Five suggestions for running a successful supply chain rotational program
Early talent development programs that rotate young professionals into different positions across the supply chain can provide valuable cross-functional skills. But participants do have advice on how to make the experience even better.
Many companies these days are looking for senior supply chain leaders who have a wide breadth of cross-functional experience and knowledge. To ensure that they are developing people with that type of talent, however, companies must make sure that they are exposing up-and-coming leaders to different parts of the supply chain.
Some companies have gone as far as creating formal rotational programs for high-potential supply chain professional. Typically these programs rotate participants through different positions every six to 18 months, exposing them to a variety of projects across the supply chain.
At the Institute for Supply Management (ISM) Annual Conference, a panel of five young professionals who had recently participated in such programs offered advice for making these programs as successful as possible.
Provide participants with detailed "onboarding documentation." Participants will need to get up-to-speed on their new roles quickly. Departments and functional areas will get the most of out of the participants' time, if they provide them with a document that lays out such things as best practices, key contacts, and systems that are used. If this is a position that is consistently filled by a rotational person, have that person keep this document up to date for the next person rotating in, recommends Anthony Garwood, who participated in Abbott Laboratories rotational program from 2012-2013. If there is not this type of consistency, create a document that will be applicable to multiple different roles and groups, he said.
Have a director or sponsor. Even if the participants will be reporting to the human resource department, it is important to have an executive sponsor for the program, said Elizabeth Richter, who is currently participating in contract manufacturer Flex's Supply Chain Leadership Program. She said that a director or sponsor will be able to establish what the benefits will be for the specific supply chain functional areas involved and what the long-term vision for the program is.
Make sure you have plans in place for hand-offs and transitions. Not every project that a rotational employee works on will be completed during the time allotted for it. It's important to think beforehand about how and to whom projects will be handed off, so that the work does not lose momentum.
Set expectations. To make sure that the program gets the right type of people for rotational positions, it is important to set expectations with them upfront, said the panelists. For example, let rotational employees know that they will need to be flexible and comfortable diving into a position that they may have little experience in. If the position involves moving or an international placement, this also needs to be made clear.
Additionally, the program needs to set expectations of what participants' career paths may look like after the program finishes, recommended Garwood. For example, rotational employees might not initially rise up the corporate ladder as quickly as if they would have if they had come out of school and specialized in one area. Instead after completing the program, they may find themselves in a job similar to what they would have gotten right out of school. Participants should be aware of this possibility and reassured that in the long term they will see benefits from participating in these cross-functional experiences.
Track the results. Just as with any other initiative, it's important to measure and track the results of the effort to make sure that it is truly successful. Jami Bliss, who went through a rotational program at HP and now works at pharmaceutical company GSK, is currently establishing such a system for the early talent program at GSK. According to Bliss, GSK will be tracking retention rates for participants three years after the program finishes. "We want to make sure [a rotational program] is the right thing to do and that we are doing it in the right way," she said.
The panel members all agreed that they valued their rotational program experience and found it provided them with valuable cross-functional experience and the confidence to embrace change and new positions quickly. They have been able to directly apply these skills to their roles post-program and as they become hiring managers, they find themselves looking for new hires who possess similar experiences.
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.