In the supply chain field, we have many challenges on the talent front. Most of what we are collectively doing is devoted to being more attractive to a limited talent pool than our competitors are. But the real key to success in the talent arena is to expand the talent pool itself.
To listen to some academics, nothing matters but the bright young people earning university degrees. Degreed professionals are important, but we also need many thousands more nondegreed workers. We have to recognize that 75 percent (give or take) of supply chain jobs do not require a four-year degree from a university—but that doesn't mean all of those jobs are limited to toiling in a dank, dark warehouse, either. Our problem is that we are failing to create an ongoing stream of qualified and motivated people to fill those nondegreed jobs: people who enter the field on purpose rather than by accident or as a last resort. Sadly, the many programs directed at training forklift drivers and order pickers present a limited, and borderline negative, view of the rich and intricate tapestry of opportunities the supply chain profession provides.
Here in Ohio, we are developing a program that is designed to inform and to attract high school audiences to consider supply chain careers—whether they are interested in Ohio State University, a community college, a vocational education program, or a little training/certification so that they can go to work—and to ensure there will be jobs for them to go to. Our vision is to acquaint young people with the possibilities offered by the profession and divert them into appropriate developmental channels, early enough that they can enter the field educated, trained, and ready to be productive.
We think this will deliver competitive advantage. It will also continue to fill the talent pipeline so that we are not constantly fighting the talent shortage battle. It will give more people decent jobs at decent wages, often in communities in which there are not many traditional opportunities.
Art van Bodegraven
Managing principal
Van Bodegraven Associates
Powell, Ohio, USA
Open students' eyes to SCM as a profession
Recently I taught a seminar for the Executive Master of Business Administration (MBA) program at California State University's Fresno-Craig School of Business. The purpose of this one-day workshop was to introduce the discipline of supply chain management to the MBA students in a way that integrates traditional business topics such as finance, accounting, management, and manufacturing into an enterprisewide, systemwide view. My curriculum was based on the eight SCPro building blocks (created by CSCMP) and the Guiding Principles of the Lean Fulfillment Stream (from LeanCor).
The feedback from the students was overwhelmingly positive, and it inspired me to write to you. We have been talking about the talent crisis in supply chain and logistics; meanwhile, the discipline is not taught at enough universities. In fact, some schools have even cut their logistics programs due to low student enrollments. Why? The natural conclusion would be that students and young professionals don't find the field interesting or promising as a career. After my experience teaching, I respectfully disagree and believe the problem to be the low level of marketing we do for supply chain and logistics. After I taught my students about the amazing diversity of our profession, the opportunities for supply chain professionals to be seen as "Most Valued Player" at their companies, and the success stories of Amazon, Walmart, Macy's, and others, I saw their eyes lighting up one by one. The students' feedback speaks for itself:
"I have learned most of what I now know about supply chain management through this brief, yet very informative course. Before this class, I thought of SCM as only having to do with transportation. I have learned that I have a lot to learn, and a good reason to learn it. Thank you for the enlightening class."
"Thank you for the awesome class last week, it was a really interesting topic that has not been covered enough in our MBA program or undergraduate courses. During this program I have become increasingly interested in operations and SCM. I would like to find direction in my career to take the necessary steps into the field."
So where are the future generations of supply chain professionals hiding, you ask? At every business school around the world! All we need to do is teach them the secrets of our profession with enthusiasm, and our talent crisis will be a tale of the past.
Susanna Sterling-Bodnar
Director, Supply Chain Solutions
LeanCor Supply Chain Group
Florence, Kentucky, USA
CSCMP's annual conference inspired new ideas
Last year, when a friend invited me to join CSCMP and attend the Annual Global Conference in Denver, I decided to go and experience more of what my friend promised was a great organization.
I can tell you that it was even better than promised. So full of passionate, great leaders and members! I could see the energy flowing out of the people gathered together to network and learn about the supply chain.
The learning was great, the networking could not have been better, and the general sessions opened my mind to an explosion of ideas. I came home full of energy and ideas, and charged with innovation and enthusiasm.
As a Mexican national, hearing Felipe Calderón speak about the great future opportunities for Mexico was pretty relevant to me. (A big thanks to the team who took me backstage for a photo with him, that was awesome!) The story of Tesla Motors was so inspirational. I was already intrigued by their story and what I think is their potential to make history, but hearing about the struggles, challenges, and opportunities they have faced really put a human face on this great supply chain and innovation story.
The biggest impact for me came from Mike Rayburn's keynote presentation about innovation. The company I work for is big in innovation. I can tell you that all the innovation training, reading material, and videos I have seen over the last couple of years came to life when I heard Rayburn deliver his innovation message.
Coincidentally, during a networking lunch the Monday prior to Rayburn's talk, I was talking to a student about innovation. I remember saying, "I wish I was innovative, but I'm not." After hearing Rayburn, the innovation message really hit home. I could not sleep for a few nights after the conference because so many ideas kept coming into my head, and I had to get up and write them down.
I was wrong. I am innovative, we are all innovative—we simply need to give ourselves permission to be that way.
Today, I'm working on three innovation-related projects! I have presented one supply chain-related innovation idea to my company. Additionally, my friend who invited me to join CSCMP, some other supply chain professionals, and I together have created a roundtable for Peoria, Illinois, USA. All of these things happened because I gave myself permission to check out what CSCMP was all about. Needless to say, it was the best education investment I have made so far.
Keep up the great work, CSCMP team, and see you in San Antonio!
Javier R. Zarazua
Undercarriage Black Belt—Strategic Sourcing
Caterpillar Inc.
Peoria, Illinois, USA
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.