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BONUS PULLOUT: GLOBAL ENABLED SUPPLY & DEMAND CHAIN MAP, VERSION 33 Global Supply Chain Solutions Covering Procurement, Risk, the IoT and More

MARCH 2017


Home Depot Nails DIY Omnichannel Experience How to build a seamless

KNOW in 2017

buying experience through multiple channels

Oak Street Bootmakers Kicks Up American Manufacturing Approaching quality manufacturing as a marathon, not a sprint

IoT in Reverse

Get to know Pro to Know Bobby Burg of Southern Glazer’s Wine and Spirits and the rest of this year’s class of supply chain trailblazers.

How the Internet of Things will transform the world of reverse logistics

Fresh new content daily at SDCEXEC.COM

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Vice Com Div Cele


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Here Are a Few of this Year’s



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Lead Systems Engineer Barcoding Inc.


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Principal Research Lead of Supply Chain Management American Productivity & Quality Center (APQC)

CEO BlueWorld Supply Chain Consulting

CEO of th Ech

PETER MURPHY Director of Software Implementation Arkieva

BRIAN GLAHN CEO Atlantix Global Systems

TARA BUCHLER Implementation Manager BluJay Solutions



Senior Account Manager BluJay Solutions

Pres Flas



Vice President of Europe, the Middle East, Africa, Australia and New Zealand AVATA UK Limited

President Burns Logistics Solutions Inc.



President and CEO Avercast LLC

Vice President of Sales and Marketing CaseStack

IVAYLO ILIEV Vice President of Engineering B-Stock Solutions


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President and Founder Kuebix

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ROB BROWN Head of Supply Chain Planning Linde

JOSEPH A. FASSANO Supply Chain Manager SPI Pharma




nior Vice President of Sales rcentric

Vice President of Manufacturing and Supply Chain Multi-Tech Systems Inc.

Vice President of Product Strategy Synchrono




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Manager of Professional Services NeoGrid

Founder and CEO Systems Logic



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e President of porate Marketing mica

Executive Partner Paladin Associates Inc.

JAMES BLEYER Senior Collaborative Planning, Forecasting and Replenishment Analyst Tempur Sealy International (TSI)



CEO and President Paragon Software Systems

Senior Vice President of Operations Transplace




esident and CEO sh Global

President Purolator International

Vice President of Client Solutions Transportation Insight




President of RELEX Solutions U.S. RELEX Solutions

Vice President of Parcel Solutions Transportation Insight



sident and CEO hn Galt Solutions


President and Co-Founder Zipline Logistics

O of Americas Global


e President of Industry Strategy naxis

President and CEO REZ-1

BILL NULTY, PH.D. Founder and CEO Scientific Logistics

For more Pros to Know, turn to Page 6.

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March 2017 | Volume 18 | Issue 1



06 Pros to Know in 2017

Get to know Pro to Know Bobby Burg of Southern Glazer’s Wine and Spirits, and the rest of this year’s supply chain trailblazers.

22 Home Depot Nails



 Overcoming Last-Mile Delivery and Urban Logistics Obstacles With delivery lockers, drones, use of the sharing economy and robots, we can conquer.

DIY Omnichannel Experience The company’s finished DIY omnichannel project builds a seamless buying experience through multiple channels.


28 THE INTERNET OF THINGS  Moving in Reverse


The Internet of Things will transform the world of logistics.



 Putting the Pieces Together

Supplier relationship management is a puzzle that needs to be put together the right way to be a winwin for everyone.





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 The Hows and Whys of Robotics in the Warehouse Locus Robotics sees an opportunity in automating the world’s warehouses.

43 PROFESSIONAL DEVELOPMENT  SDCE Executes Education Partnership NC State University will aid in judging 2017 SDCE 100.



Exclusive online features and solutions for successful supply chain operations

Returns Are at an All-Time High: What’s Your Plan?

Uber and Freight: Collaborative What Does a Trump Presidency Partner or Disruptive Competitor? Mean for Manufacturers?

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EXECUTIVE MEMO By Ronnie Garrett, Editor


Though from different companies, these leaders share some common traits as they transform the supply chain.


ohn Quincy Adams once said, “If they must rely on every member of your actions inspire others to dream the team to carry it out. Trusting more, learn more, do more and the team to execute goals is a sign become more, you are a leader.” It’s a of a leader’s strength-not weakness. quote that means a great deal to me as we Delegating tasks helps leaders put the finishing touches on the annual capitalize on the strengths of their Pros to Know issue of Supply & Demand team and gives them more time to Chain Executive. focus on transformative projects. The individuals who received the 2017 ❯❯ DECISIVENESS. Leaders need to make Pros to Know distinction are definitely decisions for the good of the entire an inspiration. As we celebrate these team and organization. They must be exceptional supply chain leaders, I’d like to able to properly assess situations, and take the time to reflect on make decisions that help what makes a leader great. the organization, help the A quick online team and have positive search uncovers several outcomes. As they do personality traits that this, they must exhibit a make just about every high level of confidence leadership list. They are: in their decisions if they ❯❯ HONESTY. Honest want their teams to leaders inspire follow them. through words Those who made the —JOHN QUINCY ADAMS, and actions. They list as Pros to Know SIXTH PRESIDENT OF THE UNITED STATES embody these traits understand that effective leadership is built on trust and more. Nominators told us again that comes from being truly honest and again how their nominees led their and they realize that strong teams organizations to complete new supply rely on trust to get the job done. chain projects, promote their brands, ❯❯ COMMUNICATION. Leaders advance technology and processes, and see what needs to be done and build teams. The accomplishments of communicate that effectively to these leaders offer a road map to others their teams. Being able to clearly looking to leverage their supply chains for and succinctly describe tasks is competitive advantage. important. If leaders cannot convey Congratulations to those who made their vision to employees, their the 2017 listing of Pros to Know. We look teams will struggle as they execute forward to watching how your leadership company goals. efforts continue to transform the supply ❯❯ THE ABILITY TO DELEGATE. Leaders chain in the years to come. know the job at hand is too great for them to do alone and realize




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Published by AC Business Media Inc. 201 N. Main Street, Fort Atkinson, WI 53538 (800) 538-5544 • PRINT AND DIGITAL STAFF GROUP PUBLISHER Jolene Gulley ASSOCIATE PUBLISHER Judy Welp EDITORIAL DIRECTOR Lara L. Sowinski EDITOR Ronnie Garrett MANAGING EDITOR Carrie Mantey ASSISTANT EDITOR Amy Wunderlin SENIOR PRODUCTION MANAGER Cindy Rusch ART DIRECTOR Kayla Brown AUDIENCE DEVELOPMENT DIRECTOR Wendy Chady AUDIENCE DEVELOPMENT MANAGER Angela Kelty ADVERTISING SALES (800) 538-5544 JOLENE GULLEY, STEPHANIE PAPP, EDITORIAL ADVISORY BOARD LORA CECERE, Founder and CEO, Supply Chain Insights TIM FEEMSTER, President, Foremost Quality Logistics JOHN M. HILL, Director, St. Onge Company, and Board of Governors, Material Handling Industry of America RORY KING, Analytic and Big Data Advisor, SAS Institute KAREN MASTER, Vice President of Communications, SAP Ariba WILLIAM L. MICHELS, CEO, Aripart Consulting JULIE MURPHREE, Founding Editor, Supply & Demand Chain Executive ANDREW K. REESE, Senior Portfolio Marketing Manager, IHS, and Former Editor, Supply & Demand Chain Executive BOB RUDZKI, President, Greybeard Advisors CHRIS SAWCHUK, Global Managing Director and Procurement Advisory Practice Leader, The Hackett Group RAJ SHARMA, CEO, Censeo Consulting Group KATE VITASEK, Founder, Supply Chain Visions CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (800) 543-5055 Email: LIST RENTAL Elizabeth Jackson, Merit Direct LLC (847) 492-1350, ext. 18, Fax: (847) 492-0085 Email: REPRINT SERVICES JOLENE GULLEY, AC BUSINESS MEDIA INC. CHAIRMAN Anil Narang PRESIDENT AND CEO Carl Wistreich EXECUTIVE VICE PRESIDENT Kris Flitcroft CFO JoAnn Breuchel VP OF CONTENT Greg Udelhofen VP OF MARKETING Debbie George DIGITAL OPERATIONS MANAGER Nick Raether DIGITAL SALES MANAGER Monique Terrazas Published and copyrighted 2017 by AC Business Media Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher. Supply & Demand Chain Executive [USPS #024-012 and ISSN 1548-3142 (print) and ISSN 1948-5654 (online)] is published five times a year: March, May, June, September and December by AC Business Media Inc., 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, Wisconsin and additional entry offices. POSTMASTER: Please send all changes of address to Supply & Demand Chain Executive, P.O. Box 3605, Northbrook, IL 60065-3605. Printed in the USA. SUBSCRIPTION POLICY: Individual subscriptions are available without charge in the United States, Canada and Mexico to qualified individuals. Publisher reserves right to reject nonqualified subscribers. One-year subscription to nonqualified individuals: U.S., $30; Canada and Mexico, $50; and $75 for all other countries (payable in U.S. funds, drawn from U.S. bank). Single copies available (prepaid only) for $10 each. Return undeliverable Canadian addresses to: Supply & Demand Chain Executive, P.O. Box 25542, London, ON N6C 6B2. The information presented in this edition of Supply & Demand Chain Executive is believed to be a­ccurate. The p­ ublisher cannot assume responsibility for the validity of claims or ­performances of items appearing in editorial presentations or advertisements in the publication. March 2017 / Volume 18 / Issue 1

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Ability to

See change Manage change Lead change



DYNAMIC SUPPLY CHAIN LEADERSHIP Lead Logistics Partner · Third-Party Logistics · Supply Chain Analysis & Design Network Management · Logistics Center Management · Transportation Management Value-Added Services · Business Process Integration · Supply Chain Visibility Dynamic Supply Chain Leadership

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PROS TO KNOW 2017 By Amy Wunderlin


Coming in atop this year’s list of supply chain visionaries, Southern Glazer’s Bobby Burg is revolutionizing the alcohol distribution industry and is leading the way in an ever-changing global economy.


he definition of leadership to Bobby Burg is getting a bunch of people to do something that, on their own, they would not have normally accomplished. And like all great leaders, Burg is quick to pass individual recognition on to his team. Among his significant achievements as a supply chain innovator, his team-first mentality is one of the many traits that sets him apart from his peers, earning him the title of Supply & Demand Chain Executive’s Pro to Know of the Year. “I appreciate the individual recognition … but I really feel like this is a great opportunity for our team to see that other people recognize their hard work and see they’re making a difference,” Burg says. Today’s supply chain requires leaders who can rapidly respond to constant change, adapt and manage risk in an ever-changing global economy. Identifying these leaders and bringing their achievements to the forefront is a mission Supply & Demand Chain Executive takes very seriously. Every year, our staff sifts through hundreds of entries to find the best and the brightest leaders in the supply chain. These leaders become the Supply & Demand Chain Executive Pros to Know. 6

Once we narrow this impressive group of nominations, our job becomes even tougher—we then must select our Pro to Know of the Year. This individual is the one who rises to the top of a long list of accomplished supply chain leaders, and embodies the attitude, business acumen and exceptional leadership skills we see in an award of this distinction. As senior vice president of operations and chief supply chain officer at Southern Glazer’s Wine and Spirits, Burg led a supply chain transformation that is revolutionizing alcoholic beverage distribution. This transformation helped enable a smooth combination between Southern Wine and Spirits, and Glazer’s distribution company to form the current business. Under initiatives led by Burg and his team, Southern Glazer’s is now North America’s largest distributor of wine and spirits, and the preeminent data insights company for alcoholic beverages.

A ONE-STOP SHOP Burg and his team manage a supply chain that delivers more than 153 million cases of wine and spirits annually to more than 250,000 customers.


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They do this in the complex industry of alcoholic JDA Software purchasing platform and Steelwedge beverage wholesaling, which is governed by a demand planning platform—both of which vastly complex three-tier distribution system were integrated into the company’s SAP system. across 45 U.S. markets, as well as in Canada and Following that integration, the team built new the Caribbean, each with its own unique alcohol process changes around the software, including distribution laws. new demand and sales planning processes. As the company grew, operating in 12 states They also established new Tier 1 and Tier 2 in 2005 and expanding to 45 by 2016, Burg and metrics, including days on hand, turn and fill rates, his team worked to build an industry-leading and and aligned supply chain compensation programs, highly automated supply chain capability that to the new metrics to incentivize success. As was able to accommodate this rapid growth, while a result, the team is halfway to achieving their at the same time, finding ways to deliver greater 24-month goal of right-sizing the company’s value, efficiency and insights on a national scale inventory to be more demand based. to its suppliers and customers—something no TAKE A CHANCE other alcoholic beverage distribution company in Understanding the role of risk in decision-making the industry can do. They did this by effectively also was critical in determining the company’s evaluating risks and building an exceptional team supply chain strategy. Burg understands that of in-house supply chain talent. sometimes you need to take risks to reap rewards. “With nearly 40 years of continued growth, we’re changing the industry in a way that really hasn’t been seen before, which is creating a lot of angst with our competitors as to how they can compete,” Burg says. On the supply chain side, Burg and his team made a major investment — BOBBY BURG, SOUTHERN GLAZER’S in creating a sales and operations planning “I think a lot of people get comfortable in their (S&OP) process that he says “enables our vendors environment and their culture,” says Burg. “When and suppliers to come to one place, and talk supply you introduce change and new things, there chain, shipping and sourcing. By centralizing comes a little risk and managing that risk, so you and creating this platform foundation, it’s now a can reap the bigger reward, which is a big part of one-stop shop and we can answer questions for accomplishing your vision and your strategy in the everyone,” Burg adds. long term.” The supply chain team’s key focus in the year He demonstrated this, for example, by ahead will be the continued integration of its consolidating multiple distribution centers in Florida end-to-end S&OP process. While this may not into one facility. Having one facility does present seem revolutionary in typical supply chain circles, some risk, but the rewards are far outweighing those it is extremely unique in the alcohol beverage risks to the company so far in terms of efficiency. distribution industry. Completing this integrated, “We went through a really detailed rationalization demand-based process is a game-changer, not only of our operating division in the marketplace, and for the company, but also for the industry. created opportunities with material-handling As part of the implementation of S&OP this equipment and other efficiencies with software past year, Southern Glazer’s went live with a new


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to really reduce or footprint, while improving our service,” Burg notes. “Today, we have about the same amount of square footage in facilities as we did five to eight years ago, but we’re 20 percent larger.” And with taking risk Burg believes comes the mentality that where you are at is never your best. “People can get very complacent when things are going well … so whether things are going well for you or whether your horizons are dark, my opinion is that you always have to reinvest in the processes and relook at them,” the Pro to Know explains. “You have to get out of your office and get into the field. You have to spend some time in warehouses and on trucks, and with sales people and with customers, so you can really understand what they need in order to consider you as a preferred provider of the business you’re in.”


