Get a worldwide view at CSCMP's 2010 Annual Global Conference
CSCMP's Annual Global Conference will live up to its name with a keynote address focusing on the future of global trade. The Honorable Carlos M. Gutierrez, former secretary of the U.S. Department of Commerce and former chief executive officer and chairman of the board for Kellogg Company, will kick off the conference on September 27 in San Diego, California, USA.
Gutierrez started his career at Kellogg's by selling cereal to small grocery stores in Mexico City and eventually worked his way up to be the youngest CEO in the company's 100-year history. In 2005, President George W. Bush appointed him to be the 35th secretary of the U.S. Department of Commerce. In that position, he played a key role in the passage of CAFTA-DR, a trade agreement that expanded opportunities for U.S. exports throughout Latin America. Gutierrez now is the chairman of Global Political Strategies, an international consulting firm that focuses on geopolitics, global economics, and helping companies expand their international market opportunities.
The conference's focus on global trade continues the following day with a general session called "The Impact of the Panama Canal on Global Shipping." The presentation will be given by Alberto Alemán Zubieta, CEO of the Panama Canal Authority, and Professor Yossi Sheffi of the Massachusetts Institute of Technology. The closing session will feature scientist and futurist Jack Bacon, speaking on "Nonlinear Thinking for the Nonlinear World."
In addition to the general sessions, the conference will offer 20 educational tracks on topics ranging from "Accelerating Supply Chain Transformations" to "Best Practices in Manag ing and Optimizing Inventory" to "Third-Party Logistics—Getting the Strategy Right." Attendees can opt to participate in small-group discussions moderated by topic experts. The conference will also provide the opportunity to tour near-by logistics facilities, check out leading-edge technology and equipment at the "Supply Chain of the Future" exhibit, offer training at new pre-conference workshops, and more. For more information, visit cscmpconference.org.
Directory of executive recruiters is now online
You thought the recession would make it easier to find the perfect candidate to fill that important supply chain position ... but you're still looking. Or maybe you're the one searching for a new job in the "jobless recovery." Either way, working with an executive recruiter may help you find the right person or position sooner than you could on your own. But how do you find a recruiter who understands the needs of supply chain managers?
CSCMP's new online directory of executive recruiters is the place to go for that information. Located on CSCMP's web site under the "SCM Careers" tab, the directory lists global executive recruiting firms that specialize in customer service, inventory management, logistics, materials and information management, traffic and transportation, and warehousing. CSCMP does not endorse any of the recruiters but only lists firms that devote at least 80 percent of their time to supply chain management and logistics positions.
The directory, updated twice yearly, is available at no charge. Users who are not CSCMP members, however, must register before they are able to download it. Recruitment firms that are members of CSCMP or have used the Council's Career Center Services qualify for a free listing. Those that do not meet those criteria pay US $350 for a six-month listing. To be in the directory, firms must fill out a form. The deadline for submission for the next edition is August 9, 2010.
"State of Logistics Report" can help you move forward
For many, it may be a little painful to look back on 2009. But understanding where we were can often help us assess where we should be. For this reason, CSCMP's "State of Logistics Report" offers valuable data and analysis.
Released annually in June, the "State of Logistics Report" looks at the overall performance of the U.S. supply chain. The report tracks all costs associated with moving goods through the United States, such as transportation and inventory-carrying costs.
Not surprisingly, economist and report author Rosalyn Wilson found that logistics costs dropped considerably last year, falling from 9.3 percent in 2008 to 7.7 percent of U.S. gross domestic product in 2009. But the news is not all bad. The data also show improvement beginning in the fourth quarter, pointing to the recovery that is now under way.
This big picture can provide practitioners with a context for understanding their own organizations' performance and improve their own operations, said Rick Blasgen, CSCMP president and CEO. "This research presents data for company leaders to be able to capitalize on the recovery as it occurs, such as restructuring their distribution networks to maximize efficiency and minimize miles, investing in technologies to facilitate 'green' transportation, and improving real-time data flows to increase visibility and enhance productivity," he said.
CSCMP members can download the report for free at cscmp.org/memberonly/state.asp. Nonmembers can purchase the report for US $395.
Journal of Business Logistics announces two new editors
Dr. Stanley E. Fawcett of Brigham Young University and Dr. Matthew A. Waller of the University of Arkansas have been named co-editors of CSCMP's peer-reviewed academic journal, Journal of Business Logistics (JBL). Their terms will begin on January 1, 2011, and will run until December 31, 2015.
The primary responsibilities of the JBL's editors are to maintain the journal's academic integrity, identify and solicit manuscripts consistent with its objectives, manage the publication's review process and physical production, and identify and implement improvements.
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.
“ExxonMobil is uniquely placed to understand the biggest opportunities in improving energy supply chains, from more accurate sales and operations planning, increased agility in field operations, effective management of enormous transportation networks and adapting quickly to complex regulatory environments,” John Sicard, Kinaxis CEO, said in a release.
Specifically, Kinaxis and ExxonMobil said they will focus on a supply and demand planning solution for the complicated fuel commodities market which has no industry-wide standard and which relies heavily on spreadsheets and other manual methods. The solution will enable integrated refinery-to-customer planning with timely data for the most accurate supply/demand planning, balancing and signaling.
The benefits of that approach could include automated data visibility, improved inventory management and terminal replenishment, and enhanced supply scenario planning that are expected to enable arbitrage opportunities and decrease supply costs.
And in the chemicals and lubricants space, the companies are developing an advanced planning solution that provides manufacturing and logistics constraints management coupled with scenario modeling and evaluation.
“Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization, creating one of the largest supply chain operations in the world, and through this identified critical solution gaps to enable our businesses to capture additional value,” said Staale Gjervik, supply chain president, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is instrumental in providing solutions for a large and complex business like ours.”
The firms’ “GEP Global Supply Chain Volatility Index” tracks demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses.
The rise in underutilized vendor capacity was driven by a deterioration in global demand. Factory purchasing activity was at its weakest in the year-to-date, with procurement trends in all major continents worsening in September and signaling gloomier prospects for economies heading into Q4, the report said.
According to the report, the slowing economy was seen across the major regions:
North America factory purchasing activity deteriorates more quickly in September, with demand at its weakest year-to-date, signaling a quickly slowing U.S. economy
Factory procurement activity in China fell for a third straight month, and devastation from Typhoon Yagi hit vendors feeding Southeast Asian markets like Vietnam
Europe's industrial recession deepens, leading to an even larger increase in supplier spare capacity
"September is the fourth straight month of declining demand and the third month running that the world's supply chains have spare capacity, as manufacturing becomes an increasing drag on the major economies," Jagadish Turimella, president of GEP, said in a release. "With the potential of a widening war in the Middle East impacting oil, and the possibility of more tariffs and trade barriers in the new year, manufacturers should prioritize agility and resilience in their procurement and supply chains."
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.