In the business world, we are always trying to hit a moving target. As the Greek philosopher Heraclitus said, "The only thing that is constant is change." In a plugged-in, connected age, change comes rapidly. The change can be from macro sources like economic recession, or from micro sources like reorganization within your supply chain. Learning how to adapt to change is a necessary ingredient for success, both in business and in your career.
Some change begins so gradually you do not see it creeping up on you. Other change comes as a shock—a jolt out of nowhere. Either way, when change is occurring the first question you need to ask is, "How does this change alter my organization's current mission and goals?" For instance, if you are a film maker and digital cameras are gaining widespread acceptance, then your organization's goals—indeed, its entire strategy—will be affected. If you are changing from a centralized to a decentralized supply chain model, the goal remains the same but the tactics for achieving it will be different. During periods of change, we are called on to manage not just what is changing—be it a matter of policy, process, or personnel—but also to manage how the change is made and implemented. Here are some thoughts on how you can not just survive but also thrive in such times of transition.
Steps to success
Change management starts with a call to action—pointing out the problem or opportunity that you believe is creating a pressing need for change. A call to action emanates not only from perceptions about the changing environment, but also from supporting facts from credible sources. External and unbiased third-party sources help support the change initiative's credibility.
To get things moving, it's necessary to establish a forum for people and organizations that will be most impacted by the change. This is an arena for people to exchange ideas, discuss merits and pitfalls, and solicit feedback and support. Brainstorming and playing "devil's advocate" are useful for bringing creative ideas to the surface and arriving at the best way to implement the needed change.
Get help by asking internal experts for their assistance. Transitions often affect many functions of the company, such as finance, accounting, human resources, and others. Functional specialists can be useful advocates for the change; they can even become change champions by actively promoting the benefits of moving in a new direction.
Supply chain professionals understand the adage "plan the work, and work the plan." So it won't surprise you that any significant change initiative needs a plan of action. This is a step-by-step guide to implementing your change initiative. Among other things, it should ensure role clarity for all the key players as well as lay out the actions that need to be executed. As you develop this plan, be on the lookout for smaller, digestible actions that accelerate change and demonstrate that the plan is working. John Kotter, a professor at Harvard Business School and an authority on leadership and change, calls these "short-term wins," and they really help validate the value of the effort. Also, don't forget to celebrate success as each milestone is achieved. This helps your team to maintain positive energy and demonstrates just how much you value them.
Of course, you need to be a believer. You must believe at a deep, gut level that rejecting change is not an option. Your followers will be looking at you constantly to gauge whether you still believe in the mission. This is especially true when the going gets rough, which it almost certainly will. You can't fake belief. If you don't believe in your mission with your full heart and mind, don't move forward.
Within the change forum, dissent is normal and can be highly valuable. People who are skeptical of the mission can play a contrarian role within the group. A skeptic can give voice to what others may be thinking but are not secure enough to say. Skeptics help the group see different perspectives and consider other trains of thought. The result can be a more thoughtful—and ultimately more successful—response to the challenges the change presents.
The opposite of the official dissenter is an official proponent. To gain greater acceptance for the transition plan, it's invaluable to have someone who can spread the good word about it. This plan ambassador ideally will be a high-profile person, someone who commands respect and consideration. Gauging a potential ambassador's affinity for your change initiative can be delicate. The group leader should initially approach high-profile people privately to get a sense of their perspective. If this "behind the curtain" meeting is a success, then a meeting with the group is warranted. The group's ability to increase an advocate's enthusiasm for the plan directly affects the advocate's show of enthusiasm about the group and its initiative elsewhere.
There can and should be more than one official proponent. Your immediate boss should be your first-line proponent, and he or she should advocate for outreach to the rest of the firm. The boss's public support is crucial for acceptance and ultimate success.
When you have advocates, especially one from outside the inner circle, be sure to keep them informed. When you stay in touch, you refresh their enthusiasm for your mission. Their interest is sustained and your cause remains front of mind. Tailor the messages you send them to hit their key priorities. See the issue through their eyes and show them the value that will accrue to their area's benefit.
Other advocates can be recruited around the water cooler, in the hallway, and on the elevator. You can turn a casual meeting into a quick promotion for your change initiative. Prepare a brief description of your plan for general dissemination, and use it. This "quick pitch" will spread the word and help you keep your finger on the pulse of co-workers' attitudes. Their thoughts may provide unique and useful insights.
Just as positive messages can run through an organization, so can negative ones. Be sure to address disinformation immediately. Logically and thoroughly meet any negative "press" head on. For instance, if you hear someone say that the transition will cause another group to miss budget, show how your plan will ultimately be better for the company than the status quo. Help the organization see the bigger picture. This is influencing as a high art.
Be responsive to change
Change is not easy. As mentioned earlier (it can't be mentioned too often) be sure to show appreciation when someone endorses your plan. Anyone who helps or advances a plan for change deserves to be thanked, ideally in a public way. Positive energy breeds more positive energy.
Last, when the transition is complete, consider making permanent adjustments to job descriptions, evaluations, and benchmarks. The game has changed and it should be documented for the future.
Charles Darwin, the father of evolution theory, said, "It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change." We all need to take those wise words to heart.
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
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.
The practice consists of 5,000 professionals from Accenture and from Avanade—the consulting firm’s joint venture with Microsoft. They will be supported by Microsoft product specialists who will work closely with the Accenture Center for Advanced AI. Together, that group will collaborate on AI and Copilot agent templates, extensions, plugins, and connectors to help organizations leverage their data and gen AI to reduce costs, improve efficiencies and drive growth, they said on Thursday.
Accenture and Avanade say they have already developed some AI tools for these applications. For example, a supplier discovery and risk agent can deliver real-time market insights, agile supply chain responses, and better vendor selection, which could result in up to 15% cost savings. And a procure-to-pay agent could improve efficiency by up to 40% and enhance vendor relations and satisfaction by addressing urgent payment requirements and avoiding disruptions of key services
Likewise, they have also built solutions for clients using Microsoft 365 Copilot technology. For example, they have created Copilots for a variety of industries and functions including finance, manufacturing, supply chain, retail, and consumer goods and healthcare.
Another part of the new practice will be educating clients how to use the technology, using an “Azure Generative AI Engineer Nanodegree program” to teach users how to design, build, and operationalize AI-driven applications on Azure, Microsoft’s cloud computing platform. The online classes will teach learners how to use AI models to solve real-world problems through automation, data insights, and generative AI solutions, the firms said.
“We are pleased to deepen our collaboration with Accenture to help our mutual customers develop AI-first business processes responsibly and securely, while helping them drive market differentiation,” Judson Althoff, executive vice president and chief commercial officer at Microsoft, said in a release. “By bringing together Copilots and human ambition, paired with the autonomous capabilities of an agent, we can accelerate AI transformation for organizations across industries and help them realize successful business outcomes through pragmatic innovation.”