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SPECIAL REPORT: HAS BLOCKCHAIN LOST ITS GROOVE? Global Supply Chain Solutions Covering Procurement, Risk, the IoT and More

MARCH 2019

RISK EXPOSURE

2019

Managing the supply chain means managing risk

PROS TO

A NEW MODEL

KNOW

Innovation is king in the warehouse of the future

BIG DATA

Meet our Pro to Know Lisa Dolan of ALOM, along with this year’s class of supply chain leaders

The strategic value is obvious, but gaps remain

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Fresh new content daily at www.SDCEXEC.COM

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PROS TO KNOW 2019

MICHA

CEO & Global C Advanc in Procu

19th Annual

2019

CHRIS NADE

Founder Haversa

SCOTT

Vice Pres Security O HighJum

Here Are a Few of this Year’s

SUPPLY CHAIN LEADERS! PHIL MARLOWE

SAMI PELTONEN

Founder, CEO and Chief Logistician Acuitive Solutions

VP Products and Business Management of North America Basware

KAUSHAL DAVE Global Vice President of Solutions Development and Customer Engagement Aera Technology

HANNAH KAIN President and CEO ALOM

LISA DOLAN Vice President of Supply Chain Strategy ALOM

EDWARD SMITH Managing Director of Arkieva Europe Arkieva

JASON AVERILL President & CEO Avercast

JAKE BARR CEO BlueWorld Supply Chain Consulting

BILL MCCOUCH

MATT

Vice Pres Operatio Jarrett L

MATT

Vice Pres Marketin Jarrett L

RICK F

CEO Locus Ro

KEN F

Senior Vice President of Procurement Services Corcentric

Chief Op Logistyx

BILL HARRISON

FELIX V

President Demand Management Inc.

DOUG WAGGONER Chairman of the Board of Directors and CEO Echo Global Logistics

MICHAEL JOHNSON CEO Elite Transit Solutions

Director Miebach

MARK

Founder Negotia

GREG B

Founder a One Net


AEL SHAW

Founder Council for the cement of Women urement

STOPHER EAU

and CEO ack LLC

T BRASK

sident of Cloud and Operations mp

T ANGELL

sident of Logistics ons Logistics Systems

T WAGNER

sident of Sales and ng Logistics Systems

FAULK

obotics

LEMING

perating Officer x Technologies

VICKNAIR

h Consulting

JULIANN LARIMER

NEDRA DICKSON

President and CEO Peak-Ryzex Inc.

Global Supplier Inclusion & Sustainability Lead and Managing Director Accenture

JUSTIN CRAMER

DANNY GREENAWALT

Global Project Management Director and Co-Founder ProShip Inc.

Supply Chain Business Process Lead Advanced Drainage Systems Inc.

CHUCK HIERONYMI

TUSHAR BHALLA

Director of Business Solutions Railinc

Senior Director Customer Success Intrigo Systems

NATE ENDICOTT

TEJ BONAGIRI

Senior Vice President of Sales and Strategic Alliances RateLinx

Solution Architect Intrigo Systems

SHANNON VAILLANCOURT President and Founder RateLinx

RODDY MARTIN

DEBORAH GOERLACH

Founder and CEO Stellar Strategic Advisory Corp.

Supply Chain Business Application Leader Momentive Performance Materials

BRAD HOLLISTER

MICHAEL FIELD

Founder and CEO SwanLeap

CEO The Raymond Corporation

JAY WILSON Vice President of Processing Services Transportation Insight

K RAFFAN

PRASAD GOLLAPALLI

ations Ninja Podcast

Founder and CEO Trucker Tools

BRADY

and CEO twork Enterprises

PRABHAKAR PRASAD Executive Vice President of Sales Intrigo Systems

JANAK SHAH SDC Director The Team from Supply Line Management

BRIAN TRIBBLE President Worldwide Express Global Logistics

For more Pros to Know, turn to Page 18.


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March 2019 | Volume 19 | Issue 1

CONTENTS SPECIAL REPORTS

08

34 THE INTERNET

EXECUTIVE FOCUS



FEATURES

08 Vast Exposure of Supply Chain Risk

Managing the supply chain means managing risk.

16 Pros to Know in 2019

16

Meet Pro of the Year Lisa Dolan of ALOM, along with the year’s brightest supply chain stars.

32

48 Saputo Saves with Paragon

Paragon route optimization software solves a Canadian dairy wholesaler’s delivery inefficiencies.

40 TRANSPORTATION

Fusing Tech with Transport from First to Final Mile

OF THINGS Closing the Gaps in the Supply Chain

The proliferation of connected things and big data reinforces the relationship between IoT and cloud computing.

36 PROCUREMENT  Emotional Intelligence Key to Successful Procurement Leadership

The case for hiring a chief procurement officer with high emotional intelligence is growing.

38 BLOCKCHAIN

 Has Blockchain Lost Its Groove?

Supply chain execs are tasked with teasing out the proven from the puffery.

40

With today’s high-tech product innovations comes the need for savvy transport and delivery.

44 WAREHOUSING

I nnovation Drives Distribution in 2019



Growing pressures are creating opportunity for innovative supply chain leaders.

46 SOFTWARE

& TECH  Breaking Barriers for Better Data Management

Companies are beginning to understand the strategic value of big data analytics, but gaps still remain.

50 PROFESSIONAL

DEVELOPMENT  Using Mini-Clinics to Embed Learning

 ini-clinics provide learning M by doing and embed skills that last a career.

COLUMNS

36 SDCEXEC.COM

32 MADE IN AMERICA 52 WORK HARD, PLAY HARD

Exclusive online features and solutions for successful supply chain operations

The Big Picture in Big Data

How IoT Can Dramatically Improve Your Supply Chain

www.sdcexec.com/21048484

www.sdcexec.com/21049204

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04 EXECUTIVE MEMO 06 CHAIN REACTIONS

Taming Supply Chain Complexity www.sdcexec.com/21049359

www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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EXECUTIVE MEMO By John R. Yuva, Editor jyuva@ACBusinessMedia.com

BE PROACTIVE with a BCP Don’t wait until a major supply disruption forces you to develop a business continuity plan.

R

isk permeates throughout the supply chain. Can the company sustain supply with demand? Will our leading suppliers remain solvent in the year ahead? How do we ensure counterfeit parts don’t infiltrate our supply stream? All valid and critical scenarios in many companies’ risk portfolios. Yet, such risks are the tip of the iceberg for what companies face day-today in the global environment. Our feature article in the March issue of Supply & Demand Chain Executive is focused on supply chain risk from three specific vantage points: trade, geopolitical and cyber security risk. Each has its own risk characteristics and level of disruption. Mitigating the effects of these events, regardless of which one, is having a business continuity plan (BCP). While risk management focuses on the strategy and practices to avoid a disruption, a BCP provides the framework and guide for how to respond when it occurs to keep the business operational while it recovers. Companies and their supply partners should have a BCP in place to avoid any ripple effect a disruption may bring. CoreMark Insurance Services suggests the following 4-step BCP framework. ❯❯ PREVENTION—This is essentially the risk management part of the plan, which is to prevent problems from occurring in the first place. 4

Published by AC Business Media 201 N. Main Street, Fort Atkinson, WI 53538 (800) 538-5544 • www.ACBusinessMedia.com

www.SDCExec.com

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❯❯ PREPAREDNESS—This should be the fruits of your risk management plan, requiring you to have plans and resources in place to respond and recover from an incident. You should conduct a business impact analysis that identifies all of the resources, personnel and equipment critical to keeping your business running. Your plan should identify external stakeholders, the skills and knowledge necessary to run your business and how long your business can survive without performing these tasks. ❯❯ RESPONSE—This part of the plan should cover what you do following an incident, such as containing, controlling and minimizing the effects. This should include details on when the plan would be activated, assembling an emergency kit, having evacuation procedures in place and a communication plan to implement during an event. ❯❯ RECOVERY—After the initial response to an incident you will want to ramp up to full operations again as quickly as possible. You need to map out strategies to recover your business activities in the quickest possible time. That entails a description of key resources, equipment and staff required to recover your operations— and a time objective. Read our feature story on page 8 to learn more about supply chain risk and how to protect your company and supply base. The worst action is inaction. Happy reading!

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2019 | www.SDCExec.com

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PRINT AND DIGITAL STAFF GROUP PUBLISHER Jolene Gulley ASSOCIATE PUBLISHER Judy Welp EDITORIAL DIRECTOR Lara L. Sowinski EDITOR John R. Yuva ASSISTANT EDITOR Amy Wunderlin WEB AND COPY EDITOR Mackenna Moralez CONTRIBUTING EDITOR Barry Hochfelder SENIOR PRODUCTION MANAGER Cindy Rusch ART DIRECTOR Kayla Brown AUDIENCE DEVELOPMENT DIRECTOR Wendy Chady AUDIENCE DEVELOPMENT MANAGER Angela Franks ADVERTISING SALES (800) 538-5544 JOLENE GULLEY, jgulley@ACBusinessMedia.com SHEILA SPINCK, sspinck@ACBusinessMedia.com 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 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: (847) 291-4816 Email: circ.sdcexec@omeda.com LIST RENTAL Jeff Moriarty, Infogroup (518) 339-4511 Email: jeff.moriarty@infogroup.com REPRINT SERVICES JOLENE GULLEY, jgulley@ACBusinessMedia.com AC BUSINESS MEDIA CEO Barry Lovette CFO JoAnn Breuchel VICE PRESIDENT, SALES & MARKETING Amy Schwandt EDITORIAL DIRECTOR Greg Udelhofen DIGITAL OPERATIONS MANAGER Nick Raether DIGITAL SALES MANAGER Monique Terrazas Published and copyrighted 2018 by AC Business Media 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, 201 N. Main Street, Fort Atkinson, WI 53538. 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 ­publisher cannot assume responsibility for the validity of claims or ­performances of items appearing in editorial presentations or advertisements in the publication. March 2019 / Volume 20 / Issue 1

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CHAIN REACTIONS

NEWS FROM ACROSS THE DIGITAL SUPPLY CHAIN

IBM COLLABORATION CENTER TO

DRIVE AIHARDWARE

To advance artificial intelligence (AI), IBM is working across its systems, research and Watson divisions to take a fresh approach to the kishore kumar/iStock/ Getty Images Plus technology, requiring significant changes in the fundamentals of systems and computing design. With support from New York State, SUNY Polytechnic Institute and the founding partnership members, IBM is developing a global research hub to advance nextgeneration AI hardware and expand their joint research efforts in nanotechnology. The IBM Research AI Hardware Center will be the host of a new ecosystem of research and commercial partners collaborating with IBM researchers to further accelerate the development of AI-optimized hardware innovations. Through the center, partners will develop a range of technologies from chip-level devices, materials and architecture, to the software supporting AI workloads. The IBM Research AI Hardware Center will enable IBM and its partner ecosystem to overcome current machine learning limitations through approaches that include computing. According to a blog post, the technologies will help pave a path to improve AI-performance efficiency over the next decade.

CONVOY REACHES 100% AUTOMATED MATCHING OF LOADS TO CARRIERS Convoy’s freight marketplace has automatically matched 100-percent of loads to trucks in top markets, without any human intervention. To measure the booking load with carriers, Convoy uses two steps: 1) finding a truck that is available and can arrive on time (matching) and 2) agreeing on the rate at which that work will happen (pricing). By achieving this milestone, Convoy has increased app use and has better data on driver preference and behavior. As the company continuously invests in improving its core relevance models, it has also made it easier for drivers to find jobs that best fit their needs.

85% OF US RETAILERS HAVEN’T COMPLETED SUPPLY CHAIN DIGITIZATION Research from Gravity Supply Chain Solutions found that 85 percent of U.S. retailers haven’t completed the digitization processes required to give them full control of their supply chain. Without this, retailers will struggle with speed to market, hampering their ability to efficiently allocate supply with demand with the knock-on impact of reducing sales. For retailers relying on manual supply chain management processes, cost is perceived to be the main blocker.

This is the case for 46 percent of respondents whose supply chains remain undigitized. At least 29 percent of respondents said the inability to justify the cost is the most significant blocker to supply chain digitization. However, those who have yet to digitize say they recognize the value in doing so. Forty-four percent believe the lower cost of operation is the strongest benefit, followed by higher profit margins (40 percent) and greater customer experience (36 percent).

“Clearly, the supply chain is the final frontier of retail digitization, and while retailers are anxious about the cost, not moving from manual spreadsheet-based supply chain management toward digitized processes could cost them a whole lot more.” — GRAHAM PARKER, CEO OF GRAVITY SUPPLY CHAIN SOLUTIONS

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ZEBRA MOBILE COMPUTERS ENABLE WALGREENS TO BRIDGE THE DIGITAL AND PHYSICAL STORE EXPERIENCE Walgreens has begun using Zebra Technologies’ enterprise-class handheld mobile computers and tablets to help enhance store operations and transform the shopping experience for customers. According to Zebra’s annual Global Shopper Study, 55 percent of surveyed shoppers and 74 percent of retail store associates believe store associates equipped with the latest technology improves the overall shopping experience. Walgreens’ assisted selling and inventory management applications running on Zebra enterprise-class mobile computers boost productivity and improve the customer experience while connecting its associates and customers nationwide. “Consumer expectations are rapidly changing, and retailers need to evolve to meet the increase in on-demand needs,” says Jeff Schmitz, senior vice president and chief marketing officer for Zebra Technologies. “Zebra’s intuitive mobile computing solutions provide Walgreens’ team members with a performance edge. Through better training and visibility into everything from inventory to shopping behavior, Walgreens is optimizing operations and improving the customer experience with quicker, more knowledgeable service.”

Andranik Hakobyan/iStock/Getty Images Plus

With Zebra’s Android-based TC51 mobile computer and ET50 tablet, Walgreens’ team members have the information they need at their fingertips, allowing them to quickly and accurately assist shoppers and complete daily tasks. Zebra’s mobile computers and tablets make it easier for team members to check planograms, look up product information, or set up an order for home or direct-to-store with a few simple clicks—freeing up time to help more customers.

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JDA Survey Finds Retail C-Suite Embracing Artificial Intelligence to IMPROVE CUSTOMER EXPERIENCE The need to fuse online and offline experiences and fulfill anytimeanywhere convenience has retail executives concerned about the maturity of their customer experience and supply chain capabilities, according to new research from JDA Software. The 2019 Retail C-Suite Viewpoint Survey in collaboration with Microsoft, conducted by retail research firm Incisiv, found that while retailers plan to expand fulfillment options and offer infinite choices, the C-suite still Yozayo/iStock/ struggles with core digital transformation Getty Images Plus challenges. Additionally, executives view artificial intelligence and edge technologies as having the widest impact on their businesses. “As consumer expectations increasingly cut across formats, the store shelf has extended from a physical object to the entire supply chain,” says JoAnn Martin, vice president, retail strategy for JDA. “The C-suite recognizes that expanding fulfillment options to improve customer experiences and support the ‘anywhere shelf ’ is critical to survival and growth, but our survey shows their digital supply chain capabilities may be severely underprepared for this change.” According to the survey, 78 percent of those surveyed do not have a real-time view of inventory across channels, and half of respondents believe they do not have the right platforms and tools in place to support expanded fulfillment options. In addition, retailers still do not have a single source of truth for their data nor the human capital to derive insights, and nearly half (46 percent) do not trust their data. “These survey results further validate the strategic imperative behind AI and cloud as transformative technologies for retailers to gain competitive advantage by truly unlocking value from customer data,” says Greg Jones, director of business strategy for retail at Microsoft. “Retailers must know their shoppers better than they know themselves, and the powerful technologies coming to the forefront for digital transformation are the way to get there.” www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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FEATURE

By Lara L. Sowinski, John R. Yuva, Amy Wunderlin

VAST EXPOSURE OF SUPPLY CHAIN RISK Managing the supply chain means managing risk. Enterprises can’t do one without experiencing the other in today’s interconnected world.

