After 32 years in private industry, J. Paul Dittmann made the leap to academia. Now the former supply chain executive is working to strengthen the bonds between the two worlds.
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
Although he's now ensconced in academia, J. Paul Dittmann has no interest in ivory towers. Instead, the former Whirlpool Corp. supply chain VP prefers to stay grounded in the business arena, even as he becomes more involved in academic programs.
Dittmann's real-world experience makes him ideally suited for his responsibilities in the Department of Marketing and Logistics at the University of Tennessee in Knoxville. As director of corporate partnerships, he oversees town-gown collaborations with businesses that want to improve their performance by conducting supply chain assessments. And as managing director of the department's Integrated Value Chain Forums, he directs semiannual "think tank" events involving more than 50 companies. But Dittmann isn't all about business; he also lectures on logistics and supply chain topics to undergraduate and grad students as well as to attendees of UT's executive education programs.
Dittmann only recently entered into this marriage of mortarboard and business suit. For 32 years, he worked for Whirlpool Corp., where his career path touched on most aspects of supply chain management. Among the titles he held at the appliance maker were vice president, supply chain strategy and systems; vice president, global supply chain systems; vice president, logistics; director, manufacturing technology; corporate director, manufacturing planning; corporate director, strategic planning; director, logistics; and director, marketing services. With credentials like that, it's easy to see why companies of all stripes have benefited from Dittmann's involvement in supply chain audits and educational programs at UT.
In Dittmann's view, supply chain education should be a two-way street. In today's fast-changing global business environment, he believes, academics and practitioners must keep each other current by matching real-world needs with cutting-edge research.
DC VELOCITY Group Editorial Director Mitch Mac Donald recently spoke to Dittmann about the interplay of business and academia, and why it's important to those both on and off campus.
Q: You had a successful three-decade career in the private sector. Could you tell us a little bit about that and how you found yourself migrating to an academic role?
A: Basically, I spent 32 years in industry. All of that was with the Whirlpool Corp., running logistics, supply chain, and manufacturing operations. It was a long career with one company, but there was an unbelievably wide range of interaction there.
After 32 years, I wanted to do something different. I was in a position where I could do whatever I wanted to do, and I decided that it was time to try something new. I am loving every day of it.
But I wanted to stay involved in business organizations because it had been so rewarding. Some people talk about giving back, and I think there's something to that. Those of us who spent a lot of time in the business world have something to say to students.
Q: Could you describe for us what you do at the University of Tennessee?
A: I manage two business forums: the Supply Chain Strategy and Management Forum and the Sales Forecasting Management Forum. The supply chain forum has 35 sponsoring companies that meet on campus for a couple of days twice a year—generally in April and November—to really talk about the leading issues of supply chain and integrative management. The other program, the sales forecasting forum, really gets into the heart of supply and demand integration. We have 20 or so sponsoring companies for that program.
My role as director of corporate partnerships comes into play when companies come to UT to take advantage of a highly ranked logistics program. Oftentimes, companies come to us with questions with respect to the partnerships they want to establish. Sometimes it evolves into supply chain consulting.
When it does, I am at their disposal as well. We have done supply chain assessments in a wide range of companies. And I also do some teaching.
Q: How has your experience as a supply chain executive influenced the approach you take in directing those programs?
A: Having been in the same seat as industry people, facing the pressures they deal with every day, I understand that they don't have tolerance for anything that doesn't add value. When they pay the sponsor fee, they don't look at it as a contribution—they're looking for a return on their investment.
Knowing what challenges business people are facing helps you design a program with a value proposition that responds best to what their needs are. And there is mutual benefit. We help them, of course, but they help us as well. Just from their being here we have a better understanding of what their needs are.
Q: Are there particular concerns that companies want you to address in these forums?
A: In our Sales Forecasting Management Forum, a huge issue is how best to implement sales and operations planning, or S&OP. It's cross-functional, and companies find it difficult. At nearly every company where we do [supply chain] audits, we find the functional silo problem. That is a fundamental problem in business: How do we manage that horizontal process when we're all organized vertically? Certainly, forecasting approaches, accuracy, metrics, and all those things are still on the agenda, but it's morphing into "How is the forecast going to be used?"
In the Supply Chain Strategy and Management Forum, there's concern about the cost of transportation. We are finding some companies now are reassessing their networks—for warehouses, in particular—because of the tremendous increase in the price of transportation. Companies are asking: Do we have our warehouses in the right place? Are they sized right? Are they in the right relationship to our source of supply and to our customers? [People are saying,] if we can't cut rates anymore, maybe we ought to skin this cat another way.
Q: What's the value of participating in the forums and the corporate partnership programs?
A: We aim to put on very relevant programs. Before each forum, we let sponsors set the agenda. Once we determine what the hot topics are, we recruit the best speakers from academia and business. That's what keeps the relationship so tight: We're designing forums to respond to specific needs that have been expressed. We look at sponsors as our customers, and they come away with ideas they can implement and that will help them save money.
Other benefits are that they have closer associations with the faculty, including access to research before it is published. That helps them stay current. Another big reason to participate is that when they're on campus, they have plenty of opportunities to interface with undergrads and MBAs. Many are competing for the very best logistics graduates, and I think it assists in their recruiting. Nothing is more important than building a talent base for the future.
