than it is today.
The Greek people have said a resounding no to their creditors. So where does the country go now, to avert all-out economic collapse? There doesn't seem to be much light at the end of the tunnel. Greece owes the European Central Bank, International Monetary Fund and other lenders a reported 323bn (about $354bn). But the people and government of Greece have balked at the additional austerity measures they would have to adopt, in order to keep getting bailout money from their creditors. Yet those entities show no sign of backing off from their draconian demands. Is there any hope for a solution? On this episode, we speak with David Lea, senior analyst for Western Europe with Control Risks. He traces the history of Greece's economic woes, and speculates about what might happen if the nation leaves the eurozone (or is kicked out). He also explains how the situation in other ailing European economies, especially Spain, differs from that of Greece. And he confronts what is perhaps the ultimate question: Was the eurozone one huge mistake?
In the world of fast fashion, social media can be both bane and salvation for manufacturers and retailers. Clearly, they are hoping it's the latter. Much press has been devoted to the negative impact of social media on products and brands. But there's a significant upside as well #150; provided that companies know how to exploit it. Handled properly, social media can be a rich source of intelligence on ever-changing consumer tastes, helping to determine products, styles and quantities that are right for the marketplace. On this episode, we speak with Peter Akbar, vice president and chief customer officer for fashion with SAP. He says companies need to be paying close attention to social media, which have the power to influence every step of the merchandising supply chain, from forecasting through manufacturing, distribution and final sale. Fashion companies, he says, ''are likely highly tuned race cars.'' Even the slightest edge can prove instrumental to a product's success. He also discusses how companies can integrate social media with their traditional forecasting and planning methods. Bottom line: ''Companies need to start believing in social media.''
Bad things are bound to happen in your supply chain. Are you ready for them? Recent history demonstrates how vulnerable companies are to disruptions in their supply chains. Whether it's a flood, tsunami, earthquake, volcano, disease, port strike, data breach, or any number of other potential disasters, the impact on global organizations is immense. Yet many seem not to have got the message. What's gone wrong? Where are companies most vulnerable today? What must they do now? We get answers to these and other questions in our conversation with Chloe Demrovsky, executive director of the Disaster Recovery Institute International. She details the cost of unpreparedness, as well as some of the misconceptions that companies harbor about the types of disruptions that entail the highest costs. Time to do away with what Demrovsky calls ''risk psychology'' the notion that ''It's never going to happen to me.''
It's been about a year since the Securities and Exchange Commission began imposing its rule on the disclosure of conflict materials from the Democratic Republic of Congo in manufactured products. Are companies up to speed? Mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the rule applies to tin, tantalum, tungsten and gold sourced from mines in the DRC that are controlled by armed gangs. Companies are now required to reveal the presence of those commodities in their products, despite the difficulties of making that assessment in complex, multi-tier supply chains. On this episode, we speak with Paul Noel, senior vice president of procurement solutions with Ivalua, a vendor of software for procurement and spend management, about how far global businesses have come in complying with the rule. Noel also provides advice on what they must do to fall into line. While the rule lacks teeth there are no monetary penalties for non-compliance it nevertheless poses a substantial challenge to global supply chains. And it could get tougher in years to come. Consider it ''fair warning,'' says Noel.
Procurement fraud is costing global companies billions of dollars a year. So why can't they put a stop to it? The problem takes many forms: bribes, kickbacks, collusive bidding, conflicts of interest, exclusion of qualified bidders and the falsification of invoices, to name a few. The cost to companies hasn't been fully quantified, but there's no doubt that it's huge. In one recent case in Australia, the chief executive officer of fleet-management company Orix was accused of making corrupt payments of nearly US$388,000 to Coca-Cola Amatil, to secure vehicle-leasing contracts valued in the tens of millions. With so much at stake, why does the practice continue to plague companies today? On this episode, we speak with Tania Seary, founder of Procurious. She offers her opinion as to why businesses have failed to stamp out procurement fraud, how it can be detected, and what must be done to stop it. In addition, she raises the question of licensing procurement professionals, and talks about the skills and training that are needed to create a corporate culture that doesn't tolerate procurement fraud.
Will we ever cut off the flow of contaminated product from China and other offshore manufacturing sites? The recent revelations surrounding Lumber Liquidators, which faces criminal charges for the alleged presence of the carcinogen formaldehyde in flooring made in China, are only the latest example of serious slip-ups in manufacturing quality control. It's tough enough to police one's overseas suppliers for violations of human rights in the workplace and even more challenging to detect the use of unauthorized and potentially hazardous ingredients in toys, apparel, home furnishings and consumer electronics. On this episode, we speak with Ron Keith and Mark Medlen, executive chairman and chief operating officer, respectively, of Riverwood Solutions. They discuss the challenge that companies face in monitoring their suppliers' production lines, given the presence of 22 million factories in China alone, and the $40bn worth of goods imported by the U.S. from China each month. And they propose an answer to the question: Why does this keep happening?
The battle against cybercrime rages on. And global supply chains remain highly vulnerable. It should come as no surprise that the globalization of supply chains, resulting in the addition of many new trade and service partners, has made companies more susceptible to breaches of their information-security systems. Often they come in unexpected places, such as the HVAC contractor that was reportedly the point of entry for attackers who stole customer credit-card information from Target stores. On this episode, we speak with Steve Durbin, managing director of the Information Security Forum, who describes the scope of the problem, explains why so many companies are vulnerable to cybercrime, and lays out the steps they should be taking to shore up their systems against attack. The ultimate solution, he says, lies in the adoption of a carefully crafted risk-management program, in tandem with detailed contracts with suppliers who might otherwise be conduits to information breaches.
Creating an ethical supply chain is clearly the right thing to do. But it can also help companies to cut costs and boost profits. ''Beyond Supply Chains'' is the name of a new report from the World Economic Forum, produced in collaboration with Accenture. It was intended to address the growing pressure on companies to ensure that their supply chains are having a positive social impact on the environment and local communities. The timing couldn't be better, given the litany of incidents we've read about in recent years: child labor, terrible working conditions in factories, the reliance on conflict minerals, environmental degradation and disasters such as the collapse of the Rana Plaza factory complex in Bangladesh. So it's essential that companies take steps to correct these deficiencies. As the report points out, however, they can also realize substantial commercial benefits from the effort. We're joined on this episode by Mark Pearson, senior managing director of strategy and operations with Accenture, who talks about 31 proven practices that yield a ''triple advantage'': socioeconomic improvements in local communities, improved sustainability, and benefits to the bottom line. He argues that doing the right thing doesn't always entail a tradeoff between moral behavior and commercial concerns.
We're still waiting for many of the emerging markets of Latin America to emerge. Whats holding them back? Four big obstacles, according to a new report from Transport Intelligence on ''Latin American Transport Logistics 2015.'' For all its promise as a thriving center of manufacturing and logistics, supporting both domestic and international markets, the region continues to be held back by corruption, violence, poor infrastructure and government bureaucracy. (That last category includes restrictions on imports maintained by difficult countries such as Brazil.) Cathy Roberson, lead author of the Ti report, guests on this episode to discuss the progress or lack of it that Latin America has seen in the development of a logistics infrastructure that can support economic growth and ensure the efficient movement of product region-wide. At the same time, the report finds significant opportunities for business and trade willing to take a chance on Latin America. Find out why, in Roberson's words, ''the regions biggest enemy remains itself'' and what can be done about it.