R

emember the days when counterfeit In a document, OFAC stated that, “This action goods and single-source suppliers highlights the risks for companies that do not were top of mind? While still part conduct full-spectrum supply chain due diligence of the overall risk portfolio, it’s now when sourcing products from overseas, particularly about data integrity, political/government agendas, in a region in which [North Korea], as well as other trade agreements, natural disasters and more. What comprehensively sanctioned countries or regions, all these risks have in common is their global is known to export goods.” Therefore, “OFAC positioning and impact on external forces beyond a encourages companies to develop, implement and company’s control. maintain a risk-based approach In this article, the Supply & to sanctions compliance and OFAC ENCOURAGES Demand Chain Executive editorial to implement processes and COMPANIES TO team examines three areas of supply procedures to identify and mitigate DEVELOP, IMPLEMENT chain risk, their potential impact areas of risks.” AND MAINTAIN A RISKand mitigation strategies. Sergio Retamal, CEO of ❯❯ International trade compliance Global4PL and DPLGuru, BASED APPROACH ❯❯ Geopolitical disruptions points out that the cost of nonTO SANCTIONS ❯❯ Cybersecurity exposure compliance when it comes to COMPLIANCE AND TO vetting overseas suppliers and IMPLEMENT PROCESSES others with whom a company COST OF NONtransacts business goes far beyond AND PROCEDURES TO COMPLIANCE IN monetary fines and penalties. INTERNATIONAL TRADE IDENTIFY AND MITIGATE For example, it’s not uncommon In Latin, it’s Ignorantia juris for a company that has been fined AREAS OF RISKS. non excusat, or simply put, there’s to experience additional scrutiny no excuse for ignorance of the law. One U.S. of their operations and shipments. Their legal costs importer, ELF Cosmetics, was hit with a $996,080 are typically increased too, because they then have penalty earlier this year for violating sanctions on to devote more staff and/or resources to making North Korea by importing false eyelashes from sure the company remains compliant. two Chinese suppliers whose products contained The government also evaluates whether a materials sourced from North Korea. company is acting in good faith and had processes This move by the Treasury Department’s Office and procedures in place, or on the contrary, if of Foreign Assets Control (OFAC) illustrates the the company was not even doing the minimal aggressive response and costly penalties that await requirements with regards to knowing who the importers who fail to comply with regulations end user is (in the case of outbound shipments that designed to keep U.S. companies from trading goods originate in the U.S.) or who the seller, provider or and transacting for services with bad actors overseas. vendor is in the case of imported goods/services. 8

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cost of a

ijeab/iStock/Getty Images Plus

In the case of ELF Cosmetics, “Among the aggravating factors cited by OFAC is that the company’s OFAC compliance program was either non-existent or inadequate,” noted trade law firm Sandler, Travis & Rosenberg. “Instead, the company’s production review efforts focused on quality assurance issues pertaining to the production process, raw materials, and end products of the goods it purchased and/or imported. In addition, the company appears to not have exercised sufficient supply chain due diligence, as its compliance program and supplier audits failed to discover that about 80 percent of the goods supplied by two of its China-based suppliers contained materials from North Korea.” Nonetheless, “OFAC said the company’s cooperation and remedial measures were mitigating factors,” added the trade law firm. “In addition to immediately disclosing the apparent violation and terminating the conduct at issue, the company took a number of steps to prevent future violations. These include implementing supply chain audits that verify the country of origin of goods and services used in its products, newly requiring suppliers to certify that they will comply with all U.S. export controls and trade sanctions, and conducting enhanced supplier audit that included verification of payment information related to production materials and review of supplier bank statements. The company also expanded its efforts to train employees on U.S. sanctions regulations and other relevant U.S. laws and regulations.”

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Expected annual cost of cybercrime damages by 2021

data breach

$6 Trillion

Average cost of a data breach for enterprises

Average cost of a data breach for SMBs

MILLION

THOUSAND

Source: Cybersecurity Ventures

$1.23 $120 Source: Kaspersky Lab

GEOPOLITICS GETS MESSY Discussion around geopolitical risk has traditionally been low for many U.S. organizations. A series of tariffs imposed in January 2018 by President Donald Trump caught many companies off guard, thus sparking a new dialog around politically-motivated disruptions. “Prior to our current president, I didn’t hear a lot about [concerns around geopolitical risk]. That was more of the fifth, sixth topic down the conversation,” says Mike Varney, a partner in the Crowe LLP risk consulting group He is responsible for leading the firm’s delivery of global risk services. “That’s changed, specifically after last year and the impact the tariffs have had on organizations. Because it hit them directly in their pockets books, now you’re starting to hear it discussed more,” he adds. Varney now ranks geopolitical risk in the Top 3 most pressing supply chain risks, along with www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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FEATURE regulatory and cybersecurity, and believes the trend to the supply chain on a quicker basis,” says Varney. will only continue to grow. He points specifically It’s easy to think, for example, that a war in the to a trend toward nationalism globally and China’s Middle East will only affect the Middle East, but “as ambitions to become a world superpower. we’ve seen, it spreads across the globe,” he adds. “As you start to see this nationalism take stronger It also can be difficult to predict. “There’s hold, it may create barriers in how you can move many different ways that it will show itself,” notes goods and source goods across borders,” he explains. DeMartino, which he says means companies must Take Brexit for example. A fear of immigration really think about how those threats are going to persuaded many British citizens to vote in favor manifest in their individual supply chain. of a break from the European Union in an effort The first step is acknowledging that there is the to create more secure borders—a decision which possibility of a geopolitical event disrupting your the impacts on global trade are still unknown. The supply chain. Once you acknowledge it, Varney controversial vote was somewhat unexpected, and says companies need to assess the environments many companies are now working to prepare for in which they operate and then utilize a variety of the possibility of a No-deal Brexit ruling. tools to gauge the likelihood of said events. “They still don’t really know “Risk is the what could go wrong; what’s going to happen once this it’s the unknown in the market. But “RISK IS THE WHAT using some of the tools available in settles, but trade deals are going COULD GO WRONG; the marketplace, following the press to need to be renegotiated, which is likely to impact pricing and IT’S THE UNKNOWN and being aware of issues that could availability. Companies are already IN THE MARKET. BUT occur can alleviate [potential risk],” moving out of the UK, so there’s he explains. USING SOME OF THE disruptions in the flow of goods… RiskMethods’ supply chain risk and there’s just that uneasiness that’s TOOLS AVAILABLE IN management software is one such going around,” says Varney. THE MARKETPLACE, tool that can do that heavy lifting While countries such as the for companies. The company helps FOLLOWING THE PRESS United States and the U.K. begin organizations create risk profiles AND BEING AWARE OF for each supplier or partner in their to take a closer look inward, the opposite is true for many companies’ ISSUES THAT COULD supply chain based on a range of supply chains. The globalization of sources and continuously monitors OCCUR CAN ALLEVIATE suppliers and operations means a that relationship. [POTENTIAL RISK].” company is much more likely to be “It is not the enterprise’s job — MIKE VARNEY affected by a politically-motivated to figure out what the latest and event around the world. greatest source of information is that “If you look at what [manufacturers] have it can leverage about its supply chain. That’s really been doing for the last 15 or 20 years, they have what our job is for them—to continuously look for been elongating their supply chains, moving to and identify new sources of reliable information that different regions of the world where traditionally we can leverage to bring continuous insights to our they weren’t connected,” explains Bill DeMartino, customers,” says DeMartino. general manager of RiskMethods North America. Once you’ve acknowledged the possibility of a “Supply chains, in combination with the fact that geopolitical disruption and evaluated the regulatory they’re also trying to be lean and agile, have grown environments of your operations, the final step brittle. Thus, any force that would have historically is asking the “what if ” questions. Question such impacted the organization is much more likely as: What if a regulatory or a regime changes to affect the company and impact the brand or materially? How will it impact our ability to move bottom line.” product to our facilities? What would be the cost if we were to continue the same movement of it? APPROACHING GEOPOLITICAL RISK What if a sub-tier supplier is impacted? What if The tricky thing about geopolitical risk, however, is there is political unrest that occurs in a region that that it “tends to be farther reaching…and permeates we’re operating in? What if there’s a change in 10

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FEATURE the way things can be sourced, and how will that impact my supply chain? Speaking specifically about the recent impact of the Trump Administration’s tariffs, Varney says many of his clients were unprepared because they simply hadn’t yet asked themselves, “If the tariff regime were to change materially, what would we do?”

ESTABLISH YOUR MITIGATION PLAN Unfortunately, most companies are still not as prepared as they should be for a supply chain disruption, says DeMartino. “Most organizations have business continuity plans in place, but those tend to focus on disaster situations—worst case scenarios,” he adds. In the case of geopolitical risks, however, DeMartino says most are not long-term disasters. And those disaster recovery plans often lack the level of capabilities needed to react to more nuanced threats that are going to impact the supply chain. For those companies that have not prepared for

the impact of a sudden geopolitical event, Varney recommends a four-step mitigation plan: assess, strategize, implement and review. “The first step is asking, “Do you understand the impact? Have you assessed what the impact is if you do nothing,” he explains. Doing nothing is typically not the answer to the problem, he’s quick to add, but it is important to understand the impact on a broad basis. Once you’ve done that, you can create an initial strategy with options to help mitigate the problem in the short term. When handling the recent tariffs, for instance, Varney says his customers looked at such strategies as whether they could shift production out of China to another country they had operations, or whether they should keep production in China and raise prices for customers. One client that has operations in China and India was able to stop production in China and ramp up production in India with almost no impact to its operations. The third phase is implementing that strategy.

DRIVING

VISIBILITY IN A WORLD OF COMPLEXITY An optimized supply chain doesn’t just happen. It is planned.

www.logility.com

Worldwide Headquarters: 800.762.5207 EMEA Headquarters: +44 (0) 121 629 7866

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FEATURE Varney notes this is often a short-term solution that will be revised in the final stage of migration. “The fourth phase is developing a continuous loop—come back, monitor, review and develop a more long-term play or make adjustments to address issues in the short-term solution.” An increasingly digital supply chain, however, means such decisions can now occur in real time. Varney says companies should be implementing processes and approaches long before a geopolitical event strikes to gain the supply chain visibility that can prevent disruption.

GREATER EXPOSURE TO CYBERSECURITY RISK Every day companies exchange copious amounts of data with supply chain partners as a normal means of conducting business in a global marketplace. Simultaneously, cyber thieves are targeting company servers and IT systems to infiltrate, disrupt and paralyze their operations. What makes this scenario more disturbing is that companies lack supply chain transparency below the

first tier. Often, lower-tier suppliers are third parties a company has never vetted nor has visibility into their operations. This poses a significant threat in thwarting cybersecurity incidents. In its survey, Corporate IT Security Risks, Kaspersky Lab reports breaches of IT infrastructure hosted by a third party cost enterprises globally an average of $1.64 million per incident. If that doesn’t raise a level of concern, it should.

MODERNIZATION MEANS HIGHER RISK The modern supply chain functions on the accumulation and exchange of data processed by automation, artificial intelligence and Internet of Things (IoT)—all data-intensive processes capable of infiltration. What’s more is that the data resides in a cloud-based repository. Despite this vulnerability, phishing scams remain a primary means of breaching company and supply chain firewalls. Unsuspecting employees open a familiar but malicious email, unknowingly sharing personal and company information. Cybersecurity Ventures reports that since 2013, there are

DPLGURU HELPS COMPANIES WITH COMPLIANCE If you think U.S. companies involved in international trade generally have a good compliance record, the report from those in the field suggests otherwise. Sergio Retamal, CEO of Global4PL and DPLGuru, notes that there is plenty of room for improvement when it comes to compliance. “Ninety percent of companies don’t have a record retention program that would pass an audit initiated by any of the federal agencies that are involved in overseeing international trade,” he says. Moreover, a significant percent of those companies “have not implemented a solid Denied Persons List (DPL) screening process, which is the most basic step with regards to export compliance.” Some companies tend to shrug off what they perceive to be small fines, “but the legal costs, improvement plans and other steps required to reach mandatory compliance levels far outweigh any monetary fine, not to mention the damage to a company’s reputation and brand,” says Retamal. He emphasizes that the risk of non-compliance is huge. “If companies don’t put forth the minimum effort of DPL screening, document retention, or educating their customers/re-sellers of the export limitations of their products, then due diligence is at risk,” he adds. Even those companies that are conducting basic screening cannot truly screen in “difficult countries” such as Russia and China, Retamal says, in part because research may be blocked and/or some websites cannot be accessed from the U.S. or European Union. Retamal and his team launched DPLGuru.com last year to address the need for improved compliance in the trade community. DPLGuru can be used as a software system alone or combined with a consulting service so that companies can maintain compliance with multiple regulations that change constantly.

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FIND OUT 3,809,448 records stolen from breaches every day. Do I have your attention now? Cyber threats and their impact on companies and extended supply network are well documented—Marriott, Yahoo, Target Corporation. Nearly every industry segment, including retail, aerospace, banking and the like are victims of cyber events. The question is why are companies not better prepared? According to a December 2018 report, Measuring and Managing the Cyber Risks to Business Operations, sponsored by Tenable and conducted by the Ponemon Institute, the following are reasons organizations are vulnerable to cyberattacks: ❯❯ Understaffed IT security function ❯❯ Lack of resources to manage vulnerabilities ❯❯ Proliferation of IoT devices in the workplace ❯❯ Complexity of the IT security infrastructure ❯❯ Lack of controls over third-party access to sensitive and confidential data ❯❯ Dependency on manual processes to respond to vulnerabilities ❯❯ Insufficient visibility into their organization’s attack surface. As companies globalize and extend their supply chain network, the number of data touchpoints increases as well— often without a company’s knowledge. Sensitive data may reside on multiple servers around the world with entities a company is not aware of. A second-tier supplier, for example, may outsource services to an unknown third party with negligent cybersecurity protection and protocols. Stewart Curley, chief financial officer for LookingGlass Cyber Solutions, says more than ever, there are multiple points of entry a cyber thief can exploit. Automation and collaborative tools are changing how companies function, but with the added risk of exposure. “Companies are collaborating more and relying on best-of-breed third-party applications for everything from enterprise resource planning to human resource management to accounting systems. Collaborative applications such as Slack and SharePoint are now common in the workplace as well,” says Curley. “Anytime you broaden your partner collaboration and number of people contributing to a project, there’s the potential for risk gaps. With greater efficiency comes greater risk.” Does increased risk lead to assertive risk management enforcement? Not often. Curley says companies rely too heavily on contract language as a means of ensuring compliance to cyber security concerns. If it’s in the contract, the responsibility lies with the supplier. “You’re only as strong as your weakest link. Taking the word of your partners that appropriate safeguards are in place is

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FEATURE not nearly enough nor is relying on an insurance policy,” says Curley. “There’s a great deal of trust but no verification process. Cybersecurity must be addressed head-on. Compliance must go beyond checking the boxes and extend into verifying that policies are practiced.”