INVEST IN TALENT Burg also focuses on hiring competent, selfdriven innovators who can operate in a large distributed network. The team is empowered in the field to make decisions and this leads to the ability to quickly respond to the needs of the business. This talent strategy also includes taking more control over the company’s ability to analyze and make decisions regarding automation. By having its own engineers and technical teams on staff, the company cultivates an expertise on supply chain technology and automation for alcohol beverage distribution that has become a center of excellence for the industry. In fact, other wholesalers and states that control alcohol beverage distribution use Burg’s team to help them evaluate their own automation projects. “My advice is to invest in a good team. We have a lot of talent from outside of our industry who helped bring new ideas to the table and refresh our industry in a way that helps us attract really motivated people who are not tied to the past, but 8

are looking toward how to do things better in the future,” he says, adding,“Hire the best talent, train them as best as you can and then let them go. You give them the job; let them go do the job. Don’t micromanage and box them in; let them go out and innovate, and really see what they can do.”

COST AND VALUE ARE A BALANCING ACT As a leader in logistics for alcoholic beverages, the supply chain strategy and corporate strategy are always aligned. The company marries its commercial and supply chain strategies, so it is able to effectively market the brands it represents and deliver the products its customers need. Achieving this alignment is the result of having the supply chain team “at the table” at the leadership level. It is viewed as a key differentiator and growth enabler for Southern Glazer’s and is part of the company’s service delivery. The third-generation beverage man believes his focus on balancing the cost with the value is what kept corporate, commercial and marketing staff on board with many initiatives, allowing him to take the risk necessary to earn a big reward at the end. “The supply chain function often gets this wrap that the only thing it’s there for is to make things more efficient and less costly. And what I try to instill in folks around the country and in my own department is, ‘Yes, we have to do that and it’s obviously a core foundational thing within our organization, but the bigger piece is where does supply chain really change the value proposition and make doing business with our company more valuable [to suppliers and customers],’” Burg says. Going forward, Burg hopes to continue down the path his team is already on, comparing Southern Glazer’s with not only its direct competitors, but also larger competitors in general consumer goods. “We want to be prepared for whatever comes down the road from a competitive landscape— whether that be from online retailers like Amazon or whether it be from other nontraditional companies that decide the spirit space is an opportunity for them. We want to create such a barrier to those folks that it would be difficult to move from one place to another,” he adds.

Now let’s pay tribute to each of 2017’s Pros to Know ...


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Provider Pros to Know MITCH WESELEY, CEO, 3Gtms — 30 Years in Supply Chain Weseley, regarded as the father of the transportation management system (TMS) industry, created six successful companies in the technology and logistics software industry. He wrote the first TMS as a developer in the mid-80s and, early on, applied the principle of consolidating less-than-truckload (LTL) to truckload (TL) with an independent algorithm execution system. Today, he says the focus is on providing the right blend of flexibility and ease of use that can handle complex scenarios, while also achieving cost savings.

JOSEPH TILLMAN, Principal Research Lead of Supply Chain Management, American Productivity & Quality Center (APQC) — 15 Years in Supply Chain Tillman is keenly aware of the changes occurring in business and supply chain today. He says, “I’ve kicked boxes, licked labels, and driven trucks and trains.” He oversees all aspects of the APQC’s research on supply chain industry practices, including benchmarking, best practices and process improvement. His research interests include further defining supply chain management and using APQC’s Open Standards Benchmarking data to gain insight into the performance of peer groups, as well as what is driving that performance.

PETER MURPHY, Director of Software Implementation, Arkieva — 15 Years in Supply Chain Murphy has successfully worked on more than 20 demand, inventory, reporting and supply chain visibility projects, all with the goal of helping businesses to improve their existing supply chain processes, minimize inefficiencies and maximize profitability. Murphy aids businesses with Arkieva’s Supply Chain Suite implementation to improve collaboration between cross-functional teams. Having a multi-user solution with the security to be shared alleviates many issues regarding real-time supply chain planning, collaboration and visibility.


BRIAN GLAHN, CEO, Atlantix Global Systems Glahn knows that it is important for businesses to have sound IT infrastructure, which is why Atlantix focuses on providing services and solutions around data security, data sanitation and data processes. The company’s mission is to be the most extensive network and hardware provider by building relationships, and offering impeccable service and certifiable quality. Glahn recognizes that companies that make cloud infrastructure a core part of their strategy need to be able to rely on a provider who is flexible and allows them to retain control of their IT.

RICHARD BURTON, Vice President of Europe, the Middle East, Africa, Australia and New Zealand, AVATA UK Limited — 16 Years in Supply Chain Burton is a demand planning, and more specifically, trade promotions management expert. While he understands the domain thoroughly, he also understands how people work, and how to use technology in a practical and supportive way to bring about improvements. He strives for simplicity and consolidation rather than diversification and complexity.

GENE AVERILL, President and CEO, Avercast LLC — 50 Years in Supply Chain An original co-author of Demand Solutions software and founder of Avercast, Averill’s forecasting and demand planning software is currently used by more than 10,000 supply chain professionals in 74 countries. In deploying forecasting, planning and collaboration web-based technologies, Averill was able to cut his customers’ lead times by as much as half, increase their customer service levels by 15 percent and drastically improve their on-time deliveries.

IVAYLO ILIEV, Vice President of Engineering, B-Stock Solutions — 10 Years in Supply Chain Iliev delivers reverse supply chain solutions to clients by implementing and maintaining back-end operations for customized business-to-business (B2B) and business-to-consumer (B2C) marketplaces that connect overstock and returned inventory directly to buyers via a competitive and dynamic online auction platform. Since 2010, he has completed over 50 successful


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implementations for some of the world’s largest retailers—including Wal-Mart and Amazon— enabling recovery of 30 to 80 percent more money for returned and excess merchandise.

BRIAN HARVEY, Lead Systems Engineer, Barcoding Inc. — 18 Years in Supply Chain Harvey makes it his mission to develop and implement solutions for unique and out-of-the-box applications, and prides himself on offering ongoing support to customers. He uses mobile device management to drastically improve the way he can offer ongoing customer support by giving him access to customers’ devices any time and any place, so he can proactively monitor devices and help customers.

JAKE BARR, CEO, BlueWorld Supply Chain Consulting — 37 Years in Supply Chain Barr, an industry pioneer known for driving the move to demand sensing, as well as the use of control towers, to deliver breakthrough business results, delivered large-scale supply chain transformation efforts first at Procter & Gamble, then as a consultant across many industry verticals. He believes the uncertainty of economic and political stability around the world is reaching a tipping point. He says the challenge is how to navigate the volatility with enough agility to still optimize traditional cost and service expectations.

ED BURNS, President, Burns Logistics Solutions Inc. — 24 Years in Supply Chain Burns believes the key challenges facing his customers and their supply chains are driver availability and adequate capacity. His business model directly addresses these issues by matching contracted carriers with specific shippers. For example, in 2012, Burns initiated and facilitated an alliance between Tyson Foods and Coca-Cola—a classic case of a private reefer fleet matched with a reefer/cold chain shipper.

COLBY BELAND, Vice President of Sales and Marketing, CaseStack — 22 Years in Supply Chain Beland’s experience, knowledge and leadership are the driving forces behind his team’s ability to achieve a growth of 26 percent year over year. All of the key performance indicators

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(KPIs) that retailers and suppliers are looking for can be achieved, but not by using traditional LTL/ parcel delivery carriers as their mode of transportation: Beland believes consolidation is the answer. Collaborative freight consolidation benefits retailers, suppliers and consumers by reducing transportation and warehousing costs, and improving on-time and order fill rates, which ultimately equate to higher in-stocks.

DAVID CLARK, Vice President of Global Commodity Management and Diversified Markets Solutions, Celestica Inc. — 30 Years in Supply Chain Clark, a supply chain executive who spent his career in the semiconductor and electronics manufacturing industries, says the key challenge facing the global electronics supply chain in 2017 is the level of consolidation occurring throughout the supply chain. Building strong relationships with supply partners as the industry undergoes consolidation is one way that Clark and his team ensure supply continuity and price management for customers.

WILLIAM (BILL) MRZLAK, President, ChainSequence Inc. — 25 Years in Supply Chain Mrzlak is determined to improve the relationship between supply chains and S&OP. Supply chain planning includes taking an impartial look at demand and supply management, demand and supply alignment, and order management. Each area is comprised of numerous cogs in a complex machine, which must function in concert with one another, says Mrzlak. His gift is his ability to evaluate these moving parts to quickly pinpoint the issues that hold companies back.

DAVE LINDEEN, Senior Vice President of Sales, Corcentric — 14 Years in Supply Chain Lindeen works with financial professionals to understand specific pain points in the order-to-cash process. By listening to each business’ needs, he helps each customer configure its solution to maximize revenue, increase efficiency, and reduce errors and supplier disputes. By assuming full accounts payable and receivable processes, Lindeen offers businesses the freedom to focus on strategic issues with the confidence that all data and payments are communicated between buyers and suppliers. | March 2017 | SUPPLY & DEMAND CHAIN EXECUTIVE


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JEFF SILVER, CEO, Coyote Logistics — 30 Years in Supply Chain In 2014, Silver helped Coyote Logistics launch its first mobile app, CoyoteGO, for drivers and dispatchers. Silver is dedicated to developing technology that streamlines and optimizes everyday responsibilities for shippers, carriers and employees, which is why Coyote is one of the fastest growing 3PLs in North America.

BILL HARRISON, President, Demand Management Inc. — 25 Years in Supply Chain Harrison believes companies with mature supply chains should focus on maximizing collaboration across their supply chains. This strategy, integrated business planning (IBP), seeks to involve as many business stakeholders as possible—not just supply chain participants—in every supply chain decision. Harrison is committed to helping customers understand, embrace and implement the principles of IBP, so they can achieve higher levels of supply chain excellence.

DOUG WAGGONER, CEO and Chairman of the Board, Echo Global Logistics — 36 Years in Supply Chain Waggoner, who built Echo into a leading provider of multimodal transportation management, thinks the electronic logging device (ELD) mandate could impact trucking capacity by decreasing asset utilization. He works with clients to meet the challenges of capacity. Due to a recent acquisition, Echo expanded its truckload carrier network to more than 40,000 carriers and a larger geographic footprint, ensuring all clients have the capacity for their shipments, saving them both time and money.

ED RUSCH, Vice President of Corporate Marketing, Elemica — 25 Years in Supply Chain Rusch is an expert at taking complex supply chain verbiage, and translating it into meaningful insights that capture the attention of peers and thought leaders. He promotes the impact supply chains have on businesses around the world, and how to improve these supply chains through B2B collaboration and automation. Every year, Rusch and his team create a customer conference that imparts greater visibility across the extended value chain and more. 12

SAM MIKLES, President and CEO, Flash Global — 17 Years in Supply Chain Mikles is a visionary who’s leading Flash Global’s transformation from a traditional transaction-based 3PL to an integrated service supply chain solutions provider. In fact, his passion for bringing value-added services and support to customers is transforming the service supply chain industry. “I know what it’s like to be on the front lines, seeking service-delivery nirvana, anywhere, anytime, in some of the most challenging countries in the world. It’s from that perspective that I crafted our mission,” he notes.

BRAD ANDERSON, Senior Director of Performance Improvement, Fortna Inc. — 18 Years in Supply Chain Anderson helps companies develop and implement strategies for optimizing complex distribution environments. With a holistic approach, he guides clients in transforming their distribution operations to achieve real business value. Anderson also develops and implements successful and sustainable labor management programs for clients, which can result in millions of dollars in savings, increased operational capacity and throughput, and distribution optimization.

SETH CONRAD, Senior Director of Professional Services, Fortna Inc. — 19 Years in Supply Chain Conrad recently led a supply chain transformation for a client that was eager to consolidate its inventory across more than 20 distribution centers into three, enabling pull-based flow processing using two fulfillment engines. This solution provided the existing distribution nodes with more flexibility to handle the optimal inventory profile to support stores, while continuing to allow consolidated freight to be processed within the required service levels across the store network.

MIKE PEREZ, CEO of Americas, HH Global — 20 Years in Supply Chain Under Perez’s leadership, clients benefit from innovative and tailored solutions that drive down costs— 30 percent on average—across the supply chain. He created the Diverse Direct program to help companies meet diversity spend goals by sending purchase orders and making direct payments to minority suppliers in network. Some clients route more than 90 percent of their total spend through this program.


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ANNEMARIE OMROD, President and CEO, John Galt Solutions — 20 Years in Supply Chain Omrod has helped thousands of companies—such as Hasbro, Microsoft and DuPont—develop their supply chain processes, build and enhance their forecasting and demand planning processes, and improve business results. She not only ensures the daily operations and strategic vision of John Galt Solutions closely align with its customers’ needs, but she also was one of the chief designers of the company’s award-winning ForecastX Wizard demand planning software.

MADHAV DURBHA, Ph.D., Vice President of Industry Strategy, Kinaxis — 20 Years in Supply Chain According to Durbha, the key challenges facing his customers are complexity and volatility, which in turn, make demand planning more challenging. Being able to quickly respond to unforeseen circumstances is paramount. To that end, Durbha educates companies on the need for speed in planning and supply chain decision-making, while Kinaxis provides the technology to enable such near real-time planning.

DAN CLARK, President and Founder, Kuebix — 20 Years in Supply Chain Clark says he is at the forefront of a major logistics disruption that is empowering companies to achieve better visibility, efficiency and cost savings in their supply chains. With Kuebix TMS, companies can view all their direct carrier rates side by side, rather than visiting multiple carrier websites, making dozens of calls or losing visibility by using a 3PL. Kuebix also allows easy shipment booking, tracking, tracing, audit, carrier payment and analytics on a mobilecompatible platform.

into the exact location of their freight, while harnessing the power of LeanTMS to highlight exceptions associated with service failures.

JOHN HAMELINK, Senior Account Manager, BluJay Solutions — 29 Years in Supply Chain Hamelink is responsible for driving continuous improvement, establishing best practices and maximizing value for customers using the BluJay Solutions technology platforms. While he says it’s difficult to know how much carrier availability will be affected by the ELD mandate, it’s likely capacity will tighten, thus increasing rates and decreasing on-time service. To help mitigate impacts, he is working with customers to lock in rates and capacity in 2017.

KIM LUNTE, Manager of Professional Services, NeoGrid — 14 Years in Supply Chain Lunte’s expertise in developing and executing category management and strategic sourcing strategies in the retail sector delivers savings, streamlines processes and increases spend under management. In addition, she developed scalable processes for new customer configuration and implementation, reducing turnaround times from contract to go-live by 74 percent. Lunte is responsible for reducing touch-points in preparation of monthly customer metrics reports through a business intelligence solution, decreasing refresh times by 90 percent.

