Creating and implementing a sound supply chain strategy is a complex challenge; the need to create a sound global supply chain strategy only magnifies that challenge. Georgia Tech designed its "Global Supply Chain Strategy" executive education course for supply chain professionals who are preparing themselves and their companies for broader and more challenging responsibilities in global supply chain management. Participants will learn how to manage and understand key global supply chain processes as well as the risk factors that affect them.
They will also develop a deeper understanding of how to manage relationships with global supply chain partners, including logistics service providers. CSCMP is a co-sponsor of this event and members receive a discount.
Program: Global Supply Chain Strategy Sponsors: Georgia Institute of Technology Supply Chain & Logistics Institute and CSCMP Location: Atlanta, Georgia, USA Dates: June 8-10, 2010 Info:www.scl.gatech.edu
The theory behind your practice
Many supply chain and logistics managers have learned about their field of expertise from doing their jobs day in and day out, not from sitting in a classroom. Knowing the theory and principles of the logistics discipline, however, can sometimes help you take your supply chain and logistics performance to the next level. Michigan State's "Supply Chain Logistics Management" course is geared for experienced executives who have not had the benefit of formal logistics training. Attendees will learn to identify and understand the logistics and supply chain trade-offs associated with global operations. CSCMP is a co-sponsor of this program.
Program: Supply Chain Logistics Management Sponsors: Michigan State University and CSCMP Location: East Lansing, Michigan, USA Dates: May 9-14, 2010 Info: www.bus.msu.edu/execed/programs/openEnrollment.cfm
Real-life supply chain stories
You can hear about real-life supply chain practices at the three-day certificate program offered by Rutgers Business School's Center for Supply Chain Management and co-sponsored by CSCMP. Many of the presenters are senior corporate supply chain executives with extensive practical experience.
They and other lecturers will cover the major aspects of supply chain management, including strategy, sourcing and procurement, logistics, operations, and organizational alignment. Participants will learn the principles of supply chain management strategy and how to link supply chain management to their overall business strategy. They also will study how to track supply chain performance and best manage both internal and external relationships.
Program: Strategies for Designing and Leading Your End-to-End Supply Chain Sponsors: Rutgers Business School and CSCMP Location: Piscataway, New Jersey, USA Dates: June 16-18, 2010 Info:https://scmcenter.rutgers.edu/cp
CSCMP, ICOR offer online courses
CSCMP has partnered with The International Consortium for Organizational Resilience (ICOR) to create one of the world's first e-learning courses on supply chain risk management. "Supply Chain Risk Mitigation" is an introductory course that focuses on ways to create risk mitigation strategies that add resiliency without increasing operating costs. The course runs over a two-week timeframe. Participants can review the course instructional material when it is convenient for them and then participate in an online discussion.
This is just one of several online classes that CSCMP has organized. CSCMP has also designed a course on RFID essentials and has partnered with Syracuse University's Whitman School of Management to create one on Six Sigma methodology. More information about the risk management class and other online education opportunities can be found at cscmp.org.
"Applying Lean Principles Across the Supply Chain" introduces a systemic approach for applying lean thinking to supply chain challenges. This executive education course from Penn State University (co-sponsored by CSCMP) offers practical, hands-on insights from industry leaders such as Kraft Foods and Dell. Participants will learn lean principles and tools that can help them achieve greater supply chain speed and efficiency. They will also discover how to extend these practices beyond their enterprises to suppliers and customers.
Program: Applying Lean Principles Across the Supply Chain Sponsors: Pennsylvania State University and CSCMP Location: University Park, Pennsylvania, USA Dates: June 7-11, 2010 and November 29-December 3, 2010 Info:www.smeal.psu.edu/psep/lsc.html
A better way to outsource
Instructors at the University of Tennessee promise that their "Vested Outsourcing" course will fundamentally change your approach to procuring outsourced services such as third-party logistics, supply chain management, information technology support, and facilities management.
Today, most companies approach their outsourcing relationship from a transactional perspective; they purchase activities or transactions from their suppliers. But the concept taught in this course—"performance-based outsourcing"— looks at how to create an outsourcing agreement that focuses on results instead of on activities. Attendees will leave the class, which is co-sponsored by CSCMP, well-grounded in a five-step process and best practices for implementing a performance-based outsourcing agreement.
