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.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
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).
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.”
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.
The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.
Anthropic’s “Claude” family of AI assistant models is available on AWS’s Amazon Bedrock, which is a cloud-based managed service that lets companies build specialized generative AI applications by choosing from an array of foundation models (FMs) developed by AI providers like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon itself.
According to Amazon, tens of thousands of customers, from startups to enterprises and government institutions, are currently running their generative AI workloads using Anthropic’s models in the AWS cloud. Those GenAI tools are powering tasks such as customer service chatbots, coding assistants, translation applications, drug discovery, engineering design, and complex business processes.
"The response from AWS customers who are developing generative AI applications powered by Anthropic in Amazon Bedrock has been remarkable," Matt Garman, AWS CEO, said in a release. "By continuing to deploy Anthropic models in Amazon Bedrock and collaborating with Anthropic on the development of our custom Trainium chips, we’ll keep pushing the boundaries of what customers can achieve with generative AI technologies. We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration."