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Showing posts with label CSCMP. Show all posts
Showing posts with label CSCMP. Show all posts

Monday, October 9, 2023

Why CSCMP EDGE Conference is So Important

 Last week I spent most of my time at the Council of Supply Chain Management Professionals (CSCMP) Edge conference in Orlando Florida. Just a few hours into the first night and I remembered why coming to this conference is so important and has been such a great part of my supply chain career. I thought I would share some thoughts with you and hopefully the younger readers will realize your supply chain career is a life long journey. Getting to know the leaders of your generation will make you a leader. So, here goes:

  1. Relationships: Yes, we all talk about this, however, this is truly very important and CSCMP has been there for my entire career. From the moment I started coming to this conference I met a number of people in different industries and different supply chain disciplines. From that point, we grew up together, learned together, celebrated together and helped each other. If I had not joined CSCMP early in my career and been intentional about coming to the conference year after year, I would not have known these people and my career would have been less fulfilling. 

  2. Education: Continuous learning is must for any career and certainly supply chain is no exception. Because of my connection to CSCMP and attending conference sessions, I have been able to learn a lot of nuances about the discipline and I have used those learnings to hone my craft. I highly encourage anyone who attends to also attend the academic's conference on Saturday and Sunday. Quite frankly, that has been a highlight of my sessions and learning from the most brilliant academics makes me challenge what I think "I know". 

  3. Time to Sharpen the Saw: I use my attendance at CSCMP EDGE to immerse myself in learning. That could be from the academic sessions, the practitioner sessions or the key-note and mega-sessions which challenge my thinking on many topics, not just supply chain. By listening and thinking deeply on the leadership topics, the supply chain topics, the business management topics and all the other items presented, I am able to use this time to truly execute what Stephen Covey called, "Sharpening the Saw". If you do not take time to do this periodically, just like a saw-blade, you will become dull and worn down. CSCMP EDGE is the perfect place to rededicate yourself to this discipline. 

  4. Learn what is new: The vendor portion is truly world class. By walking the show and being disciplined about making sure you visit suppliers and interact with them, you learn what is new and interesting. My advice is to plan this out and plan your interactions. Learn and engage. You will be better for it. 
Overall, I just cannot imagine being in this discipline and not interacting at CSCMP Edge every year. Thank you to the CSCMP staff and all the volunteers who helped with the conference and worked tirelessly to make it such a great event. 

I leave you with a few pictures of my participation this year on two great panels. One on X-Shoring, Hosted by Alan Amling of University of Tennessee and the other on Meaningful Employment Environments hosted by Trail Paths founder, Robert Martichenko. 





Sunday, August 21, 2022

My Thesis on FOMO for Logistics and Supply Chain Technology Has Stood The Test of Time

Paraphrase:  "We reduce the logistics' cost as % of GDP which results in lower costs for goods and services, which lifts the standard of living for all Americans" - Don Schneider

 

Don Schneider

That phrase, while I many not be getting it word for word, has stuck with me from the day I met him almost 30 years ago. 

First, I apologize as it has been a long time since I put thoughts on the blog about what is going on in the supply chain world.  I should have kept up with it better.  I just went back and looked at my last posting which was on January 19, 2022 and it addressed the issue of supply chain technology. 

Two quotes from that post really stand out:

"The "free money" aspect of the pandemic has also driven an explosion in supply chain / logistics technology. Again, some have driven huge value but by far the vast majority have not.  They have just been the recipients of a lot of money sloshing around in the economy looking for a place to land."

and:

"They [Supply Chain Practitioners] layer technology on top of technology and it still does not get them very far.  This is FOMO.  This is "I am going to try anything and everything because I am afraid I am going to miss out on the latest greatest thing". 

We are starting to see the realization that this technology, without good processes and without assets, is not helping very much. The aggregate outcome metric I like to use is the US Business Logistics Costs as a percent of the nation's GDP. After all the technology improvements we have made, in 2021, this cost was 8% of GDP which, according to the 2022 State of Logistics report issued by CSCMP, has not been this high since 2008.   

Source: CSCMP 2022 SOL Report

Ultimately, we as an industry have to be measured on whether we are delivering value (higher service at lower costs) or not.  This table and information would say we are not doing that.  From the same report, we can trace these costs back to 2012:

Source CSCMP 2022 SOL Report and 10xLogistics Analysis

The graph is up 2bps since 2012 (coming out of a deep recession) and has, more importantly, changed the game significantly since 2018.  Some may say is only 2bps so what does it matter and my point is you would think we could get improvement with all the technology spend we have incurred. 

