If you have used CSCMP?s Supply Chain Management Process Standards handbook in the past, then you know that it can be a valuable tool for improving core processes and overall performance.
To make that tool even better, CSCMP has revamped the Standards in a second edition that merges its structure with the APQC Process Classification Framework (PCF). APQC is a nonprofit that helps organizations benchmark and improve their processes and performance. Its Process Classification Framework is a high-level, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint.
The first edition of CSCMP?s Standards provided a comprehensive reference guide for logistics and supply chain processes. By revising the standards to work in conjunction with the PCF, the second edition enables companies to perform even better supply chain benchmarking.
The revised standards address the growing need for supply chain professionals to determine which processes and attributes are essential to their industries and competitive strategies. The handbook helps supply chain professionals focus their energies on achieving best practices in these processes while maintaining minimum standards in other areas.
It?s important to identify potential gaps across a broad spectrum of your supply chain processes as well as to recognize where your strengths and weaknesses lie. The Standards handbook allows you to focus attention on those areas where improvement efforts drive the most benefit. It also helps you share and compare (with discretion) these results with other organizations in your supply chain to improve overall effectiveness.
The second edition of CSCMP?s Supply Chain Management Process Standards, written by the consulting firm Supply Chain Visions, costs US $99.95 for members and US $139.95 for nonmembers. It can be purchased in the ?Bookstore? section of CSCMP?s website.
New! Updated Process Standards Workshop
In tandem with publishing a revised version of its Supply Chain Management Process Standards handbook, CSCMP is launching a two-day workshop: ?The New Process Standards: Assess. Implement. Improve.? The next workshop is scheduled for November 16-17, 2009, in Lombard, Illinois, USA.
Hot off the press: The Handbook of Supply Chain Costing
Supply chain management offers great potential to increase performance and reduce costs. But despite making major strides in integrating their supply chains, executives have achieved just a fraction of the potential savings available. Supply chain costing can provide the next big breakthrough that will help companies achieve a higher level of value creation.
CSCMP?s new book, The Handbook of Supply Chain Costing, was developed to assist supply chain executives in expanding their visibility and management of cost information. Written by Terrance L. Pohlen and Thomas P. Klammer of the University of North Texas and Gary Cokins of SAS Institute, the book says that to achieve the full potential of supply chain management, executives require a much broader view of costs than is available through their existing cost management systems. They need to improve their internal cost information and extend their ?line of sight? to include their trading partners? costs—both upstream and downstream.
This argument is supported by research on more than 20 companies representing a wide range of industries. Recognized as leaders in supply chain management, cost management and control, and collaboration, all of these firms had a clear vision of what they sought to achieve, yet none had fully completed the process. The book uses their journeys as a roadmap for others.
Drawing from this research, the authors provide a foundation for conducting supply chain costing and address issues common to all supply chains and costing efforts. The book then helps supply chain professionals tailor the process to their own circumstances and costing needs.
The Handbook of Supply Chain Costing can be purchased in CSCMP?s Bookstore for US $79.95 for members and US $109.95 for nonmembers.
CSCMP webinars offer affordable education
When times are tough, travel budgets often suffer. But that?s no reason to put your professional education on hold. CSCMP is continuing to develop a full slate of webinars that address pressing industry problems and trends, which you can attend for a fraction of the cost of most executive education courses or conferences.
The sessions may be virtual, but attendees won?t completely lose the give-and-take that makes in-person events so valuable. Because the webinars are broadcast live, you?ll have the opportunity to pose questions and offer comments just as you would during a traditional seminar.
Each of these virtual presentations has met CSCMP?s rigorous educational standards, so quality is guaranteed. For the next scheduled webinar, Bill Hardgrave of the University of Arkansas will examine how to deploy RFID to solve business problems and receive a payback on that investment. The virtual presentation will occur on November 18, 2009, at 11:00 am CST. Click here for more information.
You?ve read their words, now hear them speak ...
You now have the opportunity to hear some of the authors of Supply Chain Quarterly articles discuss their thought-leading research and ideas. On October 8, CSCMP?s Supply Chain Quarterly will post video interviews with the authors of some of its best-read articles. Filmed on location at the CSCMP Annual Global Conference in Chicago, the videos will feature presenters from the ?Highlights of Supply Chain Quarterly? track:
Chuck Taylor of Awake! Consulting on how companies should prepare for the next round of oil price hikes;
Stephen Cain of Groenewout Consultants & Engineers on multilayered distribution in Europe;
Ted Schaefer of Profit Point on how to manage the twin goals of profitability and sustainability;
Douglas Lambert of The Ohio State University on how you can determine which of your customers are most profitable;
Brad Sampson of XCD Performance Consulting on when in-sourcing is the right decision for a company; and
Joseph Martha of Booz Allen Hamilton on how to determine a supply chain?s carbon footprint.