DONALD J. HOEPPNER, Executive Partner, Paladin Associates Inc. — 30 Years in Supply Chain

Hoeppner’s focus lies in strategic sourcing and cost reduction. He assists clients with technology implementations (such as spend analysis and e-sourcing), sourcing process improvements and staff development, delivering savings that improve cash flow and profitability. Furthermore, his fees often are based TARA BUCHLER, Implementation Manager, BluJay Solutions — 12 Years in Supply Chain on shared savings to provide clients with a According to Buchler, shippers need guaranteed return on investment (ROI)-no risk. to transform data into actionable WILLIAM SALTER, CEO and President, intelligence and understand what Paragon Software Systems — 20 Years in Supply Chain metrics are actionable to drive the Salter led a team that successfully business forward. BluJay Solutions completed the productization and goand Buchler are committed to providing customers to-market strategy for Paragon HDX, visibility into their transportation network, often in its home delivery software, addressing real time, to furnish shippers with more insight market demand from retailers to 14



balance excellent customer service with costeffective transport operations. By using all Paragon HDX modules, users can manage their order fulfillment process from order capture to delivery and post-delivery management, reducing planning time and improving information flow.

JOHN COSTANZO, President, Purolator International — 40 Years in Supply Chain Costanzo spearheaded the development of the PuroPost e-commerce solution, which offers guaranteed delivery to all Canadian residential locations within two to eight days due to the company’s relationship with Canada Post, the country’s national postal service. Shipments are pre-cleared into Canada and delivered by individuals’ regular mail carriers. This year, he plans to additionally raise awareness of Purolator’s expedited forwarding services for the domestic United States. The company offers an on-time arrival rate of 99.4 percent.

JAMES H. GELLERT, Chairman and CEO, Rapid Ratings International — 10 Years in Supply Chain Gellert is the face of Rapid Ratings International, a company that combines advanced analytics, high-touch customer service, and proprietary algorithms to accurately predict the current and future financial health of public and private companies. The Financial Health Ratings the company generates synthesize an organization’s financial statements into a simple 0 to 100 score. With today’s turbulent markets and complex global supply chains, it’s pivotal for clients to rethink the standards they apply to enterprise risk and use financial health as a metric to determine supplier stability.

MICHAEL FALCK, President of RELEX Solutions U.S., RELEX Solutions — 15 Years in Supply Chain Falck says 62 percent of supply chain professionals cite reducing inventory while improving availability as a major priority; 64 percent struggle to forecast demand for promotions; and 58 percent find it particularly difficult to predict demand for new products. Under Falck’s guidance, RELEX addresses these challenges by improving customers’ demand forecasting, which cuts inventory (typically by 20 to 30 percent) while improving availability (typically by 5 percent).

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MARIE COLBERT, President and CEO, REZ-1 — 25 Years in Supply Chain North American railroads use domestic containers to provide intermodal service to domestic and international shippers. REZ-1 provides the neutral platform upon which participants in the intermodal transport chain reserve, release, track, bill and pay for usage of container assets. Colbert guides the company’s delivery of value to the intermodal ecosystem, including railroads, beneficial cargo owners, motor carriers and terminals. Her vision for service and technology makes REZ-1 a premier provider capable of processing over 12,000 intermodal equipment moves per day.

BILL NULTY, Ph.D., Founder and CEO, Scientific Logistics — 34 Years in Supply Chain Dr. Nulty has not only helped hundreds of companies optimize supply chains—ranging from design and strategy initiatives to transportation planning and scheduling to real-time logistics—but also developed logistics decision support systems that are used worldwide. In his current role, he is helping to reinvent transportation and distribution planning software in the cloud, thereby enabling customers to reduce distribution costs, shrink planning efforts, improve service and standardize business processes.

SEAN RILEY, Global Industry Director of Manufacturing and Transportation, Software AG — 16 Years in Supply Chain Riley believes customers and their supply chains will continue to struggle with Internet of Things (IoT) adoption and digitalization in the supply chain. Digitalization is required to fully capitalize on the IoT, while it makes supply chains more nimble, responsive and resilient, he says. To that end, Riley created a scalable solution that allows supply chain and logistics practitioners to incorporate the IoT as part of their broader supply chain optimization strategy with a measured, flexible adoption methodology. | March 2017 | SUPPLY & DEMAND CHAIN EXECUTIVE


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JOHN MAHER, Vice President of Product Strategy, Synchrono — 20 Years in Supply Chain Concepts like the IoT, smart manufacturing and Industry 4.0 revolve around digitization and synchronization of the manufacturing environment—endeavors in which Maher invested his career. He drove the vision of the Synchrono Demand-Driven Manufacturing platform, which connects manufacturing with the extended supply chain in real time, generating intelligence for instant decision-making. He also works with manufacturers to leverage technology, resulting in increased capacity, improved production flow and greater rates of on-time delivery.

ANTHONY ALLWOOD, Founder and CEO, Systems Logic Allwood left a successful career in distribution and manufacturing to found Systems Logic, which discovered many clients suffered from the same core issue—systems

designed around the financial management of inventory, not transactional management. This flaw led to companies living with inaccurate inventory, frustrated staff and failed implementations. To address the transactional management aspect of inventory and warehouse management software, Allwood pioneered visual-based picking to eliminate the need for “grocery shopping” in the warehouse.

MARK MCENTIRE, Senior Vice President of Operations, Transplace — 28 Years in Supply Chain McEntire led the authoring of the Transplace strategic account management process that is now part of the operational DNA of the organization. Because shippers are continually challenged to find year-over-year savings within the supply chain, this process assists in identifying, scoping and pursuing operational projects to drive year-over-year value. The basic tenets of the process are transparency, collaboration, cross-pollination across all customers and holistic thinking.

Old Dominion’s focus on premium service means every item arrives with one of the lowest claims ratios and one of the best on-time records in the industry.

Old Dominion Freight Line, the Old Dominion logo, OD Household Services and Helping The World Keep Promises are service marks or registered service marks of Old Dominion Freight Line, Inc. All other trademarks and service marks identified herein are the intellectual property of their respective owners. © 2016 Old Dominion Freight Line, Inc., Thomasville, N.C. All rights reserved.

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CHARLES MOORE, Vice President of Parcel Solutions, Transportation Insight — 25 Years in Supply Chain Moore is key in delivering Transportation Insight’s suite of parcel shipping services, including parcel engineering, optimization, audit and advanced analytics. His knowledge of carrier networks also helps develop programs that are at the foundation of the company’s audit solutions, addressing invoice accuracy, service guarantees and compliance requirements. In addition, his pricing experience and multimodal knowledge give him insight into how a parcel shipper can be impacted by parcel carriers’ rates, fuel surcharges and pricing strategies.

RICK BRUMETT, Vice President of Client Solutions, Transportation Insight — 37 Years in Supply Chain Brumett anchors Transportation Insight’s services to help companies navigate growth strategies that involve everything from import optimization and compliance to

OD Domestic offers:

omnichannel delivery speed, service and flexibility. His international trade compliance certification in imports and exports also enables the multimodal global logistics provider to engage with customers as a licensed freight forwarder on a tactical basis, executing shipments that move clients’ products through more than 100 nations globally.

ANDREW LYNCH, President and Co-Founder, Zipline Logistics — 14 Years in Supply Chain Lynch proactively leverages and analyzes transportation data to help customers uncover new opportunities for supply chain savings and efficiencies. KANOPI, Zipline’s newly launched business analytics product, facilitates transportation spend and performance evaluation for customers by automatically pulling and aggregating data into more than 20 algorithms and metrics. Customers can securely log in to KANOPI and evaluate performance in real time on their own desktops or tablets.

• More than 220 service centers nationwide • Competitive transit times and pricing • Proactive shipping solutions

For more information, visit or call 1-800-235-5569.

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MORE PROVIDER PROS TO KNOW ❯❯ Mike Ulreich, 4SIGHT Supply Chain Group

❯❯ Paul de Guingand, Adjuno ❯❯ Trevor Read, Agistix ❯❯ Lisa Dolan, ALOM

❯❯ Hannah Kain, ALOM ❯❯ Rick Mizzo, ALOM

❯❯ Jim Preuninger, Amber Road ❯❯ Jim Briles, American Global Logistics

❯❯ Blake Shumate, American Global Logistics

❯❯ Wenxiang Ma, Arena Solutions ❯❯ Tim Kolbus, Arrow Electronics ❯❯ Gerrit de Haas, Avnet Inc. ❯❯ Yael Shloush, Avnet Inc.

❯❯ Don Zhao, Azoya International ❯❯ Kevin Hoyle, B2BGateway ❯❯ Eric Wilson, Basware

❯❯ Morgan Griffin, Baxter Planning Systems ❯❯ David Marshall, Baxter Planning Systems

❯❯ Kimberlin Marston, Baxter Planning Systems

❯❯ Rod Daugherty, Blue Ridge ❯❯ Greg White, Blue Ridge ❯❯ Daniel Stanton, Bradley University

❯❯ Nicholas Couture, C3 Solutions ❯❯ Abtin Hamidi, Cargo Chief ❯❯ Tim Chiu, CBX Software ❯❯ Curt Cote, Censeo Consulting Group

❯❯ Kelly Hahn, Censeo Consulting Group

❯❯ Don Heelis, Cimcorp

❯❯ Derek Rickard, Cimcorp

❯❯ Tim Frank, IronDirect

❯❯ Adam Compain, ClearMetal Inc.

❯❯ Brooks Noonan, itelligence North America

❯❯ Mark Nix, Cloud Logistics

❯❯ Zia Zahiri, JAGGAER

❯❯ Dustin Cochran, Corporate United

❯❯ James V. Kelly, JVKelly Group Inc.

❯❯ David Landau, Cloud Logistics

❯❯ Robert Bonavito, JAGGAER

❯❯ Patrick Nemeth, Comprehensive Logistics Company Inc.

❯❯ Keith Whaley, JustEnough Software

❯❯ Matt Narens, Corporate United ❯❯ Katie Virtue, Corporate United ❯❯ Jon Kirkegaard, DCRA Inc. ❯❯ Peter Edlund, DiCentral

❯❯ Chris Castaldi, DMW&H ❯❯ Jim Huston, DMW&H

❯❯ Michael Roe, DMW&H

❯❯ Ann Drake, DSC Logistics ❯❯ Michael Farlekas, E2open

❯❯ Ian Bolger, Efficio Limited

❯❯ James Jenkinson, Efficio Limited ❯❯ Alex Klein, Efficio Limited ❯❯ Cindi Hane, Elemica

❯❯ Sergio Juarez, Elemica

❯❯ Jay Harris, Komar Distribution Services ❯❯ Tom Flynn, Lavante Inc.

❯❯ Doug Markle, Lavante Inc.

❯❯ Allison Fowler, LLamasoft Inc.

❯❯ Carlos Valderrama, LLamasoft Inc. ❯❯ Jim Wilson, LLamasoft Inc.

❯❯ Diego Pantoja-Navajas, LogFire ❯❯ Mark A. Balte, Logility ❯❯ Allan Dow, Logility

❯❯ Donald L. Thomas, Logility ❯❯ Mark Millar, M Power Associates Limited

❯❯ Joel Garcia, enVista

❯❯ Kimberly Ross, Ph.D., Manhattan Associates

❯❯ Karl Siebrecht, FLEXE

❯❯ Bo Hagler,

❯❯ Mathew Elenjickal, FourKites

❯❯ Anne Kohler, The Mpower Group

❯❯ Craig McCollum, Epicor Software Corporation

❯❯ Todd Ericksrud, MatchBack Systems Inc.

❯❯ Dean Wiltse, FoodLogiQ

❯❯ John Heffernan, ModusLink

❯❯ Jamie Ogilvie-Smals, GEP

❯❯ Chris Luoma, Global Healthcare Exchange (GHX) ❯❯ Peter Nelson, GHX

❯❯ Sergio Retamal, Global4PL Supply Chain Services

❯❯ Glenn Master, Newgistics ❯❯ Michael Weiss, Oildex, a Service of Transzap Inc.

❯❯ Mark Perera, Old St Labs

❯❯ Akhil Oltikar, Omnics Inc.

❯❯ Aram Mazmanian, Censeo

❯❯ Robert A. Rudzki, Greybeard Advisors LLC

❯❯ Greg Ferraro, OmniTRAX Inc.

❯❯ Kerry Rosenhagen, Chainalytics

❯❯ Jon Kuerschner, HighJump

❯❯ Bilal Shahabuddin, Pace Harmon

❯❯ Doug Fair, InfinityQS International Inc.

❯❯ Andrew Wisenberg, Pace Harmon

Consulting Group

❯❯ Steve Thrift, Chainalytics

❯❯ Jonathan Whitaker, Chainalytics ❯❯ Natalya Berdzeni, Chase Cost Management, an LAC Group Company ❯❯ Bruce Bleikamp, Cimcorp 18

❯❯ Jeff Wehner, Haven Inc.

❯❯ Jan Malasek, OnDemand Resources

❯❯ Bill Leedale, IFS

❯❯ Joy Sim, Pace Harmon

❯❯ Ayman Labib, Invata Intralogistics ❯❯ Sherri Hammons, IQNavigator

❯❯ Dan Grant, Prime Advantage ❯❯ Sheila O’Sullivan, Prime Advantage


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❯❯ Mike McDonald, Prime Advantage

❯❯ Will Johnson, Ryder System Inc.

❯❯ Tim Anthony, PrimeRevenue Inc. ❯❯ Philip Ideson, ProcureChange/ Art of Procurement ❯❯ Tania Seary, Procurious

❯❯ Tommy Barnes, project44

❯❯ Hans Thalbauer, SAP

❯❯ Bekki Windsperger, SPS Commerce

❯❯ Padmini Ranganathan, SAP Ariba

❯❯ Glenn Jones, Steelwedge

❯❯ Sal Fateen, Seizmic Inc.

❯❯ Tony Dobson, Synergy North America Inc.

❯❯ Tony Harris, SAP Ariba

❯❯ Lisa Aleman, Steelwedge

❯❯ Jon Stevens, SAP Ariba

❯❯ Andrew McCall, Steelwedge

❯❯ Jim Kandilas, The Shelby Group

❯❯ Jett McCandless, project44

❯❯ Michael Kuebler, Smithers Pira

❯❯ Tony Abel, Protiviti

❯❯ Jess Kraus, Source Intelligence

❯❯ Luc Janssen, QAD Inc.

❯❯ Steven Belli, Source One Management Services LLC

❯❯ Leon Turetsky, QuestaWeb Inc. ❯❯ Peter Shin, Quintiq, a Dassault Systèmes Company

❯❯ Diego De la Garza, Source One Management Services LLC

❯❯ Frank Locascio, RateLinx

❯❯ Torey Guingrich, Source One Management Services LLC

❯❯ Shannon Vaillancourt, RateLinx ❯❯ Mark Krupnik, Ph.D., Retalon

❯❯ Brian Broadhurst, Spend Management Experts

❯❯ Bill DeMartino, riskmethods Inc.

❯❯ John Haber, Spend Management Experts

❯❯ Robert E. Rich, III, ROAR Logistics Inc.

