The master supply chain builder: interview with Kathy Wengel
Recently honored with CSCMP's prestigious Distinguished Service Award, Kathy Wengel—Johnson & Johnson's top supply chain executive—has dedicated her career to building diverse teams that create world-class supply chains.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
As a child, Kathy Wengel loved to build with Lego bricks. She enjoyed selecting blocks of different sizes, shapes, and colors and then bringing them together into a unified whole.
Her job today as executive vice president and chief global supply chain officer at the health-care giant Johnson & Johnson (J&J) is not much different. For instance, she recently co-led an effort to redesign and rebuild J&J's supply chain and quality operating models. This entailed taking all of the disparate parts of the health-care company's global operations—and those of its suppliers and customers—and melding them together into an integrated process that's focused on the end customer.
Wengel and her team proved to be master builders. The redesign propelled J&J's operation into the ranks of truly world-class supply chain organizations. In 2019, the company captured the number-eight spot on the analyst group Gartner's annual "Supply Chain Top 25" list.
Wengel believes the initiative's success lies in the diverse and global supply chain teams the company has spent years building. Johnson & Johnson is committed not only to bringing people with diverse experiences and perspectives onto its teams but also to broadening those team members' perspectives by moving them through varied roles around the globe.
Wengel herself is an example of this. During her 31-year career at J&J, she has served in a variety of positions in a variety of places, including manager of manufacturing engineering at a J&J site in Puerto Rico and general manager of one of J&J's largest production facilities in Italy. She has also served as vice president of quality and compliance for the company's Europe, the Middle East, and Africa (EMEA) and Asia Pacific regions and as the corporation's first chief quality officer.
In addition to her day-to-day activities, Wengel has made time to give back to the profession. She is active in many industry organizations, including the Council of Supply Chain Management Professionals (CSCMP), the global standards organization GS1 Global, the National Association of Manufacturers, and AWESOME (Achieving Women's Excellence in Supply Chain Operations, Management, and Education).
In recognition of her service and leadership, CSCMP recently presented Wengel with its Distinguished Service Award (DSA), which honors an individual for significant, consistent, and career-long contributions to the logistics and supply chain management disciplines. She recently talked with DC Velocity Editor at Large Susan Lacefield about her career path and her vision for the profession's future.
Q: What do you see as the top challenges facing supply chain executives going into 2020, and how is Johnson & Johnson addressing those challenges?
A: In my opinion, a top challenge for every supply chain executive is a question I ask myself every day: How do we find the best talent to drive future innovations for patients, and ultimately the growth of our company? I spend more than a third of my time working on this challenge: accelerating talent development, identifying the most promising future leaders, establishing a culture of self-direction and accountability, and ensuring we equip our entire workforce with the skills and capabilities they will need for the future.
From artificial intelligence (AI) to automation and the Internet of Things, the world of supply chain is quickly evolving as technology challenges us to think bigger and innovate faster. To deliver top-quality products to our patients, customers, and consumers, our Johnson & Johnson workforce needs to include the best and brightest minds. We must also continually expand our pool with respect to diversity and experience, searching for and developing talented people from all backgrounds who have the right blend of skills, curiosity, and passion that will continue to fuel our company's innovation engine and maintain our position as a leader in the industry.
Q: What is your proudest work-related achievement, and why?
A: I'll actually give you two. The first is the excellence with which we implemented our redesigned supply chain model for J&J. Over the past decade, we have completely transformed the role of supply chain for our corporation and, more importantly, for our customers. While this journey never ends, I want to recognize our more than 50,000 supply chain associates for their fantastic work.
Second, and very much related to the first, would be building more diverse global teams at every step of my career. I've seen so many times how results are dramatically improved when you put people with different experiences, from different backgrounds, and with different perspectives together and give them a problem to solve.
We are very proud of the external recognition we've received, including being ranked this year by Gartner as one of the Top 10 supply chains in the world across all industries and the top-ranked health-care company. And I'm extremely honored and humbled at being named the recipient of the 2019 Distinguished Service Award from CSCMP. Each of these recognitions is due to the strong, dynamic, and diverse teams we have that are tackling the complex challenges that come at us in health care each day.
Q: How have things changed for women in supply chain management since you entered the profession? What further changes would you like to see?
A: Over the years, I have seen an increase in the number of women in supply chain management roles and supply chain overall, but there are still too few of us in leadership positions. This is reflected in the very small percentage of women (approximately 5%) who occupy the top supply chain spot in Fortune 500 companies. Supply chain is such an interesting and exciting place to be, and there are many talented women leading and innovating—I know thousands of them! We can all do a better job in telling that story and supporting younger women who have the interest and drive to succeed in this space.
I'm very proud to have a gender-balanced (50/50) globally diverse supply chain leadership team here at Johnson & Johnson. We need visible and vocal women in supply chain roles who can inspire the next generation of supply chain and STEM2D (science, technology, engineering, math, manufacturing, and design) professionals. That is why I dedicate a portion of my time to serving as the executive sponsor of Johnson & Johnson's "Women's Leadership & Inclusion" and "Women in STEM2D" initiatives.
Q: What advice would you give someone who's just starting a career in supply chain management?
A: I'm asked this question a lot, and I've realized that the lessons we learn early on in our careers will influence the way we work and lead teams, often for decades. I always encourage people to ask lots of questions to help understand the overall context of a situation and where it sits in the priorities of the business and our customers. I certainly asked a lot of questions at the beginning of my career, and my team can confirm for you that I still do today! By hearing what others have to say, on the corporate level, on the manufacturing lines, and especially on the customer side, we can gain a better understanding of the vast health-care landscape and make decisions that are in the best interest of the company and our employees.
More specifically, I'd tell a newcomer that when an interesting opportunity presents itself, raise your hand! I'm an advocate of stepping outside of your comfort zone and taking opportunities or positions that may seem different or unusual; in my experience, that's when you learn the most. Each new opportunity and relocation pushed me to new perspectives and helped me to grow as a leader. Those are the moments that define you, teach you, and set you apart from others.
Q: You're active in a number of industry associations and university programs. Why do you feel that's important?
A: It is critical to spend part of your time outside of your own organization's walls. We do not exist in a vacuum. We're part of a vast—and constantly evolving—global health-care ecosystem, where the effects of even minor regulatory or process changes can reverberate throughout our operations.
That is why I'm proud to serve as chairman of the board of GS1 Global, an organization that sets and maintains global standards for the exchange of critical business data to ensure patient safety and supply chain efficiency. I also sit on the board of the National Association of Manufacturers in the U.S. and am on the advisory board of AWESOME. And I very much enjoy spending time with university students getting ready to embark on supply chain careers.
I see all of these activities as part of my responsibility as a leader to find and support the next generation of supply chain leaders. They are the ones who will usher in the next technology breakthroughs to meet the changing needs of a market that we can only imagine today.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.