The way in which buyers pay their suppliers hasn't kept up with the times. The result: an unacceptable level of global supply-chain risk. Big companies today are demanding that their customers pay quickly and on time. Yet when it comes to paying their suppliers, it's a different story. Buying organizations are stretching out terms, to the point where a supplier might not get compensated for services for nearly two months. For smaller entities, that delay can threaten their very survival. So why, in a time of economic recovery, are buyers treating their suppliers in this manner? And what can be done to satisfy both sides? In other words, what constitutes fair financing? We get some answers in a conversation with Joe Hyland, chief marketing officer of Taulia, a provider of invoice, payment and discount-management services to buying organizations. Learn how companies can cure themselves of this ''epidemic'' of supply-chain risk, caused by the practice of slow-paying suppliers. As Hyland puts it: ''The Holy Grail of invoicing is getting paid.'' Which demands the question: How?
All global companies will tell you that they're committed to guaranteeing human rights throughout their supply chains. But how do we tell they're sincere? When it comes to corporate social responsibility, human rights is on a par with environmental protection. Both have something in common: Companies agree that they're important, but it can be tough to assess whether their position stems from a real commitment to the issue, or a mere desire to polish their brand. A new report, published by The Economist Intelligence Unit and sponsored in part by the accounting, tax and advisory services firm of WeiserMazars LLP, tackles that very question. Entitled ''The Road From Principles to Practice: Today's Challenges for Business in Respecting Human Rights,'' it combines a global online survey of businesses with in-depth interviews of human-rights specialists. Joining us on this episode to discuss the contents of the report is Howard Dorman, WeiserMazars partner and U.S. leader of human rights for the firm. He talks about what it takes to make a real contribution to the cause of human rights, and how far global business has come in that effort.
Can we ever really know the Unknown? Or are we doomed to be forever surprised by economic, political and diplomatic upheavals? History suggests the latter. We never seem to have a grip on events that appear obvious in retrospect. Still, global business planners need to understand what might happen in crucial markets. It's a constant struggle to reach an impossible goal, but there are certain steps that managers can take to alleviate the pain, and maybe even be ready for some curve balls. Joining us on this episode is Amanda Mattingly, senior director of The Arkin Group, an international risk consulting and intelligence firm. A former foreign affairs officer at the U.S. State Department, Mattingly offers advice to companies on how they might cope with and possibly even foresee unexpected events. The future will forever remain unknown, but businesses can do a better job of preparing for it.
The imposition by UPS and FedEx of dimensional weight pricing on all ground shipments is bound to raise the price of moving parcels and packages. But there are ways that shippers can mitigate the increase. Up to now, dimensional weight pricing has been applied by the two big parcel carriers to air and express moves, as well as to packages greater than three cubic feet in size. As of the beginning of this year, however, the formula was extended to include all ground shipments. The idea is to charge shippers for the space that a package actually takes up on a truck. Boxes with lightweight contents or lots of filler will be especially impacted by the change. On this episode, we talk with Kevin Lathrop, president of Unishippers, a nationwide reseller of shipping services. He offers advice on how shippers can offset at least some of the increase. And he explains how the pricing change might actually yield benefits to shippers and manufacturers, in the form of reduced packaging materials and more efficiently designed products.
Who better to assess the most serious risks confronting global business today than one of the world's largest insurance companies? Each year, a few weeks before the World Economic Forum conference in Davos, Switzerland, Zurich Insurance Group co-produces a report on global risk. The 2015 edition marks the tenth year of the report, which began by merely identifying risks, but now analyzes the connections between them, along with the ''cascade effect'' of such events as natural disasters, economic crises and geopolitical strife. The result is one of the most comprehensive references available for businesses and supply chains engaged in global commerce. On this episode, we speak with Linda Conrad, director of strategic business risk for Zurich, who reviews the conclusions of the report as it relates to both developed and developing countries. She also discusses why this year's report marks a change in the list of top global risks.
Are the doors open to women looking to pursue a career in logistics? The answer is a qualified yes. Without question, the field of logistics has shed much of the sexism that marked it over the years. Changes in the business, driven by globalization, technology, the internet and a widening talent gap, have resulted in new opportunities for all prospective entrants, male and female. Still, it's not easy starting a logistics business from scratch and learning about it as you go. On this episode, we talk with Sharon McWilliams, franchise owner of BlueGrace Logistics in Fair Oaks, Calif., just outside Sacramento. She describes her own path, which involved casting aside a career as a successful litigator in favor of owning a business about which she knew virtually nothing at the outset. She also touches on the issue of work-life balance that preoccupies so many professional women and men as well, even though they're seldom asked about it.
With the current boom in U.S. oil and natural gas production, it might be tempting to put aside the notion of shifting to more sustainable fuels for commercial transport. Why venture into this unknown area when traditional supplies are so plentiful? The answer: the current state of affairs can't last. Now is the time to begin exploring which kinds of alternative fuels have the greatest potential to power heavy trucks and other modes of transport in the years ahead. On this episode, we speak with Ryan Schuchard, associate director for climate change with BSR, a non-profit network of multinational companies dedicated to reducing carbon emissions and forging greener supply chains. He shares the results of a recent study by BSR's Future of Fuels initiative, laying out the various options and answering some key questions: Which alternative fuels are best? What will they cost? How effective will they be? And how will we cope with a 40-percent increase in energy consumption between 2012 and 2030?
Apple is known for consistently maintaining a smooth-running global supply chain. But every once in a while, something blows up. That's what happened in the relationship between Apple Inc. and GT Advanced Technologies, which was contracted to supply sapphire for the new iPhone 6 screens. The deal carried enormous promise, not least because it involved manufacturing in the U.S. But it quickly went sour. Despite the existence of seven separate contracts, GTAT was unable to deliver on Apples demands. The reason for the failure? Depends on whom you ask. But the outcome isn't in dispute: the two parties descended into acrimony and expensive court proceedings, and GTAT ended up seeking protection under Chapter 11 of U.S. bankruptcy laws. On this episode, attorney Sarah K. Rathke, partner with Squire Patton Boggs, offers her perspective on what went wrong between Apple and GTAT. And she details the lessons to be learned from that disaster, with tips on how other manufacturers and suppliers can avoid a similar fate.
Is it feasible to scan every one of the 15 million containers that enter U.S. ports each year? With a new technology, the long-term answer might well be yes. Decision Sciences International Corp. has developed the Multi-Mode Passive Detection System, a new means of scanning containers at the port for radiological, nuclear and explosive materials, as well as contraband. The technology differs from previous such efforts in that it doesn't bombard containers or nearby people with x-rays or other types of potentially hazardous radiation. On this episode, Decision Sciences president and chief executive officer Stanton Sloane explains how the device works, how far along it is in development, how much it costs and how it would mesh with modern-day port operations. The system, he claims, solves the health, safety, logistical and political problems that, according to critics, make the notion of 100-percent scanning of containers at foreign ports impossible.
What does it take to overcome the logistics challenges of serving customers in emerging markets? The short answer: a lot. Emerging markets present manufacturers, distributors and retailers with numerous pitfalls that can break a supply chain. Some of the most important considerations are laid out in a recent paper from PwC, ''Overcoming Network Logistics Complexities in Emerging Markets.'' On this episode, we speak with Sandra Gosling, U.S. supply chain director, about the content of that report. In particular, we discuss the six most important categories that companies must consider when entering emerging markets and hear Gosling's opinion about which one of them poses the toughest challenge.
