In uncertain times, we can all use some guideposts to tell us how far we've come and how far we've yet to go. Here's our current take on the Ten Commandments for supply chain management success.
Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
As we continue to work in a shape-shifting universe, we need some guideposts, some mileage markers that give us a sense of where we are and how far we have yet to go. This may be as good a time as any to put some success and failure factors on the table to help supply chain management professionals grow to become all they can be.
What follows is my current take on the Ten Commandments for success in supply chain management, in business, and in life. There are many, probably more than 10, but the core issues seemed to sort themselves well into a set of 10 Thou Shalts and Thou Shalt Nots. Please note that the items below are not carved in stone, either one- or two-sided, and that they are backed up on a flash drive.
1. Thou shalt not slander every idea that did not occur to you first. C'mon, man, are you really the smartest little boy (or girl) in the room, always? How many of your very fine ideas have been rejected because you abused, insulted, or demeaned all of those you would eventually need to get behind necessary change?
2. Thou shalt not dwell in the past. Get over it! Sears is terminally ill, and K-Mart is already dead. Omnichannel fulfillment is not the same as shipping orders from mailed-in forms at the turn of the 20th century. Visibility through information technology is not simply an updated version of walking the warehouse floor until the object of a customer's desire is spotted by the naked eye. And stop railing against the habits and passions of the current generation of working associates.
3. Thou shalt not live entirely in the future. Yes, I know that there is always a better way to do what we're doing. Yes, I know that what we have solved only portions of the greater challenge. I also know that it is somewhere between imbecilic and hopelessly naïve to throw out the investment in what we have before we have leveraged all that it can contribute—even if we can somehow roughly envision what might be better, if only we could define it and force the entire business community to adopt it overnight.
4. Thou shalt not focus on functions and outcomes. There is more to work life than meeting today's objectives in a world we suppose has been defined for all time as what it is now. While we are busy satisfying customers, we must also consider what's next. Not necessarily what is the ultimate unified field theory of everything supply chain, but what next year—and the year after—is likely to bring. And what we must do to be ready if the changes we can reasonably anticipate actually materialize.
5. Thou shalt not impose your style and preferences on everyone. Doing the right things in the right way requires teams of energized, motivated, and educated people. Leaders take many forms and pursue objectives in different ways—and are motivated by different factors. A tough lesson is that what drives you as a leader, how you work, how you communicate, how you reach goals may or may not yield the results you desperately need. You can't pep talk the organization's way to success; you can't intimidate that outcome, either. You can't take care of the people and expect results simply because they have been comforted; worst of all, no system of measures and milestones contains any guarantee that the real result will resemble the plan—in outcome, in timing, or in costs.
You, as a leader, must know what all the management styles are, when to use them, and with whom to use which ones. Further, you've got to know your people so well that you recognize where they fall in the task/relationship spectrum—and use the appropriate style with each of them.
6. Thou shalt carefully assess everything different. Not that we need to accept every notion that comes floating through the open window or hail each new concept as the panacea that will fix all that is wrong or overcome all the limitations and barriers of the past. But we do have a responsibility, for self-preservation if nothing else, to carefully consider those ideas that actually have merit, legs, and a promise of sustainability and scalability.
7. Thou shalt learn from the past. Despite the fate of dinosaurs stuck in the tar of La Brea, there are some universal truths that have validity from generation to generation, values that are, so far as we can see, eternal. Stick to these; adapt them as circumstances shift; and hold them, if currently in disfavor, close against the day when they are newly and more widely recognized for their intrinsic worth.
8. Thou shalt anticipate the future. None of us can afford to ignore the present; we must meet customer expectations and operational objectives. But we must devote time, energy, and resources to what happens—or is likely to happen—next, and after that, and then after that. As leaders, we cannot afford to be taken by surprise when the change that everyone but us knew was coming actually arrives.
We need to be actively thinking about such things as where our customers' markets are going, how we can help them stem the slide or capitalize on the rise, which of our suppliers are financially vulnerable or not scalable to our next level, what supplies and materials are being exhausted on a global basis, what new products and lines are looming in our industry, how order profiles are likely to shift, and on and on.
9. Thou shalt operate under the umbrella and context of the organization. Functional understanding is a given. But the planning and execution of supply chain management (SCM) must be strategically and organizationally relevant. That translates to the entire supply chain's getting the picture—understanding that SCM is not so much about squeezing costs out of suppliers, trimming labor, or cutting inventories as about building enterprise financial performance. That is what makes SCM truly a competitive differentiator, an investment in growth and profitability, and not simply cost to be managed by beady-eyed CPAs.
10. Thou shalt require accountabilities, outcomes, objectives, and plans from all. For all the talk about styles and preferences, and no matter which is used when and with whom, all plans and assignments must conclude with clear mutual understanding of what will be done, when, at what cost, with which milestones, and with what quantified benefits. No matter the appropriate style, no matter the motivations, acceptance of the assignment with its terms and conditions is the only thing that counts—even when the assignment is a creative exercise to find the lost, to imagine the unthinkable, to solve the intractable, or to invent the unknown.
BONUS ROUND
Here are two additional commandments—no extra charge. Feel free to abide by their guidance. There are more; you may add your own to the list as well.
11. Thou shalt not live in the present. Failing to look either through the windshield or in the rear-view mirror is a shortcut to madness. Fixing today does not necessarily fix tomorrow; ignoring yesterday can obscure the solution needed today.
12. Thou shalt live in the present. Don't forget, with all the looking ahead and looking back over one's shoulder, that the customer needs the order shipped today, that a status inquiry deserves an answer today, and that an HR issue that is a flesh-eating cancer must be addressed now.
WAIT! ISN'T THIS ONE GIANT CONTRADICTION?
Well, yeah. Welcome to the real world. See, here's the deal. Success is not about finding the golden ticket that gives magical entry to Willy Wonka's factory. It is about finding the balance among the competing, yes, contradictory, forces in our work and personal lives. About being analytical enough to sort through the opposing elements, and about being street-smart enough to make good choices—and tough enough to stick with them.
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.”