❯❯ Matthew Lekstutis, Tata Consultancy Services (TCS) ❯❯ Stephany Lapierre, tealbook

❯❯ Doug Niemeyer, TEKLYNX International ❯❯ Tom Poduch, Transervice Logistics Inc. ❯❯ Andy Recard, TZA

❯❯ Howard McIlvaine, Unex Manufacturing

❯❯ Peter Bromley, United Parcel Service (UPS)

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Practitioner Pros & Teams to Know THE TEAM FROM CELESTICA INC. The team includes Kristie Syndikus, vice president and global process owner of sourceto-pay; David Geddes, director of customer material solutions; Glenda Taylor, director of supplier quoting and awards; Adib Kheireddine, director of master data, supply chain management, environmental and regulatory compliance; Ken

Chow, director of product data management; Hong Peng Lau, Asia purchasing leader; Tamas Szontag, Europe purchasing leader; Randy Howatt, Americas purchasing leader; Tracy Smiley, sourceto-pay, process and applications leader; and Alex Tse, director of accounts payable. The Celestica source-to-pay team, which consists of more than 800 supply chain professionals around the globe, is on a mission to simplify material pricing and costing, manage customers’ product engineering data, execute purchasing demand and pay its supply base. Over the last 12 months, the team enabled improvements of 10 percent in cost productivity, 48 percent in quote cycle time efficiency, 15 percent in master data quality, 27 percent in new product launches, 30 percent in purchasing execution cycle time and 66 percent in payable execution.

ROB BROWN, Head of Supply Chain Planning, Linde — 25 Years in Supply Chain

The Distribution Experts®

Congratulates our 2017 Pros to Know Seth Conrad

TERRY BOE, Vice President of Manufacturing and Supply Chain, Multi-Tech Systems Inc. — Five Years in Supply Chain

Brad Anderson


Brown leads a team that coordinates production and transportation across 50 plants each week, not only providing reliable product supply for customers, but also minimizing costs. Because Linde has many plants, limited inventory capabilities for cryogenic products and specialized transport needs, it’s essential to plan for appropriate resources at each plant. Linde recently implemented Arkieva’s demand planner to improve its S&OP process, which yields a supply chain more tightly aligned with sales forecasts.


Boe manages a multi-million dollar materials budget for an international electronics manufacturer. Since taking on his current role, he has successfully driven costs down year after year, promoted extensive process improvement, and spearheaded efforts to secure a green and conflictfree supply chain. In fact, his cost-down initiatives outperformed target savings by nearly 40 percent, including material costs, inventory management and process improvement.


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❯❯ Paul Romano, Fusion Worldwide

❯❯ Rick Meyer, Badcock Home Furniture

❯❯ The Team from Lockheed Martin

❯❯ Dave Quillin, Alliant Credit Union ❯❯ Santos Carrillo, Brightstar Corporation

❯❯ Jordan Downs, Central Garden & Pet Company ❯❯ Abul Hasan Muhammad Shahadat Ullah, Coats Bangladesh ❯❯ Erik Sternisha, Cushman & Wakefield

❯❯ Andrea Atwell, L’Oréal

❯❯ Pratik Attray, Motocare India Private Limited ❯❯ Kunal Thakkar, Newegg Inc. ❯❯ Vince Aisthorpe, Stanwell Corporation

❯❯ Shaun Black, SunTerra Chicago ❯❯ Ben Madden, Tradiv Inc.

❯❯ Michael Cygan, True Value Company

❯❯ Steve Schuman, DG3

❯❯ Angie Taylor, Vista Outdoor Inc.

❯❯ The Team from ExtenData

JOSEPH A. FASSANO, Supply Chain Manager, SPI Pharma — 25 Years in Supply Chain Fassano is responsible for managing SPI Pharma’s global supply chain. During his tenure, he has led supply chain visibility initiatives in the areas of supply, capacity, inventory and cross-functional collaboration. These initiatives resulted not only in improved customer relationships, but also helped SPI Pharma identify and capitalize on new business opportunities, reduce lead times and decrease inventories.

Soar over your Competition in the Cloud Why are so many companies transitioning to SaaS supply chain planning solutions? Because the benefits are too good to pass up.

JAMES BLEYER, Senior Collaborative Planning, Forecasting and Replenishment Analyst, Tempur Sealy International (TSI) — 14 Years in Supply Chain Bleyer says TSI’s No. 1 challenge in 2016 was not forecasting appropriately. Because the Sealy brand traditionally was handled as a make-to-order business, it caused excessive overtime and materials on hand, and overall supply chain pressure. By starting to forecast at the item location and on a weekly basis, the company moved toward a hybrid fulfillment model using build-to-stock to level load manufacturing sites. This strategy yielded improved fill rates, on-time delivery and a 5 percent reduction in labor overtime.

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Demand Solutions DSX SaaS doesn’t require you to purchase, install, maintain or upgrade your supply chain management software. It’s better in the cloud. Find out why by calling 800-886-3737 today or visit | March 2017 | SUPPLY & DEMAND CHAIN EXECUTIVE


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By Ronnie Garrett

HOME DEPOT NAILS DIY OMNICHANNEL EXPERIENCE Home Depot’s finished omnichannel project is one that builds a seamless buying experience through multiple channels.

The SPS study highlights that more retailers are jumping into the omnichannel sea. However, Home Depot has been swimming in the retail channel-infested waters a bit longer. The do-ityourself (DIY) home repair giant invests in a host of deployments that give consumers what Stephanie Smith, vice president of direct fulfillment and e are delivery, calls an interconnected retail experience. living in She explains, “Omnichannel is really how a a timeretailer looks at supply chain, but interconnected sensitive considers how we want consumers to see our click-and-ship marketplace, environment. [In its omnichannel/interconnected yet many retailers still find retail efforts], Home Depot seeks to integrate the themselves scrambling to store experience and the online experience from a optimize their omnichannel customer perspective.” strategies,” laments Matt The retailer’s integrated view also applies to its Clark, COO of Corcentric, entire supply chain, Smith adds, noting, “We need an accounts payable a global view of all of our inventory and fulfillment solutions firm. channels, and a global view of our transportation While in many cases his assets, to make sure-from an interconnected statement rings true, the results perspective-we are making the best decisions to of the annual retail industry support our customers.” benchmark report issued by The company’s e-commerce investment, which SPS Commerce shows the included deploying a chainwide customer order tides are starting to shift. management (COM) system and launching a buy“Respondents online-deliver-from-store (BODFS) “ The holy grail report 200 initiative, is paying off. The retailer percent year-over-year growth in more than a 21 percent increase in is now rapid order saw their omnichannel initiatives, which online sales in 2016. shows retailers are finally making “We continue to see great fulfillment with change happen,” says Peter Zaballos, productivity from our supply chain as consumers in the dividends from investments made over senior vice president and chief marketing officer for the electronic driver’s seat.” the last several years yield a positive data interchange (EDI) provider. impact on our inventory productivity, — PETER ZABALLOS, “There is a decreased emphasis logistics costs, and service to our SPS COMMERCE on product availability in stores,” stores and customers,” Home Depot he adds. “Because retailers are moving forward on Chairman Craig Menear told Diginomica in 2016. cross-channel fulfillment, their sales no longer solely depend on their ability to stock shelves. The holy AN EVOLVING SOLUTION grail is now rapid order fulfillment with consumers “Omnichannel is really multichannel selling,” in the driver’s seat.” says Nick Manzo, Global Omni-Channel Lead




at 1WorldSync, an international company managing a multi-enterprise product information network. And, for it to work, Pan Chen, vice president of analytics and supply chain services at HAVI, a supply chain management consultancy, states the customer experience needs to be consistent; consumers expect to access the same products and have the same brand experience across channels. “No matter how customers view a brand, they want that same core value,” explains Hank Canitz, director of product marketing and business development for Logility, a company that offers supply chain management software.

87% OF CUSTOMERS THINK BRANDS NEED TO PUT MORE EFFORT INTO PROVIDING A SEAMLESS EXPERIENCE. — ZENDESK For this to occur, Manzo says companies must fully define their omnichannel approach. He explains that omnichannel strategies take different shapes depending on whether the company is an e-commerce organization versus a brick-and-mortar operation. They also are affected by the selling platforms that already exist and the ones they hope to develop. He adds that companies must focus on identified channels first, build those strategies and garner success, before moving on to the next project. “Each area of channel-based engagement requires a different skillset, different understanding and different prioritization,” he says. For this reason, Home Depot took a phased approach to its interconnected strategy, says Smith. The company began in 2011 with its buy-onlinereturn-in-store (BORIS) process, then added buy-online-pickup-in-store (BOPIS), as well as buy-online-and-ship-to-store (BOSS). In 2016, it added the BODFS option. The company’s omnichannel efforts also include its Supply Chain Synchronization Project (Sync), which enables workers to see the products on every inbound truck. It is hoped that Sync will grow inventory turns from 4.8 times in 2015 to a targeted 5.7 times by 2018. The company’s COM system,

which is live in 2,000 U.S. retail stores, also plays a role by enabling employees to track where an order is in the manufacturing and delivery process. Home Depot also built three direct fulfillment centers in strategic locations—one outside of Atlanta; one in Troy Township, Ohio; and a third in Perris, California. Products from these facilities can reach 90 percent of the United States within two days, which Smith says helps the company fulfill its delivery speed promise. It’s safe to say you can’t have one of these capabilities without the other—at least as far as Home Depot is concerned. Smith explains, “[For omnichannel to be successful], you need a vision of where you want to be and then it’s really an evolution. Customers want to shop the way they want to shop and when they want to shop, and they want to get product when they want to get it. It’s all about offering a variety of options for the customer, whether that’s going and picking up things in the store that the customer ordered online, purchasing things online and having them delivered directly to your home, or shipping from the store.”

SHUT DOWN SILOES Omnichannel evolved in a siloed fashion; companies began with brick-and-mortar stores, then added a website, kiosks, mobile and more. “Because these channels have grown up independently, they’ve been siloed and customers are not recognized across all of them,” says David Dorf, vice president of product strategy at Infor, an enterprise software company. “Omnichannel is an effort to unite the customer experience across all channels.” He explains a customer should be able to put products into a virtual cart online, switch to a mobile phone and still see the cart, and later pull up this cart to locate those products in — FORRESTER a brick-and-mortar store. “We call that the endless RESEARCH aisle,” he says. “If you go



FEATURE into a store and you can’t find what you’re looking for, it should be easy to order it online and have it shipped to your home [and vice versa]. The retailers that can do this will save the sale.” In practice, however, this is not always a reality. Jim Prewitt, vice president of retail industry strategy for JDA Software Group, which offers software solutions for the supply chain, states: “Most companies keep their channels separate. They keep their planning and inventory separate, and they keep their fulfillment processes separate for those channels.” Further complicating matters is the fact that omnichannel efforts often involve disparate pieces of software that do not communicate well with each other. A retailer might operate a point-ofsale system from Oracle, but run SAP Order Management on the back-end, then employ another vendor’s software for its e-commerce site. “They have three different vendors, three different databases and a ton of integration going on behind the scenes to make it work,” Dorf says.

TRANSFORM WITH TECHNOLOGY Software tools can help companies see their customers and their buying histories to fully understand their preferences in order to turn every transaction into a more customer-centric one. “Companies need a single selling platform that serves all of their channels. With this, there is no

COMPANIES WITH EXTREMELY STRONG OMNICHANNEL CUSTOMER ENGAGEMENT SEE A 9.5% YEAR-OVER-YEAR INCREASE IN ANNUAL REVENUE COMPARED TO 3.4% FOR WEAK OMNICHANNEL COMPANIES. — ABERDEEN GROUP integration, no movement of data. There is one set of data, which also makes it easier to keep inventory accurate, make fulfillment decisions and maintain a single customer record,” Dorf says. An integrated platform provides visibility into the entire inventory, but Canitz laments, “I think retailers are a little bit behind.” According to Clark, retailers still need to automate back-end processes. “To do so, they need 24

COMPANIES WITH OMNICHANNEL customer engagement RETAIN 89% of their customers.

COMPANIES WITHOUT OMNICHANNEL engagement only RETAIN 33% of their customers.


to move to single-source solutions and suites that can support processes from end to end. Transparent data can help buyers and suppliers at all ends of the supply chain arm themselves for a strong omnichannel strategy,” he adds. Though technology can optimize omnichannel, Smith cautions, “You don’t just implement one system and then you have a complete omnichannel view. It’s something that has to be integrated into the fabric of the entire supply chain. At Home Depot, it’s in our inventory systems, it’s in our transportation systems, it’s in our order management systems. They all need visibility.”

INTEGRATE THY INVENTORY “The No. 1 pain point when it comes to omnichannel today is inventory accuracy,” states Dorf. “Theft, mislabeling products, putting them in the wrong places and accepting shipments that are not complete all contribute to this. Then what happens is [retailers] make promises to customers, such as: ‘I’m going to ship this to you by this date,’ but ‘oops, I’m really out of stock,’ or ‘I’m going to hold this for you in the store,’ but ‘oops, the store can’t find it.’ ” The software companies use must be able to track when discrepancies in inventory occur. If a particular region has a lot of accuracy issues, it needs to find out why. Maybe the store or distribution center isn’t stocked well or additional loss prevention efforts are needed. “It could be any number of things,” says Dorf. “A lot of companies are looking at using RFID to improve inventory accuracy.” When there are multiple locations, such as brick-and-mortar stores, store distribution centers and direct fulfillment distribution centers, Smith says inventory ordering systems must be able to forecast demand through every channel, then fulfill demand through the correct location. “It’s really about accurate forecasting and then fulfilling an


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order based on that, which means we need a view of inventory by every single location available,” she says. Home Depot also operates a centralized inventory replenishment system that manages replenishment inventory for stores and distribution centers, and provides employees with a global view of inventory. This system loads inventory information into the company website, so that if customers look there for a specific product, they can see how many are in stock and where. This system also provides inventory information to store associates who are equipped with FIRST Phones, which are ruggedized smartphones they can use to obtain detailed inventory information for customers.

FOCUS ON FULFILLMENT “Omnichannel is all about Big Data and making good decisions based on the analytics. It’s a big math problem depending on where your vendor locations are, where your customers are located and what types of trucks are available,” says Smith. “Home Depot employs analytics teams that are focused on these types of decisions.” This team sets business rules in its software that enable the tool to offer different fulfillment options that ensure parcel ground product within two days. If customers need something the same day or next day, the site informs them that the best place to go is a store. “Something like lumber can only come from our stores,” Smith explains. “The system facing the customer gives multiple options if there are multiple fulfillment options available. However, in some cases, there is only one option of where we can fulfill from. It’s determined by a combination of factors, including the size of the product, the speed to the customer, the cost of shipping and so on.” Every parameter is set down to the item level, based on what makes the most sense and where it is stocked. “We sell over 1 million products online at Home Depot and we carry a number of different products at different points in the year in our direct fulfillment centers, but they can hold up to 100,000 products, which is a small percentage of the total products that we sell,” Smith says. Intelligent fulfillment decisions need to happen quickly and seamlessly. “If somebody buys something online, the software needs to determine if it is best to ship from a nearby warehouse or if the product should be shipped from the store,” Dorf says. “If it’s a store, which store should it be shipped

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MOVING BEYOND OMNICHANNEL By Peter Zaballos, Senior Vice President and Chief Marketing Officer, SPS Commerce

Moving beyond omnichannel requires greater orchestration from all supply chain players, each of which can better play their part— and thus improve the whole—by focusing on a specific goal. To that end, SPS Commerce’s retail industry report pointed to three key areas to focus omnichannel efforts on in 2017.

