He had every expectation of finishing out his career as the top supply chain exec at Nabisco. But life got in the way. Today, Rick Jackson is a senior VP at Limited Brands, where he heads up a logistics and DC operation with almost boundless potential.
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.
Finding the right path to success as a supply chain professional sometimes means going back and reconsidering the road not taken. And it sometimes means veering off onto a road that didn't even appear on the map at the journey's outset.When Rick Jackson set out on his career journey in the early 1980s, he didn't see a logistics job in his future. In fact, he really wasn't all that clear on what logistics operations were all about. It simply wasn't on his radar.
Today, as the senior vice president of logistics operations for Limited Brands, Jackson oversees seven distribution centers, encompassing 5 million square feet of space and employing 4,000-plus employees and a management team of some 250 executives. That role, heading up an operation that supports such widely recognized retail stores as Victoria's Secret, Bath & Body Works, White Barn Candle Co., Express and Limited Stores, is not one that he would have envisioned for himself just a few short years ago. "I grew up on the shop floor, so to speak," Jackson says."I was a manufacturing guy. I spent the first 10 years of my career in the plant with Nabisco."
During that time, he gained exposure not only to all kinds of manufacturing- related processes, but also to the world of logistics, through what he refers to as "a spin as a material manager." At Nabisco, he explains, "We weren't running a plant-to-DC operation. We went directly to the customer. It gave me a chance to [meet] face to face with some of our biggest clients."
Shortly after that, opportunity knocked. As part of a corporate initiative, Jackson and several other leading managers were chosen to participate in a companywide talent assessment program. That exercise, which Jackson describes as a comprehensive and at times exhaustive analysis, led Nabisco's top managers to realize that their company was mired in what the textbooks call a "silo mentality."
"What they found was that they were doing a good job building their internal base of talent," Jackson reports."But on the down side, the talent was being built in silos.No one knew what the other parts of the organization were doing." Nabisco's response to this changed the way the company did business and altered Jackson's career path in a very profound and positive way.
Tearing down the walls
Jolted into action by the findings of that assessment, Nabisco set out to build a more cross-functional and customer- focused organization from the ground up. The corporation identified six key executives, Jackson being one, and sent them off on a corporate version of the Grand Tour, with the expectation that they would develop a more broad-based skill set through a series of hands-on assignments in various operational areas. The executives would, over the course of the process, emerge as internal "champions" of this cross-functional, customer-focused approach.
Motivated at least in part by the prospect of career advancement ("They told me that they saw me as someone with potential to move up to the VP level but said that wouldn't happen if I stayed strictly in manufacturing"), Jackson accepted the assignment and set off for Chicago to work in Nabisco's logistics division, where he spent an eye-opening three years." It was during this time that I came to realize that logistics had the potential to be far more than simply a cost of doing business. If done right, a company's logistics operation could clearly separate it in a very positive way f rom its competition."
From there, it was on to the world of sales."It was a great experience for me," Jackson recalls. "Consumer-products companies are extremely sales and marketing oriented. It gave me a chance to see the operation from a different side."
Moving on
In retrospect, Nabisco's senior executives deserve high marks for their efforts to tear down their internal operational walls. In the mid-1980s, a customer-focused, horizontal approach to doing business was well ahead of the curve. Although dismantling the functional silos may seem relatively commonplace today, in the mid-1980s it was downright visionary.
But Nabisco's efforts to shift from a functional, vertically focused company to a horizontal, customer-focused organization were sidetracked in the late 1980s when the company became caught up in one of the most publicized corporate mergers of the decade. Faced with the challenge of integrating hundreds of now-merged operations, the corporation shifted its focus. Great emphasis was placed on developing programs that would help the company retain its executive-level talent. Those efforts worked. So much so that the career path of rising young corporate stars like Jackson was suddenly blocked.
"After the merger, they were really scared to death that a lot of people would jump ship," Jackson relates. "But by putting into place some pretty good compensation, they were successful in retaining almost everyone. That was the upside. The downside was that with no one at the upper level moving on, there were very few positions opening up to promote people into."
Catching the 3PL wave
With his career path at Nabisco partially blocked, Jackson soon moved on to new challenges with Exel Logistics, a young but rapidly growing third-party logistics provider. He took with him, though, a wide-ranging skill set for which, to this day, he thanks his mentors at Nabisco. "Nabisco provided me with my first real taste of logistics," he notes. "It was fortunate for me because Nabisco was a company that saw the value in putting all these functions together. They were very much ahead of the curve at that point. It turned out to be a great lesson on how to stay focused on the flow of goods from origin to end user."
By the beginning of the 1990s, third-party logistics services providers (3PLs) had begun to proliferate. From a handful in 1989 to a couple dozen in 1990 to literally hundreds by 1991,3PLs seemed poised to change all the rules of the logistics business. Exel was one that stood out in a crowded field. Based in Columbus, Ohio, Exel was an outgrowth of a European-based 3PL with a long and solid track record of success in overseas markets.
Exel offered Jackson an opportunity he couldn't pass up. "I took a job in their consumer-products sector," he explains. "It primarily included work with customers they already had, including Procter & Gamble, Kellogg, Hershey and Kraft." Responsibility for managing DC and transportation operations also gave Jackson a whole new perspective. "Rather than coming at the task as the buyer, I came at it as the provider. It really broadened my view of the issues providers have to deal with."
After fours years at Exel, Jackson had begun to emerge as a hot property in a logistics market that was beginning to focus more attention on recruiting and retaining top talent. That fact became quite clear in 1991 when his old employer, Nabisco, came knocking on his door.
"I was presented with an opportunity to become their top supply chain executive," Jackson says. "It was a very, very attractive opportunity. I took the job and at that time fully expected I would finish out my career there."
