Living—and leading—in interesting times: interview with Mark Baxa
Mark Baxa has taken the reins of the Council of Supply Chain Management Professionals. Now, he faces the ultimate leadership challenge: helping members navigate a world in which the old rules no longer apply.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Mark Baxa has been a leader in supply chain throughout his career, so he was a natural choice to lead one of the industry’s most respected organizations—the Council of Supply Chain Management Professionals, or CSCMP.
Baxa assumed the role of interim president and CEO in March of this year upon the retirement of long-time CEO Rick Blasgen. His ascension comes at a critical time for the organization and for the industry as a whole, as it emerges from a pandemic into a market where demand for logistics services far outstrips available capacity.
Baxa brings many years of experience to the role, having been a member of CSCMP since 1998 and having served as chairman of the association’s board. In his day job, he is the founder, president, and CEO of FerniaCreek LLC, a global supply chain consulting group based in St. Louis and Jefferson City, Missouri. Prior to beginning his consultancy, Baxa worked for 37 years across the Upjohn, Empresas La Moderna, and Monsanto/Bayer companies, where he served in leadership roles in product management, logistics, global trade operations and compliance, strategic sourcing, supplier relationship management, supplier diversity, and sustainability.
Baxa recently spoke to DC Velocity Group Editorial Director David Maloney about his role at CSCMP, the state of the industry, and the organization’s initiatives as the world continues to emerge from the pandemic.
Q: How would you describe your current role at CSCMP?
A: My number-one job is to carry out the mission of the organization. My first and foremost priority is providing value to our members and ensuring that we continue to add the right kind of programming and educational content to help supply chain professionals develop in their current roles and throughout their careers. That is the primary mission of CSCMP. Everyone here—the leadership team, the staff, and our volunteers—is focused on that.
The second priority is to focus on the sustainability and viability of CSCMP. We are a very strong organization from the standpoint of the mission at hand and the organization’s appeal to our members. In fact, our membership continues to increase daily. We’ve made a commitment to those members to provide the best content, information, and networking opportunities we can. But it takes investment to do the things we do, so our challenge is to make sure we not only produce the best content but also price it fairly and equitably for the marketplace.
Q: What do you see as the role of CSCMP within the supply chain world?
A: We’ve long been focused on the importance of strong supply chain leadership and the value supply chain professionals can bring to the companies they work for. So I see our role as enabling those supply chain professionals to do even more than they can today through our product offerings and educational opportunities.
We also connect professionals with professionals. This is across academia as well as industry practitioners. People want to know how things work when they consider alternative solutions to their problems. They want to interact with others who have been there before. The author John Maxwell said it best: “If you want to know what is on the road ahead, ask somebody on the way back.”
In our organization, with over 9,000 members and growing, there are many opportunities for people to connect with each other, whether it’s at the annual EDGE conference, a simple referral from our office to others, or through our local roundtables, which host many events throughout the year. CSCMP provides educational and networking access to supply chain professionals around the world.
Q: What is the organization planning for the coming year?
A: We have new products that are in play right now as well as some that we’re currently developing and will roll out throughout the year. We never stop inventing or creating new ways to talk about innovative practices in supply chain, helping supply chain professionals understand the bottlenecks that occur and possible ways to alleviate them. We are continually upgrading our existing content, such as our webcasts and Quick Courses.
Q: The pandemic put a spotlight on the value of supply chain. What challenges does the industry face now?
A: We are certainly in a place where we face significant complexity but also the opportunity to innovate. Let’s go back a couple of years prior to the onset of Covid, when the geopolitical shift became problematic for many supply chains around the world. The resulting disrupters, such as new tariffs, affected companies that sourced goods in China. Then along came a pandemic that exposed both the need for redundancy and for better supply chain resiliency planning.
As the economy rebounds, we are finding that everybody is faced with a challenge of one kind or another, be it e-commerce or manufacturing. The ability to move raw materials and finished goods is seriously constrained by a shortage of transportation capacity, not just in the U.S. but worldwide.
We are also seeing a talent shift. People are moving from one company to another, seeking new opportunities. The demand for supply chain professionals has never been greater. That will probably continue in perpetuity.
The other part is the redesign of networks. Supply chains got a rude awakening when they realized that not only could their suppliers not supply the raw materials they needed, but also that those suppliers had issues with their own suppliers. We simply didn’t know enough about the risks involved in those supply chains and the consequences should something happen. Sourcing and procurement professionals have to find a different way of gaining insights and visibility into their suppliers’ extended supply chains.
Q: What advice are you giving your members as we emerge from the pandemic?
A: I wouldn’t say that we give direct advice; we come at it from more of a consultancy perspective. What we are doing to support members throughout all of this is to offer them access to all of our resources and the products we have developed so they can enhance their knowledge of supply chain best practices. The hope is that they can translate that knowledge into actions they can take to help solve problems for their companies.
Q: Obviously, there is a lot of change taking place right now in the supply chain—both in terms of adjusting to pandemic-fueled disruptions and also looking toward the future. How do you as an industry association help your members adapt to an uncertain environment?
A: It is through conversation. It is listening to their concerns and connecting them with individuals they can network with and giving them access to our content to help them solve their problems.
That includes connecting them with our partners who work with us—our sponsors as well as our exhibitors, in the case of the Supply Chain Exchange at the upcoming EDGE conference. We want to connect executives with companies that can offer them solutions to their supply chain challenges.
Q: The upcoming EDGE conference will be one of the first live events in the industry since the pandemic began. What can attendees expect from this year’s event?
A: We are all very excited about returning to a live event because we, as supply chain professionals, really, really enjoy coming together to connect, exchange ideas and best practices, and validate what we’ve all been experiencing in the two years since we last came together in Anaheim. I am excited to see that happen.
In terms of the event itself, we are going to bring the very best practitioners and academics to the conference, just as we always have. I think you’re going to be really pleased when you see who we’re bringing in this year as track speakers and keynote speakers. I also couldn’t be more excited with who is going to be exhibiting at the Supply Chain Exchange. You’ve got to be there to see it.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."