Though intended for drivers, the warning applies equally to business relationships. That is, what we think we see may not be a wholly accurate depiction of reality.
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.
If you can read that warning in your outside car mirror, you're not paying nearly enough attention to the core issue, driving without committing either suicide or manslaughter. But it is disastrously easy to become mesmerized by mentally Photoshopped images and contemplate the magnificence of a false—sometimes referred to as "enhanced"—image.
Business relationships are a little like that, too, in that what we think we see may not be a wholly accurate depiction of reality. And in the new age of collaboration, successful supply chain management demands robust, rock-solid, and really long-term relationships.
Those are not the last century's 3Rs of elementary education, but the new century's hallmarks of effective hand-in-glove, arm-in-arm, joined-at-the-hip planning, operations, and continuous improvement that make for happy customers, employees, and shareholders.
But even some really smart people don't get the essentials of how to build and maintain those intimate relationships that transcend mere opportunistic cooperation.
PSEUDO-SCIENCE AND THE STUDY OF RELATIONSHIPS
Some observation and writing in the field appears to have missed the lifeboat and is going down with the Titanic. A common failing among the sinking cynics is to examine a business relationship as if it were a fire. It gets lit; it catches; it roars to life; it stays hot for a period; it begins to fade; and it finally dies out, pretty much useless in the end stages even though technically still alive. Their typical scenario is to outline the stages of a relationship, which got me to immediately contemplating Elisabeth Kübler-Ross's stages of death and dying:
Stage I, Establishment. This is the initial connection, the friend or foe, fight or flight moment in which we decide whether to work and play well together or fight common foes at arm's length, with limited communications, closed minds, and protected, privileged information for our eyes only.
Stage II, Acceptance. Here, we mutually decide that the other has credibility as well as the competency, the access, the power, the judgment, and the breadth to get done what needs doing.
Stage III, Action. Action takes time to genuinely initiate, because, to be most effective, it must be based on trust, which takes a long, long time to be fully embraced (by both parties to a relationship). Broken or violated trust can, long-term, derail the relationship, but with sufficient competence, tasks can be completed, even if suboptimally. But the quality and effectiveness of the relationship can seldom return to the previous level.
Stage IV, Wind-Down. Inevitably, relationships dissolve over time. The deal was only for a year. The project is over. There are no more goals to meet. It's been fun, but the sun has long set, and all we have left are dying embers.
THE MISSING LINK
All those are essentially so, if one imagines the parallel of a fire that is lit and left to follow its own course. Many fires on beaches at sundown that fuel summer romances do, in fact, play out in about that way. But for those who are serious about fires—or relationships—it's a much different story. Remember the under-appreciated film "Quest For Fire," with Rae Dawn Chong? Fire was a wonder and a life-giving tool for early humankind, kept perpetually burning. One village let its fire go out and dispatched a team to venture forth to find new fire, without which the village would fail and disappear.
GOOD FIRE; GOOD RELATIONSHIPS
The stages outlined above make no sense in a world in which either fire or relationships are vital survival elements, and the inevitability of winding down relationships in that context is absurd. To stay with fire for a moment, if one is serious about a life-giving fire, it is observed, evaluated, and tended accordingly throughput its life.
Good tinder is used to enhance a good start. The best wood to be found is laid on the fire, and new fuel is added throughout its life—not too early and not too late. The placement of the original and the additional logs is carefully thought through. If a spot is not burning well, judicious application of air is used to help the flame sustainably engage that particular log.
In business relationships, increasingly in supply chain business relationships, good fires are being built with the objective of not inevitably winding down. We look hard within ourselves to find the right mix and match of team components to provide the tinder for a great Stage I, Establishment. We invest in bringing genuine talent to the table, with the right styles to match up with the other side and create a fast and positive Stage II, Acceptance.
We hire deliberately with values that support and enhance trust, and plan meticulously and creatively, to make Stage III, Action, effective in time, resources, and outcomes. Throughout, we assess the health of the relationship, the strength of the fire, and add as appropriate, new wood and/or blasts of air to make the fire and the relationship both strong and longer lasting. The objective, of course, is to not ever have to face the Stage IV Wind-Down. And constant care and feeding of the fire and the players in the relationship can be marvelously effective in delaying, deferring, or demolishing Wind-Down as a daily concern.
THE REALITY
Do relationships end? Sure. But not always, not early, not without a fight, and not inevitably. Does everybody get, and buy into, the perpetual relationship idea? Of course not. But the naysayers' numbers are shrinking as long-standing relationships continue to stand.
Is relationship management easy once you know how? No! It is hard work, takes incredible attention to detail, and eats resources for breakfast. But it is easier—and less costly—than losing a relationship partner and working like a rented mule to find a new one. Is it a matter of charm and personality? Not really, although a sunny disposition doesn't hurt. At the end of the day, trust is vital, competency is key, and a willingness to laugh is icing on the cupcake. Plus, a willingness to go out and put a log on the fire yourself can go a long way.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.