Now on a clear logistics career path, Jackson found that many of the concepts Nabisco had tried to advance in the mid-1980s were firmly in place. "During my second stint there, we really came to see some of the value in logistics and how we could drive initiatives that were directly beneficial for the sales side of our operation," he notes. "We not only got the sales structure to focus squarely on the customer, but we also got the whole logistics operation focused on supporting the sales structure,and by extension,the customer. It was, quite frankly, a great place to be."
Then the phone rang.
New deal
The caller was Nick LaHowchic,a man Jackson had come to know during his days at Exel. "Nick had been with Becton-Dickinson, which was one of the clients I worked with at Exel." LaHowchic had since moved to Limited Brands and was in the market for a vice president of operations.
Lured not only by the opportunity, but also by the chance to move his family back to the Columbus area, where they lived while Jackson was at Exel, he agreed to travel to Ohio and meet LaHowchic and his team. "I ended up spending the whole day with him," Jackson recalls. "What I saw was an absolutely great company that was facing some logistics challenges that were not unlike those I had dealt with at Nabisco and Exel. I saw it as a chance to leverage the work I had done previously into something really exciting."
At Limited Brands, Jackson found a highly decentralized organization with enormous potential. What was needed was some re-engineering of the logistics operation. While the company had some very strong logistics operations in place, they were scattered among the various brands that make up the retail chain. "We had DC management teams that were very good at what they did—but they didn't know each other even though they were literally on the same campus," he says."We weren't leveraging our people.We weren't leveraging our enterprise capabilities. I found that at times of seasonal highs, for instance, we were actually competing with ourselves for temporary staffing.
"There were 11 different brands operating essentially at the same place," Jackson adds. "There were 11 different sets of standard practices and 11 different warehouse management systems in place—essentially, 11 different ways of doing business. Everyone was convinced they had to be different because their particular needs were unique."
The Limited Brands position presented Jackson with a chance to leverage not only his past experiences, but also the leadership skills he had honed in previous jobs. "What transcends the issues of a particular company, when it comes to logistics, is the value that the operations can bring," he explains."The challenge is to convince the people that change is needed and that change can bring dramatic improvement."
The right stuff
Though Jackson believed he knew what changes had to be made, his first move was to assess the existing operations, with particular attention to people and tools. "We really wanted to understand where we were focused," he says, "and then compare that to where we should be focused."
Jackson began with the people. A talent assessment program, not unlike the program he had been part of all those years before at Nabisco, identified Limited Brands' strengths and weaknesses where personnel were concerned—that is, the areas where existing staff needed training and instances where job descriptions had to be revised to better reflect expectations. Then, to shore up those areas where staffing deficiencies appeared to be comparatively high, Jackson turned to outside recruitment to attract the best people possible.
Next, Jackson launched a review of the existing and disparate operating systems for each of the 11 brands. "Common sense told us that there was real efficiency to be gained by getting down to one system," he explains.
This analysis has yielded two immediate benefits. While all the DC operations for Limited Brands in Columbus had previously been specific to a particular brand, a migration to a single,unified operating system has added considerable flexibility, which is especially important given the inherent seasonality of the retail business. "With one system in place," Jackson explains, "we now have the ability to run multiple businesses out of the same DC."
That flexibility also extends to improvements in staffing and personnel productivity. "Because we can train all the associates on one system, we now have the ability to send them from DC building to DC building without the need to be re-trained," Jackson says."It's also helped us become less dependent on seasonal, temporary help that isn't properly trained."
Limited's opportunities
Jackson's initiative at Limited Brands is now in its third phase.With the right people and the right tools in place, his goal now is to heighten internal awareness of logistics' value. "We are taking people who were just DC managers and challenging them to be logistics leaders," he says. "We are asking them to think in terms of a more horizontal focus on the full flow of goods. We've taken jobs that were just four-wall DC jobs and expanded them and helped the people understand where the value is in improving service and driving out costs."
Fully executing on this third phase of opera tional improvement may be the most challenging of Jackson's objectives and the one that may draw most heavily on his skills as a supply chain leader. "I'm working hard at trying to be a good communicator," he explains." In terms of being able to lead a team, I may have the experience and the knowledge to tell them what to do. It's not my intent, though, to dictate precisely how to do that. It's really got to be more about setting direction and focus. Essentially, I see a very large part of my job as creating opportunities for the people below me to do great work. Essentially a lot of it has to do with breaking down internal barriers to allow good things to get done."
Jackson stresses that this point should not be underestimated. "When I think about all the things that will drive our success, I constantly come back to the people," he says. "As much success as we've had with systems and processes, it's not going to happen if the people aren't behind us and they're not receptive to the change. I've been fortunate to come into an organization that really values its people."
No more static
His experience in the DC to date has led Jackson to one irrefutable conclusion: Distribution center operations represent the next big opportunity for supply chain improvement.
"Traditionally DCs have been thought of as static," he explains. "They were once set up as warehouses to simply stand there and hold inventory. But as we get into supply chain management and understand the links in the chain, we're realizing that the DC needs to be a very vibrant, active and proactive link. I think we are just starting to discover the value the DC link can add."
At Limited Brands, Jackson believes that value is quickly becoming evident. "We have an opportunity to facilitate the movement of goods to the stores, which we view as our customers," he notes." If we can get product there in a way that allows that store and the personnel to get it on the shelves in the most expeditious way, we've enhanced our whole supply chain. We used to have the store employees doing things to add value and ready the merchandise in the back room. That's not what we want to hire store people to do. Those things are better done in the DC. That's where you can really begin to see all the linkages and key components of the overall supply chain, and the role we can play in our operation that drives value."
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.
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.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”