What will the typical factory look like five years from now? Manufacturers today are undergoing a major evolution in their global sourcing strategies. No longer is it sufficient to build product in a single country that offers the benefits of low-cost labor, then distribute worldwide. At the same time, manufacturers are laboring to juggle the need for optimal plant efficiency with buyers' demands for customized product sourced close to end markets. On this episode, we hear from Pierfrancesco Manenti, vice president of research with SCM World, which recently surveyed more than 150 leaders in the manufacturing sector. They underscored the importance of flexibility, responsiveness, cost control and the hiring of workers who can perform tasks that require a whole new set of skills. In the discussion, we get a glimpse of what the factory of the future might look like, where it will be located, and how technology will revolutionize production techniques.
Global trade: Love it or hate it. But don't overestimate its impact on individual economies. Proponents of trade point to the benefits of global ''connectedness,'' while opponents damn that very thing. Asked about the actual impact of trade on domestic jobs and products, however, people tend to wildly overestimate the figures. What's more, a continuing study of trade's impact, sponsored by DHL, suggests that the world isn't quite so connected as one might think. On this episode, we talk to study co-author Pankaj Ghemawat, a professor at both the Stern School of Business at New York University, and the IESE Business School in Madrid, Spain. He lays out the study's unique and rigorous method of measuring the flow of trade, capital, people and information across international borders. And he pinpoints just how much globalization has impacted trading nations to date with a particular focus on the ''globaloney'' that seems to accompany public perceptions of trade.
A new year, and with it a new slew of regulations and stepped-up enforcement of international trade law. Brace yourself. On this episode, we welcome back international trade attorney Peter A. Quinter, practice group chair with GrayRobinson, P.A. Formerly legal counsel at U.S. Customs' Office of the Chief Counsel of the United States in Miami, he's a seasoned expert in global trade law. As before, he joins us to present his top predictions for key developments in that area for the coming year. Among the points of discussion: tougher penalties for making fraudulent statements to Customs, increased antidumping duties, new measures against counterfeit merchandise, the evolving notion of the ''trusted exporter'', and the coming of the so-called ''single window'' for streamlined filing of documents with government agencies.
A company's reputation rests on much more than the quality of the products that it makes. Reputation can make or break a global business. And, in the age of social media, it has become a more critical element of corporate health than ever before. But maintaining a good reputation requires that companies continually monitor every aspect of their supply chains. On this episode, we hear from Viktoria Sadlovska, research director with the Reputation Institute. (Its work forms the basis of Forbes' annual Most Reputable Companies ranking.) She distinguishes between the emotional and rational factors that make up a company's reputation, and lays out seven dimensions that must be considered. She also offers advice on how businesses can craft the best possible image in the eyes of the fickle public. Hint: good supply-chain management is key.
Retailers are scrambling to offer free shipping for online orders. Is it a money-losing proposition? E-tailing has become so competitive that many online sellers today consider it essential to provide free shipping on many, if not all, of their shipments. At the same time, they are speeding up delivery to the point where customers have come to expect a one- to two-day turnaround on orders. How can both of those perks be sustained, in a business where margins are so thin? Is it simply a game of chicken, with rivals racing one another to the edge of the cliff? Our guest on this episode is Tom Barone, vice president of North American operations with eBay Enterprise. He explains why free shipping has become the price of admission to e-commerce and why it might not be so free after all. And he discusses how traditional retailers are balancing the cost and speed of peak-season shipping, while embracing all possible channels for getting product to the consumer. ''The omnichannel,'' he says, ''is quickly evolving from nice to have to need to have.''
Is China guilty, as charged by U.S. traders, of keeping its currency artificially weak? Despite some movement upward in recent months, the value of the yuan has remained relatively low against the dollar for some time now. And the Chinese have reaped the benefits, in the form of cheaper prices for their exports. American trading interests have repeatedly called on the Obama Administration (and Bush Administration before that) to take punitive action against China for its alleged monetary hijinks. Last fall, however, the U.S. Treasury Department failed for the 12th time specifically to identify China as a currency manipulator, even as Treasury has acknowledged that there are grounds for making such a determination. On this episode, Scott Paul, president of the Alliance for American Manufacturing, explains why his group believes China is indeed deliberately keeping down the value of the yuan. He calls for retaliatory action on the part of the U.S. But would such a move trigger a trade war?
Call it the dark side of international commerce: fakes, frauds and thought thieves. Time to take action. On a global scale, companies are losing an estimated $657bn each year due to product counterfeiting and intellectual property (IP) infringement. And, with the explosion of trade over the past few years, the problem is becoming even more widespread. Previously, companies had only to worry about their finished goods being illegally duplicated and sold on the black market. Now, raw materials and key components are becoming subject to counterfeiting as well. That raises serious questions of public safety, when it comes to products such as food, jet engine parts and pharmaceuticals. Professor Michael R. Czinkota of the McDonough School of Business at Georgetown University joins us on this episode to discuss why the issue of counterfeiting and IP theft has become more serious than ever before. And he explains why he's optimistic that steps might finally be taken to curb these illegal practices.
Electronic waste is threatening to overwhelm our landfills. Despite the popularity of global recycling programs, we're a long way from solving the problem of what to do with the waste from discarded business and consumer electronic devices. As much as 85 percent of electronic products were discarded in landfills or incinerators last year. And the release of the iPhone 6 has brought the issue to a ''tipping point,'' says Linda Li, executive director and corporate vice president of strategy with Li Tong Group. On this episode, she discusses where previous recycling efforts have fallen short, and why we're still not deriving maximum use from the materials contained in old devices. Li argues for a ''closed-loop'' approach to managing e-waste supply chains ''the Holy Grail of the recycling business.''
Are cryptocurrencies like bitcoin gaining legitimacy in the retail and services sector? And what impact might they have on the supply chain? Bitcoin is an online, peer-to-peer payment system that sidesteps traditional currencies. The virtual instrument has had a rocky existence since it was invented in 2008 by the mysterious ''Satoshi Nakamoto''. Among its setbacks was the U.S. government's seizure of assets of the Tokyo-based bitcoin exchange known as Mt. Gox, followed by the FBI's shutdown of the Silk Road website, accused of being a marketplace for the sale of illegal drugs funded by bitcoin. Now, however, bitcoin and other cryptocurrencies are beginning to gain acceptance as legal tender by a number of online merchants. One of them is eGifter, the seller of digital gift cards, whose founder and chief executive officer Tyler Roye joins us on this episode to explain why he believes bitcoin is an idea that's here to stay. He also speculates about the currency's possible impact on supply-chain transactions.
Five years from now, the global work environment will look a lot different than it does today. But many companies aren't prepared to deal with the change. Jettison those full-time employees who have spent their entire working lives with the same company. Bring in the independent contractors and contingent employees who are making up an increasing share of the workforce. That's the picture painted by Workforce 2020, a new study by Oxford Economics with support from SAP SE. The survey covers more than 5,400 employees and executives in 27 countries. What it finds is a radical shift in the way that businesses are calling on managers and employees to perform key tasks. At the same time, it pokes holes in some of the myths that we've harbored about the so-called Millennials. Turns out they want many of the same things from their careers that their predecessors demanded to a point. Explaining the study's findings is Tim Minahan, chief marketing officer with SAP Cloud. He talks about what companies must do to prepare for the changes that we'll see in the very near future.
