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.
Whenever some richly experienced factotum begins a rant with, "Now, in my day …," it is all I can do to not jump into his grille, screaming, "If your day has passed, what are you doing taking the chair of someone who might actually get something done?" Sheesh!
The descent into senility is rapid, like the first plunge on a roller coaster at Six Flags Over Dementia. It seems that the principal annoyance is the rising generation, its sass, lack of work ethic, absence of common sense, and permeating self-absorption.
Never mind that this generational friction has been with us since the beginning of recorded history, the insult and disrespect is fresh and new to the Codger Cadre. The latest incarnation of imminent signs of the Apocalypse lies within the so-called "Millennial Generation."
In our supply chain management and logistics Milky Way, a large chunk of the business universe, the generational challenges and the management of expectations and senses of entitlement are real, looming, and becoming more critical to survival, let alone to success.
THE RAP ON THE MILLENNIALS
Pop psychology maintains that each generation presents its own set of identifying behaviors and attitudes. The millennials are said (and I really don't know how much of this is harrumphing opinion of those who know better than the rest of us, and how much is genuinely research-based) to require or demand the following: immediate and continuous feedback; rapid organizational elevation (with respect to position and compensation); freedom and autonomy; a steady stream of meaningful work; recognition and respect for insight, conclusions, and observations; technology tools, supporting continuous multitasking; and collaborative leadership and acceptance of their confidence and optimism.
They are often characterized as the "Why" Generation, or the Trophy Generation. The conventional wisdom holds that they've been conditioned to receive rewards for ordinary outcomes and that they have not learned well how to lose or fail.
But here are three news flashes: The generational differences are largely superficial. Research around style and preference assessment tools shows that the basic categorizations and/or reflections of the human brain's wiring continue to identify the same distribution of styles as they always have. Further, within any set of generational attributes, significant numbers of individuals do not map to the generalities usually presented.
GREAT EXPECTATIONS
Much is made of unrealistic expectations and an entitlement mentality in the current rising generation. It could be time to climb down from our high horses. We—many, if not all—are shackled by dependence on entitlements and expectations as well. That's right. Baby boomers, gen "X," traditionalists, millennials, and all. How so, you ask?
Start with Social Security. What began innocently as a bailout for older folks, who typically did not live much longer than the eligibility date, has become a massive public subsidy. What was once an augmentation to retirement income has turned into the primary (or sole) retirement income for many. Plus, it provides lifetime income, irrespective of contribution, to the physically or mentally/emotionally disabled. And the elderly are living nearly a decade longer than before, the total benefits eclipsing the working lifetime contributions.
Then, look at Medicare, a sinkhole into which dollars disappear to no particular purpose. That is, the system is vulnerable to abuse both by users who have no idea of what health care costs, and, exponentially, by providers who do and really know how to game the program. It has become a "right," near-impossible to take away long enough to repair it.
Moving on, unemployment compensation, originally a temporary safety net to buffer the impact of economic shifts, has become sufficiently comfortable that many unemployed have no incentive to find work. Pandering politicians then extend the benefit period, feeling sorry for those out of work. Of course, the longer a person is not employed, the tougher it is to find employment.
The minimum wage is another scam. Overriding the voice of the marketplace, local, state, and national governments can mandate an earnings floor for what were once temporary, entry-level, or supplementary income jobs, with agenda-driven pressures to transform any and all occupations into more comfortable middle class earning positions, irrespective of value delivered or skills required.
A push to force employers into higher entry wages for low- to no-skill jobs, e.g., $13 an hour at Walmart, is a companion evolving entitlement. The impact of all these forces is destined to be catastrophic. The price of every product or service involved will have to increase, and we will all be paying more for the same things we are purchasing today. As for the impact on our corner of the universe, the entire supply chain community will have to pay floor associates more—a lot more—to attract and retain enough talent to do its basic job (with no added value whatsoever involved).
Transferability of power and position is another entitlement trap. The person who has spent a goodly chunk of the career in an insular environment, then gets caught up in the sooner-or-later cutback, rightsizing, merger/acquisition, or reduction in force, expects to find a new job that pays the same and confers the same perks and powers. After all, "XX" years of experience (or one year of experience "XX" times) must surely define universal value, right? Wrong! First question is, was there really any value involved? Is the value in a new setting, new company, new industry, whatever, actually relevant? Who else, with what attributes and value contribution potential, is in the market? The near-universal reaction to the new reality is that the problem is with the overall economy, or age discrimination, or dirty capitalists taking advantage of someone who has already been betrayed, or—the list of improbable possibilities goes on.
PRE-EMPTIVE FIGHTING BACK
So, it's not just the millennials; it's all generations who have expectations for entitlements. The malaise afflicts all industries, not just the supply chain management community. We have been evolving into an entitled society, with expectations for others (governments at all levels, programs, behavioral incentives with tax and other implications) to meet our expectations, which we clumsily position as needs, requirements, and rights.
In an era of generational conflict, unmet expectations, and denied entitlements, here's how to rise above the fray, set yourself apart from the whiners, and better position yourself for moving up and out—winning in the long haul. Doing these things just might propel you from management in a supply chain context to leadership in a corporate context, with confidence enough to come out of turmoil and change to succeed in a new venue, as well:
Forget the past (but hold tight to timeless values); focus on executing today; pull the trigger on plans for tomorrow.
Get over the generational thing; there's a new one coming after the millennials; you were once the new kid, too.
Understand yourself as well as your motivations, triggers, styles, preferences, and personality. Then, understand those around, under, and above you. Learn how to leverage these attributes for optimal outcomes.
Learn (and practice) working in teams, collaborating, and communicating. Educate yourself on management tools and techniques as well as leadership requirements and attributes.
Never stop learning; sharpen your ax whether you need to or not.
Seek, and deliver on, projects and positions that make a difference, that contribute value, that make you stand out with peers and leaders.
Actually get something done—and make sure that leaders know who did it. Action is not accomplishment, counsels Carly Fiorina; ants are busy, but what are they busy at, asks Henry David Thoreau.
Master these, and expectations and entitlements will take care of themselves.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
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.
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."