Program: Vested Outsourcing Sponsors: University of Tennessee Center for Executive Education and CSCMP Location: Knoxville, Tennessee, USA Dates: June 8-10, 2010 and October 26-28, 2010 Info:https://thecenter.utk.edu
Learn best practices from the best
Participants at CSCMP's new Process Standards Workshop will leave the course armed with more than 300 supply chain best practices culled from leading companies such as Coca-Cola, Cummins, International Paper, and Welch's. Better yet, they will know how to benchmark their current performance against these industry leaders. Participants will learn how to evaluate the risks and rewards of potential supply chain initiatives and how to identify improvements that will increase financial performance.
Instructors will cover how to assess a process, decide which parts need to be improved, develop a roadmap for improvement, create an implementation plan, and build a business case for the initiative. As part of the registration fee, attendees receive the newly published second edition of CSCMP's Supply Chain Management Process Standards book.
Program: Process Standards Workshop Sponsor: CSCMP Location: Lombard (Chicago), Illinois, USA Dates: May 13-14, 2010 and November 11-12, 2010 Info:https://cscmp.org
Bridge the gap between action and strategy
When CSCMP created its Strategic Supply Chain Management Workshop, the organization wanted to help supply chain managers bridge the gap between managing the functional elements of their supply chains and creating and implementing an optimal supply chain strategy. The course's lectures, presentations, and exercises focus on what makes a successful strategy: understanding each supply chain partner's needs, strengths, and weaknesses as well as how these competencies can best be aligned.
This course is designed for general managers and supply chain directors, particularly those who have multiple functional responsibilities.
Participants will work in groups to examine case
studies and exercises, exploring the breadth of the supply chain and its relevance to overall business. They will hear specific, real-world examples from recognized experts in the field. The sessions are interactive, and instructors are prepared to answer questions about specific industries and/or geographic regions.
Program: Strategic Supply Chain Management Sponsor: CSCMP Location: Lombard (Chicago), Illinois, USA Dates: April 12-13, 2010 Info:https://cscmp.org/events/strategic-scm
Creating a coherent supply chain picture
Having a coherent vision of what effective supply chain management entails can help your company achieve its strategic goals. The Ohio State University, working in partnership with Cranfield University, has created an executive education course on supply chain management that provides a framework that can help guide your efforts. This framework, created by The Global Supply Chain Forum, consists of eight essential supply chain processes: customer relationship management, supplier relationship management, customer service management, demand management, order management, manufacturing flow management, product development and commercialization, and returns management. This course is co-sponsored by CSCMP.
Program: Supply Chain Management: Processes, Partnerships, Performance Sponsors: The Ohio State University, Cranfield University, and CSCMP Locations and Dates: Ponte Vedra Beach, Florida, USA: April 19-23, 2010
Cranfield, England, U.K.: May 10-14, 2010 Info:www.fisher.osu.edu/centers/scm/executive-education
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.
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.
The North American robotics market saw a decline in both units ordered (down 7.9% to 15,705 units) and revenue (down 6.8% to $982.83 million) during the first half of 2024 compared to the same period in 2023, as North American manufacturers faced ongoing economic headwinds, according to a report from the Association for Advancing Automation (A3).
“Rising inflation and borrowing costs have dampened spending on robotics, with many companies opting to delay major investments,” said Jeff Burnstein, president, A3. “Despite these challenges, the push for operational efficiency and workforce augmentation continues to drive demand for robotics in industries such as food and consumer goods and life sciences, among others. As companies navigate labor shortages and increased production costs, the role of automation is becoming ever more critical in maintaining global competitiveness.”
The downward trend was led by weakness in automotive manufacturing, which traditionally leads the charge in buying robots. In the first half of 2024, automotive OEMs ordered 4,159 units (up 14.4%) but generated revenue of $259.96 million (down 12.0%). The Automotive Components sector was even worse, orders 3,574 units (down 38.8%) for $191.93 million in revenue (down 27.3%). Declines also happened in the Semiconductor & Electronics/Photonics sector and the Plastics & Rubber sector.
On the positive side, Food & Consumer Goods companies ordered 1,173 units (up 85.6%) for $62.84 million in revenue (up 56.2%). This growth reflects the increasing reliance on robotics for efficiency in food processing and packaging as companies seek to address labor shortages and rising costs, A3 said. And the Life Sciences industry ordered 1,007 units (up 47.9%) for revenue of $47.29 million (up 86.7%) as it continued its reliance on robotics for efficiency and precision.