Supply chain specialist or generalist: Which is right for you?
Specialize, and you might get "locked in" to a particular area of responsibility. Broaden your knowledge and experience, and you could move further up the career ladder.
Supply chain management is a complex and challenging discipline. With so many functions involved (procurement, manufacturing, demand planning, inventory, and logistics, to name just a few), there are many potential areas of career specialization.
Specialization can be a good thing, and it plays an important role in supply chain management. By having specialists in key areas of the supply chain system, companies can make impressive gains in efficiency, effectiveness, customer satisfaction, and market expansion.
If you are a specialist, it often implies that you are an expert in a certain area of the supply chain system. In effect, you become the "go to" person for critical issues and challenges related to this specific realm of knowledge. Your particular skills and expertise can make you a valuable contributor to the success of the enterprise. Moreover, your deep knowledge in a key supply chain dimension can position you as a "big fish in a small pond." There is absolutely nothing wrong with becoming a specialist—if you do so as a result of a conscious decision.
However, depending on your career goals, there may be drawbacks to remaining a specialist. You could be cast as a "one-trick pony"—someone who is exceptionally capable in one area but appears to have no desire or, worse yet, lacks the ability to branch out into other areas. Another risk is being perceived as primarily an individual contributor—someone who performs very well in her own role but has limited ability to affect circumstances outside her specialty. In my work, I have often seen this perception arise when an executive has difficulty managing people. That is when you may hear comments like: "Joe is a great individual contributor; however, he really struggles when he tries to manage others. As long as we keep Joe where he is, he should do well."
Potentially the biggest risk of being a specialist is that you could become marginalized as business priorities rapidly evolve. This can happen when an industry's structure, technology, markets, or other dimensions radically change. This type of change may result in your company placing different weight on your particular role and area of expertise. I've seen this happen when companies are acquired, and the acquiring company changes a business's strategy and go-to-market model. A particular specialty that was highly valued prior to an acquisition may end up much lower on the priority list post-acquisition.
When it's time to broaden your credentials
The time will come in your career when you should consciously decide whether you want to continue as a specialist or broaden your experience, perspectives, and impact on your company. If you are currently a specialist but your ultimate goal is to ascend to the management ranks, then you should begin doing two things: 1) develop knowledge and experience in other areas within or outside of supply chain management; and 2) develop your people and leadership skills. Your mindset needs to transition from "I am a supply chain specialist with some generalist skills" to "I am a strong generalist business executive who leverages his supply chain expertise and experience to set strategy, lead people, and develop organizations."
As a general rule, the higher you go up the organizational hierarchy, the more you need to shift from specialist to generalist. While specialists tend to manage a narrow set of processes and information, generalists must be able to see the broader implications of decisions by focusing on strategic direction and on the people and processes needed to win.
I don't wish to imply that it's only management that needs to maintain a broader perspective. The ability to understand higher-level strategy is important in any role. If you don't know how your special area of expertise fits in with your company's ultimate goals, you could miss an opportunity to make a greater contribution to the company's success. Worse yet, your actions could be misaligned with the company's strategic direction and could actually inhibit overall progress.
To move up the career ladder, you will need to broaden your skills and perspectives. If you are in the early stages of your career, you can start by sharing your knowledge and experience with others. Is there someone in your department you can help to cross-train? Are there new hires you can assist in assimilating into your organization? By taking on initiatives like these you will develop leadership skills like mentoring and coaching.
Seek out opportunities to work in less familiar areas within your supply chain organization. This will let you see how your current role and that of other positions overlap or diverge. You can also volunteer for special-project teams at the corporate level and join ad hoc committees. These initiatives will give you insights into the larger strategic and organizational challenges facing the business.
A bolder step toward broadening your capabilities is to move into a completely new function like marketing, sales, or finance. Even accepting a lateral move will provide invaluable experience and demonstrate your willingness to tackle unfamiliar terrain. By doing so, you will evolve into a better-rounded executive.
Managing people directly or indirectly is a must for a generalist. To do it well requires more than intellect; it requires emotional intelligence, or EQ. High EQ is most often what differentiates the best leaders from everyone else. Leaders with high EQ are self-aware and in control of their emotional impulses. They are perceptive and can empathize with others. They have strong social skills and know how to make big things happen through others. This may be the greatest hallmark of strong generalists: They don't define success based on their own contributions. It isn't about them, it is about their organization.