Do not get me wrong as there is a lot of good in our newest supply chain technology and there are certain aspects of running a supply chain I could not live without however, in the aggregate, logistics has become more costly for less service. 

My question for the supply chain industry is: "Would Don be Happy with this result"?  I will leave you to answer that on your own.  

This is something the supply chain industry has to address and hopefully people will talk about this at CSCMP EDGE conference this year.  Engage on Twitter with the hashtag #logtech

 


  

Friday, September 28, 2018

Heading to Edge 2018 - CSCMP

I hope to connect with a lot of colleagues and meet new ones as we head to Nashville for the CSCMP Edge 2018 meeting.  For those who are new in the industry, this is the premiere event and the "must go" event for the year.  As I reflect on why I try to go every year, I think about the following:


  1. Thought Leadership:  The people who are setting the trends are here and they are happy to engage with you.  Just by attending sessions, listening deeply and interacting with the industry leaders I get to think about issues, how others have solved them, where the supply chain industry is going and, most importantly, what our customers (of our products) need from the supply chain.
  2. Connection: The ability to connect with colleagues whom I have worked with or known for the better part of 30 years.  The supply chain industry is a community and you must engage in it.  One of my key recommendations to those who are starting out in the industry is the need to engage with colleagues.  Think of it as your own personal "crowd sourcing".  This is where you get this done in the span of 4 days.
  3. Sharpen the Saw:   I really try to "get away", disconnect and that allows me to deeply engage in the conference.  I work hard not to jump on my cell phone, do email etc.  My feeling is if your organization cannot run for 4 days without your constant interaction then that is a signal there is a real problem with the organization.  So, I encourage everyone to engage.  
I was lucky enough to be the conference chair in Denver a few years ago and also serve on the board of this great institution.  

Look forward to seeing you all there!

Sunday, December 11, 2016

What is The True State of The Supply Chain Industry?

As we look at the profession of managing supply chains we tend to spend a lot of time working on specific areas such as S&OP, Six Sigma, Lean, Labor management etc. These are all part of what we would hope would be an incredibly efficient supply chain. So, given all the spend in technology and all the work in these areas, it is fair to ask ourselves how are we doing?

By two very macro metrics, I would say as an industry, we are not doing great.  Lets first look at inventory.  As we all know, inventory at rest is waste. We also all like to engage in case studies of companies such as Zara and Dell (former Dell) where inventory management is legendary.  But when we look at the macro numbers, we just are not doing that well. 

The Government publishes an inventory to sales ratio which tells us how much inventory exists for the level of sales that are being produced.  The below graph shows the most current:


As you can see, our inventory relative to sales is about where it was in 2002.  We bottomed right after the recession (when companies just slashed) but since then, even with all the studies and technology, we still grew inventory.  This is waste in the system (and also explains the reason there is excess transportation capacity - especially in ocean).

Now, let's look at cost and for this I go to the CSCMP report "State of Logistics".  The key metric here is logistics cost as % of GDP.  Using the newer calculations prepared by AT Kearney it shows last year we were at 7.85% of GDP.  In 2011 we were at 7.88% so with all of this work, we have improved our cost efficiency by 3bps.  Not a stellar performance.  

So, by these two measurements certainly this industry has a "cold".  One could argue that we have become a lot more efficient but we "consumed" that efficiency by increasing service dramatically (more next day and same day delivery for example).  That is possible and certainly deserves study. However, in total, we do not seem to have made much progress. 

Friday, November 25, 2016

The Amazon Effect

For anyone who runs a warehouse and has Amazon "come to town" you know, at a very micro level, about the "Amazon Effect".  The entire labor and transportation capacity situation in your town changes in an instant.

However, it is bigger than that from a nationwide perspective and I had the privilege of listening to a very insightful presentation given by  Eric Johnson (Twtr: @AmShipEric), research director and IT editor at American Shipper at the Jacksonville CSCMP roundtable event in October.

He had some very good insight into what Amazon is trying to become and what they are not trying to do.  My conclusion, after listening to Eric, is Amazon wants to "own the customer".  Now, of course the key question is what does this mean?