RISK MITIGATION STRATEGIES Most cyber attacks are not on the technological defenses of the company but against the employees themselves. G. Mark Hardy, CISSP, president of National Security Corporation, says technology is reliable. In a matchup, computer versus computer, it ends in a stalemate because neither can penetrate the other’s defenses. The intrusion and safety systems would block them from a breach. “Attacks succeed because people on the inside “ATTACKS SUCCEED are co-opted into BECAUSE PEOPLE ON THE inadvertently the attack scenario through INSIDE INADVERTENTLY ARE behavior. Thus, the best CO-OPTED INTO THE ATTACK defense is security awareness training and follow-up testing SCENARIO THROUGH to ensure compliance,” says BEHAVIOR. THUS, THE Hardy. BEST DEFENSE IS SECURITY First and foremost, Hardy AWARENESS TRAINING AND says companies must be proactive in their approach to FOLLOW-UP TESTING TO risk mitigation. In the case of ENSURE COMPLIANCE.” cybersecurity, it’s imperative to ask for a supplier’s risk — G. MARK HARDY framework, or even better, request a copy of the auditor’s SOC 2 audit report to verify safeguards. “Before we can establish trust, show me how you make informed, risk-based decisions. If I see that you take reasonable precautions, minimize unnecessary risk and prioritize security over functionality, there’s a good chance you’re going to be a safe provider,” he says. “It’s also never a bad idea to ask the supplier for the ability to conduct a team spot check or other form of visibility into its operations to maintain a level of assurance. A passing inspection today doesn’t mean things could not decay over time.” A more formal process to ensure compliance is following a risk framework with known controls based on proven practices. Hardy says in Europe, for example, many companies rely on the International Standards Organization (ISO 27001) 14

Get to Know OFAC and BIS WWThe Treasury Department’s

Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions against certain foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States. OFAC publishes a list of Specially Designated Nationals (SDNs), which lists people, organizations and vessels with whom U.S. citizens and permanent residents are prohibited from doing business.

WWThe Commerce Department’s

Bureau of Industry and Security (BIS) maintains separate lists for the purposes of the programs that it administers, including the Denied Persons List (DPL) and the Entity List. The DPL consists of individuals and companies that have been denied export and re-export privileges by BIS. The Entity List consists of foreign end users who pose an unacceptable risk of diverting U.S. exports and the technology they contain to alternate destinations for the development of weapons of mass destruction. Accordingly, U.S. exports to those entities may require a license.

framework. In the U.S., the National Institute of Standards and Technology and its special publication (NIST SP) 800-53 outlines all the possible controls to reduce enterprise cyber risk. “NIST provides numerous controls that serve as the framework, a shopping list, of the policies and practices to best protect enterprises against cyber threats,” says Hardy. “While U.S companies rely much less on the ISO 27001 certification, it would serve them well to have this certification if they’re doing business in Europe or Asia. It’s an objective external standard that’s been validated by auditors demonstrating a reduction of risk to a known set of control levels. Think of it as a Good Housekeeping Seal of Approval.”

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2019 | www.SDCExec.com

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2019 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

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May 15

Procurement Warehouse Risk Mitigation I Trends _________________ _________________ Automation _________________ April 17

The ongoing price escalation for commercial and industrial real estate across the U.S. is stoking investment in warehouse automation. Add to that a tight labor market and the ongoing quest for improved throughput, accuracy, and cost control and it’s clear that demand for warehouse automation solutions presents opportunities for users and providers alike.

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The growing complexity of global supply chains equates to increased risks associated with regulatory compliance along with a greater higher potential for disruptions related to transportation, weather, changes in trade policy and a host of other issues. Identifying risk in your supply chain and preparing and planning accordingly is critical. Join a panel discussion on best practices for analyzing and mitigating supply chain risk.

Savvy organizations understand how a well-defined procurement strategy can positively impact the bottom line. Is procurement the first line of defense in your organization’s risk and compliance program, or an area of vulnerability? Join an interactive panel discussion on these and other important topics related to procurement.

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August 14 June 19

Predictive Analytics I _________________ Increasingly sophisticated machine learning and AI are resulting in even better predictive analytics, which in turn generate immense value for supply chains. How can organizations fully capitalize on the opportunities that come with predictive analytics? What are the lessons learned from industry peers that have faced similar challenges?

Risk Mitigation II _________________ Does your organization need a risk response tune-up? What do your peers know that you can benefit from? An expert panel discusses best practices and common pitfalls when it comes to formulating a comprehensive risk mitigation program that’s custom designed for your organization’s supply chain.

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The Internet Predictive November 13 of Things for Supply _________________ Analytics II Blockchain I Blockchain II _________________ Sponsored by: _________________ Chain 2020 _________________ It’s estimated that the number of connected devices in the manufacturing industry alone will double between 2017 and 2020, while the rollout of 5G promises to help promote IoT’s exponential growth. Yet, interoperability issues, cybersecurity concerns, and other challenges must be adequately addressed. Join a panel discussion as they discuss the current state of IoT in the supply chain and what the future holds.

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Predictive analytics, combined with Prescriptive analytics, offer powerful information for manufacturers, retailers and logistics providers in the area of supply chain management. An expert panel offers insight into how organizations can best leverage these tools, including how to evaluate various and competing solutions in order to make the right investment.

In SDCE’s second blockchain educational webinar, panelists will evaluate a variety of industry use cases to help attendees understand how and where blockchain technology is making inroads in the supply chain and what ways organizations can start to build a strategy now in order to realize blockchain’s full potential.

SDCE’s annual Executive Outlook educational webinar brings together industry executives for a roundtable discussion of the top-level trends and developments taking shape in the supply chain sector and what that means for the year ahead.

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PROS TO KNOW 2019 By Mackenna Moralez

INTRODUCING

LISA DOLAN

SDCE’s Pro to Know of the Year ALOM’s Lisa Dolan sets herself apart from the year’s most influential supply chain leaders and brings technology to the forefront.

W

hen Lisa Dolan wakes up every morning she can’t wait to go to work. A life-long passion for technology and the supply chain industry drives her to get up and go every day. As the saying goes, “if you love what you do, you won’t work a day in your life,” and for Dolan that rings true. “I can’t believe I get paid to do this every single day,” she says. “I just love what I do.” As the vice president of supply chain strategy at ALOM, Dolan’s drive is contagious throughout the entire company. Her ongoing passion for encouraging women to seek rewarding careers in the supply chain industry and dedication to developing a datadriven order customization and management process for the coveted “new owner welcome kits” for a luxury automaker has earned her the top spot as Supply & Demand Chain Executive’s Pro to Know of the Year. Throughout the industry, supply chain leaders are expected to be a source of knowledge, problem solvers and adapters to change, all while maintaining a level of passion

19th Annual

2019

for what they do. For the last 19 years, SDCE has spotlighted these individuals, placing them front and center as Pros to Know. “It’s an incredible honor to be selected as Pro of the Year, especially when you look at the list of all the supply chain professionals,” Dolan says. “I’ve been in the industry for over 28 years and every project I deliver is built with a team—I think of this more as my team getting this than just me. I’m just humbled and honored to be selected.” Each year SDCE’s editorial staff vets hundreds of applications for the annual award to find the best leaders in the supply chain industry. These selected winners then become our Pros to Know, an aspirational list that introduces practitioners, providers and teams from every corner of the industry. The job becomes harder each year as more individuals continue to make a name for themselves. With a challenge to name the Pro of the Year, our staff takes note of individuals that stand out with their leadership skills, business acumen, exceptional attitude and passion for the

“EVERYONE IS SO FOCUSED ON THE PHYSICAL ASPECT OF THE SUPPLY CHAIN, BUT WITH MORE DATA COMING AT US FROM DIFFERENT DIRECTIONS, IT IS REALLY IMPORTANT TO HARNESS IT TO HELP MAKE BETTER INFORMED SUPPLY CHAIN DECISIONS.”

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industry, helping boost them to the top of our list. Dolan earned our highest recognition because she is putting technology in the forefront and letting it drive innovative projects, such as a completely new automated order management process for high-demand “welcome kits” from a luxury automotive brand that integrates vehicle sales data from across North America with customized dealer messaging. The automaker wanted to “surprise and delight” the customers with the welcome kits, allowing Dolan and her team to run with ideas. In order to have the kits be personalized and memorable, she collaborated closely with the company to create an innovative experience for three stakeholders: the automaker, dealer and the end user who is buying the vehicle. “The challenge wasn’t in physically producing the kits—we can do that in our sleep,” Dolan explains. “The challenge was really managing the complexity of data from multiple data streams and sources to get the properly customized kit to the consumer.” Dolan explains that the kits rely on business intelligence and machine learning in order to succeed. ALOM is able to view the data that comes from each sale, allowing it to adjust certain aspects to give dealers better flexibility. With all the software and scripting that happens on the back end to produce an individually customized welcome kit, Dolan believes that technology is finally getting the recognition it deserves. “I think technology really drives so much in the supply chain today. That [technology] has been such an instrumental part of my success,” Dolan says. “Everyone is so focused on the physical aspect of the supply chain, but with more data coming at us from different directions, it is really important to harness it to help make better informed supply chain decisions.” Dolan has a long background in technology, coming from an IBM town in Vermont. Growing up, she started programming from a young age— never having it occur to her that women couldn’t be successful in the technology field—it was just something that she loved to do and made a career out of it. She has made it her mission to bring up the next generation of supply chain professionals, regardless of their gender, race or age.

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Throughout her time in the industry, Dolan has been an advocate when it comes to female equality in the work place. Representing a woman-owned company, she refers to ALOM’s diversity programs as “walking the walk and talking the talk.” She looks at having diversity within the company as a plus as it allows ALOM to look at challenges through a different frame of reference. “We are constantly out and forward facing in the community, encouraging women, especially young professionals to join the industry,” Dolan explains. “Sure, you may not see a lot of women working in a distribution center, but that’s changing.”

For Dolan, it’s all about education. It is vital that young women see their representation in impactful technology and supply chain roles. Along with Dolan, ALOM is committed to closing the gap in the supply chain and manufacturing sector by welcoming students to tour ALOM facilities and learn about technology-driven career opportunities the industry offers. Fortunately, though, times are changing, and more women are entering the board room and the factory floor, something that Dolan sees as an advantage. “Today’s younger generation doesn’t see gender as big of an issue as it was 20 years ago. What I stress now is to pursue every opportunity available to you,” Dolan says. “You need to really love what you do and have a passion for what you do. Anytime someone has a passion for what they do and absolutely loves the job, they will do well.”

Lisa Dolan (center) pushes the boundaries of technology innovation and database integration to develop real-time supply chain visibility tools.

www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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PROS TO KNOW 2019

MEET THE 2019 PROS TO KNOW

The annual list recognizes outstanding executives whose accomplishments offer a roadmap for other leaders looking to leverage the supply chain for competitive advantage.

2019

Provider Pros to Know PHIL MARLOWE, Founder, CEO & Chief Logistician, Acuitive Solutions

Phil Marlowe has been a respected thought leader of transportation management software solutions for over 25 years. Customers place their trust in him knowing that he understands their businesses and international transportation challenges intimately— having been on both sides of the equation. Clients often claim that there is “Nothing Phil doesn’t know about inbound logistics and transportation!” No matter the challenge, Marlowe proves to customers that he can solve the problem. With his personable leadership skills, he understands the customer’s business processes and is able to look at the big picture, truly making him a unique expert in the industry.

KAUSHAL DAVE, Global Vice President of Solutions Development and Customer Engagement, Aera Technology

Kaushal Dave combines his technological prowess with deep expertise across the full supply chain life cycle, making him known for his intellect, leadership, tireless work ethic and outstanding communication skills. For over a decade, Dave has worked with more than 700 organizations to design and implement solutions that deliver multi-milliondollar payback in supply chain optimization. These days, Dave spends his time across Europe, Asia and North America, working one-on-one with business and IT leaders of Aera clients, providing expert guidance in mapping out supply chain pain points, whiteboarding options, and designing and implementing solutions that are generating tremendous payback in operational efficiencies and insight. 18

HANNAH KAIN, President & CEO, ALOM

Hannah Kain continues to make her career as a supply chain executive notable. Just in 2018, Kain spearheaded a strategic growth initiative to address projected capacity increase requirements from existing and new business. She accomplished this by establishing a European headquarters operation and by expanding North American production and inventory capacity by 62 percent. In the looming trade war against China, Kain positioned ALOM to procure greater amounts of pre- or low-tariff imports and offered insight as an industry insider on the trade war to several media outlets. Kain is personally involved in advocating career opportunities through ALOM membership and support of several industry groups. She continues to host events and open houses at ALOM for student groups and speaks on industry panels across the U.S. to promote career opportunities in the supply chain.

EDWARD SMITH, Managing Director of Arkieva Europe, Arkieva

With over 25 years of experience in the supply chain industry, Edward Smith leads the implementation of a multitude of optimization products as the managing director of Arkieva Europe. He has led numerous supply chain optimization projects with several big-named global manufacturing businesses. His vast knowledge and experience in the supply chain and operational domain allows him to bring a unique perspective to each client project and implementation. Smith understands that businesses are looking for a faster response time and helps clients look for ways to improve collaboration and implement real-time forecasting methods that can meet changing customer demands in a quick but efficient way.

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PROS TO KNOW 2019

JASON AVERILL, President & CEO, Avercast

Jason Averill is a second-generation forecasting and demand planning expert with more than 20 years in the industry. In his tenure, he has consulted with numerous Fortune 500 companies on supply chain practices. As the President and CEO of Avercast, he works directly with many industry executives and practitioners to advance industry research, collaborate on new theories and improve available technologies.

SAMI PELTONEN, Vice President, Products and Business Management of North America, Basware

Sami Peltonen is a product management guru, boasting two decades of experience developing and delivering solutions that streamline daily tasks for procurement and finance professionals, enabling them to achieve greater efficiencies within their

organizations. As a thought leader in the payments and procurement fields, he is a frequent speaker and author. In his role, Peltonen helps customers learn how to leverage technology to improve their supply chain and gain a competitive advantage.

JAKE BARR, CEO, BlueWorld Supply Chain Consulting

Jake Barr is known for being a supply chain innovator in the industry and has been an outspoken champion of moving business processes to the cloud to simplify work, drive organizational design and achieve efficiencies. He advocates for leveraging both artificial intelligence and machine learning to drive change in how businesses deliver on performance. Barr is known throughout the industry for his vision and pragmatic ways to help customers. He continues to serve on industry councils, think tanks, academic forums and conference panels to push the pace of innovation in the space.

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www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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PROS TO KNOW 2019

PERVINDER JOHAR, CEO, Blume Global

Pervinder Johar has a deep and diverse background in supply chain management and technology, spanning more than 30 years. Serving as the CEO of Blume Global, he has provided innovative solutions to the global supply chain and logistics industries, as well as managed global supply chain systems for companies. Johar is guiding Blume’s next wave of transformative solutions for the supply chain marketplace. He has vast experience building strong, lasting relationships with companies as well as clients.

