No matter what your role in the supply chain, sooner or later you're going to have to make tough calls about recruiting, hiring, or promoting your successor.
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.
"The old order passeth." In times of old, this is the manner in which English citizens were informed that the former king had died (or been dispatched in treason) and that a successor, usually an heir, had been elevated to the throne. When a comparable event takes place in business, our first inclination is to think of issues in business continuity, of top leadership succession. But the issue is broader, deeper, and more pervasive than machinations in the C-suite.
It will happen sooner or later. You'll have done all the right things, built an "A" team, and backed it up with two-deep talent for the future. Then, the skies will open, dumping any number of things all over your desk.
It doesn't matter whether you're a line supervisor, a mid-manager, a VP with global responsibility, even a CEO. Whatever your role in the supply chain, you are going to have to make tough calls—and more than once—about recruiting, hiring, or promoting your successor (or replacing your loyal wingman).
WHERE TO BEGIN - THE OPENING SHOTS
So much to consider, and quickly. One thing we know for sure is based on the principle that people get promoted to their level of incompetence. Basically, the Peter Principle (the brainchild of USC's Laurence Peter) suggests that the best forklift driver may not be the best choice to lead an operation team, or that the best order picker is not necessarily a natural line supervisor in fulfillment. The head of sourcing and procurement is not a slam-dunk to take over full supply chain management leadership, and the North American transportation savant may not be the greatest pick to take charge of global logistics and supply chain management.
We have had this drummed into our heads for decades, but, under stress, we forget—or we feel obliged to somehow reward the folks who have worked like dogs, against all odds, to get the job done.
But we must be prepared for the likelihood that the best forklift operator will find almost any excuse to tool around the DC instead of leading, managing, and developing the staff. The world-class order picker/packer will, with little to no provocation, jump in to bail out a tough wave rather than motivate and measure the crew, or remove performance barriers and improve processes. The manager thrust into a leadership role will continue to make sure that all of the paper clips have been accounted for instead of dealing forthrightly with the essential question of why paper clips are really needed at all.
NEXT STEPS?
Or maybe all those possibilities are the right selections. What's important is not what they've done but what the new job requires—skills, experience, intelligence, people capabilities, analytic strengths, problem-solving ability, values, vision, whatever.
If the "natural" candidates don't have the goods, can they acquire what's missing? Hard skills, soft skills, contextual vision. Can you build from within, or must you go outside? Or is there a mix-and-match solution?
BEGIN AT THE BEGINNING
The core question is what is needed, whatever the position and scope of responsibilities. Skills, talents, experience—sure. But what about intrinsic personal qualities and how those can increase the odds of success?
What were the drivers of the departed's behaviors: his or her motivations, communications abilities and styles, and working and decision-making preferences? Does the replacement need these—or is a change in order to elevate unit and organizational performance?
All too often, organizations fall into the trap of selecting candidates because "they fit our culture" or because "they are just like us." This is a deadly protracted downward path. Truly mature, confident, and self-challenging organizations deliberately seek out diversity in styles, because teams of leaders that are incapable of groupthink generally develop superior programs and solutions.
This vital element is too often ignored in considering how, and with whom, to replace those individuals who are moving on or moving up. Don't be one of those looking for the comfort of the same when the different might be exactly what's called for. But also bear in mind that getting different solely for the sake of difference can lead to a crash of epic consequences.
AND THEN?
Going a step further, how important is emotional intelligence (EQ)? How good is the young prince, the king-in-waiting, at understanding the needs and styles of others?
How important is this? It affects the probability of success at every level and in every organizational function.
IS TIME ON YOUR SIDE?
Then there's the added complication of timing. Having some time to work with unties your hands a bit. Is the need yesterday, or next year? Can you provide serious training and development to elevate the baseline of essential qualities in an internal candidate? Do you have interim assignments that relate to key elements of the new position's skills and experience?
What are the risks in hoping that the rookie's strengths will outweigh the weaknesses? Does the candidate have the heart and soul needed to work like a rented mule on shoring up the gaps? And the IQ/EQ capacity? Are you willing to bet your career on a known-to-be-imperfect solution?
If there is no time, the case for finding fully qualified outside talent gets stronger. Although there still might be developmental needs—there is likely no perfect candidate—the overall fit could be much better.
AND YOUR FINAL ANSWER IS?
Even with all of today's personality assessment tools (think Myers-Briggs et al.), these mission-critical people decisions remain a bit of a crap shoot. So, you've got to be prepared to start all over when the new supervisor doesn't pan out, or the all-star global supply chain VP turns out to have a weakness for slow horses and filling inside straights.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
DAT Freight & Analytics has acquired Trucker Tools, calling the deal a strategic move designed to combine Trucker Tools' approach to load tracking and carrier sourcing with DAT’s experience providing freight solutions.
Beaverton, Oregon-based DAT operates what it calls the largest truckload freight marketplace and truckload freight data analytics service in North America. Terms of the deal were not disclosed, but DAT is a business unit of the publicly traded, Fortune 1000-company Roper Technologies.
Following the deal, DAT said that brokers will continue to get load visibility and capacity tools for every load they manage, but now with greater resources for an enhanced suite of broker tools. And in turn, carriers will get the same lifestyle features as before—like weigh scales and fuel optimizers—but will also gain access to one of the largest networks of loads, making it easier for carriers to find the loads they want.
Trucker Tools CEO Kary Jablonski praised the deal, saying the firms are aligned in their goals to simplify and enhance the lives of brokers and carriers. “Through our strategic partnership with DAT, we are amplifying this mission on a greater scale, delivering enhanced solutions and transformative insights to our customers. This collaboration unlocks opportunities for speed, efficiency, and innovation for the freight industry. We are thrilled to align with DAT to advance their vision of eliminating uncertainty in the freight industry,” Jablonski said.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.
Declaring that it is furthering its mission to advance supply chain excellence across the globe, the Council of Supply Chain Management Professionals (CSCMP) today announced the launch of seven new International Roundtables.
The new groups have been established in Mexico City, Monterrey, Guadalajara, Toronto, Panama City, Lisbon, and Sao Paulo. They join CSCMP’s 40 existing roundtables across the U.S. and worldwide, with each one offering a way for members to grow their knowledge and practice professional networking within their state or region. Overall, CSCMP roundtables produce over 200 events per year—such as educational events, networking events, or facility tours—attracting over 6,000 attendees from 3,000 companies worldwide, the group says.
“The launch of these seven Roundtables is a testament to CSCMP’s commitment to advancing supply chain innovation and fostering professional growth globally,” Mark Baxa, President and CEO of CSCMP, said in a release. “By extending our reach into Latin America, Canada and enhancing our European Union presence, and beyond, we’re not just growing our community—we’re strengthening the global supply chain network. This is how we equip the next generation of leaders and continue shaping the future of our industry.”
The new roundtables in Mexico City and Monterrey will be inaugurated in early 2025, following the launch of the Guadalajara Roundtable in 2024, said Javier Zarazua, a leader in CSCMP’s Latin America initiatives.
“As part of our growth strategy, we have signed strategic agreements with The Logistics World, the largest logistics publishing company in Latin America; Tec Monterrey, one of the largest universities in Latin America; and Conalog, the association for Logistics Executives in Mexico,” Zarazua said. “Not only will supply chain and logistics professionals benefit from these strategic agreements, but CSCMP, with our wealth of content, research, and network, will contribute to enhancing the industry not only in Mexico but across Latin America.”
Likewse, the Lisbon Roundtable marks the first such group in Portugal and the 10th in Europe, noted Miguel Serracanta, a CSCMP global ambassador from that nation.