The nationwide driver shortage just won't go away. And shippers are paying the price. It seems as though nobody wants to drive a truck anymore. So much for the romantic image of the long-haul trucker: the job has lost any appeal that it might once have had. The hours are long and grueling, and the compensation inadequate. That, at least, appears to be the main reasons behind the persistent shortfall of qualified drivers around 30,000 each year, according to the American Trucking Associations. The average age of U.S. truckers today is 55, and younger people aren't interested in taking their place. Yet nearly 70 percent of total freight volumes are carried by the trucking industry. Something's got to give. On this episode, we talk to Bobby Harris, chief executive officer of BlueGrace Logistics. He explains how we were brought to this state of affairs, what it's costing shippers and American consumers, and what might be done to alleviate the problem.
Traditional retailers aren't taking the challenge from pure e-tailers lying down. They can deliver on same-day orders, too. Amazon.com, Google, eBay and others have been ramping up their same-day delivery capability in select cities. Now brick-and-mortar retailers have a way to match that service. Deliv is a provider of same-day delivery on behalf of major retailers. Drawing on a pool of independent drivers - much like the business model of crowd-staffed taxi services Uber and Lyft - the company can consolidate multiple orders from stores and meet consumer demand for time-specific delivery. Our guest on this episode, Deliv founder and chief executive officer Daphne Carmeli, explains how the service works, and why she believes that it's economically feasible to provide this premium option at a reasonable price. She also refutes arguments that the model isn't scalable, or might run into reliability problems because of its contracted workforce. As for whether consumers will embrace the innovative idea, she quotes Steve Jobs: ''A lot of times, people don't know what they want until you show it to them.''
Face it: There's no such thing as a supply-chain information-technology system thats completely invulnerable to cyber attack. Hackers are growing more sophisticated every day, and the best ones manage to stay one step ahead of most companies' I.T. security departments. Still, there are some basic steps that companies can take to protect themselves against most kinds of incursions. On this episode, we get advice from Timothy Hall, president of Azorca Cyber Security, LLC. He talks about the real risks that supply chains face today, as well as some of the myths and misunderstandings that prevent them from building strong walls against the invaders. And he explains why so many major retailers have fallen prey to successful cyber attacks in recent months. Hint: It's not just about I.T.
Tired of dealing with slow ships and congested ports to get your product out of China? Why not take the train? That's what Hewlett-Packard Co. did. In fact, the consumer-electronics giant forged a whole new path for getting manufactured goods from its Chinese factories to markets in Western Europe. The move followed a shift by the company of factory capacity into inland and western China, a response to growing congestion within the country's industrial zones along the coast. Then HP had to overcome the additional cost and logistical complexities of sourcing from a remote region of the Chinese interior. The answer: placing its containers aboard the Trans-Eurasia Railway, for a journey of more than 6,700 miles. Ronald Kleijwegt, HP's director of logistics for Europe, the Middle East and Africa, explains how the company came up with the innovative plan, and what it has saved in logistics costs and time to market.
The Ebola crisis has given rise to the usual epidemic of misinformation, overreaction and lack of preparedness by individuals and business. Will we ever learn? The situation is undeniably serious, especially in the African nations of Sierra Leone, Liberia and Guinea. Now that the disease has reached American shores, however, we're seeing a public response that doesn't always match up with its actual nature. Its a case of simultaneous overreaction and underreaction, says John Rose, chief operating officer with iJet International, a provider of risk-management advice to multinational corporations and governmental organizations. On this episode, Rose acknowledges the existence of some unanswered questions about the disease. But he also offers valuable guidance on how companies can craft a proactive business-continuity plan, and respond to the real threat of the Ebola virus. ''Find out why a little fear might not be a bad thing.''
Manufacturing and distribution executives love the idea of slashing inventories. But it's distribution-center managers who must deal with the consequences. Lean is the watchword in supply-chain management today, and inventory isn't immune. All that merchandise sitting around on warehouse racks seems like a prime candidate for cost-cutting. And most of the time, the practice makes sense. Who wants a lot of unneeded product dragging down the bottom line? Unfortunately, D.C.s aren't always involved in the high-level decision to cut inventories. On this episode, we hear from Jeff Primeau, senior manager in the supply chain practice of management and technology consulting firm West Monroe Partners. He talks about how distribution operations can cope with sharply reduced stocks, and keep product flowing efficiently.
Coming soon to a city near you an Amazon.com store? Don't look now, but the king of e-tailing is inching into the land of brick-and-mortar retailing. Amazon has confirmed plans to open two or three small physical stores in San Francisco, New York and possibly Sacramento in time for the 2014 holiday shopping season. They won't all be performing the same role New York will host a kind of mini-warehouse for same-day fulfillment, while San Francisco apparently will offer Amazon's own range of branded products, including Kindle e-readers, Fire tablets and smartphones. Still, the move represents a radical step for Amazon, and raises all kinds of questions about how the company will support a traditional retailing venture, and what it means for the entire sector. Offering her views of the development is Maria Haggerty, chief executive officer of Dotcom Distribution, a provider of warehousing and e-commerce fulfillment services for retailers large and small.
By now, all manufacturers are fully up to speed on the Securities Exchange Commission's new rule about disclosing the presence of conflict minerals in their products aren't they? Not exactly. A lot of companies have yet to determine their use of tin, tantalum, tungsten and gold from gang-controlled mines in the Democratic Republic of the Congo and neighboring regions. The complexity of global supply chains makes that a vexing challenge. Still, manufacturers are on their way to compliance. Our guest on this episode is Ryan Lynch, business development manager for the Information Insights division of Underwriters Laboratories (UL). He provides a report card on efforts to ferret out conflict-minerals content, while identifying the obstacles that stand in the way. He also offers a solution for companies that have yet to come up to speed, and speculates about how the SEC requirement, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, might be expanded in future to cover additional countries and raw materials.
Just how unified is the European Union, anyway? Disunified enough to cause an unemployment crisis that won't go away. The average unemployment rate across the 28-country EU is around 10 percent. It's as bad as 56 percent among the youth of Spain. What's more, a hidden army of part-time workers, and the existence of a massive ''gray economy'' region-wide, is making the situation even worse than it appears. What's the solution? On this episode, we get advice from Robin Chater, secretary-general of the Federation of International Employers. Europe, he says, ''is failing its next generation.'' He outlines the problem, explains how the mighty EU has come to this state of affairs, and suggests ways out of the mess. Whether the political climate and bureaucratic nature of the EU allow for substantive change, however, is another matter.
The nation's infrastructure crisis is crying out for a long-term solution. For years, transportation funding has been falling far short of what's needed to repair, construct and maintain highways, roads, bridges, tunnels and canals. But congressional deadlock has continued to starve the Highway Trust Fund, without devising an alternative means of funding. The federal gas tax hasn't been raised since 1993, and the HTF survives only through a series of stopgap measures, the latest of which puts off the issue until next May. On this episode, were joined by Leslie Blakey, president and executive director of the Coalition for America's Gateways Trade Corridors. She puts the infrastructure debate into perspective, and discusses the various plans that might solve the problem once and for all provided legislators possess the spine necessary for spurring action.
