CSCMP'S roundtables are known for the excellent education programs and networking opportunities that they provide to volunteers and members globally. Yet little is known about the numerous charitable programs and projects they sponsor and the contributions these programs have made—and continue to make—to their communities.
In the United States, for example, the Dallas/Fort Worth Roundtable has collected useful items for new mothers for a large hospital in Dallas, and the Kansas City Heartland Roundtable has collected money to purchase teddy bears that local police officers can give to children who have been affected by crime or accidents.
Last December, the Arizona Roundtable, in conjunction with St. Mary's Food Bank Alliance and FedEx, sponsored a food drive aimed at feeding up to 40,000 people in the Phoenix area. The roundtable was responsible for delivering more than 8,200 pounds of food to the food bank.
In 2006, the Atlanta Roundtable raised nearly $3,000 in funds for victims of Hurricane Katrina. These contributions were inspired in part by the work of member Rob Nemchik, who is general manager of Porsche Logistics Services LLC, a wholly owned subsidiary of Porsche Cars North America. Nemchik was a speaker at the Atlanta Roundtable's February 2006 dinner meeting, and no one who attended could forget his impassioned plea to remember the victims of Hurricane Katrina. He also discussed his efforts to establish a private logistics supply chain that provided a nonprofit group in Pass Christian, Mississippi, with survival necessities immediately after the disaster.
Congratulations to our roundtables for jobs well done!
How does your supply chain measure up?
How do your supply chain processes compare to industry-leading practices? You can selfassess your company's supply chain skills by using CSCMP's Supply Chain Management Process Standards books. This series of six books identifies best practices in the areas of Plan, Source, Make, Deliver, Return, and Enable. The books are based on research conducted by the consulting firm Supply Chain Visions. Supply Chain Visions made more than 250 site visits to establish both minimum process standards and identify industry best practices.
These reference guides can help you identify process strengths and weaknesses. After performing this assessment exercise, you can then focus your attention on areas where improvement efforts will produce the most benefit.
Each individual book costs US $19.95 for CSCMP members, or US $99.95 for the complete set. To order the books, visit cscmp.org.
Recognize a life of service
Distinguished Service Award submission deadline extended to April 30
Do you have a colleague who exemplifies excellence and outstanding service to the development of the supply chain management (SCM) discipline? If so, nominate him or her for CSCMP's Distinguished Service Award (DSA), the highest honor for an individual's achievements in the supply chain profession.
To open the award up to more nominees, CSCMP has extended this year's submission deadline. Nominations will be accepted through Wednesday, April 30, 2008.
The DSA is given to an academic, consultant, or practitioner who exemplifies sustained, consistent, and excellent service to the supply chain management profession. The selected individual will have shown high integrity and moral principles throughout his or her professional career.
CSCMP's 2008 Distinguished Service Award Selection Committee will evaluate your nominee based on the following criteria:
distinguished record of contribution
recognition as a leader
recognition as an innovator
The nomination process includes submitting both a résumé and letters of recommendation for the nominee. If selected, your nominee would join the ranks of such supply chain luminaries as Michigan State University Professor Emeritus Donald J. Bowersox, Wal-Mart Chairman H. Lee Scott, Schneider Logistics Chairman Donald Schneider, and former Accenture Global Managing Partner William C. Copacino.
The DSA presentation will take place at CSCMP's Annual Global Conference 2008, to be held October 5?8, in Denver, Colorado, U.S.A. Visit cscmp.org for more information on how to nominate an outstanding candidate for CSCMP's 2008 Distinguished Service Award.
The word on warehousing
It's not every book that comes with an open invitation to contact the author. But that's precisely the commitment that Allan Howie has made in the workbook, Fundamentals of Warehousing, now available on CSCMP's web site (cscmp.org). Howie— who is also the director of continuing education and professional development for the Material Handling Industry of America—encourages readers to contact him directly with questions, comments, or suggestions for future editions.
Fundamentals of Warehousing covers the operations of a typical warehouse or distribution center. The book is divided into four sections that address the four main warehousing activities: 1) the movement of goods, 2) the storage of goods, 3) the control of goods, and 4) the protection of goods. Howie then explains the equipment, software, and fixtures needed to accomplish these activities. Readers will learn the reasons for having certain equipment available for warehouse personnel. Fundamentals of Warehousing also includes study questions at the conclusion of each chapter that reinforce the key concepts and test comprehension.
The Fundamentals of Warehousing workbook costs US $150 for CSCMP members and US $250 for nonmembers. Supplemental materials are available, and CSCMP is offering quantity discounts for nonprofit and educational institutions. To order the workbook, visit cscmp.org/marketing/feature-mar-08.asp.
Fundamentals of Warehousing is only one of the many books that members can purchase at a discounted rate on the CSCMP web site. Also available is the recently published book Start Pulling Your Chain! Leading Responsive Supply Chain Transformation, authored by Donald Bowersox and Nicholas LaHowchic. An excerpt of this book can be found on Page 72 of this issue. For details and order information on all of our publications, visit the CSCMP Store at cscmp.org.
