James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
If you've ever wished you could make a few minor adjustments to the software you use, you'll appreciate Stuart Koehler's position. Koehler is the operations manager for First Supply LLC, a Madison,Wis.-based plumbing, heating, and kitchen supply wholesaler that uses Infor's warehouse management system in its distribution operations. Though the software does what it's designed to do, Koehler nonetheless wanted to have a modification made.What he hoped to address was a limitation in the software's label-printing capability—the system was unable to include as much product information as First Supply wanted on the labels it generated.
In the overall scheme of things, that was a minor concern. Still, it was something Koehler wanted to pursue. Although he could have gone directly to the vendor to have the modification made, Koehler chose a different route: He took the matter up with his software user group.
If that strikes you as a roundabout way to solve a software problem, you're probably not a member of a software user group. User groups—organizations made up of customers of a particular software supplier—have come a long way from their origins as forums for sharing war stories and swapping tips. These days, they're also an important communication channel between the users and the vendor. And in many cases, the groups have a great deal of influence on product development.
In fact, Koehler says that recommending upgrades and enhancements is one of his user group's main functions. "We come up with a 'top five' list of things we'd like to see improved," he explains. The group then presents its list to Infor, which oftentimes follows through and makes those changes.
That's exactly what happened in Koehler's case. The group recommended that the vendor modify the software's label-printing function. And sure enough, when Infor designed the next version of its warehousing system, it expanded the label's product information field.
Feedback from the front lines
Though they saw their heyday in the '80s, software user groups are still going strong today. They've undergone some changes in the intervening years, however. Nowadays, for example, user groups draw their members from all areas of the organization, not just from information technology (IT). Members may include warehouse managers, logistics managers, and operations managers like Koehler, as well as IT specialists, chief information officers, and even CEOs.
In the supply chain arena, user groups come in two types: "independent" groups that are run by members and have a loose affiliation with the vendor, and "dependent" groups that are formed by a software vendor that also provides financial support for the group.
Members of independent user groups tend to be customers of the big enterprise resource planning (ERP) software vendors, whose worldwide customer bases are large enough to support and sustain these groups. One such group is the Americas' SAP Users Group (ASUG). Formed in 1990, ASUG currently has 1,700 member companies and 50,000 individual members. It has 46 subgroups, called "influence councils," that focus on specific applications like warehouse management systems, advance planning and optimization systems, and supply chain execution systems.
ASUG uses its "collective voice" to make recommendations on ways in which SAP can change its products and services to meet customer requirements, explains ASUG President Rod Masney. He notes that the group's influence with the vendor has expanded over the years. "What's interesting is that 10 years ago, influence was at the operational level," Masney says. "Today, the user group influences the strategic level [of SAP]."
Another big independent group is the Oracle Applications User Group (OAUG), which counts about 2,000 companies among its members. This global organization has more than 100 subgroups, some of which deal strictly with supply chain applications. "OAUG is the voice of users that Oracle listens to," says Basheer Khan, president of systems integrator Innowave Technology and a member of OAUG's board of directors.
Members of dependent user groups, by contrast, are usually customers of best-of-breed software makers, which serve as the groups' sponsors. Supply chain planning and execution software specialist Manhattan Associates, for example, actively solicits members for its user groups from its customer base. Manhattan says that about 1,000 of its customers participate in 15 "product councils," which are organized around specific applications. "The councils get together at least once a year for a face-to-face meeting, and they do regular teleconferencing," says Manhattan's Eddie Capel, senior vice president of product management and customer relations. "We ask for participation in the design phase for the next release of a product. They get to vote on the features and functionality of the product."
HK Systems also invites user groups to suggest software modifications. Most of these groups meet on an ad hoc basis and hold frequent telephone conference calls. "A lot of our functionality is based on customer direction," says Dave Adams, vice president of product development. For instance, when the company upgraded its warehouse management system three years ago, it worked with a user group to improve the advance shipment notice (ASN) functionality in that release.
Other vendors organize conferences for their customers. For instance, AL Systems holds seminars several times a year that feature user presentations and small-group discussions. HighJump Software has been holding annual user conferences since 1988. These conferences provide another avenue for communication between vendor and user."We encourage regular feedback from the 'front lines' to ensure our products fit most effectively with the clients' requirements," says Chad Collins, HighJump's vice president of global strategy.
A little help from their friends
The benefits for vendors are obvious, but why do logistics professionals take time out from their busy schedules to attend user group meetings or take part in conference calls? It turns out that they see a host of advantages in joining these groups.
Ellen Martin, a vice president of supply chain business systems at Greensboro, N.C.-based apparel maker VF Corp., says she likes the fact that user groups offer a way for companies to ensure that software evolves along with users' changing needs. "When you buy a piece of software, it is what it is," says Martin, who serves on the board of directors for i2's user group. "Business conditions change, and software must change to be responsive. The user group gives you a manner in which you can work for change."
Influencing the development of new features, moreover, can save shippers a bundle: If a desired enhancement is included in the next version of an application, then users can get it for the cost of the upgrade—and that beats the cost of customization any day. "We get something we see as a needed change," says Koehler of First Supply, "but we don't get charged a modification price for the change."
But logistics professionals see user groups as more than just a way to get the vendor's ear. For many, the primary draw is the opportunity to meet and learn from their fellow users. "If you're having a problem, you get a chance to collaborate with others on it," explains software consultant Phil Obal, who helped start a user group several years ago.
User groups aren't just for advanced "power users," however. Users at all levels can benefit from participation. "User groups are especially beneficial for companies that are experiencing the initial startup with an application," says Greg Vandergriff, a DC manager for Beauty Brands in Kansas City, Mo., who helped his software vendor launch a user group. In fact, when it comes to instruction, many find that the best tutors are their fellow users. "You're able to get more good information and more utility by being able to exchange notes with other people using the system," says J. Kevin Michel, manager of logistics operations at Cowan Logistics in Aberdeen, Md., who has participated in three user groups.
But for many participants, the relationship building facilitated by software user groups is the most important benefit of all. In a recent survey of DC VELOCITY readers, fully half of the respondents cited the opportunity to exchange knowledge and network with their peers as their primary reason for joining a user group (see the accompanying sidebar).
"It's a way to make friends," says Obal. "You build a relationship. You become a resource for them, and they become a resource for you."
software users like to talk shop
It's not just about the technical details. The chance to share knowledge and network with fellow software users is what motivates many DC VELOCITY readers to join software user groups.
And join they do. Forty-two percent of the survey takers (which included manufacturers, distributors, retailers, and service providers) said they take part in vendor-sponsored user groups, while 36 percent belong to independent organizations. Another 22 percent participate in both types of groups. When asked which vendors' groups they had joined, the respondents listed a number of suppliers, but the most common responses were SAP (25 percent), Oracle (14 percent), and Manhattan Associates (11 percent).
Though many said they had joined a user group for the chance to talk shop (see chart), a sizable percentage of the respondents said they had signed on in hopes of influencing software development. And it appears that they've achieved some success in that regard. The vast majority (94 percent) of survey respondents said that input from their user groups had led vendors to make refinements to their software. One respondent, for example, reported that his group had persuaded its vendor to enhance its system so that it could automatically calculate freight charges when an order was entered. Another said he and his fellow group members had convinced the software maker to add a feature that determined whether orders should be shipped as individual pieces or grouped together.
social networking
Why do logistics professionals join user groups? Half of the respondents to a recent survey said it was for the chance to exchange information and network with their peers.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.