3D printing is one of the hottest technology developments in supply chain today. Is it for real? The answer is a qualified yes, according to Shashank Narain, vice president of account development with The Smart Cube, a professional services firm. He has seen a 3D printer create a component with 20 moving parts, all on different axes. Today, 3D printers are being touted for everything from food to medical devices to complex aircraft parts. (They can even turn out guns.) The advantages are many: cheaper manufacturing, lower cost of entry into markets, the ability to tailor products to individual consumer tastes. Still, the technology has a ways to go before becoming a routine aspect of many production environments. In this episode, Narain discusses how far 3D printers have come (surprisingly far, it turns out), and how far they have to go, in both the consumer and industrial sectors. More specifically, he predicts how 3D printers will impact global procurement strategies.
Delivery drones are on their way to your doorstep. And regulators are right on their tail. Amazon and other e-commerce retailers are preparing a fleet of drones that can rush product to the consumer. The craft are already in the testing stage, but the legal ramifications of their use are far from clear. Issues to be addressed include privacy, security, safety and environmental impact. The Federal Aviation Administration insists that it has jurisdiction over drones today, but others disagree, and the matter is currently being litigated in the courts. This episode features attorney Joshua Dalrymple, a professor in the School of Legal Studies at Kaplan University. He offers his view on how regulators and lawmakers will address the coming of commercial drones, and what it means to businesses and consumers alike.
Time to scrap your legacy I.T. systems. But how exactly should you go about it? Old and outdated applications lie at the heart of many global supply chains. There's a pressing need to bring them up to date, but companies risk undermining their operations if they attempt a wholesale change. How, then, should they make the decision about which systems to tackle first? What are the criteria for deciding whether a given application has outlived its usefulness? And what's the role of the cloud in future I.T. deployments for supply-chain management? On this episode, we get answers from Dominick Paul, national vice president of strategic solutions for Sungard Availability Services. He discusses what supply-chain managers should consider before updating their legacy applications, and why it's important to proceed with caution.
For international traders who are sick of filing documents with multiple regulatory agencies, help is on the way. Get ready for the Single Window. The term describes a means by which importers, exporters, carriers and third parties can submit standardized information and documentation via a single entry point. In other words, one filing satisfies the requirements of multiple agencies 48 in the U.S., to be precise. And other countries are embracing the method as well, under the Trade Facilitation Agreement, negotiated by the World Trade Organization at its ministerial conference in Bali. International legal consultant Donald J. Lewis, former visiting associate professor and lecturer at Stanford University, joins us on this episode to explain the thinking behind the Single Window, and how it will transform international trade. For once, it seems, government red tape really is being cut.
Avnet, Inc. just celebrated its 10th anniversary as a Lean company. But the company's search for waste and inefficiency is far from over. Avnet is a leading distributor of electronic components, semiconductors and computer products. It's been ranked by Fortune magazine as one of the ''world's most admired companies'' for eight straight years. Avnet's strategy draws on classic principles of Lean, Six Sigma and the Supply Chain Operations Reference (SCOR) model. In this episode, chief global logistics and operations officer Mike Buseman talks about how far the company has come in driving waste out of the organization and how far it has to go. Lean is a journey without end, he says. But companies must be careful not to cut so close to the bone that they undermine their ability to keep product flowing in the event of a supply-chain interruption.
It might seem like a throwback to the dirigibles of the 1930s, but a new type of airship is another animal entirely. The Aeroscraft is a fixed-wing, rigid-structure vehicle that's designed to carry up to 250 tons of cargo. It's the brainchild of Igor Pasternak, chief executive officer of Aeros. The Ukrainian-born entrepreneur joins us on this episode to talk about his plans for a fleet of airships that will contain more cubic footage than a modern-day freighter, cruise at speeds of more than 100 miles per hour, and fly at altitudes of up to 12,000 feet. According to Pasternak, the Aeroscraft will provide an economically viable option to trucks, both in terms of price and transit time. Can he raise the $3bn he says he needs to make his dream a reality?
Should foreign-flag vessels and crews be allowed into the U.S. domestic maritime trades? They've been barred entry for nearly a century, thanks to the Merchant Marine Act of 1920, better known as the Jones Act. The law states that all goods moving by water between U.S. ports must be carried by ships that are built, flagged and crewed in this country. It has been subjected to repeated attacks over the years, including during the 2010 BP oil spill in the Gulf of Mexico. A recent report by the Heritage Foundation argues that repeal of the Jones Act would save the American economy $682m per year. Others say that number doesn't account for the thousands of jobs that the act reserves for American workers. In this episode, attorney and Jones Act expert Charlie Papavizas provides valuable background on the Jones Act, and clears up some key misperceptions about the law.
There's a new method for benchmarking the resiliency of your supply chain. It's called the Global Resilience Index, created by commercial and industrial property insurer FM Global. More than a year in development, the index ranks the business resilience of 130 countries. It was designed to help executives assess and manage supply-chain risk in those regions, as well as identify weaknesses within their own organizations. Results are tied to nine key drivers of resiliency, covering such factors as economic trends, political conditions and potential natural disasters. FM Global chief operating officer Jon Hall (he was executive vice president at the time this podcast was recorded) discusses how the index was developed, and how it can help companies to shore up their operations against unexpected occurrences. He also talks about some of the index's key findings.
Fraud can happen anywhere in your supply chain. Are you doing enough to stop it? As companies extend their supply chains through partnerships with distant suppliers and manufacturers, the risk of fraud increases. So, too, does the possibility of misbehavior within the organization. Adding to the complexity is a sea of data that can be tough to sort through and utilize in an effective manner. One solution lies in the use of sophisticated analytics, which can help companies make sense of all that information, establish strict metrics for ethical behavior, detect any wayward activities, and allow for instant action. In this episode, John Joseph, vice president of marketing with Lavastorm, talks about how analytics can be deployed within global supply chains to tackle the many forms of fraud that can plague an organization. Billions of dollars are at stake, he says.
When it comes to assessing supply-chain risk and opportunity in emerging markets, the landscape never stops changing. Today, China is the go-to country for cheap manufacturing. Tomorrow, it's somewhere in Southeast Asia, or even Latin America. Shifting political, economic, legal, environmental and labor conditions make it tough for businesses to decide the best places for sourcing and selling their products. One key resource is the Security Supply-Chain Risk Outlook report from the Christian Science Monitor's Monitor Global Outlook service. It examines dozens of ''frontier or emerging'' markets, providing detailed reports on local conditions. MGO supply chain specialist Joseph Schatz joins us on this episode to discuss the findings of the 2014-15 report. He identifies the current hotspots where risk is highest, as well as the locations with the high potential for sourcing by global companies.
The shift is happening. Baby Boomers are beginning to retire, and Millennials are on the rise. But how to entice them into a career in supply chain? One way is to recognize excellence in those younger individuals who are already on the job. ThomasNet.com has joined with the Institute for Supply Management to create a ''30 Under 30 Rising Supply Chain Stars'' recognition program. The idea is to highlight accomplishments by high achievers, as well as attract other Millennials job seekers between the ages of 18 and 32 to the field. Joining us on this episode are Linda Rigano, executive director of media relations with ThomasNet, and M.L. Peck, senior vice president of programs and product development with ISM. They describe the ''30 Under 30'' program, and also talk about how Millennials differ from their predecessors in their expectations of job security and career satisfaction.