WWSUPPLIERS: Pay attention to retail stores. When

retailers fold, such as Sports Authority did in 2015, major suppliers take a hit. The health of the retail market will become increasingly important to manufacturers as they invest more in e-commerce than in stores of their own. It is in the best interest of manufacturers to offer more support to their retail partners even as they continue to strengthen their own direct-toconsumer sales. There’s a reason why the retail channel exists in the first place—because you can’t do it all yourselves.

WWDISTRIBUTORS: Add services. With retailers ramping

up drop shipping and suppliers selling direct to consumers, distributors could find themselves squeezed in the middle. Yet, there are opportunities for distributors to grow. One way is by helping retailers access larger assortments and get their goods to consumers faster. Another way is by helping manufacturers achieve their goal of selling direct to consumers.


are making their expectation for speed very clear to retailers and, as a result, their suppliers. Retailers report that it is less important to have the product in hand than it is to be able to get it to customers quickly. This subtle shift means a whole new world for stores, supply chain and logistics.

from? Should it ship from the closest one or from the store that is selling the fewest of the item to get rid of that inventory? Or should the product be drop-shipped directly from the vendor?” Dorf says companies are getting more sophisticated with automating decisions by setting business rules within their software tools. They may decide that getting the most margin out of the sale is most important, or they may decide that customer service and loyalty is most important. “If it’s the latter, they may pick the closest store to get it shipped to that customer very, very quickly,” he says. “There are different levers they can chose from to make sure they’re satisfying the customer in whatever way they think is best.” As companies ride the waves in an omnichannel sea, examples set by leaders like Home Depot can keep them afloat in their quest to meet the needs of customers in the time-sensitive click-and-ship retail world. | March 2017 | SUPPLY & DEMAND CHAIN EXECUTIVE


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MADE IN AMERICA By Amy Wunderlin


the Art of American Shoemaking The Chicago-based shoe manufacturer prides itself on a history of rich traditions.


ine leather shoes often are accompanied with thoughts of designer Italian brands. But American shoe manufacturing has a rich history of its own. When George Vlagos founded Oak Street Bootmakers in 2010, preserving that legacy was his top priority. “We pride ourselves on preserving the heritage of fine American shoemaking through thoughtfully designed and meticulously crafted footwear. All of our shoes can be recrafted and are designed to last a lifetime,” says Vlagos, who was inspired to take up American manufacturing after growing up working in his father’s suburban Chicago shoe repair store. Vlagos’ father immigrated from Greece to the United States, where he quickly established his own shoe repair business. There, Vlagos said he “naturally … fell in love with footwear. “I remember watching my dad as he would completely take apart a shoe— relast the uppers, rebuild the cork footbed, and replace the welt, midsole and sole—and return essentially a 26

new pair of shoes to his customer,” he recalls. “Growing up, I polished shoes in the shop, but as I grew older and fell in love with shoemaking, my father taught me the craft.”

HISTORY IN THE MAKING Beginning in the mid-18th century, shoemaking in the United States was a specialized trade for cobblers who emigrated from Europe. Like Vlagos’ father, many of these bootmakers and shoemakers set up shops in their homes, purchasing leather from local tanneries and using hand tools to make shoes. Following the Revolutionary War, the nature of shoemaking in America changed as the newly founded country’s population quickly rose, creating a rapid demand for shoes and the need for mass production. As the country

entered the 19th century, factories appeared that were dedicated to only one step of the shoe manufacturing process. Then, machines were used to stitch uppers to the soles rather than stitching the shoes by hand. The advent of the Civil War further increased the demand for fast and cheaply made shoes. By the end of the 19th century, shoes could be made in a fraction of the time it took to make a pair of shoes by hand, and by the 20th century, the shoe manufacturing process was divided into 150 distinct steps. Today, many of the world’s shoes are produced in China, meaning not only a reduced price tag, but also a shortened lifespan. Vlagos’ experience with this trend toward foreign-made footwear was a

Oak Street Bootmakers specializes in thoughtfully designed and meticulously crafted footwear right down to the tacks.


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U.S.-based manufacturers have seen a renewed interest in handcrafted and locally sourced products in the last few years. From apparel to food, consumers are demanding a level of quality that Vlagos agrees may only be found on American soil. “Because we’re not churning out products nonstop, our shoes stay in our hands longer than other manufacturers, ensuring that everything we make meets our quality standards,” says Vlagos. “Ultimately however, our product speaks for itself and American manufacturing is evident. When customers purchase Oak Street Bootmakers footwear, they can be confident that they are purchasing a pair of boots that will last.” All Oak Street shoes and boots are handcrafted in the United States by shoemakers with more than 20 years of experience. The highest standards of production are employed to yield shoes that are as durable as they are comfortable. Each pair makes use of replaceable outsoles, a feature normally reserved for formal footwear, to ensure a lifetime of wear. And to Vlagos, American manufacturing is synonymous with longevity. “We pride ourselves on building a product that not only looks great, but one that, with basic care, will provide you with years of comfort and wear,” he says. “All our products are completely recraftable … When a sole wears out or heels wear down, send them back to us, and we’ll put the same focus and attention to detail on the repair that we put into originally making the boots. Recrafting makes your old shoes new

once again, giving you many additional years of wear.” Oak Street shoes and boots are constructed from renowned Horween Chromexcel leather, undergoing 89 separate processes, taking 28 days and utilizing all five floors of the Horween facility in Chicago. Keeping in line with traditional American shoemaking, little has changed in the century-old leather formula, which is made from a combination of food-grade beef tallow, cosmetic-grade beeswax, marine oil, chrome salts, tree bark extracts and naturally occurring pigments. The mixture is applied using heat, steam pressure, the hands of craftsmen and time, ultimately yielding a soft, supple and durable leather that is used to make Oak Street’s shoes. “We have been able to garner a group of dedicated, hard-working and talented craftsmen and women who keep the art alive,” says Vlagos. “Without them, we wouldn’t be able to do what we do.”


major influence in his journey toward American manufacturing. “Working alongside my father, I saw that fewer customers were bringing in finely crafted, leather-soled shoes for him to repair,” he explains. “Rather, they were looking to get a little more life out of inexpensive or poorly made shoes. That is what initially sparked the idea to start manufacturing highquality footwear in the United States.”

A DYING ART In 2010, American shoe manufacturing was very much a dying art. What once was a thriving industry slowly was outsourced overseas in return for cheaper labor. Fortunately,

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STATE-SIDE ADVANTAGES Manufacturing in the United States can be quite difficult, but many apparel manufacturers are finding the pros to remaining state-side are outweighing the cons. “As a company that uses Americanmade components for each aspect of the shoe, we often hear many of the companies that once made the components that we are looking for have long shut their doors,” notes Vlagos. “With that said, it makes the relationships with our suppliers much more intimate. There is an eagerness and passion to build back much of the footwear landscape that has disappeared.” | March 2017 | SUPPLY & DEMAND CHAIN EXECUTIVE


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By Kirti Acharya

MOVING IN REVERSE How the Internet of Things will transform the world of reverse logistics.


he Internet of Things (IoT) is causing disruptions worldwide across many industries and corporations. The logistics sector is not one to be left behind. Reverse logistics is now addressed with equal importance as forward supply chain management. Online sales and e-commerce have prompted manufacturers to become cognizant of the costs and operational challenges associated with reverse logistics, as online sales contribute to 20 to 30 percent of all returned goods. However, reverse logistics isn’t merely an e-commerce challenge; it spans across all industries, causing various reasons for return. The challenge most companies face is not just transportation and pickup of returned goods, but also how to assess the resell or reuse value of the product.

PICK AND CHOOSE In a world of free delivery and shipment, the downside is for companies that bear the brunt of free returns. This entails arranging a pickup from the customer’s doorstep and transporting it back into the warehouse, and in the case of third-party logistics, back to the delivery center and eventually to the warehouse. Besides the delay in time, this is a costly affair that prevents the manufacturer from placing the product back into the marketplace. 28

machine performance and condition. This data is utilized by Komatsu to maximize its maintenance operations and reverse logistics. Devices such as sensors and trackers enable companies to manage return flows that are mostly unpredictable in nature.

REDUCE, REUSE AND RECYCLE UPS has been a pioneer in this sense by creating a supply chain program called UPS Returns Flexible Access using smart sensors as beacons. The program enables customers to drop off any returned product at a UPS center or their own mailboxes, which will then be picked up by the U.S. Postal Service, or UPS, and sent back to the firm’s warehouse. Apart from this, some firms are utilizing smart tagging, which is connected to a cloud server in real time and can track the product once it is picked up and thereby make it available in the inventory again. Smart tags also can be utilized for sorting. In cases of damaged or end-oflifecycle goods, the delivery agent can either tag the product for replacement, reuse or remanufacture. Of course, this will mean that firms looking to benefit from these features will require robust system integration and network.

CONSTANT SERVICE Servicing of products also is an important aspect of reverse logistics, and manufacturers are tapping into the IoT framework to determine the performance, depreciation and service timing of products. Komatsu, the world’s second largest manufacturer of construction and mining equipment, has installed sensors in its equipment that send back realtime data to a central database about

A strong reverse logistics strategy is indispensable for companies to sustain themselves in the circular economy. The strategy is essential, not just to reduce costs, but to also serve as a sustainable development model by advocating reuse and recycle of raw material and product scraps. With IoT and connected devices, it is possible for companies to determine and sort the products that can be reused and remanufactured for use in other products. Samsung realized this potential early on and initiated the Samsung Takeback and Recycling (S.T.A.R.) program in the United States, which allows users to return used printer cartridges through their mailboxes. These cartridges are reprocessed by Samsung into usable components. A successful reverse logistics strategy in the current world will work when the various stakeholders, i.e., manufacturers, consumers, logistics and transportation departments, are connected and integrated. This can be achieved through the IoT. The benefits will be reflected in various aspects of the business model, from transforming customer experience, operational and manufacturing costs to corporate social responsibility. Reverse logistics can no longer be underestimated and siloed. ABOUT THE AUTHOR KIRTI ACHARYA is general manager of Digital Transformation and Enterprise Solutions at Happiest Minds Technologies USA.


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By Ronnie Garrett

PUTTING THE PIECES TOGETHER Supplier relationship management is a puzzle that needs to be put together the right way for it to be a win-win for all parties involved.



ccording to the Chartered Institute of Procurement and Supply, “Supplier relationship management (SRM) is a comprehensive approach to procurement managing and capturing the post-contract value from key business relationships. SRM enables procurement to operate at a strategic level by adopting a more collaborative approach and developing key relationships,” which in turn “generates more value from the relationship in terms of innovation and efficiency.” SRM by definition alone is complicated, which is why, for many procurement operations, SRM can be like a vexing jigsaw puzzle: There are many unique pieces, and all must fit together seamlessly to achieve a cohesive overall sourcing design. Unfortunately, all too often, the pieces do not fit well together or are missing entirely in today’s procurement picture. “I’m making a very broad-based statement here, but there are quite a few immature organizations that are just not ready for SRM because they haven’t even architected an appropriate supply base yet. These organizations need to first focus on sourcing to architect the optimal supply base, deliver savings and gain credibility within their companies before they

start down the SRM path,” says Chris Sawchuk, principal and global procurement advisory practice leader for The Hackett Group, a leader in supply chain process improvement. Eric Wilson, software and technology executive with Basware, a purchase-to-pay and e-invoicing provider, says companies often lack clarity around SRM and thus fail to take the necessary steps to implement it. He maintains that many procurement operations aren’t evolved enough to embrace the practice. Some procurement operations are locked in a

“... there are quite a few immature organizations that are just not ready for SRM because they haven’t even architected an appropriate supply base yet.” — CHRIS SAWCHUK, THE HACKETT GROUP


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past mentality, which Wilson states is “Procurement has to explain to all significant internal stakeholders essentially, “How do you beat up your business leaders how a progressive beyond lip service.” suppliers to negotiate better contracts organization can put into place a On paper, getting buy-in from the and squeeze every penny out of them?” holistic SRM initiative, then optimize executive team seems easy enough. But he adds, “Successful it for long-term benefits,” he says. Procurement simply aligns itself with procurement departments think Finally, the benefits of SRM must corporate objectives, then demonstrates more about the mutual success of be quantified. “Procurement needs to how SRM can help achieve those the suppliers and buyer, and that’s model the hard-dollar costs of supplier goals. But before anything can really where SRM comes into play. turnover, supply chain breakdowns, happen in that regard, Wilson says While controlling your supply base is supply delays and general inefficiencies procurement professionals need to helpful in some ways, it’s not nearly in the supplier/buyer relationship, educate the team on what progressive as beneficial as collaborating with then get the appropriate resources and SRM is. “If procurement is thinking your suppliers, particularly strategic personnel allocated to SRM to make too narrowly from a technology or suppliers, to achieve mutual success.” it effective and get the desired results,” objective standpoint, or in how to SRM not only helps streamline the Wilson says. operate with suppliers, it is not going procurement process, but it also to be able to convince business leaders reduces costs, spurs innovation and “Ultimately, you want your to move forward with a progressive improves efficiency. Moreover, it can SRM initiative,” Wilson says. suppliers to be successful along Then the SRM initiative must be help companies meet contractual obligations and conduct business in to corporate objectives, which with you, not in spite of you.” tied an ethical manner. “Ultimately, you every organization releases annually. — ERIC WILSON, BASWARE want your suppliers to be successful Procurement operations can connect along with you, not in spite of you,” In some procurement operations, directly to the C-suite through the CFO. Wilson says. SRM is in name only, in which case, Sawchuk states that procurement Wilson says the results are limited. The groups need to answer one CLEAR THE HURDLES entire business from top-down has to fundamental question as they make Mickey North Rizza, a vice be behind it, and resources and funding senior-level connections and embark president at IDC Research, an analyst must be allocated to it. on a supply risk management initiative: firm, wrote, “Engage your suppliers “Quite frequently, procurement What are we trying to protect? on a continuous basis to maximize the organizations think too narrowly “[As an organization], what are we value of interactions that lead to the about SRM and put in place a system most worried about and what are we delivery of goods and services to your they call SRM, but it only addresses are trying to protect?” he asks. “Are we business.” She adds this may sound a couple pieces of the puzzle, like trying to protect our revenue? Are we easy, “but when you add in thousands supplier information management or trying to protect our margins? Are we of suppliers to cover your indirect supplier scorecarding,” he says. “For trying to protect people’s safety? Are and supply chain spend, supplier SRM to work, procurement needs to we trying to protect our brand or our management can become unwieldy.” take a broad, holistic approach.” intellectual property?” Procurement must clear many Sawchuk points out that none of hurdles in the race to SRM, according ALIGN GOALS these objectives are procurement to Wilson. First and foremost, it “Trust, transparency and education decisions; “they are business decisions.” must overcome a legacy mentality. are all factors that contribute to SRM’s And once procurement understands He explains that procurement must success,” notes Joe Sandor, Hoaglandthe priorities, it can then align its understand SRM is more about mutual Metzler professor of purchasing and supply risk identification, mitigation benefits than controlling suppliers. supply management for The Eli Broad and management strategies to them. The second hurdle, he adds, is School of Business and Graduate “By mapping the expected results explaining the business value of School of Management at Michigan of the SRM program to the defined SRM to corporate decision-makers. State University. “You need to engage objectives from the CFO, procurement

