When was the last time you sat down and talked with a customer? For many supply chain professionals, the answer is likely to be "not lately," or worse yet, "rarely, if ever."
That's not surprising, really; supply chain professionals are often considered specialists who aggressively pursue cost and efficiency primarily by working with suppliers and within their companies' four walls. Few companies, moreover, have truly embraced supply chain management's role in driving profitable growth and increasing sales.
But if you want to significantly improve your chances of becoming a senior leader—and perhaps lead an entire supply chain organization or even run a business—getting to know the customer is essential. After all, without customers, you don't have a business.
Let's say you are one of several executives being considered for a big promotion. Imagine that a closed-door conversation is under way about potential candidates for the job. After discussing the top three candidates, one of the key decision makers has this to say: "We are fortunate to have three strong choices; every one of these candidates has a demonstrated track record of success. However, Joe is the only one who has significant customer and market experience. A couple of years ago, he developed a performance goal that required him to visit at least one customer per month. In the beginning, Joe asked a friend of his in the sales organization if he could 'tag along' on a customer visit simply to learn and observe. I know for a fact that these days, Joe is being invited to attend customer meetings. This guy understands the customer and really adds value."
Are you Joe? Let's hope that you are, because this vignette is based on a true story. The real-life Joe is now a senior vice president of supply chain for a large company. Joe distinguished himself by getting to know the customer. Before that, he was seen as an "inside guy" who did a great job "behind the scenes." He knew, however, that to achieve his aspirations, he would need to broaden his experience. Although getting out into the field to meet customers was uncomfortable at first, Joe ultimately learned a lot about his company's customers and how a supply chain professional with passion can add value to the customer relationship.
Don't succumb to stereotypes
Now, with Joe's experience in mind, take a look at your own career objectives and goals for 2010. Are any of them related to enhancing revenue, customer acquisition, market share, or customer satisfaction? If you do have customer-related goals, that's great! Your company appears to embrace supply chain management's role in driving profitable growth. If you do not, don't worry; that doesn't mean you never will. The traditional role of the supply chain executive is evolving, albeit slowly, in many companies and industries.
To help push this change forward, it may be beneficial to ask ourselves, why do supply chain professionals sometimes believe that customers are "off limits"? After all, supply chain management embodies the entire business system. The last time I looked, the customer was a major part of this system. Are we hindered by the stereotype of a supply chain professional being primarily an internal player who is analytically oriented and maybe even introverted? Do we, perhaps, have a negative stereotype of the sales profession, which typically handles face-to-face customer meetings? Do we see them as nonanalytical extroverts who will promise anything to make the sale?
These are important questions. If you are candid with yourself, you can ask them with courage, face the answers objectively, and do something to dismantle the stereotypes that are holding you back from direct customer contact.
An important step is to recognize that stereotypes about sales and supply chain management being incompatible are not logical. The best supply chain leaders have terrific people skills that enable them to get things done, often without formal authority. Successful supply chain executives have great influencing skills, and they persuade others by connecting with their hearts and minds. Think about it: Doesn't this sound a bit like the description of an effective sales executive? Don't you "sell" your ideas and plans to other people every day?
Build your "brand"
Even after recognizing the similarities between sales and supply chain management, some of us may still feel apprehensive about engaging directly with customers. We may feel uncomfortable moving into an unfamiliar area. Maybe we are concerned that we might make a mistake and look bad. But taking this risk is worth it in the long run; it will help each of us build a personal "leadership brand" that includes a strong personal relationship with customers.
Your leadership brand comprises all the associations that people make when they think about you. Like any good commercial brand, it can be a source of great equity—or, if not developed and managed properly, a drag on your career. Think of a great brand that you admire. What goes through your head when you hear that company's name? What associations do you make with its products?
Personal brands operate the same way. Imagine that right now, 200 people who have interacted with you hear your name. What associations do they make? Are they associations you desire for yourself?
Certainly, you want those associations to be positive: "Jane is a strong leader and a risk taker; I'm confident in her ability to get results." Now, what if we add this association: "Jane understands customers." Imagine what will happen when all of the people who interact with Jane have that same customer-focused association whenever they think of her. My bet is that Jane's career will be a long and successful one.
If you want your personal brand to include a strong customer-focused association, then you will need to get out of your office and spend time in the market. Ask your supporters to look for opportunities to meet customers. Ask to attend sales and marketing meetings to observe and get to know the people who provide customer access. Open your mind to a new opportunity to grow. Most importantly, don't be afraid to venture into new territory.
It has often been said that what you conceive and believe you can achieve. If you believe you belong in the customer's office, you will get there. It is up to you to make it happen.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
Census data showed that overall retail sales in October were up 0.4% seasonally adjusted month over month and up 2.8% unadjusted year over year. That compared with increases of 0.8% month over month and 2% year over year in September.
October’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were unchanged seasonally adjusted month over month but up 5.4% unadjusted year over year.
Core sales were up 3.5% year over year for the first 10 months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023. NRF is forecasting that 2024 holiday sales during November and December will also increase between 2.5% and 3.5% over the same time last year.
“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” NRF Chief Economist Jack Kleinhenz said in a release. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”
Despite that positive trend, market watchers cautioned that retailers still need to offer competitive value propositions and customer experience in order to succeed in the holiday season. “The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under invest in their stores,” Nikki Baird, VP of strategy & product at Aptos, a solutions provider of unified retail technology based out of Alpharetta, Georgia, said in a statement. “They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.”
A similar message came from Chip West, a retail and consumer behavior expert at the marketing, packaging, print and supply chain solutions provider RRD. “October’s increase proved to be slightly better than projections and was likely boosted by lower fuel prices. As inflation slowed for a number of months, prices in several categories have stabilized, with some even showing declines, offering further relief to consumers,” West said. “The data also looks to be a positive sign as we kick off the holiday shopping season. Promotions and discounts will play a prominent role in holiday shopping behavior as they are key influencers in consumer’s purchasing decisions.”
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”