There's a new tool for ranking the world's best supply chains. The Supply Chain Index was developed by Lora Cecere, founder of Supply Chain Insights, in partnership with Arizona State University. The idea, she says, was to come up with a way to benchmark global supply chains based on hard financial data. Thousands of publicly traded companies are rated on the basis of economic strength, balanced portfolio, resiliency and peer ranking. The result is a tool that can be accessed by all companies, regardless of size. The three-year effort culminates with release of the very first Supply Chain Index, at Supply Chain Insight's Global Summit in Scottsdale, AZ on September 10-11, 2014. Lora joins us on this episode to explain how the index was developed, and how companies can use it to improve their supply chains in the years ahead.
Is the use of nanotechnology in manufacturing and poisoning workers? A recent report in the American Journal of Industrial Medicine discusses the case of a 26-year-old American factory worker who developed symptoms of throat irritation, nasal congestion and skin rash from exposure to nanoparticles used in the making of ink fluids. It's the first published case in North America of serious health effects arising from the use of materials that are one thousand times smaller than a human hair. Our guest on this episode, Dr. Shane Journeay, chief executive officer and president of Nanotechnology Toxicology Consulting Training, is a co-author of that report. He joins us to talk about its widespread implications for worker health and safety. More than 1,600 consumer products on the market today already incorporate nanoparticles, and total sales of nanotechnology are expected to reach $48.9b by 2017. Yet little is known about the long-term health effects of those materials, and regulators are still playing catch-up. Should manufacturers implement expensive precautionary measures now, or should they wait for more data?
Without question, creating sustainable global supply chains is a daunting challenge. But the biggest roadblock might be at the retail shelf. For all the progress that's been made, there remains a ''huge discrepancy'' between the supposed willingness of consumers to support sustainable products, and their actual buying habits. Until that gap is closed, items carrying the fair trade label will remain a ''niche market,'' according to Andréanne Grimard, director of economic development with Solidaridad North America. In this episode, she traces the work of Solidaridad in promoting a remarkable range of products, including coffee, tea, cotton, palm oil, soy, gold, cocoa, textiles, fruits and vegetables. She relates how Solidaridad formed its own importing companies for fair-trade bananas and bluejeans, when it couldn't find private interests to undertake the task creating profitable ventures in the process. And she offers a candid assessment of the current state of public awareness of the sustainability issue. The verdict: there's a lot of work to be done.
Talk all you want about the deeper aspects of supplier-buyer relationships. But doesn't it always come down to price? Well, maybe. But supply-chain partners aren't doing an especially good job of managing that critical piece of the puzzle. In fact, the current approach is in many instances ''myopic and inefficient.'' So says Kate Vitasek, a member of the faculty in the University of Tennessee's Graduate and Executive Education program. The lead author of a new UT white paper on ''Unpacking Pricing Models,'' Vitasek joins us on this episode to explain how buyers can craft long-term, mutually beneficial relationships with suppliers, without ignoring the all-important element of price. She outlines the differences between controllable and uncontrollable costs, and shows how a considered approach to pricing models can address the underlying nature of cost structures, and avoid some of the traps that frustrate true collaboration.
Looking to implement new supply-chain software? Without proper change management, you're bound to fail. The most dazzling I.T. package will never deliver on its promise unless managers factor in the human element. That means dealing with a natural resistance to change. It's not just about the possibility of lost jobs, or the fear of becoming irrelevant to the organization. Many people simply resist being shaken out of their routines. Or they might be suffering from ''change fatigue'' a common affliction within companies that are struggling to keep pace with ever-shifting markets and consumer behavior. Whatever the reason for employee pushback, executives need to pave the way for new technology, while creating a culture of teamwork and trust. Joining us on this episode with some tips and best practices are Joe Couto, senior vice president and general manager of Accellos, Inc., and Blake Barthelmess, chief information officer of Columbia Colstor, Inc.
Decades after its debut, radio frequency identification technology is finally poised to realize its potential in the retail sector. The key is item-level RFID something that hasn't been possible up to now, thanks to high tag costs and the reluctance of many retailers to expend limited resources on its development. Finally, though, there's real progress being made Macy's, Kohl's and Marks Spencer are just a few of the major retailers to have taken big strides toward the adoption of item-level RFID. Joining us on this episode to tell the story is Joseph Andraski, former supply-chain executive with Nabisco and founder of Collaborative Energizer LLC. He talks of his groundbreaking efforts in this area, including work on a new paper that outlines, for the first time, the benefits of item-level RFID for suppliers. The goal: timely access to accurate information all along the supply chain. ''That's coming,'' Andraski says. ''I'm absolutely convinced of it.''
Small or medium-sized suppliers looking to get their products into Walmart needn't fear the beast. Deserved or not, Wal-Mart Stores Inc. has a reputation for dictating terms to its suppliers both large and small. Assuming the latter can even get a foot in the door, it would seem unlikely that they would get much personal attention or desirable shelf space. There is a way to work with Walmart, however, regardless of your size. In this episode, we speak with Hari Ganapathy, vice president of business development with Dun Bradstreet Credibility Corp., and Jeff Clapper, chief executive officer of 8th Walton. They discuss how small and medium-sized suppliers can approach Walmart, as well as deal with the consequences of success: pricing pressures, access to capital and a continued presence on the retailer's shelves. There really is a way to become a trusted advisor and partner of the worlds largest public corporation. Find out ''why the best and worst day of your life may be getting into Walmart.''
Manufacturers like the U.S. They really like it! So says the latest edition of the Manufacturing-Sourcing Outlook Study from AlixPartners. Believe it or not, the U.S. has become the number-one choice for companies seeking to reshore production back to the West, after decades of favoring China and other low-cost parts of Asia. Not to overstate the case, of course manufacturers are a long way from bringing back all those jobs that fled the country over past years. But they're clearly giving thought to at least a partial return home. In this episode of the podcast, Russ Dillion, director in the Supply Chain Group of AlixPartners, reveals the factors that are responsible for the shift.
You'd like to think that the people who manage a global supply chain are as diverse as the pieces that make it up. But that's not always the case. To be sure, there are a good number of women occupying senior-level management positions in various parts of the supply chain today. Among them is Lynn Torrel, senior vice president of global supply chain and strategic accounts with Avnet, Inc. She has amassed 18 years of experience managing complex global supply chains for customers of a major distributor of electronics components and computer products. In this episode, Torrel traces the path of her career, and relates how she ended up in supply-chain management. (As with so many people in that discipline, it was something of a sideways journey.) She also offers a candid assessment of the leadership opportunities available to women today, in terms of advancement, mentorship and compensation.
Maybe people and robots can co-exist in the workplace after all. Automation isn't always about replacing humans with machines. In fact, recent advances in industrial technology are allowing them to work side by side. In this episode of the podcast, Julie Shah describes the work her team is doing on ''scheduling the choreography of robots'' in factories and distribution centers. She heads up the Interactive Robotics Group at MIT's Computer Science and Artificial Intelligence Lab. In the past, Shah says, robots and people often have had to be segregated in industrial environments, for reasons of safety and efficiency. Now they can function in much closer quarters, thanks to new safety features and algorithms that manage changes in the production line with maximum efficiency. It's all about ''understanding where people provide the most value,'' she says.