MARK PLUTA, Chief Technology Officer, Blume Global

As chief technology officer at Blume Global, Mark Pluta leads artificial intelligence platform development and science teams, while driving architectural strategy for the cloud, AI and machine learning-based Blume Digital Platform. He has a passion for building products that help change the world, which drives his love for supply chain technology. In addition to his passion for technology, Pluta enjoys innovating with customers and prefers to interact directly with them about their vision for the future and how they can build products differently. His drive and passion is infectious at Blume Global as he continues to maintain his goal of changing the way the supply chain is done.

LISA PENN, Strategic Account Manager of Fashion Vertical, B-Stock

On a daily basis Lisa Penn delivers reverse supply chain support for today’s biggest apparel retailers and brands. As the strategic account manager for the fashion vertical at B-Stock, she has immersed herself in providing solutions for the company’s biggest clients and advising on auction strategies for clients’ B2B liquidation marketplaces. Under her guidance, these marketplaces allow the retailer to increase recovery rates on returned and excess merchandise while ensuring brand protection and a controlled channel for how the merchandise enters the secondary market. Penn advises her retail clients on how to best assemble lots and will go the extra mile to ensure each of her client’s marketplaces are operating seamlessly.

MICHELLE VAZQUEZ, Director of Listings, B-Stock

Michelle Vazquez delivers reverse supply chain support for today’s biggest brand names. She provides listing strategy for returned, excess and other liquidation inventory that is sold into the 20

secondary market through the retailer’s B2B liquidation marketplace. Vazquez has played a vital role in developing lotting strategies to optimize recovery and provide visibility into inventory without having to read every line of a manifest. In addition, she has established guidelines for internal stakeholders and external clients, covering every stop of the listing’s creation and review process.

JENNIFER WEHRMAKER, Vice President of Marketing, B-Stock

As B-Stock’s vice president of marketing, Jennifer Wehrmaker delivers daily reverse supply chain support for today’s biggest retailers and manufacturers. In her time at the company, she has built a robust marketing team that has immersed itself in providing clients with hands-on marketing support and strategy. Wehrmaker has also been instrumental in building the B-Stock brand, such as rebranding the company’s website and other communications activities. She recently green-lit the “Everybody Liquidates” campaign that includes a series of videos targeted at Fortune 500 retail executives.

BILL McCOUCH, Senior Vice President of Procurement Services, Corcentric

Bill McCouch has used his 40 years of expertise in supply chain operations and transportation to help Corcentric’s customers make more strategic decisions when it comes to their direct and indirect spend. He currently oversees all sales, operational and financial planning activities for Corcentric’s procurement solutions. His relationship with both buyers and suppliers enables him to understand the needs of both stakeholders and find a solution that is advantageous to both.

BILL HARRISON, President, Demand Management Inc.

Bill Harrison doesn’t just address the needs of the company, he and Demand Management deliver solutions that help manufacturers and distributors successfully run their businesses. Harrison is leveling the playing field by making sophisticated supply chain planning functionality available to growing organizations. He believes every decision made about the supply chain will have an effect on other areas of business, and with the right tools and strategies, he is committed to ensuring that every company achieves greater supply chain efficiency.

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2019 | www.SDCExec.com

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PROS TO KNOW 2019

CHARLES ADAMS, EVP of Delivery and Professional Services, DiCentral

Charles Adams has been working to improve supply chain efficiency through the use of electronic data interchange (EDI) for over 25 years. He has supervised thousands of projects that connect hundreds of companies with both their suppliers and customers. In addition, he provides guidance on global projects, having worked to improve supply chains internationally. His efforts have saved millions of dollars for companies. Adams has developed a specific project methodology for the delivery of cloud-based EDI solutions and was recently cited as a contributor to Accidental Project Manager.

DAVID MORGAN, Founder & CEO, D.W. Morgan Company

David Morgan has built D.W. Morgan Company into a global supply chain transformation business that partners with some of the world’s top manufacturers. He has innovated several services to drive and transform supply chain efficiency. Under his leadership, the company has won many awards, including the SDCE100.

DOUG WAGGONER, Chairman of the Board of Directors & CEO, Echo Global Logistics

Since becoming CEO of Echo Global Logistics, Doug Waggoner has built the company into a leading publiclytraded, billion-dollar provider of multimodal, technology-enabled transportation management. His prior experience with LTL transportation helped turn Echo into a premier provider of LTL in the 3PL space. He has led over 20 acquisitions and has helped Echo develop strong solutions that provide clients with integrated, flexible proprietary technology, dedicated account management, continuous process improvement and transparent communication.

MICHAEL JOHNSON, CEO, Elite Transit Solutions

Michael Johnson is a nationallyrecognized trailblazer in the freight management industry. While the freight management industry is antiquated and relies on generationsold processes and technology to transport the groceries we eat and buy, he realized that Elite must bring the industry to modern times. Through the innovative use of technology, errors are minimized and clients can focus on managing

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customer relationships and tackle the nuanced challenges a computer is incapable of. His vision has helped attract top-notch talent for the company and is poised to revolutionize the market.

ROGER COUNIHAN, Vice President of Sales, Fortna Inc.

Roger Counihan brings more than 12 years of experience to Fortna. As vice president of sales, he works with pharmaceutical and medical device firms, as well as food, beverage and apparel companies to improve their operations. He contributes to numerous leadership articles on emerging technologies and is a soughtafter speaker for industry events such as Promat, Modex, and for organizations including the Chief Robotics Officer Review.

WILLIAM KING, Group Vice President of Integrated Technology Solutions, Fortna Inc.

William King is a senior executive with over 27 years of experience in the industry, focusing on warehousing, distribution, transportation and manufacturing. He has an extensive background in software package implementation, software and client support, system integration, project management, material handling application and software/equipment sales. He is responsible for the delivery and support of the warehouse execution software that is used by many of the world’s largest brands. In addition, King developed technology roadmaps for clients in conjunction with complex automated systems and deployment of warehouse execution systems.

TOM TIEDE, Vice President of Professional Services, Fortna Inc.

With more than 25 years of supply chain experience, Tom Tiede has been guiding business transformation and performance initiatives in the disciplines of lean manufacturing, advanced planning, procurement and distribution. At Fortna, he sustained growth in the supply chain consulting practice areas of distribution network design, facility operational design, contractual pricing and procurement, program management and client engagement leadership. Tiede has also led creation, training and roll out of several project delivery methods. He currently has overall leadership responsibility for global pricing, contracting and procurement for Fortna. www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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PROS TO KNOW 2019

MICHAEL SHAW, CEO & Founder, Global Council for the Advancement of Women in Procurement

Michael Shaw led the effort to establish the Global Council for the Advancement of Women in Procurement. Since being founded in January of 2018, membership has already reached 2,000 individuals. Shaw believes in eliminating gender unfairness and mistreatment in the profession. Under his leadership, the organization aims to improve and change the outcomes by utilizing communication that includes all genders and excludes none.

CHRISTOPHER NADEAU, Founder & CEO, Haversack LLC

Christopher Nadeau has taken his past experience with military logistics and operations and combined it with his expertise in trucking, evolving it into a unique approach for the 1PL. His goal is to help shippers enhance their internal skills and resources to bring more control and transparency to how transportation dollars are spent and how sourcing decisions are made.

SCOTT BRASK, Vice President of Cloud and Security Operations, HighJump

HighJump’s Scott Brask makes supply chain growth possible by empowering companies worldwide with the cloud. Leading his team, he has created a foundation for new, complex technologies in a secure environment, allowing efficient management and integration of automated tools to enhance processes. Meanwhile, security plays a pivotal role in Brask’s cloud leadership. Brask ensures operational and customer data are protected and safeguarded from any threats. He also has led HighJump’s SOC compliance rollout, assuring software operations are protected using best practices across the board.

MATT ANGELL, Vice President of Logistics Operations, Jarrett Logistics Systems

Matt Angell brings over 20 years of experience to the industry. He plays a key role in the exponential growth of Jarrett Logistics Systems and is focused on continuing to improve the client experience. Angell has organized the 24/7/365 JLF Routing Center into a control tower and has also pioneered the industry22

leading Jarrett Customer Relationship Management (CRM) program. Under his leadership, JLS works with clients to provide them with real-time shipment visibility and data to better manage their inventory.

MATT WAGNER, Vice President of Sales and Marketing, Jarrett Logistics Systems

With nearly 12 years of experience in designing and implementing transportation management solutions, Matt Wagner has played a key role in providing numerous supply chain improvements to clients throughout North America. He is a visionary who listens to the supply chain challenges his clients face and delivers transportation and warehousing solutions that make supply chains better, faster and more efficient. Wagner has spoken at various supply chain-related events and has been recognized as an award-winning performer.

RICK FAULK, CEO, Locus Robotics

Rick Faulk is an established and sought-after thought leader in the robotics and supply chain space. As the CEO of Locus Robotics, he plays a significant role in driving technology innovation in the supply chain. He is committed to helping operators address the shifting workforce and various productivity challenges brought on by today’s competitive and demanding retail market. Under his leadership, the adoption of autonomous robots has accelerated significantly, proving that they are a critical part of the supply chain.

KARIN BURSA, Executive Vice President, Logility

As the supply chain grows more complex, it has become crucial to incorporate the right process change supported by the right people to be successful. Throughout her 25 years of experience in the industry, Bursa knows this more than ever. She has a keen pulse on the industry and is often sought out as an expert resource on topics related to supply chain planning and retail optimization. She has been at the forefront of innovative demand-driven supply chain and B2B collaboration initiatives for more than 20 years. She thrives on helping companies enact change and stimulate critical thinking and is very passionate on the future of the supply chain. Bursa works closely with several universities and

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leads supply chain workshops to discuss the opportunities available to excite the younger generation.

HENRY CANITZ, Director of Product Marketing & Business Development, Logility

Henry Canitz brings over 25 years of experience and has built highperformance supply chains across the industry. His extensive experience in developing and marketing business solutions has led him to develop ERP and supply chain software to providers. He helps clients understand how to improve their supply chain capabilities through people, processes and technology enhancements. Caintz is an active contributor to supply chain periodicals, pushing for supply chain improvements in both practical and innovative ways. He is active in several supply chain organizations and is a frequent speaker at industry events.

ALLAN DOW, President, Logility

KEN FLEMING, Chief Operating Officer, Logistyx Technologies

Since the mid-90s, Ken Fleming has led the successful launches of many new technology and service providers. He is currently spearheading Logistyx Technologies’ upcoming launch of TME3—the industry’s first true single-global enterprise engine for multi-carrier parcel shipping. He continuously employs his “it takes a team” management style to ensure a consistent strategic vision across the organization.

FELIX VICKNAIR, Director, Miebach Consulting

Felix Vicknair has dedicated the last 18 years to the supply chain, focusing on continuous improvements for the industry. As a director at Miebach, he leads multiple teams on projects that drive operational improvements. He believes that

Allan Dow believes that a company’s success is built on the success of its customers. At Logility, Dow’s management style leads by example and influences those around him. He is transparent with employees and encourages an open and healthy debate on topics and opportunities, recognizing that every team member approaches a challenge with a different view. As the president, it is his goal to ensure that Logility can help companies minimize the impact of potential risks and uncover new opportunities. He helps companies understand how the supply chain can significantly improve profits and help deliver exceptional service while reducing working capital across the network.

JOSH STEPHENS, Vice President of Global Services, Logility

Josh Stephens is focused on helping supply chains reach their ultimate potential. With a constant thirst for knowledge, he continues to learn valuable lessons about efficiency and project management, proving himself as a valuable employee. Since joining Logility, Stephens has developed a global team of supply chain experts who help companies optimize their solutions to meet ever-changing business needs. He has focused on creating relationships to help companies along their supply chain journey.

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companies need to focus on both current operations on the shop floor and discussions in the boardroom in order to improve and is committed to leading that change.

MARK RAFFAN, Founder, Negotiations Ninja Podcast

In just one year, Mark Raffan’s podcast became the No. 1 negotiation podcast on Google Play and is one of the most listened to procurement podcasts in the world. With a slew of guests, Raffan drills down what works and what doesn’t when it comes to negotiations. He provides value to listeners, making him one of the leading voices in the procurement world.

ARA ARSLANIAN, Senior Vice President, OMNIA Partners

Ara Arslanian has helped grow OMNIA Partners under his leadership. His mission is to expand the scope of GPO models to deliver more effective solutions for both direct and indirect procurement groups. He has guided the development of programs aimed at creating a unique experience that gives members the confidence that their interests are being served. Arslanian makes it a point to leverage his background and provide a hands-on approach to management. He also participates in a wide variety of spend management conferences and has been invited to present at events.

DUSTIN COCHRAN, Managing Director, OMNIA Partners

Very few who work in the supply chain space have lived and breathed the struggles that come from the industry, but Dustin Cochran has. With a diverse range of procurement experience, he has worked in both the private and public sectors in companies large and small. As the managing director for the west region at OMNIA Partners, he works closely with procurement and finance leaders supporting them through their goals and benefit realization. As many misunderstand GPOs, Cochran spends most of his time consulting and educating large organizations on how to best leverage a GPO to bring value to

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their organization. In 2018, Cochran founded CPO Next, a millennial-focused procurement organization.

DANIEL GRANT, Senior Vice President, OMNIA Partners

With over 20 years devoted to the supply chain industry, Dan Grant has worked to develop unique solutions that solve challenges faced by organizations. He works with fellow sourcing professionals to solve common direct material sourcing challenges and is fully involved in helping North American-based manufacturers nearshore raw materials and subassemblies to suppliers to reduce tariff exposure.

BARB SEXTON, Regional Director, OMNIA Partners

Barb Sexton is an active listener with a passion for engaging the broader network to uncover solutions for multiple stakeholders. She is always looking for ways to assist in the success of others and is a steward of lifelong learning. She has played an active role on the ISM-Arizona board of directors and has served in many roles on the board.

GREG BRADY, Founder & CEO, One Network Enterprises

Since founding One Network in 2002, Greg Brady has helped organizations achieve operational efficiencies and outpace the competition. As a recognized supply chain and technology visionary, Brady understands the limitations of traditional software applications and processes that prevent organizations and their trading partners from effectively planning sales and operations. He willingly tackles the problems surrounding consumer-driven demand and applies it to business planning, helping One Network become a giant in its field.

JULIANN LARIMER, President & CEO, Peak-Ryzex Inc.

Juliann Larimer has paved her way through the industry, landing as the president and CEO of Peak-Ryzex just last year. Since joining the company, Larimer has met with many customers across the globe and

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realizes how important it is to understand their current supply chain needs and challenges. As an accomplished B2B technology executive, she has been recognized for her strong leadership in managing diverse teams and driving business results for customers in their supply chain.

JUSTIN CRAMER, Global Project Management Director & Co-Founder, ProShip Inc.

Justin Cramer has designed, installed or supervised over 300 multi-carrier shipping software integrations into customers’ enterprise software stack across the globe. He works closely with businesses on their supply chain pain points and has designed customized shipping solutions that execute more than 1 million labels a day. Cramer believes supply chains need increased automated intelligence to meet customer expectations while minimizing the costs of meeting

those expectations. By leveraging this philosophy, ProShip customers have reduced their average delivery time by half a day.