If you think about "owning the customer", it really covers about 5 major touch points:
  1. Own the order experience (The first point to gain loyalty for any product).  This drives all sorts of information technology.
  2. Own the delivery experience (Appointments, delivery, right to how the customer is greeted). 
  3. Own the post delivery experience (solve issues etc)
  4. Own the payment experience (whether they sell it to you or not).
  5. Own the customer ecosystem (Alexa app, ECHO and DOT). 
If your company is not investing heavily in all of the above you most likely are going to be displaced by Amazon at some point.  This is why I published: "What Exactly is Amazon... 3PL? Retailer? IT Company? Delivery Company? - Answer: All of the Above" back in October of 2015!".  

Bottom line:  The story has not changed.  Amazon is coming for your business regardless of what you are doing so be ready to compete.  And, for those who think it is just a matter of time before they are crushed by the weight of costs, think again.  They have entered into a new space and as this article from back in February reminds us:  They are winning the race for the smart home, and no one is noticing


Sunday, September 27, 2015

CSCMP Annual Conference... Where you Need to Be

I have been in this industry coming on 30 years now and being part of it has been core to my enjoyment of the work.  I cannot think of anything more rewarding than being part of the logistics and supply chain industry.

And, the biggest portion of this enjoyment is developing and maintaining great relationships with the great people of this industry.  Some are industry legends, some are people who grew up in the industry with me and are now in key leadership positions and some, probably most, are the people who day to day make the great things happen.  They are responsible to ensure your groceries are at the store, your electronics are ready when you need them, your automobiles are where you need them and the many other 1,000's of items you use are ready, available, and built with quality.

Most recently those people I mention above are responsible to do this all in a very sustainable and environmentally friendly manner.

The best place to connect with these great heroes (most unsung) is at the Council of Supply Chain Management Professionals (CSCMP) Annual Global Conference.  All the best are here and are ready and excited to exchange information, educate and connect.

I look forward to seeing you all here and please do not hesitate to reach out and connect with me. You can connect with me at @logisticsexpert on twitter.  I look forward to engaging.

Oh, and the location is not too shabby either....

The view from The CSCMP Annual Global Conference Location

Saturday, October 26, 2013

3d printing goes mainstream

As my readers know I have been talking about 3D printing for a long time and have been theorizing and brainstorming how this will impact manufacturing, supply chain and the overall method of acquiring goods.  From one of my first posts back in 2012 titled "Don't Reduce Costs - Eliminate Them" through the many others I really believe this is a major change in how goods will get to market.

And, of course, when we were first talking about this topic it appeared to many to be "Star Wars" type conversation but I will tell you it appears to be almost mainstream now.  Many at the recent Council of Supply Chain Management Professionals (CSCMP) Annual Global Conference in Denver were talking about it.  There was even a display!

Now the question is not whether the technology will exist or even if it will be affordable but rather what are the innovative and exciting ways it can be applied.  Unfortunately, the press is all over the fact that people are making gun parts with it.  But here are some revolutionary ways this can be applied to the supply chain:

  1. Development cycle times cut dramatically:  Imagine when you can "print" prototype parts immediately and on demand as you build prototype products?  The idea of rapid prototyping  really becomes a reality and this technology drives this.  So, supply chains have to be ready for rapid deployment of new products.  Where supply chains might have had 3-5 years to plan and get ready for a new product to flow, they many now only have 6 months.  The "bottleneck" in new product development may have just shifted. 
  2. Batch Sizes decrease to just about 1:  The bane of supply chains is when you can get to 1x1 or batch sizes of one.  By nature, supply chains like huge batch sizes as this helps:
    • Inventory
    • Procurement
    • Shipping (Full shipments)
    • Receiving
    • Change overs in plants
    • Tooling and machinery
    Now the question is how will supply chains adapt to true batch sizes of one.  "Make on demand"  will be a reality and people need to be ready to deal with it. 
  3. Really small shipments:  People have always talked about the "push - pull" between reducing logistics costs by increasing shipment size (full truckloads - fullest the furthest) and the flexibility and agility of small shipments.  Most want both.  3D printing will bring a lot more demand on smaller shipments and even shipments of "one".  This will really benefit companies such as UPS and FEDEX at the expense of truckload and intermodal.  
So, the conversation has moved from "Can that really be done" to "Looks like it can be done" to "Yes, it absolutely can be done now how do we leverage and exploit the new technology. 

There are a lot more and I look forward to engaging on the other ideas which will develop.  I look forward to any comments you may have.  