New RFID research generates excitement
By Kathleen Hedland, CSCMP Director of Education and Research
The long line of people that stretched outside the warehouse on a cold January day looked like a crowd of customers ready to rush through opened doors to an incredible winter sale. In reality, they were there to attend a forum that was jointly sponsored by CSCMP and Volunteer Interindustry Commerce Solutions Association (VICS); the warehouse was actually the University of Arkansas's (UARK) Radio Frequency Identification (RFID) Lab. Once inside, they would be among the first to witness a hands-on demonstration of what could be one of the hottest trends to hit the apparel/footwear industry and beyond: item-level RFID.
The forum participants did not let the frigid temperatures deter their quest for the latest information on RFID for the retail industry. They were enthused and impressed by what they observed: a testing lab demonstrating the various types of readers that could be used in different applications, a sales-floor replica with varied products and merchandising scenarios, and exciting technology that can read passive tags placed on clothing and footwear from a distance of 50 feet (15 meters). During day two of the forum, these demonstrations were backed up by research presentations and real-world case studies from UARK's RFID Lab, Dillard's, American Apparel, and Wal-Mart.
The forum shared the results and implications of phase I and II of a collaboratively sponsored study, "Item-Level RFID: Future Direction—Current Status." The three-phase project took shape when VICS, a global supply chain organization dedicated to developing standard business guidelines, got word of the retail industry's interest in item-level tagging. VICS passed it along to CSCMP, Dillard's, and Procter & Gamble—all of which understood the potential of itemlevel tagging to improve managing, pricing, and locating inventory as well as offer other, far-reaching benefits. Subsequently, the University of Arkansas RFID Research Center was selected to conduct a feasibility study. CSCMP and VICS will publish and distribute the research results for phase I and II, which involved testing the feasibility of item-level tagging for apparel and footwear in laboratory and real-life applications.
The study marked a first for CSCMP, which traditionally has not been involved in retail-industry research. But our organization saw an opportunity to collaboratively sponsor supply chain research that would benefit a large industry segment and the customers it serves.
Participants are now turning to phase III of the study, which will focus on measuring the return on investment for item-level RFID tagging.
Be good to the earth
When the world's largest retailer starts asking its suppliers to cut down on packaging waste and produce more environmentally friendly products, it sends a clear signal: "Green" supply chain management is no longer a fringe issue, it's becoming a front-and-center concern.
If you need more information about how to incorporate environmentally responsible practices into your supply chain, we can help. CSCMP is joining forces with the Warehousing Education and Research Council (WERC) and the International Warehouse Logistics Association (IWLA) to create a conference that will shed some light on this topic.
On June 9 and 10 in Sacramento, California, U.S.A., "Greening the Supply Chain" will bring together government regulators, supply chain service providers, and practitioners to share practical knowledge and investigate possible solutions for building sustainable supply chains. The conference incorporates both educational sessions and a technology showcase. Speakers will address important questions such as: Where can you find green solutions? How do you integrate green into your operations? Can going green actually produce a profit? What environmental regulations do you need to be aware of?
For more information about the "Greening the Supply Chain" conference and technology exhibits, visit www.greeningthesupplychain.com.
Your facility, our faculty
Didn't make it to the Annual Global Conference in Philadelphia last year? Missed one of our other industry-leading events? Don't forget that CSCMP can come to you!
CSCMP On-Site Education offers professional development workshops hosted by top subject-matter experts from CSCMP's global database of 9,000 members, right in your place of business. On-Site Education workshop topics can be tailored for your industry, supply chain function, or specific issues facing your company.
Courses available include:
Fundamentals of Supply Chain Management: An introductory workshop covering the tactical aspects of supply chain operations
Executive Issues of Supply Chain Management: A seminar that looks at the strategic aspects of supply chain planning and management
Global Supply Chain Management: An introductory workshop that focuses on supply chain planning and execution in a global environment
Supply Chain Management Collaboration: An interactive program that defines meaningful collaboration and details how and why such relationships can be created
Relationships Management: An introductory course that covers the basic concepts underlying all relationships, with specific attention to collaboration
Application of Balanced Scorecard: A seminar that teaches how to develop and implement a balanced scorecard
Activity-Based Costing for Supply Chain Management: An interactive seminar that addresses the basic concepts underlying activity-based costing, with a specific focus on the procedures for assigning costs to activities, products, and services
For information, contact Kathleen Hedland, Director of Education and Research, by sending an e-mail to
or by calling +1 630.645.3463.
Two new workshops announced
CSCMP continues to expand its educational offerings with two new seminars: Performance-Based Logistics for Outsourced Supply Chain Operations and a Process Standards Workshop.
It's a fact that a supply chain that is well aligned with its suppliers, trading partners, and transportation providers will be more productive. The Performance-Based Logistics (PBL) program will outline a new approach that can help improve traditional outsourcing relationships by making suppliers accountable. PBL "buys" outcomes—not individual parts or service transactions— which are outlined in typical third-party logistics (3PL) contracts. The Department of Defense, for one, believes that this approach is the wave of the future and has recently adopted it for managing its logistics service providers.
