The 2014 recipients of CSCMP's Emerging Leader Award, Susan Conley and Mengxiao (Michelle) Zhang, are destined to make a mark in the supply chain profession.
The next generation of supply chain leaders, the best and the brightest under the age of 30, will transform the field of supply chain management and send it in new directions. To identify, recognize, and nurture those future leaders, the Council of Supply Chain Management Professionals (CSCMP) last year launched its Emerging Leader Award.
This year's award recipients, Susan Conley and Mengxiao (Michelle) Zhang, were chosen because of their personal achievements and their record of accomplishment to date in the supply chain profession, as evidenced by awards, peer recognition, industry publications, and recommendations, according to John Bowersox, Young Professionals Committee chair and a member of CSCMP's board of directors. Conley and Zhang were presented with their awards at CSCMP's 2014 Annual Global Conference in San Antonio, Texas, USA.
CSCMP's Supply Chain Quarterly asked each of the award winners about her career goals and aspirations.
SUSAN CONLEY
Susan Conley is in her second term of employment with the industrial equipment manufacturer Caterpillar Inc. After receiving a bachelor's degree in industrial engineering with a minor in business administration from Bradley University in 2006, she worked for Caterpillar in logistics planning and engineering within the service parts group. In 2010 she left to earn a Master of Engineering in Logistics and Supply Chain Management from the Massachusetts Institute of Technology-Zaragoza International Logistics Program in Zaragoza, Spain. With that degree in hand, she returned to Caterpillar's logistics division, where she now works as a program specialist. Through working on two major initiatives—the integration of a major mining acquisition into Caterpillar's service-parts business, and increasing collaboration with the company's dealer network—she has developed her management skills and understanding of supply chain strategy.
What attracted you to the supply chain management profession?
In a lot of ways, I fell into the profession. There were so many things I could do with my engineering degree. I'm the sort of person who needs to be challenged. When I was hired by Caterpillar, it just happened that my first job was in their logistics division. It wasn't until after several years of working that things finally clicked, and I decided this was a profession I really wanted to pursue. Supply chain has been a great fit for me because it's a fairly specialized field, yet there's always so much more I can learn. I've also had the privilege of working and studying with a great group of very diverse supply chain professionals and mentors, which has been very enriching for me personally.
What was your biggest surprise about the supply chain field when you entered the work force?
How different it is from academic study. For my undergraduate degree, I took classes in operations planning, inventory management, network modeling, marketing, and finance, but they didn't excite me. In real life, supply chain is much more exciting ... and far more connected and challenging than what I learned in school. It's straightforward to build a linear program when you're given all the costs and variables, but it's much more difficult when you have to try to identify and estimate them yourself.
If you had to speak to a college class of supply chain majors, what advice would you give them?
Get hands-on experience with the operations side of the business. When I first graduated, I wanted a more corporate-feeling job where I would be working in an office on a computer. Luckily, I had the opportunity to spend several months at a distribution center working with hourly associates and learning about the challenges they face every day. When many of your activities are analyzing data, building spreadsheets, and answering e-mails, it's really easy to forget that you're doing all of that so that your operation keeps running efficiently and your customers get their products.
Is there any area of study where you wish you had more knowledge or preparation?
Transportation. I had no idea how complicated it could be to ship something commercially. Especially when crossing borders, the cost and legal implications can be tremendous. I still feel I have a lot to learn in this area, but at least now I have a better appreciation for the complexity.
Where do you see yourself 10 years from now?
I'd love to be in a position that lets me grow, diversify, and leverage my supply chain experience but also puts me more into a leadership and mentoring role. There's so much happening now that could change the industry. I'm excited to be a part of supply chain's evolution and to provide guidance and advice to the next generation as my mentors have for me.
MENGXIAO (MICHELLE) ZHANG
Mengxiao, or "Michelle," Zhang currently works as a team lead in lean logistics and operations for the consulting and third-party logistics company LeanCor Supply Chain Group. In 2009 she graduated with a Bachelor of Engineering in logistics management from Lanzhou Jiaotong University in China. She then earned a master's degree in business logistics engineering at The Ohio State University in 2010.
