Editor's Note: One thing that makes the Council of Supply Chain Management Professionals (CSCMP) unique as an industry association is how it fosters collaboration and cross-fertilization between practitioners and academics. This aspect has been there since the very beginning in 1963, with members from both communities coming together to form what was then known as the National Council of Physical Distribution Management. And this trait continues into the present day as evidenced by the strong showing at the 2016 Educators Conference, which was attended by many practitioners as well as academics.
The following comments, adapted from a speech made by Conference Chair Susan Golicic, reflect on this crucial connection and how it has evolved over the years. Golicic is the director of the Supply Chain Forum and associate professor of management at Colorado State University.
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I'd like to talk about how CSCMP embodies two concepts - evolution and integration. Over the years, CSCMP has evolved from a focus on transportation to a focus on logistics, broadening further to encompass the entirety of the supply chain. At the same time, the organization has shifted to serve a greater diversity of academics and managers who not only reflect the heritage of the original organization but also represent additional areas of importance within supply chain management such as operations and purchasing.
The Educators' Conference has also continued to evolve in new ways each year to offer groundbreaking academic advances in the various supply chain disciplines. Research tracks have been created to highlight the various disciplines and allow attendees to choose presentations most interesting or pertinent to them.
This year's conference showcased some of the most significant supply chain management research that has been undertaken in the world during the past year. This research is vital to all of us. It is important to academics because it helps them evolve in their mission of creating and disseminating exciting new knowledge, not only to the next generation of supply chain leaders but also to the business community. Research is also critical to supply chain management practitioners because it helps them better understand how their actions impact their organizations' performance. When research seeks to answer meaningful questions, it enables practitioners to continue to evolve their strategies so that they can seamlessly execute their business processes and ensure the continued competitiveness of their organizations.
Supply chain management is also about integration—the integration of companies, the integration of processes, and the integration of disciplines such as purchasing, operations, and logistics into a comprehensive whole. World-class companies are successful because of their ability to integrate across these areas. Therefore, while continuing to highlight discipline-focused research, this year's Educators' Conference also showcased integration. Presentations focused on managing the supply chain as a whole and integrating the various disciplines and processes.
This concept of integration was not just highlighted in the research presentations, however. It was also evident in the Conference's welcoming community comprised of supply chain professionals who are interested in learning from one another and helping fellow colleagues succeed.
At CSCMP's Educators' Conference, you are able to network not only with academic colleagues but also with practitioners—the business people you may want to connect with when you have questions about how something works in the "real world" or when you need a contact for company data to test your ideas. These business people are also outstanding resources for students—whether they speak in classes or provide guidance for their job searches and career development. I have been fortunate to form these connections as well while attending the Annual Global Conference in many of my years associated with CSCMP.
The CSCMP practitioner membership is extremely supportive of working with their academic counterparts. I hope that if you haven't already, you will become a regular participant of the Educators' Conference in the future and share in all of the benefits the conference and organization have to offer. This conference purposefully precedes the CSCMP Annual Global Conference, the supply chain practitioner's premier event. This offers us the unique opportunity to first learn from other academics, and then to learn from and share with supply chain managers, executives, consultants, and service providers from all over the world.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.
Anthropic’s “Claude” family of AI assistant models is available on AWS’s Amazon Bedrock, which is a cloud-based managed service that lets companies build specialized generative AI applications by choosing from an array of foundation models (FMs) developed by AI providers like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon itself.
According to Amazon, tens of thousands of customers, from startups to enterprises and government institutions, are currently running their generative AI workloads using Anthropic’s models in the AWS cloud. Those GenAI tools are powering tasks such as customer service chatbots, coding assistants, translation applications, drug discovery, engineering design, and complex business processes.
"The response from AWS customers who are developing generative AI applications powered by Anthropic in Amazon Bedrock has been remarkable," Matt Garman, AWS CEO, said in a release. "By continuing to deploy Anthropic models in Amazon Bedrock and collaborating with Anthropic on the development of our custom Trainium chips, we’ll keep pushing the boundaries of what customers can achieve with generative AI technologies. We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration."
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."
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.