CHUCK HIERONYMI, Director of Business Solutions, Railinc

Chuck Hieronymi is someone to know in the freight rail transportation industry. Under his leadership, Railinc has continued the growth of its commercial business unit, building on its work with Class I railroads to provide supply chain operations support across the broader rail ecosystem. In addition, he has also helped companies of all sizes proactively manage the health and repair of rail equipment, enabling a safer North American railcar fleet. The company also continues to deliver high customer satisfaction ratings under Hieronymi’s direction.

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Senior Vice President, OMNIA Partners Direct

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Learn More: www.omniapartners.com/privatesector | 866-875-3299

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JAMES GELLERT, Chairman & CEO, RapidRatings

James Gallert co-founded RapidRatings to transform the way the world’s leading companies manage enterprise and financial risk. His leadership experience and vision has helped bring the company from the startup stage to the forefront of financial health analytics. Gellert has established himself as a recognized international authority on corporate counterparty risk management, supply chain risk and rating agency regulatory evolution, and is the most frequent speaker from the ratings industry in Washington over the last decade.

NATE ENDICOTT, Senior Vice President of Sales and Strategic Alliances, RateLinx

Nate Endicott has a reputation for implementing next-generation supply chain solutions and assisting companies in achieving outstanding business results through integrated

data intelligence. In his role as senior vice president of sales and strategic alliances, he helps shippers understand that integrating the right data can obtain a full and clear picture of the supply chain. By asking the right questions he is able to educate logistics managers on how to solve intractable problems and save millions of dollars through a data-first approach.

GORDY FERGUSON, Vice President of Business Development, RateLinx

A seasoned entrepreneur with more than two decades experience, Gordy Ferguson uniquely understands the challenges faced by shippers and the opportunities provided by data. Frustrated by software’s limitations to solve the real problem for customers, Ferguson joined RateLinx in 2018, bringing his innovative leadership to help shippers achieve outstanding business results through integrated data intelligence. Ferguson is a key member of the RateLinx team as he combines his deep knowledge of strategy, technology and analytics to assist logistics managers in understanding that only by integrating data from multiple sources can they achieve the best results.

FRANK LOCASIO, Executive Vice President, RateLinx

Frank Locascio is a supply chain innovator, developing and implementing next generation software and data services to assist companies in achieving outstanding business results through integrated data intelligence. As the vice president of RateLinx, he has helped create and advance a new logistics solutions process known as Logistics in 3D: Diagnose, Develop, Deploy. He leads the development team for updates and enhancements that provide customers with real-time analytics that are tailored to their specific needs.

BRYAN RABAKON, Vice President of Solutions Development, RateLinx

Bryan Rabakon is an exceptionally skilled supply chain executive, assisting companies in achieving outstanding business results by using tailored supply chain solutions to obtain integrated data intelligence. Rabakon is crucial to RateLinx as he helps companies integrate data to gain clear access to their supply chain. He has been instrumental in expanding the adoption of logistics processes that provide companies accelerated intelligence through an integrated data foundation. 26

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SHANNON VAILLANCOURT, President & Founder, RateLinx

Since founding RateLinx in 2002, Shannon Vaillancourt has been a supply chain visionary, helping companies gain complete visibility into their supply chain. During the past year, he was accepted into the Forbes Technology Council and continues to help develop and implement next generation supply chain software for RateLinx. Under his leadership, RateLinx has become the only supply chain software and data services company with an integrated Data-as-a-Service (DaaS) technology platform.

RODDY MARTIN, Founder & CEO, Stellar Strategic Advisory Corp.

Roddy Martin partners with companies focused on the end-to-end supply chain and digital operating model to enable pragmatic supply chain transformation capabilities. He believes that operating companies need to focus on why the markets they serve value effective supply chains of their providers and why their customers value the performance of their customers leveraging process, skills and technology in support of an agile operating model. He understands that having knowledge of why you are making changes will determine how you do them.

BRAD HOLLISTER, Founder & CEO, SwanLeap

As the CEO for SwanLeap, Brad Hollister has helped deliver unprecedented growth in revenue over the last three years. With a passion to improve the world, Hollister is a visionary for SwanLeap’s next generation technology. Hollister brings expertise in transportation, logistics and supply chain, allowing him to solidify his position at SwanLeap and help the company become a leader provider of end-toend transportation technology.

in developing the company’s processing, advancing each hard copy invoice through a sophisticated scanning system yielding text-searchable images made available for client review. In addition, he has successfully managed and implemented change and process improvement for teams and redeployed 6 percent of labor resources to emerging client-focused initiatives.

PRASAD GOLLAPALLI, Founder & CEO, Trucker Tools

Prasad Gollapalli is a visionary in what the freight brokerage industry can be and how technology can be seen as a positive, disruptive force for the better. At Trucker Tools, he is quick to take a different approach and define problem areas while understanding different skills each broker possesses. Gollapalli aims to enable brokers, not disintermediate them. He has successfully implemented his vision at Trucker Tools and continues to help the broker community succeed and raise its game in a highly competitive business.

The Distribution Experts®

Congratulates our 2019 Pros to Know Roger Counihan Vice President

Will King

Group Vice President

Tom Tiede Vice President

JAY WILSON, Vice President of Processing Services, Transportation Insight Jay Wilson employed 32 years of supply chain experience to develop and lead the financial settlement division responsible for annually saving clients upwards of $8 million in freight invoice overpayment and $6 million in parcel invoice overpayment. Wilson was also instrumental

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19th Annual

2019

www.fortna.com

1.800.367.8621

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2019

Practitioner Pros & Teams to Know TEAM FROM CELESTICA— SUPPLY LINE MANAGEMENT

The team includes: Janak Shah, SDC director; Karen Rodgers, SCM consultant; Gautham Sheth, SCM manager; Maxine Jones, SCM manager; Carlos Cabello, SCM advisor; Karen Fleischmann, commodity Janak Shah management specialist; Leah Mumford, commodity management specialist; Renee Fung, SCM manager; Fanny Hui, SCM manager; Connie Chan, SCM manager; and Chris Yeung, buying advisor. Enabling customer growth and satisfying their requirements is the No. 1 challenge for the Supply Line Management team. Celestica is operating in a severely constrained market as its lead times have extended beyond the accurate forecasting window of its customers, driving issues in cost, on-time delivery, customer satisfaction and profitability challenges. The Supply Line Management Team plays a critical role in solving those challenges within Celestica’s supply chain to ensure revenue is achieved.

NEDRA DICKSON, Global Supplier Inclusion & Sustainability Lead and Managing Director, Accenture

Nedra Dickson is responsible for promoting Accenture’s efforts to maximize procurement opportunities with diverse business partners. She is a crucial part of expanding Accenture’s Diverse Supplier Development Program and has worked to develop relationships with minority, women, LGBTQ+, persons with disabilities and veteran-owned businesses. She oversees the company’s Supplier Inclusion & Sustainability Team, allowing the company to drive a more-inclusive and empowered marketplace. With her efforts, Accenture has gained access to innovative, responsive and costcompetitive supply solutions for its clients.

DANNY GREENAWALT, Supply Chain Business Process Lead, Advanced Drainage Systems Inc.

Danny Greenawalt brings an extensive data analysis background to Advanced Drainage Systems, successfully implementing a network optimization process and solution for the company. During his career, he has reduced payload inefficiencies with optimization models and created a centralized decision-making process that takes into account key network constraints. Greenawalt has also played a key position in leading cost savings and improving service levels that allow for a better-optimized network for a relatively complex supply chain. 28

TUSHAR BHALLA, Senior Director Customer Success, Intrigo Systems

Tushar Bhalla has been a successful supply chain practitioner 12 years, focusing on process design and technology implementation in supply chain planning and procurement. He has helped chalk out the supply chain transformation journey for several Fortune 1000 companies and is an expert in the consumer goods industry and has successfully delivered over 30 transformative projects. Bhalla is a sought-after speaker and has presented several supply chain case studies and concepts.

TEJ BONAGIRI, Solution Architect, Intrigo Systems

Tej Bonagiri has worked with a wide range of companies across various industry verticals in the supply chain planning and execution space for over 11 years. He has contributed to designing and delivering supply chain planning processes and IT solutions for various clients and has advised them in planning their supply chain transformation roadmap. He believes leveraging the right technology is the key to a successful transformation.

PRABHAKAR PRASAD, Executive Vice President of Sales, Intrigo Systems

Prabhakar Prasad has worked with a wide range of global companies across various industry verticals in the supply chain planning and execution space for over 20 years. He has demonstrated comprehensive supply chain management product development and solution management skills, and is instrumental in successfully delivering transformational projects. Prasad is an active participant and speaker in multiple supply chain forums, panels, roundtables and webinars presenting several supply chain case studies, benefits and learnings.

JAY SCHMIDT, Senior Forecast Analyst, Leupold & Stevens Inc.

Jay Schmidt brings 10 years of experience to the supply chain industry. In his current role at Leupold & Stevens, he is responsible for developing and executing a companywide sales, inventory and operations process. With his knowledge and skill set, he was able to transform failing systems and processes into ones that successfully support the business.

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DEBORAH GOERLACH, Supply Chain Business Application Leader, Momentive Performance Materials

Deborah Goerlach has held a wide range of roles over the last 15 years and has played an instrumental role in implementing various projects at Momentive. This includes an integrated forecasting and budgeting process, automated forecasting, as well as tracking the right demand signals to create a better balance between demand and supply. Goerlach also led the charge on improving overall SIOP processes at Momentive by implementing and tracking automated forecast models that analyze capacity usage for both the short and long term.

MICHAEL FIELD, CEO, The Raymond Corporation

With more than 25 years’ experience managing industrial companies, Michael Field is known for reinforcing Raymond’s mission of addressing customer challenges in the supply chain and logistics industry with smart, leading-edge technology. Throughout his career, he has learned the value of listening to customers and strives to understand and solve their concerns through firsthand experience. Putting his experience and academics into practice, Field has been granted several U.S. patents for creative solutions to real-world problems.

ELAINE VIDEAU, Senior Planning Manager, Tillamook County Creamery Association

of experience in the food industry and has spent the last three years transforming Tillamook’s supply team. In her role, she implements new policies and processes, restructuring its supply chain organization and applying lean manufacturing principals. With her efforts, the company has built a supply chain team focused on individual strengths and business needs.

BRIAN TRIBBLE, President, Worldwide Express Global Logistics

Brian Tribble is an 18-year veteran in the logistics and supply chain industry. As the president of Worldwide Express Global Logistics, he believes that visibility drives accountability, which influences his vision to increase exponential growth of data for his customers. He is an APICS certified supply chain professional and instructor and has been recognized throughout the industry for his achievements.

MORE PRACTITIONERS TO KNOW ❯❯ John Peterson, Baxter Planning ❯❯ Scott Magee, Baxter Planning ❯❯ Eric Strafel, Boeing

❯❯ Greg Lehmkuhl, Lineage Logistics

❯❯ Steven Schuman, Dg3

❯❯ Michele Thompson, Refinitiv

❯❯ T  obey Gonnerman, Fusion Worldwide

❯❯ Heather Powell, SafeSourcing Inc.

❯❯ Ryan Peck, BOLD

❯❯ Helen Davis, RB LLC

❯❯ Kevin Purser, FitBit

❯❯ Jimmy Fitzpatrick, Ryder System Inc.

❯❯ Sergio Retamal, Global4PL

❯❯ Mike Prochaska, Gopher Sport

As the senior planning manager at Tillamook County Creamery Association, Elaine Videau oversees the demand and supply planning for several product lines. She has 28 years

❯❯ Mike Bunge, Libbey Inc

❯❯ Sean Henry, STORD

❯❯ Scott Cameron, ZF Group

MORE TEAMS TO KNOW

❯❯ Accenture

❯❯ Sarasota County Government

❯❯ Spinnaker Management

YOUR SUPPLIERS’ RISKS ARE YOUR RISKS.

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Download our eBook for actionable strategies on evaluating supplier risk.

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More Provider Pros to Know

❯❯ Nari Viswanathan, E2open ❯❯ Matt Taylor, ecUtopia

❯❯ Joshua Blinick, 3rdwave/Blinco Systems Inc.

❯❯ Nicholas Couture, C3 Solutions

❯❯ Waldo Saville, Efficio

❯❯ Jerome Dubois, 6 River Systems

❯❯ Kelly Hahn, Censeo Consulting Group

❯❯ Gary Neights, Elemica

❯❯ Stephen Bartolotta, Chainalytics

❯❯ Barry Norton, Equifax Inc.

❯❯ Chris Keller, Chainalytics

❯❯ John Flynn, Fleet Advantage

❯❯ Derek Rickard, Cimcorp

❯❯ Michael Massetti, Gartner

❯❯ Phil Ramsey, Command Alkon

❯❯ K  aren Conway, Global Healthcare Exchange (GHX)

❯❯ Roch Gauthier, Aspen Technology Inc.

❯❯ K  ristina Manganella, Comprehensive Logistics Co. Inc.

❯❯ Mark Millar, Global Supply Chain Ecosystems

❯❯ Autumn Vaupel, Beeline

❯❯ Raja Hammoud, Coupa

❯❯ Ross Spanier, GlobalTranz

❯❯ Uwe Weiss, Blue Yonder

❯❯ Greg White, Curo Global

❯❯ Bill Leedale, IFS

❯❯ Adam Blankenship, BlueGrace Logistics

❯❯ Vijaya Rao, DeliveryCircle

❯❯ Lindsay Bryant, Insight Sourcing Group

❯❯ Tim Chiu, CBX Software

❯❯ Chris Abato, Elemica

❯❯ Christy Ortin, Censeo Consulting Group

❯❯ Omar Nadi, Elemica

❯❯ Erik Diks, Chainalytics

❯❯ Melonee Wise, Fetch Robotics

❯❯ Bill Mrzlak, ChainSequence Inc.

❯❯ Katy Jones, FoodLogiQ

❯❯ Curt Cote, Analytic Consulting Solutions

❯❯ B  ill Michels, Chartered Institute for Procurement & Supply (CIPS)

❯❯ Mudit Kumar, GEP

❯❯ Christopher J. Dwyer, Ardent Partners

❯❯ Ed Rusch, Command Alkon

❯❯ M  att Houston, Global Healthcare Exchange (GHX)

❯❯ Tina Andrews, 4SIGHT Supply Chain Group ❯❯ Frank Granieri, A. Duie Pyle ❯❯ Ryan Kirklewski, Accelogix ❯❯ Douglas Markle, Achilles ❯❯ Trevor Read, Agistix

❯❯ Bill Aldridge, Allport Cargo Services USA ❯❯ A  ram Mazmanian, Analytic Consulting Solutions ❯❯ Matthew York, Ardent Partners ❯❯ Stefan Reidy, Arviem AG ❯❯ Robert Cowan, Avnet

❯❯ Dan Bebout, Convey

❯❯ Greg Carter, GlobalTranz

❯❯ Santhosh Srirambhatla, Blue Ridge

❯❯ Chris Pickett, Coyote Logistics

❯❯ Tim Hoj, Hoj Engineering

❯❯ Bobby Harris, BlueGrace Logistics

❯❯ Jon Kirkegaard, DCRA Technologies

❯❯ Eric Weisbrod, InfinityQS International Inc.

