The recipients of CSCMP's inaugural Emerging Leader Award—Keiko Arai, Florian Schick, and Amanda Tolhurst—talk about their experiences in supply chain management and offer advice to their peers.
The future of supply chain management will be shaped by the best and brightest, those under-30-year-old professionals who will bring new ideas and innovations to the discipline. To recognize individuals who promise to be among the next generation of supply chain leaders, the Council of Supply Chain Management Professionals (CSCMP) recently launched its first-ever Emerging Leader Award.
"The future of our industry lies with today's young professionals who will be tomorrow's leaders," said Rick Blasgen, CSCMP president and chief executive officer, in announcing the award. "It is important that we recognize the contributions of emerging talent and the positive impact they have on our profession today and will continue to have in the future."
The winners of the inaugural award—Keiko Arai, Florian Schick, and Amanda Tolhurst—were honored at CSCMP's Annual Global Conference in Denver, Colorado, USA. They were chosen because of their personal career achievements and their record of accomplishment in the supply chain profession, as evidenced by awards, peer recognition, industry publications, and recommendations, according to CSCMP Young Professionals Committee Chair John Bowersox.
CSCMP's Supply Chain Quarterly Editor James A. Cooke asked the award winners about their careers and aspirations.
KEIKO ARAI
Keiko Arai recently accepted a position in global outsourcing with Bell Helicopter after completing Textron's two-year Leadership Development Program in Integrated Supply Chain Management. Her work experience includes internships with Farmland and Kraft in such areas as logistics, sales, and merchandising.
A Kansas native, Arai received a Bachelor of Science degree in supply chain management with an international business concentration from the University of Kansas. She has studied and worked in Japan, France, Peru, and Mexico and is fluent in Japanese, French, and Spanish.
Arai's passion lies in international business. She hopes to pursue a career in global business expansion and development in emerging markets.
What attracted you to the supply chain management profession?
I read a book in high school called The Travels of a T-Shirt in the Global Economy by Pietra Rivoli and instantly became fascinated by the complexity of supply chain management. I love the continuous-improvement mindset. It's global, "big picture," creative, ever-changing, and cutting-edge.
What was your biggest surprise about the supply chain field when you entered the work force?
Every industry is different and has its own, unique supply chain challenges. There is no "one size fits all" sort of best practice. I interned in the fast-paced food retail industry while in college. After graduating, I took a position in the aerospace industry. I first tried to implement what I learned from the retail world in the aerospace world, ignorant of how different the two industries were from each other. While it takes minutes to produce and pack a box of Oreos, it can take months to years to build an aircraft constructed of thousands of parts. This makes for two completely different supply chains and lead times.
Based on your own experience, do you have any advice for young professionals about how to succeed in supply chain management?
Your direct supervisor plays a tremendous role in your career and development. ... If possible, try to pair yourself up with a supervisor who not only delegates responsibilities well, but can also be your career coach. If professional athletes have coaches, working professionals should as well!
I also think that you should do what you love and are passionate about. ... It's too easy to give up on something you don't care about. You will be more determined, challenged, and fulfilled when you do what you love. Everyone should be doing his or her dream job.
Do people in supply chain management have any misperceptions about today's young professionals?
Yes, but in all honesty, there is a lot of truth to the current perceptions of today's young professionals. The first company I worked for out of college, my manager said to me, "What you know is theory, and what I know is reality." Many young professionals barge in with fresh eyes and new ideas thinking we can immediately make a difference in the company. Yes, we are stubborn, impatient, easily bored, and want to quickly get promoted. With the right manager, such negatively perceived characteristics and attitude can be turned around and used in meaningful projects that will generate impactful results.
How do you think your generation views supply chain management as a profession?
When I was in college, many students viewed supply chain management as "dirty manufacturing work." Working in a manufacturing facility isn't viewed as being nearly as glamorous as working on Wall Street. A lot of people don't realize that supply chain management goes beyond operations management.
Where do you see yourself 10 years from now?
I see myself leading cross-functional teams in global "greenfield" acquisitions and joint-venture projects in emerging markets.
