Here's our roundup of events at the Council of Supply Chain Management Professionals' annual CSCMP EDGE 2019 conference held in September in Anaheim, California.
Rick Blasgen, CSCMP's president and chief executive officer, speaks during the opening session at EDGE on Monday, September 16 keynote. Photo courtesy of Tessa Schutz from Kranbox Video & Photography.
With its focus on cutting-edge technologies, leadership development, and industry disruptors, the Council of Supply Chain Management Professionals' annual conference lived up to its new name: CSCMP EDGE. Attendees at the event, held in Anaheim, California, USA, in September, represented 39 countries and all facets of the supply chain. They came both to gain a glimpse of the future of the discipline and to find solutions that they could implement today. For as CSCMP President and CEO Rick Blasgen (at right) said, "Being a supply chain professional means having half of your brain on the future and half on routing freight."
While there, attendees enjoyed three days of educational seminars, the annual Academic Research Symposium, site visits, networking receptions, and the Supply Chain Exchange exposition, which showcased supply chain technologies, equipment, and services.
Not able to attend the conference this year or unable to sample everything that was offered? This roundup will help you fill in some of the gaps. (More articles and videos from the conference can be found at www.supplychainquarterly.com.)
CSCMP presents 2019 awards for excellence
Every year at its annual conference CSCMP honors individuals and organizations that are helping to push the supply chain discipline to new heights. The following are some of the recognitions given out this year.
The 2019 Distinguished Service Award was presented to Kathy Wengel, executive vice president and chief global supply chain officer at healthcare company Johnson & Johnson.
The 2019 inductees into CSCMP's Supply Chain Hall of Fame were Wengel; James Casey, founder and former chairman of UPS; Elizabeth Dole, politician, author, and the first woman appointed U.S. Secretary of Transportation; Eliyahu Goldratt, author, philosopher, and business leader who developed a management paradigm called "the theory of constraints"; and George Raymond Sr., inventor of the wooden pallet and pallet jack.
Anahi Arzaof consumer goods company Unilever and Parker Holcomb of the freight brokerage company CoLanereceived the 2019 Emerging Leader Award for outstanding supply chain professionals age 35 and under.
Maximilian Merathof theUniversity of Mannheim, Germany,won the Doctoral Dissertation Award for his paper"Decision Making in Supply Risk and Supply Disruption Management."
The Bernard J. La Londe Best Paper Award was given to Matthew A. Schwieterman, Thomas J. Goldsby, and Keely L. Croxton for "Customer and Supplier Portfolios: Can Credit Risks be Managed Through Supply Chain Relationships?"
Alex Scott of Michigan State University, Andrew Balthrop of University of Arkansas, and Jason Miller of Michigan State Universityreceived the E. Grosvenor Plowman Award for their research paper, "Did the Electronic Logging Device Mandate Reduce Accidents?"
The 2019 Teaching Innovation Award was presented to Stephen Rutner of Texas Tech University, Rebecca Scott of the University of North Carolina-Wilmington, and JefferyHarper of Texas Tech University for their submission entitled: "Revisiting Promoting the Value of Supply Chain Management to Future Business Leader."
CSCMP session sampler
With three keynote presentations and over 100 educational sessions, CSCMP EDGE 2019 attendees had a wide variety of educational opportunities to choose from. Here are highlights of just a few that sparked interest at the conference.
Retrain your brain. The more successful you are, the harder it can be to innovate. The problem, according to innovation expert Jeremy Gutsche, is that "everyone wants to innovate, but most people don't want to break from the proven path." Gutsche, chief executive officer of Trend Hunter, used an arsenal of humorous stories and personal anecdotes during the opening keynote session to explore what holds companies back from innovating and what they can do to overcome these traps.
Part of the reason for the resistance to change is neurological, says Gutsche. That's because the more expertise and experience you have doing something, the more your brain becomes hardwired into thinking that's the only way to do it. It becomes harder to force yourself to break old habits and offer new products, services, or processes.
Large established companies are not, however, doomed to failure. "Innovation is not fluffy," Gutsche says. "It is a science. You can retrain your brain."
The importance of culture. They don't teach anthropology in supply chain programs, but maybe they should. When it comes to effectively operating a global supply chain with partners all of the world, the ability to understand and navigate different cultures can make or break you.
"Culture works hand in hand with trade," explained John Vogt, president of WWBC LLC, an independent consulting firm focused on strategy and global leadership. Vogt moderated a panel discussion where supply chain and operations executives provided tips and tricks for working with supply chain partners from different countries and navigating the inevitable cultural gaffe.
The biggest challenge, agreed the panelists, was effective communications. So much can be lost in translation through written communications and even in phone calls. Darrell Evans, senior vice president and chief supply chain officer for La-Z-Boy, recommends using video conferencing or physical visits for important issues so that body and facial language can be read.
10 steps to automate your warehouse. The path from a nonautomated warehouse to an automated one is not easy, fast, or cheap, says Wes Whalberg, director of supply chain engineering at Best Buy. Companies should consider the benefits, however, when asking the question "Why automate?" These can include labor savings, creating room for potential growth, and space and networking savings, he said. Whalberg detailed the 10-step program his company followed and the lessons learned from automating its distribution network. For companies considering the investment into their supply chain capabilities, consider following these steps:
Define "the burning platform"—What is the problem you are going to solve for the company?
Build a coalition—Recruit a broad set of executives who all share the same problem and are willing to help with the transformation.
Get outside help—Acquire funding for a consultant.
Look for a solution—The consultant will send out a request for proposal (RFP) to integrators. Select an integrator;
Acquire funding—Make sure to include facility readiness costs (such as power and physical changes to the building), IT investments, additional consulting support, and contingency plans into your funding request.
Document initial design and specifications—Make any needed changes to the original RFP and create the initial design.
Make final engineering changes—Lock down the layout of your system and submit building permit plans.
Begin construction—Make sure to consider how the general contractor and systems integrator will work together.
Go live—Expect to find unforeseen issues and software defects in your first initial runs.
Review how things are running—Give your company about a year to identify and take advantage of second-order benefits and mitigate second-order impacts.
New CSCMP board members begin their terms
CSCMP EDGE also marked the start of the 2019-2020 term for the association's board of directors. The following members officially took office at CSCMP's annual meeting, which was held during the conference:
Board of Directors Chair: Michelle Meyer, SCPro client executive of supply chain, at Gartner
Immediate Past Chair: Mark S. Baxa, president and chief executive officer, at FerniaCreek LLC
Board Chair-Elect: Brian Gibson, Wilson Family Professor of Supply Chain Management, Auburn University
Board Vice Chair: Lee Beard, senior director of global transportation, Nike
Secretary/Treasurer: Paul R. Brown, IBP business process owner, Americas, at Akzo Nobel N.V.
The CSCMP Board of Directors is responsible for voting on the mission, vision, and goals of CSCMP on an annual basis and helping the organization understand the needs and wants of its members.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
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).
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.”
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.
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."