❯❯ Atif Siddiqi, Branch

❯❯ Julien Nadaud, Determine Inc.

❯❯ George Rhymestine, Insight Sourcing Group ❯❯ Melissa Irmen, Integration Point

❯❯ Thomas Lobert, Integration Point ❯❯ Steve Tian, Integration Point

❯❯ Walter High, Invata Intralogistics

❯❯ Farzad Dibachi, Inxeption Corporation ❯❯ S  am Gonzales, Ivanti – Supply Chain Business Unit (formerly Wavelink) ❯❯ Danielle Manning, JDA Software

❯❯ Anne Omrod, John Galt Solutions Inc. ❯❯ James Kelly, JVKellyGroup Inc ❯❯ Rob Frew, Kibo

❯❯ Harish Iyer, Kinaxis

❯❯ Ken Evans, Konexial ❯❯ Dan Clark, Kuebix

❯❯ Rajesh Kalidindi, LevaData ❯❯ Mark Davis, LexisNexis

❯❯ Jeff Baker, Libra Consulting

❯❯ Vikram Srinivasan, LLamasoft ❯❯ Rafael Vasquez, LLamasoft ❯❯ Dean Hully, LLamasoft

❯❯ Adam Kline, Manhattan Associates

❯❯ Aaron Conway, Mezzanine Safeti-Gates Inc. ❯❯ D  eborah Goerlach, Momentive Performance Materials

❯❯ Mike Mortson, Mortson Enterprises Inc ❯❯ Johan Abadie, Neogrid North America ❯❯ Roger Mayerson, NGC Software ❯❯ Mark Burstein, NGC Software ❯❯ Fred Isenberg, NGC Software

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PROS TO KNOW 2019 ❯❯ Nancey Watson, NL Watson Consulting Inc.

❯❯ Venkat Rajan, Ph.D., ReNi Analytics Inc.

❯❯ Patrick Buellet, Symphony RetailAI

❯❯ Akhil Oltikar, Omnics Inc.

❯❯ Patrick Coughlin, Ryder System Inc.

❯❯ Chad Schrage, Sync Consulting Group

❯❯ Pratik Soni, Omnichain Solutions ❯❯ Chad Kramlich, Open Sky Group ❯❯ Chris Baird, OptConnect

❯❯ Nick McLean, OrderDynamics ❯❯ Simon Park, Pace Harmon ❯❯ Will Kline, Pace Harmon ❯❯ Jinlu Yuan, Pace Harmon

❯❯ Donald Hoeppner, Paladin Associates

❯❯ David Allais, PhD, PathGuide Technologies ❯❯ Matt Yearling, PINC

❯❯ Codye Satterwhite, Plantensive Solutions Group ❯❯ Maximiliano (Max) Bruni, PlumSlice Labs ❯❯ Tom Flynn, PRGX Global

❯❯ Jennifer Couch, PrimeRevenue Inc. ❯❯ Kyle Appell, Protiviti

❯❯ John Costanzo, Purolator International ❯❯ Terry Onica, QAD Inc.

❯❯ Stephen Dombroski, QAD Inc. ❯❯ Eric Dalby, QuestaWeb Inc. ❯❯ Matt Barry, Quintiq

❯❯ Eric Rempel, Redwood Logistics ❯❯ Utpal Patel, ReNi Analytics Inc.

❯❯ Vidya Subramanian, Roambee Corporation ❯❯ Hans Thalbauer, SAP ❯❯ Hala Zeine, SAP

❯❯ Michael Balduino, SAP Ariba ❯❯ Darren Koch, SAP Ariba

❯❯ Samarth Sarthi, SCA Technologies ❯❯ Daniel Stanton, SecureMarking

❯❯ Marcia Dorer, Silver Bullet Technologies ❯❯ Neha Goel, Simplify Workforce ❯❯ Kaitlyn Krigbaum, Source One

❯❯ Raphaël Bertholet, Symphony RetailAI ❯❯ Scott Luton, TalentStream

❯❯ Jeromie Atkinson, Tecsys Inc.

❯❯ Doug Niemeyer, TEKLYNX International ❯❯ Anne Kohler, The Mpower Group

❯❯ Jim Kandilas, CPA, The Shelby Group ❯❯ Omer Abdullah, The Smart Cube ❯❯ Krenar Komoni, Tive Inc.

❯❯ Roy Anderson, Tradeshift

❯❯ Elizabeth Skipor, Source One

❯❯ P  atrick Pretorius, TRANSPOREON Group Americas

❯❯ Paul Steiner, Spend Management Experts

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❯❯ Brian Chan, UNEX Manufacturing

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❯❯ Joe Sacchetti, Spinnaker

❯❯ B  rad McBride, Zero Down Supply Chain Solutions

❯❯ Samantha Hoy, Source One

❯❯ Steve Beda, Trax

❯❯ Paul D’Arrigo, Spend Management Experts

❯❯ Mike Gross, TrueCommerce

❯❯ Bernard Gunther, Spendata

❯❯ Pete Zimmerman, VAI

❯❯ Oscar Salehi, Spinnaker

❯❯ Keith Phillips, Voxware Inc.

❯❯ Kerstin Braun, Stenn Group

❯❯ Sheri Hinish, SupplyChainQueen ❯❯ Brad Hollister, SwanLeap

❯❯ J essica Windham, Zero Down Supply Chain Solutions ❯❯ Peter Mehring, Zest Labs

Technology at your fingertips, experts at your side. Learn more by visiting www.echo.com/echoship

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ECHO.COM 800.354.7993 © 2019 Echo Global Logistics. All rights reserved.

www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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3/14/19 9:48 AM


MADE IN AMERICA By Mackenna Moralez

SWEET DREAMS

Alpaca stuffed pillows made in the USA are a dream come true.

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M

ary Anderle’s life changed when a firefighter took the stage at an interior design seminar, pleading for everyone to change their ways. “I was sitting in the front row thinking ‘Why is he here?’” Anderle says. “He told us that he was the fire chief in the area and that he couldn’t save people anymore because of material found in their homes. I just sat there with my mouth open—it scared me. I went home and thought about how I could prevent it.” The fireman continued to explain that memory foam pillows were among the first things to burn up in a house fire because of all the chemicals they contained. Owning a memory foam pillow back at home, Anderle knew she needed to replace it, but wanted to do it her own way.

An interior designer by trade, she used her background to find fabrics and fibers that were natural and more flame resistant to make a new pillow. She experimented with several materials before finally striking gold with alpaca wool. “I looked at wool first, but then I saw alpaca. I’ll admit it, I had no clue what an alpaca was at first,” she says. “I was fascinated. The more I read about the animal, the more I wondered why we weren’t using this material.” Anderle explains that she found herself working on an alpaca ranch to learn more about the animal and how to experiment with the wool. “When I first started at the ranch the farmers were throwing away at least half of the fiber. They were only using the finer fibers, so I would see bags laying all over the barn for later disposal,” Anderle says. “They had no use for this ‘low grain’ fiber, so I decided to take it myself.”

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Anderle spent a year working with the fiber, learning how to wash it for better use in pillows than other high-quality materials. As her pillows started to grow in popularity among her clients, she was encouraged to market them despite her successful interior design business. Thinking back on what the fireman said during the seminar, she knew what needed to be done, and Malpaca was born. “I learned to listen to my gut, and my gut was reminding me of the impact of that fireman’s message,” she explains. “I couldn’t walk away from this animal. I kept telling myself that I had to do this. I just had to trust my gut.” Malpaca has become Anderle’s fulltime gig. The pillows are 100-percent natural, hypoallergenic and naturally fireproof. As the pillows range in price from $180 to $250, the orders usually vary on the time of year. She explains that it takes an entire alpaca to make a single pillow. Wool is collected from all across the country. Because farmers only shave the animal once a year—typically during the summer months —she can’t rely on having just one supplier but many. “The business started at my kitchen table with bags of alpaca fur all around my house,” Anderle says. “Now I have a manufacturing plant in Minnesota

and in Indiana…I learned that there’s always someone that’s willing to help you. When I first started, I had no idea what I was doing. I didn’t understand trademarks and patents, but I do now.” Since opening Malpaca in 2011, Anderle has branched off and also started selling mattress pads. But because each product is handmade, she doesn’t see herself expanding any further, especially if she wants to remain in control of the entire supply chain process. From the ranch, all the way to the packaging process, Anderle oversees every detail along the way. “Look for a manufacturer that has the same values as you,” Anderle advises. She has had many offers from overseas manufacturers, but she prefers the assurance that U.S. manufacturers are able to offer. She stresses that she will always make her products in the United States. “They [U.S. manufacturers] ensure each pillow is done right. It’s that personable mind-set of work, and you can only get that here,” she explains. “It’s more of that old mind-set of ‘you’re there, you work there, you know the people there.’ It has your personal stamp on it when you leave. That’s the difference between U.S.-made and products produced outside the country.”

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“IT HAS YOUR PERSONAL STAMP ON IT WHEN YOU LEAVE. THAT’S THE DIFFERENCE BETWEEN U.S.MADE AND PRODUCTS PRODUCED OUTSIDE THE COUNTRY.” — MARY ANDERLE

www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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SPECIAL REPORT THE INTERNET OF THINGS

By Lara L. Sowinski

CLOSING THE GAPS IN T The proliferation of connected things and big data reinforces the symbiotic relationship between IoT and cloud computing to attain improved visibility.

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chieving true end-to-end supply chain visibility relies largely on digitally connecting things and data as a first step. Robust, secure cloud technology combined with artificial intelligence (AI) and other emerging technologies are working together to develop next-gen supply chains with a host of features and capabilities. “The potential for new technologies to transform the supply chain and deliver real-time visibility is powerful,” notes Kaushal Dave, vice president, solutions development and customer engagement for Aera Technology. “We pioneered cognitive technology

for the self-driving enterprise, which taps into machine learning, deterministic learning, deep learning and the like, to think, learn and refine the cognitive skills built on top of the platform in real time,” says Dave. “These powerful cognitive automation capabilities can be applied to all supply chain processes, from demand and supply forecasting to inventory optimization, manufacturing performance, procurement automation and supplier reliability assessments.” Dave describes the technology this way: “Aera understands how businesses work, makes real-time recommendations, predicts outcomes,

THE FUTURE OF SAAS IN SUPPLY CHAIN PLANNING By Tom McDonough

New technologies are enabling supply chain innovation in ways that the industry hasn’t seen before. Over the past two decades, the industry consolidated, supply chain operations evolved and tech giants introduced softwareas-a-service (SaaS) solutions that would change the game for every industry. The move toward SaaS applications has enabled an exciting evolution with emerging technologies like the Internet of Things (IoT), artificial intelligence (AI) and blockchain driving potential advancement for the future of the supply chain. Tech’s impact on the supply chain is real, and the race is on.

information, one example is the use of centrally monitored digital twins for globally distributed manufacturing.

AI and machine learning technologies will also have a profound impact on the future of supply chain planning. These technologies can take massive amounts of demand data sourced through ever-growing demand channels, and learn from historical performance and trends to identify or predict different outcomes. The intelligence of being able to analyze data and provide foresight into something that might occur (for example, using data sourced from social media to identify future trends) is incredibly valuable to balThe concept of IoT and connected deancing demand and supply. We are seeing vices to make our personal lives easier impressive results with customers using is simple to understand (i.e., smart watchintelligent automation and machine learning es, digital assistants, etc.), but when applied tools to automate the mundane and highly comScar1984/iStock/Getty Images Plus to manufacturing or distribution assets in a putational process. The beauty in this is that these supply chain, the business impact can be significant. Conemerging tech tools aren’t being used to replace people, it’s nected devices in the supply chain continuously capture and helping them to free their time for higher value-added tasks. share massive quantities of data to monitor critical factors like Finally, the introduction of blockchain technology to the supmachine health (e.g., operating temperatures or productivity). ply chain is progressing in many proof-of-concept projects IoT applications serve to turn this data into action-oriented

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SPECIAL REPORT THE INTERNET OF THINGS

N THE SUPPLY CHAIN and acts autonomously. Aera’s data crawler (patented real-time crawling technology) collects, indexes and harmonizes billions of data points from complex enterprise systems and external data sources. Its processing engine analyzes data continuously to detect business risk and opportunities, utilizing decision trees and algorithms to recommend the best course of action. Based on your response, it learns what works and what doesn’t. It will evolve to take action autonomously.” Meanwhile, with regards to IoT, Dave explains that, “For all its potential value, IoT data won’t fulfill its promise unless it can be swiftly captured and

analyzed as part of the end-to-end supply chain. AI-powered cognitive automation provides a powerful means to achieve that goal as the volume, velocity and variety of supply chain information— including sensor-based IoT data—continues to grow.” For all the benefits of IoT and cloud technology, as well as the host of emerging technologies that together are driving supply chain visibility forward, issues like IT resiliency and disaster recovery are equally important. “Reliable data visibility and the ability to communicate bi-directionally with IoT objects creates a dependence on having that data and access to those

workflows for everyday life and business operation,” says Todd Matters, chief architect and co-founder of Rackware. “With the explosion of new apps and data, traditional disaster recovery and business continuance are simply too costly,” he says. “For example, the cloud can provide a longer recovery time at a low cost or a better recovery time for a higher cost.” Combined with modern backup and disaster recovery software like Rackware, “the cloud is the perfect technology to bring levels of disaster recovery granularity to meet a wide variety of needs,” Matters adds.

we see across multiple industries. It provides a single source of truth for an organization across all suppliers and manufacturers, and the ability to track and trace the historical data for each piece of inventory distributed. Real-world events such as fresh produce contamination, if managed successfully with blockchain, would lead to a reduction in inventory loss and direct visibility to the source to stop the event as soon as possible and introduce preventative measures for the future. Blockchain enables access to the complete lineage of where the product was produced and how it’s been distributed. In fact, blockchain-enabled applications can reduce the cost of dispute resolution by 30 percent to 50 percent. This technology will be a vital factor in the future of supply chain management, and we will continue to see more innovations.

WWReduction in capital investments

Companies will most easily adopt innovative technology after migrating to a cloud-based SaaS solution. The standalone advantages of SaaS for supply chain management are undeniable, yet the biggest obstacle we hear from customers is the perception of a cumbersome and costly process of moving to the cloud. One of the most important features when adopting SaaS for supply chain management is that customers can upgrade specific functional supply chain operations and not have to manage a big-bang, on-premise upgrade. Plus, you’ll be able to access a host of benefits, including:

The future of SaaS and emerging technologies in the supply chain is bright and filled with innovation. Our customers who are embracing our SaaS supply chain products are also able to add on innovations such as IoT Cloud, AI Cloud, Blockchain Cloud and are reaping the rewards. While it may seem cumbersome or scary to start, it’s worth taking that next step into digital transformation.

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WWAbility to establish service terms and penalties in vendor contracts

WWFaster time to new features (there is generally quarterly updates)

WWLess customization, again related to the feature release cycles

WWInnovation in the platform and infrastructure which supports the supply chain applications

WWEase of backend integration WWThe ability to develop a modular approach to supply chain management innovation

TOM MCDONOUGH is the senior director of product marketing for Oracle Supply Chain Planning.

www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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3/12/19 12:46 PM


SPECIAL REPORT PROCUREMENT

By Steven Lutzer

EMOTIONAL INTELLIGENCE KEY

to Successful Procurement Leadership The case for hiring a chief procurement officer with high emotional intelligence is growing.