Wanted: 60 professional, dependable long-haul truck drivers in the midst of a nationwide driver shortage. Headquartered in Raleigh, N.C., Longistics is just a few months away from observing 30 years as a family-owned provider of global logistics services. But it has more to celebrate than that: rapid growth in the company's business is causing it to hire 60 additional truck drivers, forming 30 over-the-road teams, by this spring. Considering the chronic shortage of qualified drivers, that's no easy task. Making matters even more challenging is the nature of Longistics' business it specializes in the movement of sensitive, high-security pharmaceuticals. Nicole Blake, director of human resources, joins us on this episode to outline the company's strategy for attracting talent in a tight market and retaining that talent once it's on board.
Demand forecasting would be a snap if only people weren't involved. Retailers and manufacturers struggle to match forecasts with actual purchasing patterns. Much of the time they fail and, despite the growing sophistication of software and analytics tools, they don't seem to be getting much better at the task. One problem is the growing complexity of markets, products and consumer demand. But the biggest obstacle might be one that's simply part of human nature: bias. In this episode, we hear from distinguished planning and forecasting expert Dr. Chaman L. Jain, professor of economics at St. John's University. He lays out some of the pitfalls that cause forecasters to deviate from the truth. And he offers some tips on how they can be avoided.
The risk of cyber crime hitting your supply chain is greater than ever before. The possibilities extend well beyond old-fashion website hacking. Global supply chains today are vulnerable to any number of scams that originate in cyberspace, says Peregrine Storrs-Fox. He is risk management director with Through Transportation Mutual Services (UK) Ltd., known more familiarly as the TT Club, an international provider of transportation and logistics insurance. Storrs-Fox lays out the many ways in which criminals can attack your business, grab sensitive information and even hold your shipments hostage. The message: be diligent. ''I don't think that anyone can think for a moment they're not exposed,'' says Storrs-Fox.
Born in the wake of one devastating hurricane, the American Logistics Aid Network found itself in the eye of another. ALAN was formed in response to a series of unusually intense storms in 2005, most notably Hurricane Katrina. Today, the organization draws on an extensive roster of private companies, trade associations, government agencies and relief organizations to respond to any manner of disaster, enabling the rapid delivery of food, clothing, shelter and other critical supplies to those in need. Kathy Fulton, interim president and director of operations with ALAN, and Richard Sharpe, chief executive officer of Competitive Insights LLC, join us to discuss how ALAN and its partners responded to Hurricane Sandy, which slammed the Caribbean and Atlantic seaboard in 2012. They talk about the lessons they learned, and how they plan on dealing with the next big disaster.
Every business has its rock stars. In the world of supply chain, you might call Joseph C. Andraski the lead singer. Joe Andraski has truly had an ''incredible supply-chain journey,'' to steal a phrase from the title of his new book. In this episode, he relates how he got started in the business, learning some valuable early lessons about working with fellow employees, both above and below his level of responsibility. Later, Joe piloted his team through the merger turmoil at Nabisco and R.J. Reynolds. And more recently, he has helped to pioneer innovative uses for radio-frequency identification technology. We get the story in a nutshell or as briefly as this captivating raconteur can tell it.
Deck Same-day service: It's the ultimate goal of e-commerce retailers and the ultimate desire of consumers. But is it really feasible? A number of players have already jumped into same-day delivery in select markets, or announced their intention to do so. Amazon.com is vying with Google and eBay to get orders to buyers within a matter of hours. FedEx, UPS and the U.S. Postal Service are also potential forces in that effort. But what's the real prospect for same-day? Steve Banker, service director of supply chain management with ARC Advisory Group, joins us on this episode to discuss the challenges of serving impatient buyers. And he explains how same-day service could help brick-and-mortar retailers to compete with internet-based sellers.
Should we allow U.S.-flag merchant shipping to go the way of the passenger pigeon, the wooly mammoth and the Great Auk? It will happen in 10 years if steps arent taken to prevent it, says maritime industry and homeland security expert Denise Krepp. Former chief counsel to the U.S. Maritime Administration, she currently is a private consultant and professor at The George Washington University and Pennsylvania State University. Krepp joins us in this episode to answer those would argue that government protections for U.S.-flag shipping and domestic shipbuilding are a waste of time and resources. She addresses such controversial measures as the Jones Act, Maritime Security Program and cargo preference for food aid shipments. Without a fresh commitment by Congress and the Administration, she says, the fleet is doomed.
Anheuser-Busch InBev has laid out a five-year path to sustainability. One of the world's largest brewers, Anheuser-Busch has committed itself to an ambitious plan for slashing the use of water, energy and packaging material, as well as the emission of greenhouse gases, by 2017. In this episode, Hugh Share, senior global director of Beer Better World for Anheuser-Busch InBev, details the steps the company is taking both internally and with outside partners to keep its promise to the environment. The effort required a ''holistic approach,'' he says no easy task for a company the size of Anheuser-Busch.
Imagine your organization as one giant brain. One that's not thinking properly. Businesses today are mired in conventional thinking, says Michael Vaughan, chief executive officer and managing director of The Regis Company. He's the author of The Thinking Effect: Rethinking Thinking to Create Great Leaders and the New Value Worker. In this episode, Vaughan joins us to talk about how the concept of ''neural leadership'' can break organizations of old mental habits, such as fear and unconscious bias. As we come to understand the human brain and our knowledge of that organ is far from complete we also achieve a better idea of how people can work together to create a new generation of smarter leaders.
The Highway Trust Fund is broke. And the nation's transportation system is broken. What's to be done? Step one is finding new sources of funding for repairing our crumbling roads, highways and bridges, as well as the construction of new ones. The battle over where to get the money has raged for years, even as the federal gas tax has gone without an increase since 1993. In this episode, Joshua L. Schank, president and chief executive officer of the Eno Center for Transportation, outlines the various funding ideas, and discusses the feasibility of each one. He also offers a view on how we can proceed to fix the entire multimodal system, not just the roads. Find out why Schank is optimistic about the prospects for success or, at least, the beginnings of it in 2014.
All of a sudden, the future looks bright for nuclear power. Along with that rosy forecast, however, comes a raft of new challenges to the industry's global supply chain. The list is daunting: Scaling up to meet future growth. Ensuring a base of reliable suppliers and ready availability of product. Securing safe and efficient transportation. Preventing the flow of counterfeit components. How can the nuclear supply chain meet these crucial goals? We get answers from two professors at Clemson University: Scott J. Mason, president and interim chair of industrial engineering, as well as holder of the Fluor Endowed Chair in Supply Chain Optimization and Logistics; and Bill Ferrell, professor of industrial engineering and associate dean of graduate studies. Both will be speaking at the Nuclear Supply Chain Conference in Greenville, S.C. on April 28-30, 2014, presented by the International Quality and Productivity Center (IQPC). Here, they offer a preview of their insights.
Humankind is forever striving for perfection. When it comes to the job of demand forecasting, however, perhaps we ought to be a tad less obsessive. Nobody's arguing that the forecast is irrelevant. Suppliers and retailers need some way to get a handle on what the customer's going to buy. But the all-consuming quest for the perfect number is bound to fail. Reality has an annoying way of refusing to cooperate with expectations. Lora Cecere, founder of Supply Chain Insights, joins us on this episode to prescribe a way out of the dilemma. She proposes to redefine the discipline of forecasting and demand planning, with an eye toward embracing probability. In the event, companies can move closer to what ought to be their real goal: crafting an agile supply-chain with end-to-end visibility, and the power to respond to actual demand. ''We've gone about it all wrong,'' Cecere says.