In this seminar, instructors Kate Vitasek, managing partner of the consulting firm Supply Chain Visions, and Karl Manrodt, associate professor at Georgia Southern University, will outline the steps for implementing PBL with suppliers and partners. The program will be held twice at CSCMP's offices in Lombard, Illinois, on May 19, 2008, and Aug. 13, 2008. The cost for CSCMP members is US $450.
The new Process Standards Workshop is based on CSCMP's Supply Chain Management Process Standards books, which help readers selfassess their internal processes, define minimum performance expectations, and enable process benchmarking. The course will provide a structured approach for assessing supply chain improvement opportunities and a framework for evaluating the initiatives. This process will help participants eliminate wasted time and money by identifying potential gaps in their processes. Each participant will receive the full set of Process Standards books.
Supply Chain Visions consultants Kate Vitasek and Mike Ledyard will run the program, which will be offered May 8?9, 2008, and August 14?15, 2008, in Lombard, Illinois. CSCMP members can take the course for the discounted rate of US $650.
Companies in every sector are converting assets from fossil fuel to electric power in their push to reach net-zero energy targets and to reduce costs along the way, but to truly accelerate those efforts, they also need to improve electric energy efficiency, according to a study from technology consulting firm ABI Research.
In fact, boosting that efficiency could contribute fully 25% of the emissions reductions needed to reach net zero. And the pursuit of that goal will drive aggregated global investments in energy efficiency technologies to grow from $106 Billion in 2024 to $153 Billion in 2030, ABI said today in a report titled “The Role of Energy Efficiency in Reaching Net Zero Targets for Enterprises and Industries.”
ABI’s report divided the range of energy-efficiency-enhancing technologies and equipment into three industrial categories:
Commercial Buildings – Network Lighting Control (NLC) and occupancy sensing for automated lighting and heating; Artificial Intelligence (AI)-based energy management; heat-pumps and energy-efficient HVAC equipment; insulation technologies
Manufacturing Plants – Energy digital twins, factory automation, manufacturing process design and optimization software (PLM, MES, simulation); Electric Arc Furnaces (EAFs); energy efficient electric motors (compressors, fans, pumps)
“Both the International Energy Agency (IEA) and the United Nations Climate Change Conference (COP) continue to insist on the importance of energy efficiency,” Dominique Bonte, VP of End Markets and Verticals at ABI Research, said in a release. “At COP 29 in Dubai, it was agreed to commit to collectively double the global average annual rate of energy efficiency improvements from around 2% to over 4% every year until 2030, following recommendations from the IEA. This complements the EU’s Energy Efficiency First (EE1) Framework and the U.S. 2022 Inflation Reduction Act in which US$86 billion was earmarked for energy efficiency actions.”
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain.”
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
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.”
Freight transportation providers and maritime port operators are bracing for rough business impacts if the incoming Trump Administration follows through on its pledge to impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China, analysts say.
Industry contacts say they fear that such heavy fees could prompt importers to “pull forward” a massive surge of goods before the new administration is seated on January 20, and then quickly cut back again once the hefty new fees are instituted, according to a report from TD Cowen.
As a measure of the potential economic impact of that uncertain scenario, transport company stocks were mostly trading down yesterday following Donald Trump’s social media post on Monday night announcing the proposed new policy, TD Cowen said in a note to investors.
But an alternative impact of the tariff jump could be that it doesn’t happen at all, but is merely a threat intended to force other nations to the table to strike new deals on trade, immigration, or drug smuggling. “Trump is perfectly comfortable being a policy paradox and pushing competing policies (and people); this ‘chaos premium’ only increases his leverage in negotiations,” the firm said.
However, if that truly is the new administration’s strategy, it could backfire by sparking a tit-for-tat trade war that includes retaliatory tariffs by other countries on U.S. exports, other analysts said. “The additional tariffs on China that the incoming US administration plans to impose will add to restrictions on China-made products, driving up their prices and fueling an already-under-way surge in efforts to beat the tariffs by importing products before the inauguration,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management solutions at Moody’s, said in a statement. “The Mexico and Canada tariffs may be an invitation to negotiations with the U.S. on immigration and other issues. If implemented, they would also be challenging to maintain, because the two nations can threaten the U.S. with significant retaliation and because of a likely pressure from the American business community that would be greatly affected by the costs and supply chain obstacles resulting from the tariffs.”
New tariffs could also damage sensitive supply chains by triggering unintended consequences, according to a report by Matt Lekstutis, Director at Efficio, a global procurement and supply chain procurement consultancy. “While ultimate tariff policy will likely be implemented to achieve specific US re-industrialization and other political objectives, the responses of various nations, companies and trading partners is not easily predicted and companies that even have little or no exposure to Mexico, China or Canada could be impacted. New tariffs may disrupt supply chains dependent on just in time deliveries as they adjust to new trade flows. This could affect all industries dependent on distribution and logistics providers and result in supply shortages,” Lekstutis said.