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SPECIAL REPORT PROCUREMENT can make the SRM initiative more is providing and the breadth by which with a baseline measure. “You need strategic in the eyes of the business and the supplier is used across the business. to establish a baseline, then take get backing,” Wilson says. Other dimensions beyond measurements quarterly to show the Sawchuk highlights how this performance include risk, as well as quantifiable benefits of the SRM might work by looking at child labor. augmented capabilities like supplierprogram,” he says. The original Let’s say you have an organization enabled innovation. “Procurement needs baselines might show things like that is highly dependent on families, to decide which suppliers to focus on turnover in the supply base, inefficiency especially children, for its success. from a performance standpoint, which in the purchase-to-pay cycle, the costs That organization does not want to ones to focus on from a risk standpoint, to process an invoice or a purchase be caught off guard and learn that a and which ones to focus on from an order, the quality of products from supplier in its network, even a fourth augmented capability and innovation suppliers, on-time delivery and so on. tier supplier, is using child labor. “This standpoint,” he says. “They need to “You need to measure all of these could significantly impact and even broaden their more traditional tiered things up front, then use analytics destroy the company’s reputation, and segmentation models to include these to measure these things quarter over quite possibly its business,” he says. dimensions more overtly as well.” quarter to publish a scorecard that The challenge with supply risk clearly shows the benefits coming management investments, unless from SRM,” he says. “Executives “The most successful [SRM] externally mandated, is long-term need to see the quantifiable value implementations start smaller, gain sustainability. When everything of these efforts. The data needs is going well, organizations tend be compelling and defensible, traction and broaden over time.” to to question their investments in showing the hard-dollar returns — CHRIS SAWCHUK, THE HACKETT GROUP supply risk management. They on investment promised when you don’t tend to reward for a lack of developed the SRM business case.” risk events, but they certainly penalize There are several key success factors When sharing this scorecard, when an event does happen. in initiating SRM. “First, have an Wilson advises that procurement objective for building this capability, operations also show how these hardPHASE THE EXECUTION and ensure others align to it. Second, dollar savings are tied to the business’ Sawchuk recommends taking SRM is not just a procurement overall goals. “That’s how you get a phased approach to SRM: “To capability, it is an enterprise capability, continued backing for these initiatives,” begin, we need to segment our and you cannot be successful on your he says. supply base and decide whom we are own. Third, everyone is doing some He recommends communicating going to engage with from an SRM aspects of SRM today. What everyone benefits to suppliers as well. There perspective.’” isn’t doing is developing an overall and should be scorecards that show how He suggests augmenting more consistent framework, and establishing SRM is benefiting them. These might traditional tiered and matrixed a single and consistent face to the include information on the speed of supplier segmentation models with supply base. Fourth, don’t try to build transactions, invoicing and payments, a multidimensional approach. “Let’s Rome in a day. Procurement must be dispute resolutions and overall say you have 10,000 suppliers in strategic in how it initiates and grows efficiency. “If it’s one-sided, you’re not your supply base. Are you going to the program,” Sawchuk says. “One really implementing SRM,” Wilson manage and measure the ongoing thing I’ve never seen work well is explains. “You’re just implementing a performance of all 10,000 suppliers? going broad right from the start. The supplier-squeezing initiative.” The answer is no. First, you don’t most successful implementations start He concludes by saying, “Don’t have the resources to do that, and smaller, gain traction and broaden over think about SRM as a separate system. second, it just isn’t necessary,” he time.” It is part of your overall relationship says. “Somehow, you have to decide between you and your supplier, and which suppliers will be performanceTALK IT UP it needs to be built into your entire managed and what criteria you will Once a SRM program is up and procurement process. And when you use to make that decision.” This may running, how does procurement think of SRM, you need to think about include past supplier performance, communicate its value? Wilson it as being mutually beneficial. A winbusiness criticality of what the supplier states that all SRM efforts start win for both parties.” 32


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Rift Grows Over Proposed Border Adjustment Tax

Advocates say it would promote American-made goods, while those opposed say it violates WTO rules.


he Trump administration is hoping a proposed border adjustment tax (BAT) will help lower the corporate tax rate and ease the U.S. trade deficit, but opponents say the tax—which could impose de facto import tariffs up to 20 percent—is in violation of the World Trade Organization’s (WTO) rules. Under the proposed BAT, companies could no longer take a tax deduction for costs associated with imported goods or inputs, while export revenue would be exempt from corporate income tax calculations. The goal is to boost U.S. manufacturing. However, Americans for Affordable Products (AAP), a recently formed coalition of businesses and trade associations, claims the BAT would “significantly hurt” American consumers and employers by raising the cost of everyday products like food, gas and clothing by up to 20 percent, while a U.S. company could avoid paying corporate taxes “because it exports products.” Many international trade lawyers are doubtful the proposed BAT would comply with the WTO’s rules. “It would be plainly WTO-inconsistent,” says Philippe De Baere, a partner at Van Bael 34

& Bellis. “It has manifest violations, which could even justify the use of the expedited procedure for dispute settlement in the WTO.” According to a CNBC report, other lawyers say the “destination-based cash flow tax” would fail WTO rules on more than one legal basis. Republican Rep. Kevin Brady, chairman of the House Ways and Means Committee, dismisses concerns about BAT’s legality, stating he is confident it does comply with WTO rules. The AAP predicts the BAT would cost American consumers at least $1 trillion over the next 10 years, and could force many retailers to “downsize or close their doors,” in turn impacting millions of other jobs in logistics, technology and manufacturing. The coalition warns that U.S. trade partners could also impose a slew of retaliatory duties on U.S. exports. China’s state-owned enterprises might adopt a “Buy No America” policy, for instance, while Mexico has levied retaliatory tariffs on U.S. goods over a previous North American Free Trade Agreement (NAFTA) dispute. The chief economist with Belgium’s Federation of Enterprises predicts that if European companies started to lose U.S. contracts and shed jobs as a result, Europe might also take action. “The political pressure would be really strong to go for an all-out trade war,” says Edward Roosens.

So, who’s for the BAT? On Feb. 13, the American Made Coalition released a partial list of companies that support the border adjustment tax (BAT). The export-heavy companies charge the BAT is “essential to leveling the playing field for American-made goods and services and encouraging American jobs, investment and manufacturing.” Some of the biggest names in the coalition are:

WWBlue Diamond Growers WWThe Boeing Company WWCaterpillar Inc. WWCelanese WWCelgene WWCook Medical WWCoorsTek WWThe Dow Chemical Company

WWEli Lilly and Company WWGeneral Electric WWHoneywell WWJohnson & Johnson WWMcIlhenny Company WWMerck & Co. Inc. WWOracle WWPfizer Inc. WWQualcomm WWRaytheon Company WWS&P Global WWUnited Technologies Corporation

WWVarian Medical Systems


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2017 Educational Webinar Series DETAILS & REGISTRATION: S D C E X E C . C O M / W E B I N A R S T I M E : 1: 00 P M E T / N O O N C T / 11:00 A M MT / 10:00 A M P T


August 30 April 26

March 29

Risk Mitigation

_________________ Supply chain risk comes in various forms—geopolitical, cyber security, natural disasters and much more. New tools and strategies are giving executives an edge in identifying and mitigating risk.

May 31

The Internet Warehouse of Things Automation

_________________ _________________ The Internet of Things (IoT) is quickly demonstrating its value to global supply chains with improved connectivity and analytics. This event will help distinguish the promise from the hype with real world examples.

September 27

The ROI for automating warehouse functions is increasingly evident for many organizations in a range of verticals. Learn what it takes to assure a successful implementation and avoid the most common pitfalls.

June 21

Procurement Trends

_________________ Innovations in sourcing and procurement are creating competitive advantages for organizations. What are the latest trends and developments?

Predictive Analytics

_________________ Supply chains are using predictive analytics in a variety of ways from creating more accurate retail forecasts to reducing costs by anticipating maintenance and repair of physical assets. Experts share best practices for harnessing the power of predictive analytics.

October 25

November 15

December 13


The Internet of Things II

Procurement Trends II

Cargo theft poses risks to brand reputation and consumer safety, and racks up costs for supply chain providers and their customers. This event looks at the latest tools and strategies to boost cargo safety and security.

As the Internet of Things (IoT) continues to mature, supply chains are seeing the manifestation of its opportunities revealed in areas ranging from transportation to manufacturing and more.

Procurement experts examine the most promising trends and developments, and how organizations are achieving impressive cost savings, improved compliance and enhanced visibility.

Executive Outlook for Supply Chain 2018

Cargo Safety & Security




From the macro to the micro, and the global to the granular, join a panel of experts for an executive-level view of the key supply chain issues for 2018. Dates are subject to change.



To become an expert panel sponsor, contact Jolene Gulley | 480-413-0354 |

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By Carrie Mantey


With delivery lockers, drones, use of the sharing economy and robots, we can conquer.


Starship Technologies is testing these autonomous delivery robots in select U.S. markets.

ast-mile delivery is the final consumer. And if you live in a for retailers to segment in the logistics city, you can see how last-mile penetrate large, network, where finished delivery gets more complicated affluent markets goods are transferred to the quickly. The transportation via e-commerce. consumer or business that ordered and of goods in cities, also known as However, doing so purchased them. It seems like an easy urban logistics, requires finesse to cut profitably is not easy. Highly congested enough concept, but the devil is in the through traffic and efficiently make cities are adopting regulations around details. Henry Harris-Burland, head of deliveries in a dense market. The types truck access, off-hour delivery times, global marketing and communications of transportation that can be used in noise restrictions and pollution, at Starship Technologies, a delivery suburban or rural areas can’t always while at the same time, e-commerce robot firm, says, “Last-mile delivery cut it in the city, forcing carriers to get customers are more demanding is historically inefficient and requires more creative. in terms of the speed and time of a higher percent of cost compared Mike Mulqueen, a partner at JBF delivery.” to other areas of the transportation Consulting, a supply chain technology An article from Millennial process—up to 40 percent of total consultancy, elaborates, “As a greater Marketing, “The Amazon Effect and transportation costs can be weighted in percentage of the population moves the Future of Retail Competition,” the last couple of miles of delivery.” to urban centers, the cost and describes the Amazon effect as “the That’s the downside. The upside is impact the digital marketplace has “Up to 40 percent of total companies are innovating on the traditional business new ways to minimize the model regarding consumer transportation costs can be weighted expectations and the new cost and inefficiency of last-mile delivery. And there in the last couple of miles of delivery.” competitive landscape. are myriad ways to transport Consumers now expect their — HENRY HARRIS-BURLAND, STARSHIP TECHNOLOGIES goods over the last mile, buyer journey to be entirely which isn’t really a mile at all. It could complexity of urban logistics provides frictionless and immediate.” Thus, the be 2 miles; it could be 50. both opportunities and risks, most Amazon effect is in full effect, creating E-commerce delivery is part of notably in last-mile logistics. The that last-mile rush, which is only one the last mile that you may most be density and relative wealth of urban variable among the many Mulqueen familiar with as a contemporary shoppers provides a great opportunity detailed. The question now, according 36


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to Abtin Hamidi, co-founder and executive vice president of Cargo Chief, a third-party logistics company, is: “What technology and processes can be put in place to make that happen?”

there, use the touch-screen kiosk at the locker to receive their shipment. Louis DeJianne, director of consumer goods, apparel and retail marketing at UPS, summarizes, “The urbanization of our population is causing carriers to look at alternate ways to complete deliveries more effectively. How do we make delivery more efficient? How do we place packages and deliveries as close to the end consumer as possible? I think you’ll see some traditional and e-commerce companies looking for local fulfillment options to get their product closer to consumers as well.”

DELIVERY LOCKERS The main difficulties of delivering a last-mile package to an urban business or home are security and space. In the country or suburbs, a logistics provider generally can drop off a parcel at any time in a relatively secure area—say, a covered porch—near the home, which better protects it from weather and unsavory strangers. Consumers simply bring it inside when they get home. Rural and suburban businesses and homes also tend to have easy-to-access driveways, parking lots, or at the very least, curb space for a carrier to park. The same cannot be said for urban locations. Therefore, urban logistics providers must innovate to make this costly, inefficient process more efficient and cost-effective. One way UPS is achieving that is through the use of alternate delivery locations and lockers via its UPS Access Point program. With the UPS Access Point network, consumers can schedule packages to get delivered at a certain time to a specific UPS Access Point location—reliable local businesses UPS vetted and partnered with— and then pick them up when it fits their schedule. With this program, consumers know packages are secure, close and there when they need them. For even greater flexibility, consumers can drop off or pick up packages at a UPS Access Point locker, most of which are accessible 24 hours a day. It’s a fast and secure self-service option for customers in busy areas. Users can track their shipment online or with the UPS mobile app, and once

DRONES Matt McLelland is an innovation research manager at Kenco Innovation Labs, the research and development arm of the thirdparty logistics company. One of the technologies the lab is exploring is the use of drones and one of the innovations McLelland is most excited about is Mercedes-Benz’s partnership with Matternet, an autonomous drone company, to solve the last-mile delivery conundrum. The partners built a van that implements roof-mounted autonomous drones and a robotic package-sorting

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system to decrease the time it takes to deliver and sort packages. According to Quartz article, “Mercedes Made a Crazy Van with Built-In Drones and Robot Arms to Deliver the Packages of Tomorrow,” “The van would be loaded up at a depot center and sent on its way. But unlike a regular truck, the packages are not loaded in one by one. Like changing out a cartridge on a printer, the cargo area of the van essentially pulls out and is replaced by a new one filled with packages. The packages are all sorted and their positions made known to the robot arm inside the back of the van before it leaves. When | March 2017 | SUPPLY & DEMAND CHAIN EXECUTIVE


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the driver arrives at an area to deploy the drone, he or she can tell the arm to load the package onto the drone. The arm then pulls a package, along with a battery pack that it connects to the drone, through a hole in the van’s roof. The battery and package are loaded, and the drone flies to its destination.” Regardless of its utility, however, the Mercedes Vision Van isn’t going to be available any time soon. McLelland warns that, while drone technology is innovative, it also has many obstacles to overcome. He says to be able to commercially operate a drone, Federal Aviation Administration regulations stipulate that the drone must be within line of sight, which is really hindering their use for last-mile delivery … that is, for now.