And you thought that sponsorships for the Olympics were all about consumer products and services. Meet the Official Carbon Partner of the Sochi Games. It's Dow Chemical Company also, by the way, the Official Chemistry Company of the International Olympic Committee. Dow is deploying its new Climate Solutions Framework to create the first-ever, 100-percent carbon-neutral Olympic Games. The initiative embraces hundreds of thousands of tons of carbon emissions generated by activities related to the games, including global supply-chain arrangements and travel to and from the site by fans and the media. But the effort doesn't stop there it's part of a broader three-year effort by Dow to address the carbon footprint of Russian homes, industry and agriculture. Dr. Nicoletta Piccolrovazzi, technology and sustainability director for Dow Olympic Games, joins us to talk about how the program was developed, and what Dow hopes to accomplish on the carbon-mitigation front not just for Sochi and Russia, but for future Olympics as well. Let the games begin.
Is trade compliance nothing but a headache? Or can it be good for business? Some international trade regulations force importers and exporters to sharpen their knowledge of suppliers across multiple tiers, as well as the status of products in transit. Others are just a burden, and do nothing but drive up supply-chain costs. So what can traders expect from the ''unprecedented wave'' of new regs that are due to take effect over the coming year? We get a perspective from Susan Pomerantz, senior director of global trade management consulting with customs broker Livingston International. She runs down all of the new initiatives on food safety, customs automation, security and other aspects of trade compliance.
Will we ever get rid of those dreaded spreadsheets? In a recent survey by Logility and APICS, 47 percent of respondents said they were still using manually produced spreadsheets to support their demand-planning process. Change is tough in any organization, and it can be a challenge to convince planners to give up something that's worked so well for years. But there's evidence that spreadsheets today ''could be sabotaging your supply chain,'' says Karin L. Bursa, vice president of marketing at Logility. She oversees the company's strategy development and marketing programs for Logility Voyager Solutions, the company's suite of supply-chain optimization software. Bursa talks about how spreadsheets are holding companies back from engaging in critical activities such as the creation of multiple planning scenarios and ''what-if'' evaluations. Time to get out of the ''firefighting'' mode, she says, and into proactive management of demand planning to the point where marketers can even begin to shape demand.
If you're a supply-chain executive, there's a good chance that the next tsunami, hurricane, flood or other disaster will take your organization by surprise. Again. For all their talk of the importance of good risk management, companies just can't seem to tackle the issue effectively. In a survey by the American Productivity and Quality Center (APQC), 83 percent of respondents said they were caught off guard by an unexpected supply-chain disruption in the prior 24 months. What's going on here? Two APQC experts Andrea Stroud, research program manager for supply chain management, and Mary Driscoll, senior research fellow for finance and risk join us to offer a perspective on the global risk-management landscape. They outline the scope of the problem, then propose a number of concrete solutions.
What's really going on in Chinese factories? Founded in 2000, China Labor Watch is an independent organization dedicated to monitoring labor conditions in Chinese factories producing a wide range of consumer products. Over the years, the group has uncovered multiple instances of labor abuse, insufficient wages, safety and health violations, and poor living environments. It relies on undercover informants to disclose the practices of factory management. Program coordinator Kevin Slaten talks about how China Labor Watch operates, what its investigations have revealed, and whether conditions are really getting better, at a time when factory wages are on the rise.
How is your demand forecast like a tabloid psychic? Their record for accuracy is just about the same. Rob Byrne, chief executive officer of Terra Technology, says big consumer-products companies typically have an average weekly forecast error of more than 50 percent. He joins us in this episode of the podcast to explain why. Byrne lays out all of the challenges that affect the retail forecast: corporate silos, individual bias, old technology and the massive number of SKUs that have to be tracked, to name a few. He also introduces the concept of demand sensing a technique he says can help to improve the forecast, although no company will ever get it 100-percent right. Get used to it.
Does commercial shipping have to be a matter of life or death? Pirates continue to plague the international shipping lanes, and while vessel seizures off the coast of Somalia are down, they're multiplying in other parts of the world. Martin Murphy, senior research fellow at the Center for Foreign Policy Studies at Dalhousie University, is one of the world's leading experts on maritime piracy. In this episode, he discusses where the most serious threats are today, and critiques the various strategies that are being deployed to protect ships against hijacking. He also addresses the controversy over whether ships should carry armed guards to stop pirates from boarding, and whether shipowners should pay huge ransoms to free their crews from captivity.
All hail the omni-channel. But how can logistics providers possibly keep pace with an explosion in the number of delivery points within a city that must be served? Bob Farrell, president and chief executive officer of Kewill, has an innovative proposal. He'd like to see the construction of shared logistics centers, occupied by multiple service providers, feeding shipments into retail stores and private homes located deep within urban centers. It's one way to combat the gridlock that can only get worse as cities continue to grow, and consumers demand same-day delivery to the doorstep. Listen to Farrell's idea about how we can combat a problem that gets ''worse and worse, day by day.''
It's supposed to be a trade dispute between the U.S. and China over solar cells. But that's not the real story. What's more interesting is the way in which the Commerce Department determines whether imports are being ''dumped'' in U.S. markets. The formula might be based on prices in countries that have little or nothing to do with the matter at hand. It all comes down to whether or not the exporting nation in question is considered a ''market economy.'' And that decision is often more political than economic in nature, according to attorney William Perry, a partner in the trial department of Dorsey Whitney. He talks about the trade tensions that are simmering below the surface of relations between the U.S. and China, and offers his view on how the system should be improved.
What's eating the American transportation infrastructure? Corrosion. Even the strongest structures eventually fall victim to natural law, but the process is accelerated by human neglect. When will the next bridge collapse? Absent regular care and maintenance, ''it's not a question of whether it's a question of when,'' says Richard Grant, a principal with Russell Corrosion Consultants. He pinpoints the crisis that's affecting every metal-based structure in the nation's transportation network, and talks about what we must do address it. It's time to ''shift our mindset from reactive to proactive,'' he says.
Is the reshoring trend for real? Sean Adkins, managing director and operations practice leader with West Monroe Partners LLC, a business and technology-consulting firm, talks about the factors that are making China a less attractive place to source manufacturing for consumer markets in the western hemisphere. Wages in China are on the rise, he says, and importers must shoulder additional costs such as the need for buffer stock and longer supply lines. But will the U.S. be the main beneficiary of this trend? What about Mexico, and other low-cost sources of production closer to home?
The art of storytelling isn't just for movies and works of fiction. Celebrated screenwriting guru Robert McKee, whose students over the years have included more than 50 Academy Award winners, explains how the elements of story can help businesses to enact change within the organization, attract investors, market and advertise products, and cope with crises that threaten to destroy a company's public image.
Why are companies doing such a poor job of retaining and attracting top talent in supply-chain management? Jake Barr, chief executive officer of Blue World Consulting LLC, and a former supply-chain executive with Procter Gamble, has some tips for how companies can hang on to their current employees, find new ones and ensure that candidates have the right skills to manage modern-day supply chains.
What do you need to know about the changes in international trade law and regulation that are coming in 2014 and beyond? SupplyChainBrain Managing Editor Bob Bowman talks to Peter Quinter, chair of the Customs International Law Group of Gray Robinson. They cover new developments in the U.S. and abroad, touching upon the many stages involved in sourcing product and getting it to markets around the world. Listen and learn how you can prepare for the new regulatory regime.