FLORIAN SCHICK
Florian Schick was recently named head of strategy and business development for Merck Serono in Germany. Previously, he was an associate at McKinsey & Company's Supply Chain Management Practice in its Frankfurt, Germany, office. Before McKinsey he spent three years at Pfizer as manager of distribution models and channel strategies.
Schick holds a master's degree in supply chain management from the Massachusetts Institute of Technology in the United States and the University of Zaragoza in Spain. He earned his bachelor's degree in general management from the European Business School in Germany and ITESM in Mexico.
Based on his experience with health-care supply chains in Africa, he wrote his master's thesis on emerging market strategies for pharmaceutical companies. In addition to his native language of German, he is fluent in English and Spanish.
What attracted you to the field of supply chain management?
It was a desire to learn how companies and industries truly work from end to end by achieving a cross-functional understanding. I also wanted to understand how to overcome the "silo thinking" that can be observed in so many organizations.
What was your biggest surprise about the field of supply chain management when you â?¨entered the work force?
That continuous learning is a key to success, and that people skills and "soft" factors do matter. I also think that to prepare decisions properly, analytical tools and capabilities are a prerequisite today. In addition, to be successful at implementing decisions, you must have engagement and commitment across various levels of the organization.
Based on your own experience, do you have any advice for young professionals about how to succeed in supply chain management?
Broaden your horizon across countries and industries. And seek challenges early on in your careers.
Do you have any predictions about where the industry is headed in theâ?¨next 10 years?
I see mega trends like the rise of digitization and "big data" shaping the field. I'm curious about how advanced collaboration between companies in the same and adjacent industries will develop.
Where do you see yourself 10 years from now?
Taking responsibility in and contributing to the progress of the health-care and pharmaceutical industry.
AMANDA TOLHURST
Amanda Tolhurst has been with Whirlpool Corp. for more than seven years. As the senior manager of internal materials operations at Whirlpool's operation in Ohio, she is responsible for the strategic and day-to-day management and delivery of parts to dryer manufacturing lines. Prior to this position she held various supply chain responsibilities at Whirlpool Canada, including management of the forecasting and supply teams and management of distribution operations and outsourced logistics relationships.
Tolhurst holds a Bachelor of Science in logistics and transportation from the University of Tennessee and a Master of Business Administration from the Schulich School of Business at York University. She chaired the Supply Chain and Logistics Association (SCL) of Canada's annual conference in both 2011 and 2012, and received SCL's 2008 President's Award for her work on a network consolidation project at Whirlpool Canada.
What attracted you to the supply chain management profession?
The biggest attraction was the variety of challenges available to someone with a logistics degree—not only with the number of different companies that you could go work for, but the vast number of different jobs within those companies, whether it be forecasting, operations, manufacturing, transportation, customs, customer service, [and many others].
What was your biggest surprise about the supply chain field when you entered the work force?
The biggest surprise about the field was the similarities in how things get from point A to point B across different industries. Although a lot of the basics are the same, it's how well you implement them and challenge yourself to continuously improve that drives success.
Based on your own experience, do you have any advice for young professionals about how to succeed in supply chain management?
The biggest piece of advice that I would give is "be flexible." Be willing to try different areas in supply chain management and also be willing to step outside your comfort zone and do something on the business side to gain wider experience. Never say no to an opportunity to learn something new.
Do people in supply chain management have any misperceptions about today's young professionals?
I do not think there are any major misperceptions. Regardless of age, you have to prove yourself and earn the trust and respect of your colleagues.
Do you have any predictions about where the industry is headed in the next 10 years?
The industry is going to continue to get more creative as technology continues to change how we think and do normal, everyday things. Companies are experimenting with new equipment and new ways of moving products.
How do you think your generation views supply chain management as a profession?
I think more younger people are starting to think of supply chain management as a good career path, which is different than it may have been in the past. It's starting to become a better-known choice for business majors.
Where do you see yourself 10 years from now?
I see myself leading a global supply chain organization that is dynamic, growing, and continuously challenging itself to improve.
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.”