The sharing economy is a phrase that’s frequently bandied about, but what does it mean? Generally, it’s an ecosystem built around the sharing of resources. For example, UPS partnered with Deliv, a last-mile package delivery solution that employs the sharing economy business model, to facilitate same-day delivery from retailer stores. When a consumer makes an online purchase and the retailer has it in stock locally, Deliv schedules a contracted driver to go pick up the package from the retailer and deliver it to the customer within a specified timeframe. “There is an on-demand gig economy that is available to make deliveries,” Hamidi confirms, adding that, because truckers are under increasing pressure from shifting carrier rates and the stress of the long-haul job, “they are starting 877-6-COYOTE to take on last-mile COYOTE.COM delivery jobs for a more convenient and less stressful lifestyle.” And it’s not just limited to cars and vans. John Costanzo, president of Purolator International, adds that some companies are using pedal bikes to circumvent the congestion in urban areas. He says, “When I was in Europe recently, I saw a bunch of Coyote, a UPS company, provides powerful hybrid electric/pedal solutions and unrivaled commitment to its bikes DHL is using customers — We believe in doing the right downtown to try thing, every time. No Excuses. to improve urban delivery economics.”

Real. Smart. Logistics. 38

These robots weigh no more than 60 pounds, fully loaded.

DELIVERY ROBOTS Starship Technologies is now testing its six-wheeled autonomous delivery robots in select U.S. markets. Users request a delivery via a mobile app, then Starship’s platform engages the direct delivery of parcels or groceries from specific stores or specialized hubs. For security, the cargo bay of the robot is locked throughout the journey and can be opened only by the recipient. The location of the robots is tracked, so you know exactly the location of your order and the time of arrival. From the co-founders of Skype, these advanced, self-driving robots can carry items within a 3-mile radius, arriving on doorsteps within 5 to 30 minutes, as they are only capable of moving at a safe, pedestrian speed. The company says they’re inherently convenient and safe because they can navigate around objects and people, while the entire journey can be monitored on a smartphone. While the applications of this advanced delivery robot may be limited due to distance and time constraints, Harris-Burland opines, “Delivery robots aim to change the way goods are sent and received. We’re ultimately aiming to provide ondemand, 24/7 delivery. Robotics and embracing technology is the future of efficient and cost-effective last-mile logistics.”


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Get the

RECOGNITION YOU DESERVE! Each year, Supply & Demand Chain Executive recognizes individual and corporate leaders in the global supply chain. Plan now to enter your company, executive or a cutting-edge client or vendor in one of these industry-leading recognition programs:

17th Annual


PROS to 2017 KNOW


10 th Annual



Transforming Supply Chains with Software & Technology

Honoring leading executives for improving the global supply chain through sustainable and proactive business initiatives.

The annual SDCE 100 is a project-based award that recognizes leading software and technology providers that are helping transform supply chains with their products and services.

Winners announced in this issue

Winners announced in June 2017 issue


GREEN SUPPLY CHAIN AWARDS Recognizing companies that implement green practices as a core function of their supply chain operations.


Winners announced in December 2017 issue

Online nominations open approximately eight weeks before the deadlines listed above.

Award results, information and nominations posted on:


Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation.

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2/7/17 10:12 3/15/17 9:21 AM



By Amy Wunderlin


THE HOWS AND WHYS OF ROBOTICS IN THE WAREHOUSE Locus Robotics robots are designed to work alongside humans, not replace them. They enable employees to increase their overall productivity.

The use of technology throughout the supply chain remains relatively low, but Locus Robotics sees an opportunity in automating the world’s warehouses.



ver the past several decades, a trend toward robotics in the warehouse swept through the supply chain. But when Amazon acquired Kiva Systems in 2012, many logistics companies were left wondering what to do next. That is when innovators such as Locus Robotics come into play. Supply & Demand Chain Executive recently caught up with Locus Robotics chairman and founder Bruce Welty to learn more about his robots and how they are helping to shape the global supply chain. Starting in the 1970s, Welty specialized in software for managing warehouses. In 2009, he shifted gears and founded Quiet Logistics, a company that used robots from Kiva Systems to reduce warehouse

operating costs. But three years later, when Amazon acquired Kiva, cutting off Welty’s robot supply, he began the journey to build his own robots. At the time of Amazon’s $775 million purchase, Kiva assured its customers that it would continue to sell robots to outside companies. But that did not happen. Since then, not only did Amazon use all of the autonomous warehouse vehicles Kiva produced, but also officially renamed the company Amazon Robotics in August 2015. “When Amazon acquired Kiva, it put us in a spot where we decided we need to control that technology, so we started working on a new robot concept,” says Welty. “We did that in 2013. Then, in 2015, we implemented it in our first facility and then started selling commercially in 2016.” That concept would break into two companies—Quiet Logistics, a warehouse logistics company that does e-commerce fulfillment, and Locus Robotics, which sells the robots.

WHY ROBOTICS? There are numerous reasons companies choose to implement robots into their facilities, including low cost, high productivity and minimal risk. Specifically regarding Locus robots, which work side by side with employees,


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Locus robots are mobile autonomous robots, meaning they can move freely around the warehouse.

right, now it’s time to do something.’” Robots produced by Locus Robotics are mainly used for picking and putting away. An example of their use would be putting away stock, such as the process of putting goods onto shelves, and then picking up and taking the goods off the shelves. Welty explained that the robots are not meant to replace human workers, but to enable them. “They are really human-assist robots as opposed to human replacement robots,” he says. “We still rely on humans to do the complicated pieces: identifying something, grasping the item and placing it in a bin.” Locus robots also help to eliminate unproductive activities workers do like walking.

retailer in the world, employed 45,000 robots in some 20 fulfillment centers—a 50 percent increase from the robots’ 2015, when the company had about reliability and ease of 30,000 robots working alongside use are a huge factor. 230,000 humans. “They’re fun A report released by Forbes in 2016 to work with; showed that e-commerce sales in 2014 workers just love made up 8.2 percent of retail sales in them and training the Asia-Pacific, 6.7 percent in western is super easy. We Europe and 6.3 percent in North took something America. Forecasts suggest that, by that is very 2018, these figures will be 18 percent, complicated and made it simple.” 10 percent and 9 percent, respectively. So far, the industry has been slow Today, however, the use of robotics to embrace the technology, but Welty throughout the supply chain remains remains optimistic that the trend relatively low, Welty says, adding that toward automated warehouses will about 80 percent of the warehouses in continue to rise for a number of the world use zero advanced technology. reasons—most importantly, a shortage “The industry itself is technologically of skilled workers. poor,” he says. “Maybe some [use] Jobs at fulfillment centers are Year after year, companies are software and portable computer seeing high turnover rates in their terminals, but that is it. The 20 labor-intensive and lack flexibility, warehouses and an inability to fill percent that do have automation, these positions. Jobs at fulfillment probably a sliver of them use leaving a limited number of centers are labor-intensive and lack robots. The number of robotic people who are willing to work in warehouses in [the United States] flexibility, leaving a limited number of people who are willing to work in is probably under 100.” a warehouse environment. the warehouse environment. Welty says Locus Robotics It’s possible automation could solve “We streamline the picking process continues to see a lot of interest in this challenge by reducing the number to approach the theoretical limit on what it has to offer, however. of workers required to operate a facility how quickly you can pick an item off “We view this as an opportunity. or increasing the productivity of existing the shelf, scan it and put it in the bin,” It has to be one of the biggest employees. Welty adds. opportunities today to try to automate “We watched what Amazon did, and these manual facilities.” it loved the robot so much it bought WHO IS USING THEM? But it is important to remember, the robot company and then deployed Right now, Locus robots mainly robotics do not work in every warehouse. 45,000 robots. The [company] already are used by e-commerce companies It greatly depends on the types of come out and said that was the best that ship goods bought online to products you are trying to move. acquisition it ever made. I think that’s consumers. They also are used for store “Certain velocities of products just pretty strong validation if the No. replenishment, where robots replace don’t make sense,” Welty says. “They 1 company in the industry is fully items on the shelf as they are sold. might be too big. They might be too committed to using robots,” Welty says. As e-commerce continues to gain bulky. They might be too long or tall. “We, as a user of two different types of traction, Welty believes the use of Then you might have products that robots, are very convinced that they’re a robotics also will continue to grow. just don’t move fast enough. You could tremendous advantage. So, what we’re During the 2016 holiday season, get higher productivity just doing it all seeing is a lot of companies saying, ‘All Amazon, the largest e-commerce manually.”

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IMPLEMENTATION Right now, the robots of the world are broken into two broad categories—goods-to-person and autonomous robots. The first category involves a robot grabbing a shelf, tote, pallet, etc., and bringing that to a human who chooses an item from said shelf. The robot then returns the shelf back to stock. “It’s a robotic system, but the robots are comp-lined to this big steel infrastructure,” Welty explains. “That was state of the art 10 to 15 years ago.”

The second, more current robot is the mobile autonomous robot, which moves around the warehouse and positions itself in front of a pick, while the human performs the pick. There are several types of robotics using this technology on the market in addition to Locus Robotics. Those leading the way (in alphabetical order) include: ❯❯ 6 River Systems with product in development. ❯❯ Aethon with TUG. ❯❯ Balyo with the automated guided vehicle (AGV). ❯❯ BlueBotics with ANT. ❯❯ Clearpath Robotics with OTTO. ❯❯ EiraTech with Eirabot. ❯❯ Fetch Robotics with Fetch robot. ❯❯ Grenzebach with L1200S AGV. ❯❯ GreyOrange with Butler. ❯❯ IAM Robotics with Swift. ❯❯ inVia Robotics with Runner. ❯❯ Magazino with TORU. ❯❯ Mobile Industrial Robots with MiR. 42

❯❯ OMRON Corporation with Mobile Robot LD. ❯❯ PlusOne Robotics with product in development. ❯❯ Seegrid with Vision-Guided Vehicle. ❯❯ Serva Transport Systems with RAY and EVE. ❯❯ Swisslog with CarryPick. ❯❯ Vecna Technologies with QC Bot. Additionally, there are many large companies developing autonomous mobile vehicles for use in their logistics operations, which are not for sale.

don’t want to force them to make risky, all-in types of decisions. We want them to gradually add our robots to their operations as they see fit.” The initial implementation of robotics is unlikely to disrupt a company’s work flow, but as employees learn to incorporate robots, a reevaluation of the warehouse space may be necessary. Welty notes that, when a company first implements a robot, it should not make any changes that would disrupt the current work flow or force employees to relearn how to do things. “We view this as an “We want to educate them in opportunity. It has to be one how to incorporate of the biggest opportunities the robots into their space. After they today to try to automate learn how to use them and workers these manual facilities.” grown accustomed — BRUCE WELTY, LOCUS ROBOTICS to the robots, then they themselves Customers interested in trying come up with a lot of ideas to improve robots in the warehouse undergo a operations and optimize work flow.” series of steps, beginning most likely From there, incremental changes can with a facilities assessment. be made—changes Welty says probably “We look at your movement history will never stop. and ask, ‘Does our robot actually apply “Every day, we get faster and we to this? Does it make sense to put it think of clever things we can do to here?’” Welty says, adding Locus also make the robots faster. That’s the invites companies to visit its facility, nature of the game, just constant so they can see the robots in action for improvement.” themselves. The next step is creating what PUT A PRICE ON IT Welty calls a pilot. During the pilot, Costs associated with a robotics rollLocus implements five robots into a out can vary based on the number and company’s system in a small corner of type of robots, but it is without a doubt a warehouse, then teaches employees a large investment. how to use them, giving customers a Though Welty believes Locus robots test run to decide if they like them. “pay for themselves within about 18 “If you like it, then you can buy it, months,” the initial cost, he says, is and we can set up a roll-out strategy somewhere in the low millions. to try to move the robots to the rest “The simple way to put it is, if you of your building in a methodical, spend a million dollars on us, you’ll disciplined way,” says Welty. “We don’t save a million dollars over the next want to disrupt clients’ business; we 18 months.”


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SDCE EXECUTES EDUCATION PARTNERSHIP Supply & Demand Chain Executive partners with the Supply Chain Resource Cooperative at NC State University for the 2017 Supply & Demand Chain Executive’s 100 Great Supply Chain Projects competition.

proud to partner with Supply & Demand Chain Executive for the 2017 Supply & Demand Chain Executive’s 100 Great Supply Chain Projects competition. The SDCE 100 spotlights successful and transformational projects that deliver value to enterprises across the range of supply chain functions. The chieving a sustainable experience solving supply chain projects featured competitive advantage real-world business in this awards program offer for companies in today’s challenges provides a forward-looking perspective for fast-paced global the backbone for an industry-relevant industry on new opportunities designed economy is a full-time pursuit. For education, and is a primary method to drive operational success. NC State many organizations, good supply for developing the supply chain University supply chain management chain management practices can make management leaders of tomorrow. In professors and key executive practicum the difference between growth and fact, many colleges and universities advisors will participate in the review stagnation. are working closely with the industry process following the submission There are many facets to developing to address the complex challenges deadline in collaboration with the world-class supply chain management seen in today’s global economy. editors and staff of SDCE. capabilities. One of the most important Through teamwork and applying “This is the first year that a university activities a company has a part of the judging Engaging students with hands-on experience can pursue to develop process and we’re pleased and implement best solving real-world business challenges provides to work with SDCE to practices is leveraging identify and celebrate the backbone for an industry-relevant education, success in the supply chain well-organized, wellscoped projects that are and is a primary method for developing the management field,” says relevant to a company’s Magliola, director of supply chain management leaders of tomorrow. Dana strategic objectives. the Supply Chain Resource The outcomes from projects provide robust project-management practices, Cooperative at NC State University. insight, innovation and opportunity both students and supply chain “Companies are always seeking to set for improved operations. The project management professionals can make themselves apart, so it is important to process itself also is a significant significant contributions to a company’s create the kind of environment where vehicle to advance the skills and competitiveness with innovations leadership is willing to risk failure and acumen of supply chain management realized through ambitious projects. try new things to achieve innovation.” leaders and practitioners. Recognition for these successes, Recipients of the 2017 SDCE 100 This philosophy is at the core of the as well as the lessons-learned from will be announced on project-based practicum curriculum in failures, is important to support and in the June issue of SDCE. More the supply chain management program an ongoing culture of continuous information about the Supply Chain at the Poole College of Management improvement and progress. With this Resource Cooperative at NC State at North Carolina State University. in mind, the Supply Chain Resource University can be found at go.NCSU. Engaging students with hands-on Cooperative at NC State University is edu/SupplyChain.


