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 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.