Q: Is there enough new talent coming into the system to support the logistics and supply chain management needs of business?
A: Probably not, given the tremendous needs of business. Having said that, though, I think the opportunity to hire young, qualified people for their first positions in supply chain management is better than ever. As a matter of fact, when we work with many companies, we find that most people in logistics and supply chain have never had any real academic training in those areas. It is because programs are still relatively new. We graduate hundreds of students every year now who have a very firm, solid education in supply chain, and that is obviously going to help them. The bottom line is it's getting dramatically better, but there still is a shortage.
Q: Some academics have voiced concern about a gulf between academia and practitioners in the supply chain field. Can programs like the ones you run at UT help to bridge that gap?
A: I think there is the potential for that divide to exist between the business and the academic worlds, or for that matter, any part of society. We're all driven by performance measures, but academics have different types of performance measures than you find in business.
I've been extremely pleased at UT with the way the professors in this department look at the business community as their laboratory. As fast as the world is moving, unless you are out there interfacing with companies all the time, you will get out of date quickly. You'll also do a disservice to teaching and to your students if you don't keep up.
The mindset here is that the only way I can stay current within teaching and research is to keep up with what is happening in business. With that mindset, we can begin to bridge the gulf that might inherently exist out there. Still, we may not be typical of all universities. It takes a certain mindset from the administration and the leadership to realize that the university needs the business community for more than just money. We need them to help us make teaching and research relevant.
Q: How did you first get involved with UT's forums?
A: When I was at Whirlpool, I used to have a nagging concern that something we didn't know about was happening out there that would put us at a disadvantage. So I joined the supply chain forum—that's how I ended up where I am now. I wanted to make sure we weren't missing something or any new ideas that were emerging at other companies. By doing that, I'd always bring home two or three or four things. Some were small, but some were pretty big and helped us save lots of money.
Because of that experience, I do see it from the industry side. People are moving at such a fast pace! When do you ever have time to stop and get off the treadmill? There's no time to sharpen your ax, so to speak. But you have to at least do some executive education, go off to CSCMP's annual conference, or spend a couple of days on campus in a program like ours. You have to do that a couple of times a year, or the world will leave you behind pretty fast.
Q: Any closing thoughts?
A: I think one thing would be to urge people to take advantage of the professional development and educational opportunities available to them. That might seem obvious, but when we do supply chain assessments, I'm always amazed that so many companies do not have professional development programs in place. There ought to be a professional development plan for every person, and they ought to be held accountable for meeting those objectives. There are many opportunities for getting that education, and people need to take advantage of them.
When I think back to when I started in the industry over 30 years ago, there are so many things that were totally different from today. Unless you follow, the world leaves you behind very, very quickly. I've seen business executives retire, and within a couple of years, you could tell just by the way they talked that they never kept up.
A lifelong program of professional development and education is most important. In fact, I tell the students I teach that their career should be a lifelong learning exercise.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
With the economy slowing but still growing, and inflation down as the Federal Reserve prepares to lower interest rates, the United States appears to have dodged a recession, according to the National Retail Federation (NRF).
“The U.S. economy is clearly not in a recession nor is it likely to head into a recession in the home stretch of 2024,” NRF Chief Economist Jack Kleinhenz said in a release. “Instead, it appears that the economy is on the cusp of nailing a long-awaited soft landing with a simultaneous cooling of growth and inflation.”
Despite an “eventful August” with initial reports of rising unemployment and a slowdown in manufacturing, more recent data has “calmed fears of a deteriorating U.S. economy,” Kleinhenz said. “Concerns are now focused on the direction of the labor market and the possibility of a job market slowdown, but a recession is far less likely.”
That analysis is based on data in the NRF’s Monthly Economic Review, which said annualized gross domestic product growth for the second quarter has been revised upward to 3% from the original report of 2.8%. And consumer spending, the largest component of GDP, was revised up to 2.9% growth for the quarter from 2.3%.
Compared to its recent high point of 9.1% in July of 2022, inflation is nearly back to normal. Year-over-year growth in the Personal Consumption Expenditures Price Index – the Fed’s preferred measure of inflation – was at 2.5% in July, unchanged from June and only half a percentage point above the Fed’s target of 2%.
The labor market “is not terribly weak” but “is showing signs of tottering,” Kleinhenz said. Only 114,000 jobs were added in July, lower than expected, and the unemployment rate rose to 4.3% from 4.1% in June. Despite the increase, the unemployment rate is still within the normal range, Kleinhenz said.
“Now the guessing game begins on the magnitude and frequency of rate cuts and how far the federal funds rate will be reduced,” Kleinhenz said. “While lowering interest rates would be good news, it takes time for rate reductions to work their way through the various credit channels and the economy as a whole. Consequently, a reduction is not expected to provide an immediate uplift to the economy but would stabilize current conditions.”
Going forward, Kleinhenz said lower rates should benefit households under pressure from loans used to meet daily needs. Lower rates will also make it more affordable to borrow through mortgages, home improvement loans, car loans, and credit cards, encouraging spending and increasing demand for goods and services. Small businesses would also benefit, since lower intertest rates could lower their financing costs on existing loans or allow them to take out new loans to invest in equipment and plants or to hire more workers.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”