Following graduation from Ohio State, she worked briefly for Saint-Gobain Autover before joining the LeanCor Supply Chain Group in 2011. At LeanCor, she has been involved in such areas as data analysis, vendor management and implementation, transportation management, and Lean/Six Sigma project management and problem solving.
Why did you go into supply chain management?
My major in college was logistics management, and I earned my master's degree in the Master in Business Logistics Engineering program at Ohio State. So working at a logistics company upon graduation was kind of expected. But the company I am working for, LeanCor, is not just a third-party logistics company. This company emphasizes understanding total logistics cost from a "supply chain value stream" point of view. ... As a LeanCor associate, I have been given the opportunity to work very closely with our customers' purchasing/sourcing, demand planning, warehousing, cross docking, and plant shipping and receiving departments. Working with them on a daily operational basis has helped me understand supply chain management better and more clearly.
Based on your own experience, do you have any advice for young professionals about how to succeed in supply chain management?
Young professionals, for the most part, lack experience. I have found that working in the industry and talking to people "at the gemba" (a Lean Management term that means "where the work is being done") to be the perfect way to gain experience and knowledge. Supply chain is such a huge area. It requires one to always be humble, patient, and still so that learning can happen, which then leads to practical understanding. These experiences will surely help us on our future career paths when we have more analytical or managerial roles. In these future roles, we will need to solve real problems or even develop a strategic plan. Because we were at the gemba, we learned, we understand, and we respect those who taught us.
Do you see any differences between supply chain management in China and the United States?
China is heavily relying on railway transportation; about 60 percent [of freight transportation is by rail]. Infrastructure development plays a very important role there. In the United States, road transportation has a larger market share, and the infrastructure was completed decades ago. In China, there is also a need for more government regulation and industry cooperation to help the market and companies in these fields improve and grow. There are so many small logistics companies in China running their businesses their own way. This creates issues and problems in a less-than-mature and less-developed industry.
I would say that the term "supply chain" is still new in China. But more companies have started focusing on understanding supply chain and the value stream point of view, rather than breaking things down into silos as they used to. Lean and Six Sigma have become more noticeable in recent years as more and more foreign companies are pushing this philosophy in their China divisions. This is how U.S. supply chain professionals can really offer some help. There are definitely opportunities in China for U.S. supply chain companies in training, education, and consulting.
Do you have any predictions about where the profession is headed in the next decade?
I would say our profession will rely more and more on technology in the next decade. ... [T]his trend and change is unstoppable and will only get stronger. In the past decade we've seen how new technologies such as WMS (warehouse management systems), ERP (enterprise resource planning) systems, MRP (manufacturing resource planning) systems, TMS (transportation management systems), and RFID (radio frequency identification) have changed the game. With the faster speed of new tech innovations, such as alternative fuels and 3-D printing, I am sure we will become even more dependent on technology. This, in turn, will help the whole industry to be more fast-paced and customer-centered, develop greater resiliency and flexibility, and be proactive in risk management.
Where do you see yourself 10 years from now?
Ten years from now, I hope to be a successful project manager and consultant who has a perfect understanding, solid knowledge, and sound hands-on experience of every aspect of the supply chain.
Additionally, I hope to develop in-depth knowledge of the six "Cornerstones," which is how CSCMP organizes and interprets these same concepts. With this knowledge and experience, I could be a great resource internally for my team and externally for my customers whenever they need advice or solutions for the challenges they're facing in their supply chain.
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.”
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use artificial intelligence-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next one to three years. Retailers also said they plan to invest in self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) within the next three years to help with loss prevention.
Those strategies could help improve the brick-and-mortar shopping experience, as 78% of shoppers say it’s annoying when products are locked up or secured within cases. Part of that frustration, according to consumers, is fueled by the extra time it takes to find an associate to them unlock those cases. Seventy percent of consumers say they have trouble finding sales associates to help them during in-store shopping. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
Additional areas of frustrations identified by retailers and associates include:
The difficulty of implementing "click and collect" or in-story returns, despite high shopper demand for them;
The struggle to confirm current inventory and pricing;
Lingering labor shortages; and
Increasing loss incidents.
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.