Unlike our intelligence quotient (IQ), which is fixed in our adulthood, our emotional intelligence quotient can be developed with effort and focus. Even if you cannot claim today to be someone with a strong EQ, you can certainly become that kind of person in the near future. It is well worth the effort, because EQ turbocharges your career like nothing else.
Here are some key career accelerators that leverage EQ: 1) learning how to build and maintain strong relationships internally and externally; 2) developing influence skills that allow you to capture the heads and hearts of others; 3) developing exceptional communication skills that allow you to connect with your audience regardless of the setting; and 4) developing your self-awareness by learning how your personality and leadership style can be subtly and quickly adjusted to fit changing circumstances.
For a specialist who has mastered a specific supply chain dimension, one of the most difficult aspects of moving into management is embracing the ambiguity that comes from moving outside his or her comfort zone. But consider again the power of this declaration: "While earlier in my career I was a supply chain specialist with some developing general business skills, I have now become a strong generalist business executive who leverages his supply chain expertise and experience to set vision, lead people, and develop exceptionally strong organizations." Sound exciting to you? If it does, then make the decision to move from specialist to generalist today. If you want it badly enough, then begin working now to make it happen.
Economic activity in the logistics industry expanded for the 10th straight month in September, reaching its highest reading in two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The LMI registered 58.6, up more than two points from August’s reading and its highest level since September 2022.
The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
The September data is proof the industry is “back on solid footing” according to the LMI researchers, who pointed to expanding inventory levels driven by a long-expected restocking among retailers gearing up for peak-season demand. That shift is also reflected in higher rates of both warehousing and transportation prices among retailers and other downstream firms—a signal that “retail supply chains are whirring back into motion” for peak.
“The fact that peak season is happening at all should be a bit of a relief for the logistics industry—and economy as a whole—since we have not really seen a traditional seasonal peak since 2021,” the researchers wrote. “… or possibly even 2019, if you don’t consider 2020 or 2021 to be ‘normal.’”
The East Coast dock worker strike earlier this week threatened to complicate that progress, according to LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. Those fears were eased Thursday following a tentative agreement between the union and port operators that would put workers at dozens of ports back on the job Friday.
“We will have normal peak season demand—our first normal seasonality year in the 2020s,” Rogers said in a separate interview, noting that the port of New York and New Jersey had its busiest month on record this past July. “Inventories are moving now, downstream. That, to me, is an encouraging sign.”
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).
Dockworkers at dozens of U.S. East and Gulf coast ports are returning to work tonight, ending a three-day strike that had paralyzed the flow of around 50% of all imports and exports in the United States during ocean peak season.
The two groups “have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025 to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume,” the joint statement said.
Talks had broken down over the union’s twin demands for both pay hikes and a halt to increased automation in freight handling. After the previous contract expired at midnight on September 30, workers made good on their pledge to strike, and all activity screeched to a halt on Tuesday, Wednesday, and Thursday this week.
Business groups immediately sang the praises of the deal, while also sounding a note of caution that more work remains.
The National Retail Federation (NRF) cheered the short-term contract extension, even as it urged the groups to forge a longer-lasting pact. “The decision to end the current strike and allow the East and Gulf coast ports to reopen is good news for the nation’s economy,” NRF President and CEO Matthew Shay said in a release. “It is critically important that the International Longshoremen’s Association and United States Maritime Alliance work diligently and in good faith to reach a fair, final agreement before the extension expires. The sooner they reach a deal, the better for all American families.”
Likewise, the Retail Industry Leaders Association (RILA) said it was relieved to see positive progress, but that a final deal wasn’t yet complete. “Without the specter of disruption looming, the U.S. economy can continue on its path for growth and retailers can focus on delivering for consumers. We encourage both parties to stay at the negotiating table until a final deal is reached that provides retailers and consumers full certainty that the East and Gulf Coast ports are reliable gateways for the flow of commerce.”
And the National Association of Manufacturers (NAM) commended the parties for coming together while also cautioning them to avoid future disruptions by using this time to reach “a fair and lasting agreement,” NAM President and CEO Jay Timmons said in an email. “Manufacturers are encouraged that cooler heads have prevailed and the ports will reopen. By resuming work and keeping our ports operational, they have shown a commitment to listening to the concerns of manufacturers and other industries that rely on the efficient movement of goods through these critical gateways,” Timmons said. “This decision avoids the need for government intervention and invoking the Taft-Hartley Act, and it is a victory for all parties involved—preserving jobs, safeguarding supply chains, and preventing further economic disruptions.”
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.