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rganizations increasingly are taking a candidates’ emotional intelligence (EI) into consideration when hiring and/or evaluating a chief procurement officer (CPO). Daniel Goleman is one of the pioneers in the research of how EI affects the performance of leaders in the workplace, particularly at senior levels. In Goleman’s book, Working with Emotional Intelligence, the author makes a compelling case for the high correlation between EI and the likelihood that a leader will be a successful change agent— assuming that the person has basic job competencies. Goleman notes that an executive with a medium IQ but high EI is far more likely to be successful than a leader with a high IQ and low EI. The landscape of procurement at complex organizations necessitates having a CPO with a high EI, particularly in leading procurement transformations.

APPLICABILITY IN PROCUREMENT There are many examples that demonstrate the importance of high EI for a CPO, including the following: Procurement as a function. Procurement as a function tends to 36

have an inherent degree of conflict built into it. Internal customers often reflexively view procurement as a restrictive function that seeks to limit their ability to effectively procure goods and services. CPOs with high EI can shift the conversation to one of collaboration and become trusted advisors to internal customers rather than organizational policemen. Strategic sourcing initiatives. High-performing CPOs need to aggregate spend and implement category-led strategic sourcing in organizations that often have very decentralized functions with varying objectives; this is particularly applicable to indirect procurement. This necessitates finding a leader who can influence stakeholders to understand and keep the incremental value of working collectively for the greater good of the organization in mind. Most successful strategic sourcing initiatives require early collective input and collaboration from diverse sets of stakeholders. CPOs who are superstars can adeptly leverage interpersonal relationships to build coalitions. Stakeholder resistance. A high EI enables the leader to detect interpersonal factors that may fuel a stakeholder’s internal resistance. A CPO will often need to engage highly resistant stakeholders—for example,

those who want to know “what’s in it for them”— in strategic sourcing initiatives. An Radachynskyi/iStock/Getty Images Plus adept leader with high EI is skillful at turning opponents into advocates.

EMOTIONAL COMPETENCIES Working with Emotional Intelligence outlines the following five areas of emotional competencies: selfawareness, self-regulation, motivation, empathy and social skills. Self-aware. A self-aware CPO is cognizant of their interpersonal strengths and weaknesses and easily acknowledges past failures. It is critically important for a CPO to frame failures in terms of vital interpersonal lessons. If an executive never takes ownership of their mistakes, there is a likelihood that similar missteps may reoccur. It is also critically important for a CPO to have a realistic self-assessment of their strengths and weaknesses. If a leader is unwilling to acknowledge their weaknesses, it is impossible to augment their team with others who can help the organization in areas where the leader may not be strong.

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SPECIAL REPORT PROCUREMENT

In addition, it is often important to solicit and obtain feedback from others and integrate criticism without getting defensive or overreacting. Procurement needs to measure the overall level of customer satisfaction as a function. A defensive CPO is less likely to embrace internal customer feedback and/ or criticism because they may misperceive this as a flaw in leadership. Ego. A CPO who has a strong ego and needs to prove to others they are the smartest person in the room may hit a brick wall. An internal stakeholder may put up a barrier if they sense the CPO is lecturing or proselytizing on procurement as a function. Self-regulation. A procurement superstar needs to be cognizant of their internal emotional responses and reactions as they occur. If an internal stakeholder is resistant or personally reactive, a CPO needs to keep their emotional ballast in check. If a leader has the volume of their own emotional responses on mute, they are likely to displace or project everything onto others. If the volume of their emotions is excessively high, then the procurement executive is likely to be distracted and deaf to the thoughts and perceptions of others. Motivation. Internal stakeholders may be motivated by both extrinsic and intrinsic factors. A CPO will often encounter a stakeholder who has a high degree of resistance to any transformative or substantive change in procurement practice. The CPO

needs to identify the source of the stakeholder’s internal resistance and interpersonal dynamic that may be fueling the resistance. For example, is the stakeholder worried about a loss of autonomy in procurement decisions, or are they simply risk averse? The CPO’s team is likely to be diverse, with a wide range of factors that motivate the various team members. A highly successful CPO often has to find out what motivates each of their direct reports to maximize the performance of the team. A CPO also has to strike a collaborative approach with vendors to capture future capabilities for the good or service. A leader who sees the vendor relationship from only a transactional standpoint may miss the levers of influence beyond the sale. Highly adept leaders understand the varied landscape in the interpersonal wiring and motives of others. They

HIGHLY ADEPT LEADERS UNDERSTAND THE VARIED LANDSCAPE IN THE INTERPERSONAL WIRING AND MOTIVES OF OTHERS. THEY OFTEN SEEK TO EMBRACE DIFFERENCES IN A NONJUDGMENTAL WAY IN ORDER TO MAXIMIZE THE COLLABORATIVE EFFORTS OF OTHERS. often seek to embrace differences in a nonjudgmental way in order to maximize the collaborative efforts of others. This always requires that the leader be able to observe the emotional reactions of others nonjudgmentally without letting their own emotions hijack things in a nonproductive way. Empathy. Most stakeholders will be receptive to change and procurement transformation once the leader has connected with the stakeholder’s pain points in an empathetic way. Many CPOs will describe empathy as the

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organizational glue that solidifies the relationship and opens the door to transformative change. Goleman provides readers with a great deal of evidence on the correlation of a leader’s degree of self-awareness and ability to convey empathy. Leaders with high degrees of self-awareness can detach from their own feelings and extend empathy to others. Social skills. Conflict with others in the organization is often an inevitable component of transformational change. CPOs who consistently avoid conflict frequently fail to challenge others and move the organization forward to true procurement transformation. Skillful leaders can handle the emotions of others and the inevitable conflict that may arise without needing to prove their superiority or higher intellect or demonstrate that they are “always right.” Evolved leaders know the reactions of others are often about the landscape of someone’s interpersonal wiring and not simply about the CPO. CPOs with the core competencies of selfawareness, self-regulation, motivation, empathy and social skills are far more likely to lead successful transformations in procurement. ABOUT THE AUTHOR STEVEN LUTZER is the president of Lutzer Global Inc., an executive search firm that specializes in procurement, strategic sourcing and supply chain management. Lutzer had a 20-plus year career in supply chain management and global sourcing before founding Lutzer Global.

www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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3/12/19 12:57 PM


SPECIAL REPORT BLOCKCHAIN

By Lara L. Sowinski

HAS BLOCKCHAIN LOST ITS GROOVE? Supply chain execs are tasked with teasing out the proven from the puffery.

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wo years ago, blockchain was barely mentioned in supply chain trade journals or industry conferences. Today, it’s a leading topic that still seems as befuddling to as many supply chain executives as when they first heard of the technology— which was probably when Bitcoin started to enter our lexicon. A recent article from McKinsey & Company suggested that blockchain has an Occam problem. In other words, it’s not following the principle of “keep the solution simple and avoid unnecessary complexity.” Authors Matt Higginson, MarieClaude Nadeau and Kausik Rajgopal state that, “The bottom line is that despite billions of dollars of investment, and nearly as many headlines, evidence for practical scalable use for blockchain is thin on the ground.” Using the classic four-stage life cycle theory for an industry or product— pioneering, growth, maturity and decline—as a measurement, the authors contend that blockchain “remains stuck at stage 1 in the life cycle (with a few exceptions). The vast majority of proofs of concepts (POCs) are in pioneering mode (or being wound

up), and many projects have failed to get to Series C funding rounds.” The financial sector, which was an early adopter of blockchain, is an example. From 2012 to 2015, the financial sector invested heavily in blockchain and paved the way for other sectors such as insurance, automotive and supply chain to explore the technology in earnest. At the end of 2016, blockchain’s future looked bright. Yet, the financial sector’s reality looked markedly different. “McKinsey’s work with financial services leaders over the past two years suggests those at the blockchain ‘coalface’ have begun to have doubts,” according to the authors. “In fact, as other industries have geared up, the mood music at some levels in financial services has been increasingly of caution (even as senior executives have made confident pronouncements to the contrary).” By the end of 2017, many in the financial sector weren’t convinced by the outcome of POCs, which some said led to more questions than

answers. “Another concern was the requirement for a dedicated network,” the report says. “The logic of blockchain is that information is shared, which requires cooperation between companies and heavy lifting to standardize data and systems. The coopetition paradox applied; few companies had the appetite to lead development of a utility that would benefit the entire industry. In addition, many banks have been distracted by broader IT transformations, leaving little headspace to champion a blockchain revolution.” According to McKinsey, in 2019, blockchain’s practical value is mainly located in three specific areas, including: ❯❯ NICHE APPLICATIONS: There are specific use cases for which blockchain is particularly well suited. They include elements of data integration for tracking asset ownership and asset status. Examples are found in insurance, supply chains and capital markets, in which distributed ledgers can tackle pain points including inefficiency, process opacity and fraud. ❯❯ MODERNIZATION VALUE: Blockchain appeals to industries that are strategically oriented toward modernization. These see blockchain as a tool to support their ambitions to pursue digitization,

eestingnef/iStock/Getty Images Plus

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SPECIAL REPORT BLOCKCHAIN

process simplification and collaboration. In particular, global shipping contracts, trade finance and payments applications have received renewed attention under the blockchain banner. However, in many cases blockchain technology is a small part of the solution and may not involve a true distributed ledger. In certain instances, renewed energy, investment and industry collaboration is resolving challenges agnostic of the technology involved. ❯❯ REPUTATIONAL VALUE: A growing number of companies are pursuing blockchain pilots for reputational value, demonstrating

to shareholders and competitors their ability to innovate, but with little or no intention of creating a commercial-scale application. Arguably, blockchains focus on customer loyalty, IoT networking and voting fall into this category. In this context, claims of being “blockchain enabled” sound hollow. Meanwhile, blockchain continues to face headwinds. It’s poorly understood, there are technical impediments, especially around data storage capacity against the backdrop of increasing “connectedness,” and there are security concerns. Nonetheless, the technology does indeed have a future. First, there

must be a valid problem or pain point otherwise blockchain “likely won’t be a practical solution,” the authors explain. Next, “There must be a clear business case and target ROI.” And lastly, “Companies must agree to a mandate and commit to a path to adoption.” In conclusion, McKinsey’s authors state that, “Conceptually, blockchain has the potential to revolutionize business processes in industries from banking and insurance to shipping and healthcare,” only if companies “adapt their strategic playbooks” to honestly evaluate blockchain’s capabilities against “more conventional solutions, and embrace a more hard-headed commercial approach.”

Blockchain: From POC to Reality By David Cahn In today’s global economy, the expectations and complexity of supply chains are catapulting, making management and control even more challenging. Blockchain technology may prove to be a game changer for supply chains across a multitude of industries. With blockchain, participants will be able to track and trace products both forward and backward to ensure sustainable sourcing and production safety of raw materials, protect against counterfeit product solutions, and receive payments faster. With an integrated global view of an enterprise, companies will better understand their ecosystem with greater insight into events, partners and processes. But how and when does an enterprise roll out blockchain?

WHERE TO BEGIN A BLOCKCHAIN PROOF OF CONCEP T (POC)

Supply chain blockchain projects are in POC mode today. However, companies have been able to prove their value by better understanding the maturity level of the technology and what can be achieved today on a small scale. It has also opened the doors to what is possible through exploring various use cases depending on the industry. In our own pilot, two large global chemical companies facilitated documents and data transfers of invoices, purchase orders, delivery tenders and proof-of-delivery posts. With the ability to connect to a digital network, blockchain functionality is made accessible to support a many-to-many connection of companies, facilitating streamlined payment processing.

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Other POCs in the supply chain sector include areas of track and trace in food safety data. Another example is tracking global containerized freight shipments.

THE F U TURE OF BLOCKCHAIN & BENEFITS TO THE SUPPLY CHAIN

Elemica and many others still believe that blockchain can be of significant value in the supply chain, especially in terms of traceability, quicker and more reliable payment processing, and protecting against counterfeit products and fraud. For that reason, blockchain has very strong promise down the road in a wide variety of industries such as chemicals, life sciences, food and beverage, consumer products and electronics. Moreover, blockchain technology will evolve and improve on performance, scalability and capabilities. Other areas of evolution of the technology will involve addressing the needs of encryption, widescale peer-to-peer (P2P) distribution, decentralized and autonomous trust verification, and tokenization. In the long term, blockchain can possibly transform many business processes, making the data used within supply chain processes more available, immediate and transparent, and improving the overall customer experience. David Cahn is the global marketing director at Elemica.

www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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EXECUTIVE FOCUS

{ TRANSPORTATION}

By Rob Bulick

FUSING TECHNOLOGY WITH TRANSPORTATION from the First to Final Mile

With today’s high-tech product innovations comes the need for savvy transportation and delivery.

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efrigerators that can create shopping lists, display photos and stream television shows straight from your Netflix queue. Exercise equipment that gives streaming access to real-time fitness classes, so people can unleash their inner competitor from the comfort of their own home. A couple of quick taps within a cellphone app to manage entire home systems, including televisions, beds and coffee tables. While this seems like some utopian future reminiscent of an episode of the Jetsons, it’s actually our modern reality—albeit without Rosie. So, what do technology and transportation have in common? A 40

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lot, actually. More consumers than ever are purchasing these large, integrated products. Not only do they need to be shipped and delivered beyond the doorstep, but they require precise assembly and installation. Transportation providers need to rise to the occasion of these new shipping demands, determining how to extend their verticals and incorporate innovative new systems to accommodate shipping these overdimensional, high-tech and high-touch items. Deciding how an item will be shipped is only one part of the battle. Retailers and manufacturers also need to enlist carriers that possess

personnel with the skills to properly deliver and assemble the items, putting superior white-glove service at an even greater premium. This is the piece of the shipping puzzle that consumers directly experience and the element that’s arguably judged most harshly. We’ve all been told never to shoot the messenger—in this case the carrier—so if the delivery fails to meet expectations, a harsh critique is cast back onto the shipper. Freight mishaps just won’t do, so shippers are now left wondering what spells success when moving this caliber of freight.

KNOW WHAT’S “APP”-ENING Like the technology-heavy products being transported, mobile apps will help make for the seamless communication that shippers and consumers crave. Transportation providers will need to establish expectations up front with the shipper, such as key check-ins, day and time of delivery, and how long the setup will take, to help maximize the effectiveness of using an app and ensure shipping

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TRANSPORTATION

objectives are being met. With communication and data parameters established, apps will be able to help identify kinks in the supply chain, flagging the problem right away through the push notifications we’ve all come to know and love-hate. Having a real-time update versus one that comes substantially after an issue occurs positions the carrier to immediately talk with the shipper to course-correct the problem. Time is money, so every minute wasted when an issue arises causes a negative ripple effect throughout the rest of the supply chain. Using technology puts a carrier on the offensive, resulting in

better communication and service, and leading to a more productive working relationship.