To view the video interviews, visit our Video section starting on October 8.
A hefty 42% of procurement leaders say the biggest threat to their future success is supply disruptions—such as natural disasters and transportation issues—a Gartner survey shows.
The survey, conducted from June through July 2024 among 258 sourcing and procurement leaders, was designed to help chief procurement officers (CPOs) understand and prioritize the most significant risks that could impede procurement operations, and what actions can be taken to manage them effectively.
"CPOs’ concerns about supply disruptions reflect the often unpredictable nature and potentially existential impacts of these events," Andrea Greenwald, Senior Director Analyst in Gartner’s Supply Chain practice, said in a release. "They are coming to understand that the reactive measures they have employed to manage risks over the past four years will not be sufficient for the next four.”
Following supply disruptions at #1, the survey showed that the second biggest threat to procurement is seen as macroeconomic factors, which include economic downturns, inflation, and other economic factors. While more predictable, those variables can substantially influence long-term procurement strategies.
And the third-most serious perceived risk was geopolitical issues, including tariffs and regulatory changes, and compliance issues, including regulatory and contractual risks.
In addition, the survey also revealed that “leading organizations” are 2.2 times more likely to view energy availability and cost as a top risk; indicating a focus on future emerging risks. As electrification drives demand for power, brittle grid infrastructure raises concern about whether the energy supply can keep pace. Therefore, leading organizations recognize that access to energy will become a significant future risk.
The market for environmentally friendly logistics services is expected to grow by nearly 8% between now and 2033, reaching a value of $2.8 billion, according to research from Custom Market Insights (CMI), released earlier this year.
The “green logistics services market” encompasses environmentally sustainable logistics practices aimed at reducing carbon emissions, minimizing waste, and improving energy efficiency throughout the supply chain, according to CMI. The market involves the use of eco-friendly transportation methods—such as electric and hybrid vehicles—as well as renewable energy-powered warehouses, and advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI) for optimizing logistics operations.
“Key components include transportation, warehousing, freight management, and supply chain solutions designed to meet regulatory standards and consumer demand for sustainability,” according to the report. “The market is driven by corporate social responsibility, technological advancements, and the increasing emphasis on achieving carbon neutrality in logistics operations.”
Major industry players include DHL Supply Chain, UPS, FedEx Corp., CEVA Logistics, XPO Logistics, Inc., and others focused on developing more sustainable logistics operations, according to the report.
The research measures the current market value of green logistics services at $1.4 billion, which is projected to rise at a compound annual growth rate (CAGR) of 7.8% through 2033.
The report highlights six underlying factors driving growth:
Regulatory Compliance: Governments worldwide are enforcing stricter environmental regulations, compelling companies to adopt green logistics practices to reduce carbon emissions and meet legal requirements.
Technological Advancements: Innovations in technology, such as IoT, AI, and blockchain, enhance the efficiency and sustainability of logistics operations. These technologies enable better tracking, optimization, and reduced energy consumption.
Consumer Demand for Sustainability: Increasing consumer awareness and preference for eco-friendly products drive companies to implement green logistics to align with market expectations and enhance their brand image.
Corporate Social Responsibility (CSR): Companies are prioritizing sustainability in their CSR strategies, leading to investments in green logistics solutions to reduce environmental impact and fulfill stakeholder expectations.
Expansion into Emerging Markets: There is significant potential for growth in emerging markets where the adoption of green logistics practices is still developing. Companies can capitalize on this by introducing sustainable solutions and technologies.
Development of Renewable Energy Solutions: Investing in renewable energy sources, such as solar-powered warehouses and electric vehicle fleets, presents an opportunity for companies to reduce operational costs and enhance sustainability, driving further market growth.
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Peter Weill of MIT tells the audience at the IFS Unleashed user conference about the benefits of being a "real-time business."
These "real-time businesses," according to Weill, use trusted, real-time data to enable people and systems to make real-time decisions. By adopting that strategy, these companies gain three major capabilities:
Increased business agility without needing a change management program to implement it;
Seamless digital customer journeys via self-service, automated, or assisted multiproduct, multichannel experiences; and
Thoughtful employee experiences enabled by technology empowered teams.
The benefits of this real-time focus are significant, according to Weill. In a study with Insight Partners, he found that those companies that were best-in-class at implementing automated processes and real-time decision-making had more than 50% higher revenue growth and net margins than their peers.
