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.
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.