Here’s our roundup of events at the Council of Supply Chain Management Professionals’ annual CSCMP EDGE 2021 conference held in September in Atlanta, Georgia.
After going to a virtual format last year during the pandemic, the Council of Supply Chain Management Professionals’ annual EDGE conference was back in person this year. Attendees at the event, held in Atlanta, Georgia, in September, came both to gain a glimpse of the future of the discipline and to find solutions that they could implement today.
While there, attendees enjoyed keynote sessions, educational seminars, the annual Academic Research Symposium, networking receptions, and the Supply Chain Exchange Exhibition, which showcased supply chain technologies, equipment, and services.
Not able to attend the conference this year or unable to sample everything that was offered? This roundup will help you fill in some of the gaps.
CSCMP’s 2021 awards recognize industry excellence
Every year at its annual conference, CSCMP honors individuals and organizations that are helping to push the supply chain discipline to new heights. The following are some of the recognitions given out this year.
2021 Distinguished Service Award was presented to Dale Rogers, ON Semiconductor professor of business in the supply chain department at Arizona State University.
The 2021 inductees into CSCMP’s Supply Chain Hall of Fame were Rogers and John “Jock” Menzies, founder of American Logistics Aid Network (ALAN).
Gail Rutkowski, the outgoing president of the National Shippers Strategic Transportation Council (NASSTRAC), was honored for demonstrating excellence in transportation and/or logistics strategies with the NASSTRAC Shipper of the Year Award, which was renamed the Gail Rutkowski Transportation Excellence Award, in her honor.
Gleb Mikulich, a supply chain specialist at the supply chain software company ToolsGroup received the 2021 Emerging Leader Award for outstanding supply chain professionals age 32 and under.
Rebekah Brau of Brigham Young University won the Doctoral Dissertation Award for her paper “Integrating Systems, Processes, and Human Judgment: Three Essays on Value Creation with Supply Chain Analytics.”
Bernard J. La Londe Best Paper Award was given to Travis Tokar of Texas Christian University and Brent D. Williams and Brian S. Fugate, both from University of Arkansas, for “I Heart Logistics—Just Don’t Ask Me to Pay for It: Online Shopper Behavior in Response to a Delivery Carrier Upgrade and Subsequent Shipping Charge Increase.”
Marat Davletshin and Susan Golicic of Colorado State University received the E. Grosvenor Plowman Award for their research paper, “The Ties that Pay: The Impact of Buyer-Supplier Network Closure and Gender Diversity of Boards of Directors on Sustained Revenue Growth.”
2021Teaching Innovation Award was presented to Shane J. Schvaneveldt, Francois Giraud-Carrier, and Evan Barlow of Weber State University for their submission entitled: “Exploring Supply Chain Disruptions: An Active Learning Exercise for Connecting High School Students to SCM.”
CSCMP session sampler
With three keynote presentations and over 100 educational sessions, CSCMP EDGE 2021 attendees had a wide variety of educational opportunities to choose from. Here are highlights of just a few.
Supply chain miracle. The development of the COVID-19 vaccine in nine months has been hailed as a medical miracle. Just as much of a miracle? Building the supply chain that manufactures and distributes that vaccine. Jim Cafone, vice president of strategy and business operations for Pfizer, detailed the challenges the company faced during the opening keynote session.
From the beginning of the pandemic, Pfizer’s focus was on collaboration and how the company could contribute to eradicating the pandemic. “We never used the word ‘compete,’” said Cafone. “We were willing to share our tools and insight with anyone we could.” This commitment to collaboration included a willingness to share Pfizer’s significant global manufacturing capacity.
The biggest hurdle was the need for speed. Decisions were made in a rapid-fire fashion and traditional timeframes were crunched. For example, instead of developing the new manufacturing process in a standard, serial fashion, all of the stages occurred in parallel. This reduced the creation of the manufacturing process from 24 months to six.
Reshore or onshore? That is the question. Many executives are growing concerned about their dependence on other nations for critical goods and supplies. As a result, a number of companies are assessing whether reshoring should be part of their future strategic plans.
“Learning how you can make better decisions on sourcing onshore and offshore is critical,” noted Harry Moser, founder and president of the nonprofit organization Reshoring Initiative during an educational session.
To help make the decision-making process easier, the Reshoring Initiative has developed a total cost of ownership (TCO) tool that looks at 29 cost factors and includes freight rates from 17 countries. This free, customizable tool is available online at reshorenow.org.
Warehouse space shortage to continue. Soaring e-commerce shopping rates have combined with building delays in many regions to cause a crunch in the supply of new warehouse space, explained a panel of real estate experts during a session on industrial real estate.
The pandemic has triggered a “firestorm” of demand for distribution centers (DCs), due to increased online shopping, a corresponding jump in product returns, and a shift from just-in-time inventory management to greater stockpiling of goods, said Stephanie Rodriguez, vice president of leasing and development for Duke Realty.
Despite all the challenges, demand for warehouse space will continue to rise because of basic economics, said John Morris, executive managing director at the real estate firm CBRE. Transportation costs represent between half and two-thirds of logistics spending, so retailers are highly motivated to rent DC space close to their customers, he said.
Consumer-focused supply chain. The supply chain is increasingly shaping the consumer experience and playing a significant role in customer satisfaction. That realization needs to start guiding how companies structure their supply chain operations, according to a panel of experts who presented at CSCMP. “We should all be thinking about the consumer marketplace, not just retailers,” said Terry Esper, associate professor of logistics at The Ohio State University.
According to Esper, taking a consumer-centric approach to the supply chain does not mean that companies should abandon their focus on their direct customer. Instead, they should adopt a perspective similar to bifocal glasses, with one lens focused on their customer and one lens on the consumer.
The shift to consumer-centricity, however, will not necessarily be easy. It will require a cultural change, including different key performance indicators.
Ocean freight tsunami. It’s been a rough ride for ocean freight of late. Container ships wait for days to dock at ports, and labor shortages keep containers from being unloaded. Even once the containers are unloaded, there aren’t enough drivers to haul them away. And there doesn’t appear to be an end in sight, according to panelists who presented during a session on the problems facing ocean freight at CSCMP EDGE.
“Until consumption starts to slow down, we won’t see relief,” said Joshua Bowen, senior director of trade development at CEVA Logistics.
The panelists suggested transportation providers to use air freight to help with capacity issues, look for third-party solutions, invest in transloading to add capacity, and find a way to keep trucks moving by making driving more “trucker friendly.”
For importers and exporters, the panel advised leaning into relationships with providers, building trust by being transparent and living up to your commitments, and finding locations where you can ground containers and get them off the maritime terminals.
Companies in every sector are converting assets from fossil fuel to electric power in their push to reach net-zero energy targets and to reduce costs along the way, but to truly accelerate those efforts, they also need to improve electric energy efficiency, according to a study from technology consulting firm ABI Research.
In fact, boosting that efficiency could contribute fully 25% of the emissions reductions needed to reach net zero. And the pursuit of that goal will drive aggregated global investments in energy efficiency technologies to grow from $106 Billion in 2024 to $153 Billion in 2030, ABI said today in a report titled “The Role of Energy Efficiency in Reaching Net Zero Targets for Enterprises and Industries.”
ABI’s report divided the range of energy-efficiency-enhancing technologies and equipment into three industrial categories:
Commercial Buildings – Network Lighting Control (NLC) and occupancy sensing for automated lighting and heating; Artificial Intelligence (AI)-based energy management; heat-pumps and energy-efficient HVAC equipment; insulation technologies
Manufacturing Plants – Energy digital twins, factory automation, manufacturing process design and optimization software (PLM, MES, simulation); Electric Arc Furnaces (EAFs); energy efficient electric motors (compressors, fans, pumps)
“Both the International Energy Agency (IEA) and the United Nations Climate Change Conference (COP) continue to insist on the importance of energy efficiency,” Dominique Bonte, VP of End Markets and Verticals at ABI Research, said in a release. “At COP 29 in Dubai, it was agreed to commit to collectively double the global average annual rate of energy efficiency improvements from around 2% to over 4% every year until 2030, following recommendations from the IEA. This complements the EU’s Energy Efficiency First (EE1) Framework and the U.S. 2022 Inflation Reduction Act in which US$86 billion was earmarked for energy efficiency actions.”
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).
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain.”
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
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.”
Freight transportation providers and maritime port operators are bracing for rough business impacts if the incoming Trump Administration follows through on its pledge to impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China, analysts say.
Industry contacts say they fear that such heavy fees could prompt importers to “pull forward” a massive surge of goods before the new administration is seated on January 20, and then quickly cut back again once the hefty new fees are instituted, according to a report from TD Cowen.
As a measure of the potential economic impact of that uncertain scenario, transport company stocks were mostly trading down yesterday following Donald Trump’s social media post on Monday night announcing the proposed new policy, TD Cowen said in a note to investors.
But an alternative impact of the tariff jump could be that it doesn’t happen at all, but is merely a threat intended to force other nations to the table to strike new deals on trade, immigration, or drug smuggling. “Trump is perfectly comfortable being a policy paradox and pushing competing policies (and people); this ‘chaos premium’ only increases his leverage in negotiations,” the firm said.
However, if that truly is the new administration’s strategy, it could backfire by sparking a tit-for-tat trade war that includes retaliatory tariffs by other countries on U.S. exports, other analysts said. “The additional tariffs on China that the incoming US administration plans to impose will add to restrictions on China-made products, driving up their prices and fueling an already-under-way surge in efforts to beat the tariffs by importing products before the inauguration,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management solutions at Moody’s, said in a statement. “The Mexico and Canada tariffs may be an invitation to negotiations with the U.S. on immigration and other issues. If implemented, they would also be challenging to maintain, because the two nations can threaten the U.S. with significant retaliation and because of a likely pressure from the American business community that would be greatly affected by the costs and supply chain obstacles resulting from the tariffs.”
New tariffs could also damage sensitive supply chains by triggering unintended consequences, according to a report by Matt Lekstutis, Director at Efficio, a global procurement and supply chain procurement consultancy. “While ultimate tariff policy will likely be implemented to achieve specific US re-industrialization and other political objectives, the responses of various nations, companies and trading partners is not easily predicted and companies that even have little or no exposure to Mexico, China or Canada could be impacted. New tariffs may disrupt supply chains dependent on just in time deliveries as they adjust to new trade flows. This could affect all industries dependent on distribution and logistics providers and result in supply shortages,” Lekstutis said.