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WORK HARD, By Ronnie Garrett

SUPPLY CHAIN CAREER TRUMPS THE TROMBONE Logility’s Hank Canitz passed on a musical career, but never let his trombone playing slide.


n Hank Canitz’s family, the question wasn’t: Will you learn to play an instrument? The question was: What instrument will you learn to play? “It was expected,” says the product marketing director at Logility, provider of supply chain planning and optimization software. Canitz picked the trombone, following in the footsteps of his father, who played the trombone professionally in Milwaukee and Chicago’s swing jazz bands of the ‘40s and early ‘50s before settling in to family life and a career as a band director for the West Allis-West Milwaukee School District. The pace picked up in high school when Canitz became one of five trombone players in the state to make the Wisconsin Honors Jazz Ensemble then earned a full scholarship to pursue a degree in jazz from the University of Wisconsin-Green Bay. Though the tempo was set for him to play professionally, he “Music in its basic followed the beat of root form is really a different drum and pursued a degree in just a mathematical engineering instead. The teen, who language.” regularly dined with — HANK CANITZ, LOGILITY jazz greats around the family dinner table, just didn’t see himself playing the same song. “I didn’t think I had the musical chops of a Rafael Méndez [a trumpet player who played for President Lyndon B. Johnson and King Farouk of Egypt] and I didn’t


want to be a teacher, though my father influenced so many people in so many positive ways by doing that,” he says. He instead marched into the world of math and science, and pursued a career in logistics, though he never left his brass instrument behind. Canitz till practices seven to 10 hours a week and slides his trombone in the Denver Concert Band, as well as in the trombone choir, Too Many Trombones-Denver. Though Canitz’s career is very technical, he says his trombone playing still strikes a chord. “There is a strong relationship between music and mathematical skills,” he explains. “Music in its basic root form is really just a mathematical language.” His early musical training now aids him in writing whitepapers, blogs and articles for supply chain leaders. “My job is to be a supply chain thought leader,” he says. “Playing the trombone helps me take a creative look at different aspects of the supply chain, whether it be recruiting the right people for supply chain planning, or trying to communicate in a way that’s easy to read and understand.” Though Canitz never took to the stage as a professional trombonist, he may soon see the dream come alive with his son, who plays both the trombone and the baritone. He will graduate this spring with a dual degree in classical music performance and biology, following the path his father forged first by pulling both the creative and the scientific sides together.


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‘BREAK THE BANK’ Staff training can be expensive. From tuition to travel, a 2-day class can cost between $2,400-5,900 per person. For education that is far easier on the budget and far more effective, choose on-site training through the Supply Chain Learning Center.


your team will receive training at your location and learn process improvement strategies and skills they can immediately implement on the job.


the Supply Chain Learning Center offers a diverse range of learning opportunities to meet your specific business needs and extend your capabilities in a shorter time frame.



are available for various professional certification programs. Contact us now for more information about learning opportunities through the Supply Chain Learning Center Jolene Gulley, Group Publisher Supply & Demand Chain Executive & Food Logistics Magazines Phone: 480.413.0354 Mobile: 262.473.9285

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The Global Enabled Supply and Demand Chain Map This map provides the solutions and services that can give your supply chains a competitive edge.

Version 33.0

The Global Enabled Supply and Demand Chain Map VERSION 33.0

(This map replaces Version 32.0 from the September 2016 issue.)

SUPPLY CHAIN INTEGRATION & TECHNOLOGY • Artificial Intelligence & Machine Learning (NEW) • Automatic Identification & Data Capture, including Barcode, RFID, Voice & Wearables • Automation • Business-to-Business (B2B) Connectivity, Standards & Integration • Blockchain (NEW) • Bring Your Own Device (BYOD) • Collaborative Production Management • Contingency Planning • Descriptive & Predictive Analytics • Electronic Data Interchange (EDI) • Enterprise Asset Management (EAM) • Enterprise Application Integration (EAI) • Enterprise Data Management & Synchronization

• • • • • • • • • • • • •

Enterprise Resource Planning (ERP) Hardware Options Import & Export Compliance Management Internal & External Portals Internet of Things (IoT) Inventory Optimization  Network Infrastructure & Optimization On-Premise, Cloud, Software-as-a-Service (SaaS), On-Demand &Hosted Applications Real-Time Freight Contract, Bid and Tender Automation Regulatory & Customer Mandate Compliance & Governance Issues Security & Cyber Security Warehouse Management Systems (WMS) Wireless Applications & Devices


John Galt Solutions LeanLogistics LoadExpress Inc.

Material Handling Institute (MHI) NeoGrid Rapid Ratings International


• • • • • • • • • • • • • •

• Product Cost Management • Purchase Order & Requisition Management • Relational Contracting • Spend Management & Analysis • Supplier Enablement & Supplier Information Management • Supplier Onboarding, Enablement & Integration • Supplier Performance Measurement & Monitoring • Supplier Relationship Management & Supplier Development • Supplier Risk Management • Supplier Segmentation (NEW) • Value-Focused Supply Management • Working Capital Management

Benchmarking & Metrics Collaborative Bidding (NEW) Content & Category Management Contingent & Temporary Labor Services Management Enterprise Supplier Collaboration Employee Business Services Management (including Travel & Entertainment) Financial Fraud Group Purchasing Organizations & Solutions Hedging Strategies Marketplaces Negotiations & Contract Management Network Optimization New Laws & Regulations

PROCUREMENT ENABLERS CaseStack Demand Solutions DSC Logistics John Galt Solutions LeanLogistics Material Handling Institute (MHI) Rapid Ratings International

SOURCING • • • • • • • • •

• Outsourced Manufacturing, including Offshoring, Nearshoring Auctions & Reshoring Strategies Automation • Relational Contracting Collaborative Bidding (NEW) • Sourcing Business Models Commodity Team & Supplier • Spend Analytics & Supply SOURCING ENABLERS Collaboration Strategy Demand Solutions Content & Category Management • Supplier Relationship DSC Logistics Management e-Request for Information/ John Galt Solutions Proposal (eRFI/eRFP) • Tail Spend Management NeoGrid Financial Fraud • Total Cost of Ownership Rapid Ratings International & Total Cost Analysis Market Analytics • Trading Exchanges New Laws & Regulations

ORDER & DEMAND CAPTURE • • • • • • • • • •

Automation Benchmarking & Metrics Capacity Planning Demand Planning & Forecasting Demand Sensing & Shaping e-Request for Information/ Proposal (eRFI/eRFP) Merchandise Planning Network Analysis & Optimization New Laws & Regulations Order & Demand Management

• • • • •

Outsourced Manufacturing Predictive Analytics Promotional Planning Quote-to-Order Automation Sales & Operations Planning, & Sales, Inventory & Operations Planning • Supply & Demand Chain Network Design • Supply Chain & Production Planning • Supply Chain Coordination & Event Management


Collaborative Design Design for Supply Chain Design for Sustainability & Environment New Laws & Regulations New Product Introduction PRODUCT LIFECYCLE Outsourced Design Services MANAGEMENT ENABLERS Product Data Management DSC Logistics Product Portfolio Management John Galt Solutions Request for Information Material Handling Reverse Logistics Institute (MHI) Sustainable Packaging

ORDER & DEMAND CAPTURE ENABLERS CaseStack Demand Solutions DSC Logistics John Galt Solutions

LeanLogistics Material Handling Institute (MHI) NeoGrid


Big Data Analytics (NEW) Channel Management Customer Analytics & Intelligence Content Management Field Service & Service Parts Logistics Mobile Sales Solutions Promotion Management Reverse Logistics & Merchandise Returns Sales Force Automation Trade Promotion Management Warranty Chain Management

CUSTOMER RELATIONSHIP MANAGEMENT ENABLERS DSC Logistics Material Handling Institute (MHI) Rapid Ratings International

Procurement Fulfillment


Order/Demand Capture

Supply Chain Integration & Technology

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Accreditation Associations Certification Universities


CONTINUING EDUCATION ENABLERS John Galt Solutions LeanLogistics Material Handling Institute (MHI)

CONSULTING ENABLERS Demand Solutions DSC Logistics Fortna Inc. John Galt Solutions LeanLogistics Material Handling Institute (MHI) NeoGrid

• Alternative Fuel Veh & Lift Trucks • Automatic Motion C Lighting & LED Ligh • Automation • Carbon Dioxide Trac & Management • Energy & Sustainabi Assessment • Energy-Efficient Equ • Heating, Ventilation Air Conditioning (HV Energy Star Equipm • Leadership in Energ Environmental Desig (LEED), & Green Buil

FULFILLMENT & LOGISTICS • • • • • • • • • • • • • • • • • • • •

Automation Autonomous Vehicles (NEW) Benchmarking & Metrics Customized Build & Assemble Order & Delivery Management Dashboards Descriptive, Predictive & Prescriptive Analytics Distribution Planning & Distribution Requirements Planning Drones Electronic Logging Devices (ELDs) (NEW) Financial Fraud Global Trade Management & Trade Compliance Management Inventory Management & Optimization Labor Management Systems Last-Mile Delivery (NEW) Logistics Resource Management Manufacturing Execution Systems Material Handling Equipment & Services Modeling & Simulation New Laws & Regulations Omnichannel Distribution (NEW)

SERVICE SUPPLY CHAIN • Service Analytics & Optimization • Service Financial Management • Service Parts Logistics

Automation Blockchain (NEW) Collaborative Cash Flow Management e-Credit e-Money Electronic Bill Presentment & e-Invoicing Electronic Funds Transfer & All Forms of e-Payment • Financial Fraud



Control hts



uipment n and VAC) ment gy & gn ldings

• Low-Capacity & Automatic Bathroom Fixtures • Routing Optimization Software • SmartWay Transportation Carrier Designation • Solar & Wind Power • Sustainable Supply Management • Transportation Mode Shift due to Order & Load Optimization • Wastewater Reclamation


FULFILLMENT & LOGISTICS ENABLERS CaseStack Coyote Logistics DSC Logistics Fortna Inc. John Galt Solutions LoadExpress Inc. Material Handling Institute (MHI) Old Dominion Freight Line Inc.

• Service Operations across the Aftermarket Service Supply Chain, including Asset Management, Spare Parts, Field Services, Warranties, Service Management, & Repairs & Returns • Service Supply Chain Planning

PAYMENT • • • • • • •

• Order Management Inputs • Outsourcing Services • Reverse Supply Chain & Logistics, & Returns Management • Route Accounting & Management, & Direct Store Delivery Solutions • Security & Cyber Security • Service Parts Logistics & Service Supply Chain Planning • Simultaneous Outbound & Inbound Management • Supply Chain Event Management • Supply Chain Execution • Supply Chain Security • Transportation Management & Optimization • Urban Logistics (NEW) • Vendor-Managed Inventory • Voice-Driven Solutions • Warehouse Control Systems • Warehouse Execution Systems • Warehouse Management • Workforce Management • Workforce Training

• • • • • • • • • •

SERVICE ENABLERS Demand Solutions John Galt Solutions Material Handling Institute (MHI) NeoGrid

Financial Supply Chain Management Financial Transaction Management Freight Audit & Payment Services Global Trade Finance Letters of Credit PAYMENT ENABLERS PayPal & Bitcoin LoadExpress Inc. Procure-to-Pay (NEW) Purchasing Cards Reconciliation & Reporting Solutions Spend Data Management

DECISION SUPPORT • Benchmarking & Metrics • Big Data Analytics (NEW) • Business Process & Performance Management • Change Management • Dashboards • Descriptive & Prescriptive Anayltics • Enterprise Business Intelligence • Information Sharing • Inter-Enterprise & CrossFunctional Collaboration • Market Intelligence & Analytics • Regulatory & Customer Mandate Compliance • Relational Contracting

• R  esearch & Consulting • Revenue, Price & Profit Management Automation • Six Sigma, Quality & Lean Practices • Staffing & Incentive Management • Supply Chain Skills Management & Professional Development • Supply Chain Relationship Management • Supply Change Risk Management

DECISION SUPPORT ENABLERS Demand Solutions DSC Logistics John Galt Solutions Material Handling Institute (MHI) Rapid Ratings International

INDEX OF ADVERTISERS CaseStack. . . . . . . . . . . . . . . . . . . . . . . . . 29

Emirates SkyCargo . . . . . . . . . . . . . . . . 46 Business Development Team (855) 638-3500 CaseStack is a leading supply chain services provider that leverages collaborative retailer consolidation programs and cloud-based technology for consumer packaged goods (CPG) companies. CaseStack provides sustainable logistics, including transportation and warehousing solutions that eliminate systemic waste and optimize supply chain performance. From Emirates SkyCargo’s location at the crossroads of Europe, Africa and Asia—you can reach more than 1.5 billion customers in less than eight hours with multiple destinations and a young, able-bodied fleet.

Coyote Logistics. . . . . . . . . . . . . . . . . . . 38

Demand Solutions/Demand Management Inc . . . . . . . . . . . . . . . . . . 21 Anne-Cécile Fuchs (314) 991-7116

DSC Logistics. . . . . . . . . . . . . . . . . . . . . . . 5 Jennifer Nix (847) 390-6800 DSC Logistics is a leader in transforming logistics and supply chain management into a critical business strategy based on collaborative partnerships, innovative thinking and high-performance operations. DSC achieves the business goals of Fortune 500 and other dynamic companies by designing, integrating, managing and adapting customized supply chain solutions.

Fortna Inc. . . . . . . . . . . . . . . . . . . . . . . . . 20 Kate Baar (770) 475-0991, ext. 1201

John Galt Solutions. . . . . . . . . . . . . . . . 19 Daniel Klitgaard (312) 701-9026 John Galt Solutions delivers supply chain, inventory and forecasting solutions to companies around the globe that depend on the importance of accurate prediction tools to establish a world-class planning process.

LeanLogistics . . . . . . . . . . . . . . . . . . . . . . 9 Tom S. Looms (616) 796-7631 LeanLogistics, a Kewill company, provides solutions to streamline supply chain networks with transportation management system applications and services. The LeanLogistics Transportation Network is one of the largest on the market, providing customers actionable intelligence to make better business decisions.

INDEX OF ADVERTISERS LoadExpress Inc. . . . . . . . . . . . . . . . . . . 13 Ken Liu (858) 722-0912 LoadExpress is the online freight auction and matching marketplace where shippers and carriers deal directly without brokers. Shippers lower freight and operational costs, while driving up productivity and reducing the daily hassles of logistics.

Material Handling Institute (MHI). . . 33 Meredith Watts (704) 227-0757

NeoGrid . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Paris Gogos (312) 948-9972 NeoGrid provides supply chain management solutions that are quick to implement, easy to use and complementary to existing systems—making more intelligent and flexible supply chains to continuously improve the flow of goods.

Old Dominion Freight Line Inc. . . . . . . . . . . . . . . . . . . . . . . 16, 17 (800) 235-5569 Old Dominion Freight Line is a leading less-than-truckload (LTL) carrier providing premium service with competitive transit times nationwide. Old Dominion’s claims ratio, on-time delivery and safety records are among the best in the industry. Contact Old Dominion for a quote at or (800) 235-5569.

Rapid Ratings International. . . . . . . . 37 Alla Valente (646) 233-4592

Profile for Supply+Demand Chain/Food Logistics

Supply & Demand Chain Executive March 2017  

The only magazine and website covering the entire end-to-end global supply chain in every vertical. It’s all done in a solutions-based forma...

Supply & Demand Chain Executive March 2017  

The only magazine and website covering the entire end-to-end global supply chain in every vertical. It’s all done in a solutions-based forma...

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