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.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.