Friday, September 28, 2012

Elena Craft Will Be Speaking At Track 6 - CSCMP 2012

As my readers know I am hosting Track 6 (Click on Track 6 here and see the tracks objectives)  at the Council of Supply Chain Management Professionals annual conference in Atlanta next week.  This track will cover all aspects of Energy and Infrastructure issues facing both our industry and the globe.  We have expert speakers from all facets of the discussion and I can assure you we will challenge the status quo thinking!

I am especially excited to announce to have Elena Craft on our panel. Elena Craft has had a stellar career as a health scientist for the Environmental Defense Fund (EDF) and I am proud to have her on our panel.  I have linked to her biography above and I would also encourage you to read her great blog postings at The EDF News and Blogs Section.  She will challenge us to think differently about what we are accomplishing.

Her presentation is on Monday afternoon, October 1, 2012 in Track 6 at 4:45.

I am looking forward to seeing you all there!!

Council of Supply Chain Management Professionals Annual Conference

I really am looking forward to CSCMP 2012 in Atlanta this year.  I am hosting Track 6 - Energy and Infrastructure where we will have a very robust and exciting discussion on the role energy and infrastructure play in your supply chain - and it is a big role.

Energy costs can consume almost 40% of your total transportation cost structure and of course the Country's infrastructure can decide how efficiently you can get goods to market. We will cover everything from the macro economic outlook for energy to two great case studies on how to convert your fleet to natural gas and alternative fuels.

The exciting part of this is we will cover the spectrum.  Do not expect to have 8 sessions where people all agree (I remember a saying "If everyone in the room thinks alike, someone is not thinking).

We start with a well known economist on the overall macro outlook for energy in the US:  Walter Zimmermann (A very interesting short biography).  He has been seen on CNBC and other national news shows and has a very interesting and data driven view on the potential for energy independence and what is happening in the energy markets today.

Following Walter we will have multiple presentations from Rail executives, scientists and practitioners on what is happening in the world of energy and infrastructure.  It will be a very exciting and timely topic.

I look forward to seeing everyone at the conference and let's use this to really challenge our thinking, learn and make our industry better!


Monday, September 10, 2012

Get Ready - CSCMP 2012 in Atlanta

Those who have been in the industry a while know the Council of Supply Chain Management Professionals (CSCMP) is the premier professional organization for our industry.  From practitioners to academics, this is the organization to belong to if you want to know what is happening in our industry, networking with top individuals / thought leaders and keep an eye on the mega-trends occurring in supply chain and logistics.

This year I have the honor to co-host Track 6 - Energy and Infrastructure at the Annual Global Conference in Atlanta from September 30 to October 3. This track will have exciting discussions concerning the overall energy marketplace right to how to specifically implement Natural Gas and alternative energy strategies.  The track objectives, as stated in the program:
"Managing a sustainable supply chain is no longer just a "cool" thing to do; it is expected by the consumer and is an extension of the brand and product being sold. This track will highlight best-in-class practices and emerging technologies to reduce your carbon footprint, enhance your corporate image, and positively impact the bottom line"
I highly encourage you to put this on your appointment calendar!

Today, I will highlight the first session we will have which is from 9:45 to 11:15 on Monday, October 1, 2012 entitled: Dispelling the Myths of Energy Independence by Walter Zimmermann, Senior Technical Analyst, United ICAP.  The description of this session is:
"US energy independence is a goal that can never be achieved due to the global nature of the economy and the ability to export energy quickly to the higher priced markets. There is a lot of talk about building a stronger economy while at the same time lowering energy prices. This speaker will explain why we can’t have both, and why the financial markets are what actually drive energy price trends. He will reveal what can be done to lower energy costs, and describe how seasonal price cycles can be employed to lock in prices near their annual lows."
This will be an exciting session as it will challenge a lot of the current thoughts which exist in our industry about how we are on the beginning of a wave of cheap energy and energy independence.  Mr. Zimmermann speaks how the laws of supply and demand are not driving fuel costs but rather the "financialization" of the energy markets are really driving the costs. This session will really challenge you to think different.

Mr. Zimmermann is an exciting and dynamic speaker which will make this session very exciting.  Bring your questions!

If you would like to see him in action, take a look at this clip from CNBC:




Here is a more recent interview:

Saturday, May 26, 2012

T. Boone Pickens on Morning Joe

I saw Boone on Morning Joe and I finally have got around to posting it.  A fantastic interview from a man who is actually working like crazy to save America.  Thank goodness for his common sense and I hope Washington will listen.

For those in the logistics industry, come to the CSCMP 2012 meeting in Atlanta and here him keynote!