If you don't know the answer to a question, chances are someone in your network does?but you'll have to understand how to get them to give you the information you need so you can put it to work.
No one is expected to know everything. Fortunately, there are a lot of smart people working in supply chain management. If you don't know the answer to a question, chances are someone in your network does—but you'll have to understand how to get them to give you the information you need so you can put it to work. This may sound easy enough, but it is actually a complex transaction.
To pinpoint the sources of the information they actually need, and then draw that information out from the people who have it, successful managers follow three steps: stop, ask, and listen. "Stop" involves taking the time to figure out what information you actually need. "Ask" means posing the right question. And "listen" requires actively engaging with your source and thinking about his or her response.
Step 1: Stop
The first step can be easy if you are clearly told what knowledge you need to acquire. For example, you may be asked to provide a vetted list of potential suppliers that fulfill diversity requirements, or a cost analysis of different shipping methods. But sometimes it is not so easy to determine what information you need—especially as your career advances and your responsibilities broaden to include complex tasks like the leadership and direct management of others. For example, suppose you are tasked with opening your company's first distribution center in South America. Where do you locate it? Whom do you hire? What are the cultural and environmental sensitivities you must take into account?
In these cases, you should stop and think about what it is that you really have to know ... and be honest with yourself about what you do not know. Do you need facts? Opinions? To understand the reasoning or logic behind a situation?
But simply identifying the information required is not enough. You also must determine the right sources of that information. Who has the knowledge to fill in the gaps?
Step 2: Ask
Once you know what information you need and who might know it, think about what type of question will elicit the necessary information. Like tools, different types of questions do different types of jobs. The three types of questions are: closed-ended, open-ended, and hypothetical.
Closed-ended questions elicit an answer from among a discrete set of possibilities. For example, if you ask, "Will you make your budget this month?" the answer is either "yes" or "no." This type of question elicits a quick, black-or-white answer; it does not leave room for a nuanced response.
Open-ended questions are designed to engage a person more deeply. There are an infinite number of ways to answer an open-ended question like "Why do you think our shipping needs will outpace our supplier's ability to fulfill them?" This type of question gives the respondent an opportunity to share his or her knowledge and/or opinions in detail.
The last kind of question is the hypothetical, or "what if," type. Hypothetical questions can provide a window into how the respondent thinks and reasons. For example, "What are our delivery options if diesel fuel hits US $5.00 per gallon?"
To help you remember when these three types of questions would be most appropriate, try to think about them in the context of a job interview. The close-ended question can be used to determine basic information. "Have you managed people?" The open-ended question is used to bring out the detail. "What was your most meaningful leadership experience with your team?" The hypothetical question can bring out creativity, logic, and resourcefulness. "What would you do if someone was sabotaging your team?"
Finally, there are two more types of questions you should be aware of: the leading question and the loaded question. Leading questions suggest the answer. For example, "The shipment will arrive on time, right?" Clearly, the desired answer is "yes." The loaded question has implicit assumptions in it. For example, "When will you stop making bad forecasts?" The implication is that all your forecasts are bad. Both of these types of questions are not going to move your knowledge base forward. These are questions that are not looking for an answer; they are conveying information. Stay away from them.
Step 3: Listen
After you ask your question, make sure that you really listen to the answer. That may sound self-evident, but it's not. Listening is a skill—one you can and should improve.
Have you ever been in a meeting where people started to talk before others were done? And no one even listened to what the others were saying—they just waited for their turn to talk? This kind of "communication" is a waste of everyone's time.
Listening abilities lie along a spectrum, and it's important to honestly assess what kind of listener you are. To get the most value out of what people are saying, you may need to change your attitude.
The spectrum starts with ineffective listeners who are just waiting to talk, and progresses to reluctant listeners—people who may feel they have "heard it all before" and are unwilling participants. Next are the passive listeners. These people are sitting quietly but are not absorbing anything; their minds are somewhere else. Judgmental listeners hear what is being said but won't let the meaning sink in. They have already made up their minds, and nothing they hear will change their opinion.
And then there are the selective listeners. I've been guilty of this myself in the past. My children would call me at the office, and I would be multitasking or checking my e-mail while they told me about their day. My mind was divided, serving neither task well. Now, regardless of who calls, I stop what I am doing and focus on the caller. I expect it of others as well. When I start a meeting, I set ground rules, one of which is no phones, e-mails, or texting—nothing that takes the focus away from the business at hand. (And don't think you are fooling anyone when you say you are using your iPad for "taking notes.")
And that leads directly to why we all need to be active listeners. Active listeners focus on what the speaker is saying. They communicate their attention to the speaker both verbally and nonverbally. They make eye contact. When in agreement, they nod their heads. If the situation allows, they ask probing, open-ended, and/or clarifying questions.
Active listening means hearing what is being said and thinking about it at the same time. Keep asking yourself questions about what the speaker is saying. Does it make sense? Did I just hear something I didn't know? Should I ask follow-up questions?
Asking thoughtful, engaging questions will not only elicit valuable information from the speaker, it will also affirm to the speaker that you heard what he or she is saying and are an active participant in the conversation.
Consequences and rewards
There are consequences for failing to stop, ask, and listen. If you keep talking without asking questions, you become the "know-it-all" who is not a team player. If you stay quiet without asking questions, you can be perceived as too timid or unable to grasp the issues. Neither advances your knowledge or your career.
By stopping, asking, and listening, supply chain managers will be sure to engage in rich and mutually rewarding conversations that will give them the information they need to carry out their responsibilities effectively and professionally.
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.