Nor is adopting a real-time data stance restricted to just digital or tech-native businesses. Rather, Weill said that it can produce successful results for any companies that can apply the approach better than their immediate competitors.
Weill's remarks came today during a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI" at at the “IFS Unleashed” show in Orlando, Florida.
For example, millions of residents and workers in the Tampa region have now left their homes and jobs, heeding increasingly dire evacuation warnings from state officials. They’re fleeing the estimated 10 to 20 feet of storm surge that is forecast to swamp the area, due to Hurricane Milton’s status as the strongest hurricane in the Gulf since Rita in 2005, the fifth-strongest Atlantic hurricane based on pressure, and the sixth-strongest Atlantic hurricane based on its peak winds, according to market data provider Industrial Info Resources.
Between that mass migration and the storm’s effect on buildings and infrastructure, supply chain impacts could hit the energy logistics and agriculture sectors particularly hard, according to a report from Everstream Analytics.
The Tampa Bay metro area is the most vulnerable area, with the potential for storm surge to halt port operations, roads, rails, air travel, and business operations – possibly for an extended period of time. In contrast to those “severe to potentially catastrophic” effects, key supply chain hubs outside of the core zone of impact—including the Miami metro area along with Jacksonville, FL and Savannah, GA—could also be impacted but to a more moderate level, such as slowdowns in port operations and air cargo, Everstream Analytics’ Chief Meteorologist Jon Davis said in a report.
Although it was recently downgraded from a Category 5 to Category 4 storm, Milton is anticipated to have major disruptions for transportation, in large part because it will strike an “already fragile supply chain environment” that is still reeling from the fury of Hurricane Helene less than two weeks ago and the ILA port strike that ended just five days ago and crippled ports along the East and Gulf Coasts, a report from Project44 said.
The storm will also affect supply chain operations at sea, since approximately 74 container vessels are located near the storm and may experience delays as they await safe entry into major ports. Vessels already at the ports may face delays departing as they wait for storm conditions to clear, Project44 said.
On land, Florida will likely also face impacts in the Last Mile delivery industry as roads become difficult to navigate and workers evacuate for safety.
Likewise, freight rail networks are also shifting engines, cars, and shipments out of the path of the storm as the industry continues “adapting to a world shaped by climate change,” the Association of American Railroads (AAR) said. Before floods arrive, railroads may relocate locomotives, elevate track infrastructure, and remove sensitive electronic equipment such as sensors, signals and switches. However, forceful water can move a bridge from its support beams or destabilize it by unearthing the supporting soil, so in certain conditions, railroads may park rail cars full of heavy materials — like rocks and ballast — on a bridge before a flood to weigh it down, AAR said.
Imports at the nation’s major container ports should continue at elevated levels this month despite the strike, the groups said in their Global Port Tracker report.
To be sure, the strike wasn’t without impacts. NRF found that retailers who brought in cargo early or shifted delivery to the West Coast face added warehousing and transportation costs. But the overall effect of the three-day work stoppage on national economic trends will be fairly muted.
“It was a huge relief for retailers, their customers and the nation’s economy that the strike was short lived,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a release. “It will take the affected ports a couple of weeks to recover, but we can rest assured that all ports across the country will be working hard to meet demand, and no impact on the holiday shopping season is expected.”
Looking at next steps, NRF said the focus now is on bringing the International Longshoremen’s Association (ILA)—the union representing some 45,000 workers—and the United States Maritime Alliance Ltd. (USMX) back to the bargaining table. “The priority now is for both parties to negotiate in good faith and reach a long-term contract before the short-term extension ends in mid-January. We don’t want to face a disruption like this all over again,” Gold said.
By the numbers, the report forecasts that U.S. ports covered by Global Port Tracker will handle 2.12 million twenty-foot equivalent units (TEU) for October, which would be an increase of 3.1% year over year. That is slightly higher than the 2.08 million TEU forecast for October a month ago, and the strike did not appear to affect national totals.
In comparison, the August number was 2.34 million TEU, up 19.3% year over year. The September forecast 2.29 million TEU, up 12.9% year over year, November is forecast at 1.91 million TEU, up 0.9% year over year, and December at 1.88 million TEU, up 0.2%. For the year, that would bring 2024 to 24.9 million TEU, up 12.1% from 2023. The import numbers come as NRF is forecasting that 2024 retail sales – excluding automobile dealers, gasoline stations and restaurants to focus on core retail – will grow between 2.5% and 3.5% over 2023.
Global Port Tracker, which is produced for NRF by Hackett Associates, provides historical data and forecasts for the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast.