This year’s CSCMP Distinguished Service Award winner earned the honor for his contributions to building a world-class department of supply chain management at the University of Arkansas.
Guided by a dual passion for teaching and entrepreneurship, Matthew A. Waller has helped mold the University of Arkansas’s undergraduate supply chain program into one of the best in the country. In recognition for his efforts, the Council of Supply Chain Management Professionals (CSCMP) awarded him with the 2020 Distinguished Service Award, which is presented to individuals who have made a significant contribution to the development of the logistics and supply chain management disciplines.
Waller’s entrepreneurial spirit has been on display frequently during his current role as dean of the Sam M. Walton College of Business, as he has helped launch several new initiatives, such as the McMillon Innovation Studio and the William Dillard Department of Accounting. His ability to reach out and create interdisciplinary programs across the university has helped vault the Walton College to the number one spot in research firm Gartner’s list of top North American Supply Chain Undergraduate University Programs.
Waller’s talents extend beyond the administrative sphere. He has served as co-editor-in-chief of the Journal of Business Logistics and his opinion pieces have appeared in the Wall Street Journal Asia and Financial Times. He has also coauthored several books: The Definitive Guide to Inventory Management, Purple on the Inside: How J.B. Hunt Transport Set Itself Apart in a Field Full of Brown Cows, and Integrating Blockchain into Supply Chain Management. Waller has even earned a U.S. Patent for co-inventing a “System, Method, and Article of Manufacture to Optimize Inventory and Merchandising Shelf Space Utilization.”
Recently, Waller had an opportunity to speak with CSCMP’s Supply Chain Quaterly’s Managing Editor Diane Rand about his supply chain journey.
NAME: Matthew A. Waller
TITLE: Dean of the Sam M. Walton College of Business, University of Arkansas
EDUCATION: Bachelor’s degree in business administration from the University of Missouri–Columbia; master’s degree in business and Ph.D. in business from Penn State University
PREVIOUS EXPERIENCE: In his 26 years at the University of Arkansas’s Sam M. Walton College of Business, he has served in various positions that included professor, chair of the Department of Supply Chain Management, interim dean, and Sam M. Walton Endowed Leadership Chair; co-founder of consultancy Bentonville Associates Ventures Partner; and co-founder of software company Mercari Technologies
LEADERSHIP: Board member of the World Trade Center Arkansas; council member of the Northwest Arkansas Council, advisory board member of Natural
Can you share with us in more detail about your career, and how you came to focus on supply chain management?
I’ve been involved in entrepreneurship since high school. I’m a strange combination of academic and entrepreneur. I love reading, writing, math, and teaching, so becoming a professor really made sense for my career path.
After becoming a professor at the Walton School of Business in the 1990s, I started a consulting firm with three Walmart executives who had retired. We worked on a big project with a big consumer products company where it required me to develop a mathematical approach to solving a problem they were facing. I eventually programmed the mathematical approach and started a software company called Mecari Technologies. The software company grew so quickly that I had to leave the university the year I made tenure in 1998. Four years later, we sold the company and a position became available at the university, and I took it. Since I’ve been back with the university, I’ve been involved in many entrepreneurial projects.
Since I came back 18 years ago, I helped start the China Executive MBA program we have here at University of Arkansas. Then in 2011, I started a new academic department within the College of Business. At the time we had six academic departments, one of them was called the Department of Marketing and Logistics, and there wasn’t much to it. The dean [at the time] agreed that we should start the Department of Supply Chain Management. I became the first department chair of this new department. I continue to be pretty involved in entrepreneurship even as dean, a position I’ve held since 2015.
One of the many initiatives you’ve spearheaded at the University of Arkansas was the McMillon Innovation Studio that opened in 2016. How did that come about?
After I became dean, I met with our top 50 most successful alumni, one of whom is Doug McMillon, the chief executive officer of Walmart Inc. He said to me, “If you can find a way to make students more innovative, I’ll fund it.” I went back to the university and spoke with our faculty, and long story short, we came up with this idea called the McMillon Innovation Studio.
It’s a human-centered design studio for students and run by students. They work on projects for big companies, primarily consumer products companies. McMillon gave us $1 million to start it in 2016, and it’s been extremely successful. Just recently, in the past year, he gave us another million dollars to help scale it up further.
This is just one example of the entrepreneurial initiatives I’ve been involved in. I really think the entrepreneurship I was engaged in over the years helped me earn a reputation in supply chain management. The other thing that we did was form the Blockchain Center of Excellence in 2018. We were the first business school to form a Blockchain Center of Excellence. Most of the projects they work on are related to supply chain management.
What are some applications you expect to see for blockchain, and when do you expect to see a wide-scale adoption of the technology?
I am aware of some applications that are not public but already operating. Some companies are ahead of others in this area.
There’s one application that I have been involved in personally. Two years ago, I met with a company called iDatafy. I thought [to myself], here we’ve started a Blockchain Center of Excellence and we are working on things in blockchain, but we aren’t trying to apply blockchain to our business—which is education. I wanted to change this. We needed to start practicing what we preach.
I’m happy to say we have already done it, and it’s in operation today. iDatafy collaborated with the Walton College to create the world’s first smart resumé. When you take a job right out of college, many employers ask for a transcript. [To get a transcript,] the student has to fill out a bunch of forms at their registrar’s office, pay $10, and a few weeks later the company gets the transcript.
With the smart resumé, our students are using a blockchain solution. You click on the resumé, and it gives you a verification from our registrar’s office immediately. We set it up so our students can verify much more than if they have a degree. They can verify whether they have gone through other programs in the school like the Leadership Walton program, the honors studio, or the McMillon Studio. And now companies are starting to ask students to use a smart resumé. It’s been so successful that now every university in Arkansas is using this smart resumé.
Right now, when you talk to people about blockchain, they say “explain it to me,” and when you explain it to them they don’t understand it. It reminds me of the ’90s when the World Wide Web came out. People kept asking, “What is the World Wide Web?” But when you try to explain HTML, no one really understands it. And yet today, everyone uses the World Wide Web. People don’t talk about what is the web and how it works, instead they talk about what’s on the web and what can you do on the web. So, the same thing is happening with blockchain. A student using the smart resumé doesn’t necessarily know that it’s a blockchain solution. I think there will be pretty widespread adoption within the next five years, but people won’t say, “Hey, I’m using blockchain.”
What have you learned about fostering innovation from your work at the university?
There are a couple of things I’ve discovered. One is that most innovation comes from combining things that are not typically combined. That is the most important concept I’ve learned about innovation over the years. I think when you realize it, and you practice it a little bit, it gets easier to innovate.
The other important thing I’ve learned is that people who can write well have an advantage when it comes to innovation. If all you do is whiteboard and talk about ideas, you many times aren’t clear enough about what you are talking about, so it’s hard to know if you have an innovation. I believe in journaling—some of the greatest inventors and innovators journal. They write about what they are doing. It’s a discipline that also helps you think more rigorously about [your innovation] in a more organized manner.
By the way, I’ve journaled myself for the past six years as dean, documenting everything I experiment with. For example, I’ll read a leadership technique, I’ll try it, and I will record the whole process and whether or not I liked it or whether or not it worked. The older I get and the more I see, the more convinced I am of the importance of writing.
A lot has changed in a short time span since the onset of COVID-19. How has that shifted the landscape of supply chain management, and how do you prepare your students to deal with extreme disruptions, like the pandemic, as they start their careers?
There is a difference between management and leadership. Management is about dealing with complexity. Leadership is about dealing with or driving change. For example, the tools of management include: planning, staffing, budgeting, problem solving, etc. Those things work really well in a steady, but complex, environment. But you can’t manage your way through a battle. If there are troops on the ground in a war, you can’t use traditional management techniques, it just doesn’t work.
I think it was [professional boxer] Mike Tyson who said, “A plan is great until you get punched in the face.” As a leader, you’re helping an organization to set the direction, helping people align to that direction, and get people motivated to move in the direction that’s set. That way, the people are empowered. If you are a soldier on the battlefield getting shot at and you jump behind a rock, you don’t know what to do because you don’t know where the other soldiers are. That’s why it’s so important when you go into battle to understand what the objective is.
A detailed plan is not going to be very helpful. I think it was Dwight D. Eisenhower who said, “Plans are never fulfilled, but they are indispensable.” The process of planning helps you think through everything, but it doesn’t help you when things are changing rapidly. We believe at the university that companies and organizations are overmanaged and underled in times of racial crisis, pandemics, etc. Things like this you can’t plan your way out of it, and you can’t anticipate all of it.
That’s why it’s so important to develop leaders, and we are making extra efforts to put students in positions that cause them to become leaders. In fact, we’ve created something called Leadership Walton, and we are trying to get all of our students to go through the program. We want every student to understand what leadership is, and we want every student to have the opportunity to lead while they are in college.
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."