REAP THE REWARDS THROUGH A NATIONAL FOOTPRINT The increase in direct-to-consumer goods means transportation needs are different now. Traditional shipping approaches don’t satisfy requirements because certain carriers can’t provide the level of service required to oversee it. While technology and communication are imperative for successful final-mile transportation, equally so are providers that have a nationwide network and the logistics

USING TECHNOLOGY PUTS A CARRIER ON THE OFFENSIVE, RESULTING IN BETTER COMMUNICATION AND SERVICE, AND LEADING TO A MORE PRODUCTIVE WORKING RELATIONSHIP.

Blume unites carriers—from ocean to rail to long haul— with first- and last-mile drayage for real-time event and cost tracking. Learn more at blumeglobal.com.

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www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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ENHANCING LAST-MILE CUSTOMER EXPERIENCE

By John R. Yuva

In an effort to attract and retain customers, shippers must elevate last-mile delivery processes to build a lasting customer experience. Justin Cramer, global project management director and co-founder of ProShip® multi-carrier shipping software, provides five strategies to achieve that objective. 1) KNOW THE EXPECTED CUSTOMER EXPERIENCE: What shippers don’t know can and will hurt their business. It’s surprising how often this critical element is overlooked in the warehouse, says Cramer. “Shipping software is useless unless it includes data about customer needs,” he says. “Whether it’s a premium order or requires special handling, fulfilling those requests is the first priority to ensuring an expected customer experience.” 2) GAIN ACCESS TO A WIDE SELECTION OF CARRIER SERVICES: Murat Deniz/iStock/Getty Images Plus Obtain contracts with carriers and services that provide the greatest flexibility in meeting customer expectations. Flexibility means contracting with more than one carrier and using more than the basic services offered. With FedEx, UPS or DHL, each has its strengths and weaknesses, says Cramer. A single-carrier offering limits shippers and prevents them from leveraging variations in networks, capabilities and cost. “While you always want to use the most cost-effective service, don’t pay for next-day air with one carrier when another can deliver using ground,” notes Cramer. “Explore your options, understand the carrier networks and make cost-effective decisions.” 3) CREATE COMPREHENSIVE BUSINESS RULES: Establish business rules on how to meet expectations with failover results. If a carrier is promising next-day ground or express delivery, shippers have to take carriers at their word. The rest comes down to time-to-fulfillment. How long after a customer places an order on an e-commerce site does it get processed and fulfilled? “Business rules dictate how orders will be packed and shipped based on customer need and timeline,” says Cramer. “With a food order, there are business rules around whether dry ice or other packing materials are used for shipment. These rules drive the order decision-making within the warehouse.” 4) LEVERAGE RATE SHOPPING: Apply the appropriate level of carrier rate shopping to select the lowest-cost service level to meet or exceed customer expectations. Two decades ago, the focus was about normalizing across carriers and comparing final costs—a powerful analysis for a non-committed service. The next generation, says Cramer, examined in-transit services and transit filtering. Service commitments became critical, as did in-transit options. Mega brands redefined what business-day delivery meant. An order on Friday and delivery the following Wednesday was no longer acceptable. “We’re now in the third generation of rate shopping called advanced-date shopping,” says Cramer. “We now account for transit days versus non-transit days on a per-origin, destination and carrier service basis. You need to know the availability of carrier trailers and when their contents will enter the carrier transit network to ensure a package arrives where and when it’s expected.” 5) USE QUALITY SHIPPING SOFTWARE: Use shipping software capable of automating all the business rules and rate-shop rules for workstations. Whether it’s print and apply lines or batch processes, it must be flexible enough for any physical or technical process within the warehouse. “If you need a true omnichannel approach, it requires several different methods when executing shipments,” says Cramer. “You may have front-line shipping, end-of-line shipping or simulated shipping within an e-commerce suite. It’s imperative to have the software that allows you to automate those processes at a workstation.”

and assets in place to manage the freight across the entire network. Transportation providers that can utilize their entire network of terminals and manage the freight from origin to destination are a key advantage. When freight is fragmented across different agents for different parts of the journey, 42

there’s a lot of room for error and uncomfortable radio silence. If one provider is able to control the delivery from start to finish, while integrating technology throughout the process, it can maintain visibility across the entire process and provide the proactive communication and management both the shipper and customer require. For

example, Schneider offers a national footprint of 24 terminals and is able to utilize enterprise resources through its van, intermodal and logistics offerings to ensure that there’s complete control over the end-to-end solution along with the required capacity. Essentially, a robust network, end-to-end tracking and excellent freight management is

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2019 | www.SDCExec.com

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TRANSPORTATION

FIND A CARRIER WITH A BREADTH OF CAPABILITIES THAT VALUES INNOVATION TO OPTIMIZE SUPPLY CHAIN VISIBILITY—YOUR FIRST AND FINAL MILE WILL THANK YOU.

the ultimate trifecta for effective finalmile shipping.

EMBRACING A BRAVE NEW TECH-FOCUSED WORLD Products that were once the imagination of Saturday morning cartoons are now part of our functioning reality. With those hightech household innovations comes the need for savvy transportation and delivery. Carriers need to possess the capability within their service offerings to handle the products being shipped. Success also lies in the use of innovative platforms and mobile apps, as well as the ability to lean into new tech-focused spaces, to provide communication and data to shippers and consumers alike. Whether it’s the order itself or the process of delivery,

technology is the through-line of today’s market. Find a carrier with a breadth of capabilities that values innovation to optimize supply chain visibility—your first and final mile will thank you. ABOUT THE AUTHOR ROB BULICK is senior vice president and general manager of First-to-Final-Mile for Schneider, a premier provider of transportation, intermodal and logistics services. In this position, he is accountable for the Final Mile+ business unit at Schneider, which specializes in end-to-end delivery and reverse logistics for over-dimensional goods.

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www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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EXECUTIVE FOCUS

{ WAREHOUSING}

By Sean Henry

Why Innovation is

THE NAME OF THE DISTRIBUTION GAME IN 2019 Growing pressures are breaking traditional warehousing models, creating opportunity for innovative supply chain leaders.

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igh consumer expectations, a storage shortage and disruptions from trade tensions are revealing the shortcomings of traditional distribution models. But these challenges bring opportunity: companies that seek innovative solutions that deliver greater agility, automation and intelligence will not just thrive, they’ll also gain a significant competitive advantage.

CUSTOMER EXPECTATIONS ARE HIGH AND RISING

imaginima/E+/ Getty Images

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In the new expectation economy, consumers are demanding faster delivery and greater quality. Meanwhile, the biggest companies in the world continue to invest resources in reducing shipping times even further, ensuring that customer expectations will remain high, and likely increase, in 2019. To meet these high standards, shippers must position inventory near their customers to speed delivery and lower last-mile costs. Unfortunately, traditional distribution models lack the necessary footprint, and therefore, reach to achieve these goals.

WAREHOUSE AVAILABILITY IS SHRINKING AS DEMAND RISES What’s more, finding storage space is increasingly difficult. The industrial availability rate (a prominent measure of vacant space) fell to 7 percent at the end of 2018 in the United States, its lowest point since 2000. Demand outpaced the supply of new warehouse construction for the year by 29 million square feet. Space is even more difficult to find near major population centers like Los Angeles, lengthening delivery times and raising transportation costs in markets with the most customers. There are a number of reasons warehouse space is increasingly harder to come by. Growing populations in urban areas mean greater demand for products, as well as increased competition for land. In addition, companies like Amazon are expanding their footprint of owned warehouses, leaving less space for everyone else. These factors will increase in the year ahead, forcing shippers to look beyond traditional distribution models that offer limited space and little flexibility.

DISRUPTIONS FROM TRADE TENSIONS WILL RAISE COSTS Trade tensions, and the threat of new tariffs in particular, disrupt supply chains. Last summer, retailers scrambled to move inventory from China to the United States to avoid new tariffs resulting from trade conflict between the two countries. These sudden imports caused a logistical bottleneck at the Port of Los Angeles and overwhelmed the local warehouse market. Shippers had to move further inland to find storage space, increasing transportation and drayage costs. Since trade agreements and the global market have become less stable, shippers have to be prepared to avoid and navigate potential disruption in the

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KEEP THE MACHINES RUNNING Sustainable service and maintenance concepts are key to a high and efficient productivity for any automated warehouse. Regardless of country and industry sector, many automated logistics systems run nearly 365 days a year around the clock. The market constantly demands shorter delivery times, requiring maximum availability for state-of-the-art picking systems in distribution centers—24 hours a day, seven days a week. Despite permanent system operation, innovative and holistic maintenance concepts are required to avoid unplanned downtimes and delays in shipments.

months ahead. Companies will need the ability to identify areas where they are most vulnerable to disruption and make quick adjustments to their supply chains this year. And—as we saw last summer—they’ll need much more visibility and flexibility than traditional distribution models can offer.

“Warehouse integrators, like WITRON, opt for predictive maintenance,” says Norman Leonhardt, director of business development at WITRON. “We have a long and successful history of not only integrating automated warehouse technology, but also keeping them running at the highest possible productivity rate.”

INNOVATION WILL DETERMINE THE WINNERS Because traditional distribution models are ill-equipped to meet the challenges of 2019, innovative solutions—those that offer greater agility, velocity, automation and intelligence—are needed. ❯❯ With a more agile distribution network that can dynamically add and subtract capacity in markets across the country, shippers’ supply chains are more resilient to storage shortages and disruptions of all kinds, including those resulting from trade tensions. And, shippers can achieve the faster speed to market and shorter delivery times needed to be responsive to customer demand. ❯❯ Through workflow automation, shippers can collapse the time and effort required to manage inventory and orders, enabling significantly greater scale, reach to markets and proximity to customers—all without increasing operational cost. ❯❯ Actionable intelligence provided by smarter distribution platforms can improve decision-making, helping shippers optimize costs out of the supply chain and perfect the customer experience. In the year ahead, we’ll see many different approaches to the big challenges in warehousing. Winning strategies will look beyond traditional distribution models and toward greater

Although WITRON systems are largely standardized, they are nevertheless subject to varying degrees of operational usage. Products, run times, dynamics, peak days, temperature zones, climatic environmental conditions of the location—a variety of factors and parameters impact the wear and tear of the used technology. An important part of predictive maintenance is based on an extensive registration and analysis of the already available operating data. The generated information is converted automatically and highly efficiently into maintenance orders for the maintenance team. Big data becomes “smart data” and enables maintenance excellence. According to WITRON, various technologies enable the recording of all data for all automated system components in detail, starting with the operating times of the conveyor system, the crane cycles, the run time of special machines, all the way to the cycle times of every single drive or sensor. Operation data capturing is the linking of system data with the maintenance management. Leonhardt explains that when we look at the future, warehouses won’t be able to completely eliminate all downtimes, “since there are simply too many interferences within a logistics center,” whether it’s related to automated or manual operations, caused by defective pallets, packaging, leakage of fluids, or so on. “However, zero percent of unplanned repairs based on technical or mechanical errors is certainly possible and should be the goal of any maintenance operation,” he adds. agility, automation and intelligence. Companies that embrace innovation will adapt to the present, prepare for the future and strengthen their competitive advantage.

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Talaj/ iStock/ Getty Images Plus

For example, Witron’s Order Picking Machinery (OPM) has successfully completed over 60 project integrations worldwide. “Some of the systems have been running for 15 years and some of our other technologies for well over 20 years,” he says. “Thus, our customers undoubtedly recognize that we are the experts in operating and maintaining their systems and entrust us with this task.”

ABOUT THE AUTHOR SEAN HENRY is CEO and cofounder of STORD, the pioneer of networked distribution, next-generation warehousing and distribution for modern shippers.

www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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EXECUTIVE FOCUS

{ SOFTWARE & TECH}

By Amy Wunderlin

shuoshu/Digital Version Vectors/ Getty Images

Companies are finally beginning to understand the strategic value of big data analytics across the supply chain, but gaps still remain.

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BREAKING BARRIERS FOR BETTER DATA MANAGEMENT

t’s no big secret that leveraging big data analytics has the power to transform a company’s supply chain. Many organizations have now embraced the power of data to make better decisions faster, and the majority have initiatives in place to harness even more data, says John Fullmer, vice president of product management at JDA Software. In fact, according to a report by Acumen Research and Consulting, the global supply chain analytics market size is expected to be worth $10.7 billion by 2026, growing with 15.5 percent CAGR during the forecast time period. But the supply chain sector still has a long way to go to get the most out of their data. “The focus is mostly still on internal enterprise data,” says Fullmer, further explaining that many companies are working to archive data about historical performance and plans, but they are still unsure what they are going to do with it. “They’re building out data legs, but it’s still spotty in

terms of formalized use of external market data in the supply chain,” he adds.

WHERE WE’RE HEADED In terms of data analysis, a fundamental shift took place in 2018 and will continue into this year and beyond. In 2016 and 2017, Fullmer says a lot of projects were focused on delivering insight to a person who was then making a decision about what to do with that analysis. “While the project showed a lot of promise, scaling and operationalizing it to the entire supply chain on a day-to-day basis was a challenge,” he explains. Companies had a great analytical tool, but they didn’t necessarily have more time or staff to use it. In 2018, companies began to look for a better way to utilize data analysis by shifting to a prescriptive recommendation, where the computer analyzes the insight to provide a recommendation that a person can then act on. Fullmer expects this trend to

THE GLOBAL SUPPLY CHAIN ANALYTICS MARKET SIZE IS EXPECTED TO BE WORTH $10.7 BILLION BY 2026, GROWING WITH 15.5 PERCENT CAGR DURING THE FORECAST TIME PERIOD.

— ACUMEN RESEARCH AND CONSULTING 46

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continue, even moving toward autonomous action where the computer is also making the decision. “We’ve definitely started to see companies move toward leveraging the big data to allow a machine to make a decision instead—so, leveraging artificial intelligence (AI),” he adds. The benefits of autonomous decisionmaking are especially obvious in retail planning, for example, where millions of decisions must be made daily. “If you’re trying to make tens of millions of decisions a day about what to order, and you add a lot of data, such as what competitors are doing, their pricing and the like, a person just can’t make all of those decisions. They can’t do it at speed,” Fullmer explains. AI can also aid in executing at scale the service level required in today’s market, which is a direct result of Amazon’s effect on the supply chain. “Today, the question is how to guarantee the target service level or what we call the service-driven supply chain,” says ToolsGroup CEO Joseph Shamir. “Because of that, there is a need for high scalability and a very high speed of planning that is driving execution.” AI and machine learning have the potential to drive said execution. “You can have a huge advantage by leveraging the data that you have in a more sophisticated way. And that is the stage we see a lot of companies trying to move into,” Shamir continues.

not that available yet, and some of them are not very clean either. They’re in preparation,” Shamir says. While large corporations like Amazon or Google already have direct access to a very large amount of data on customer or consumer behavior, he adds that “most companies are still working with small data or medium data—somewhere in between.” Fullmer agrees that the more information or data you have and the higher quality it is, the better the results. But beyond supporting AI, there are still opportunities for companies with limited amounts of data. “There are companies that would say, ‘I don’t have all of this yet, and so I’ll wait,’ but I encourage them to give it a try,” Fullmer says. “You can do a small-scale project to understand

“YOU CAN HAVE A HUGE ADVANTAGE BY LEVERAGING THE DATA THAT YOU HAVE IN A MORE SOPHISTICATED WAY. — JOSEPH SHAMIR, CEO TOOLSGROUP

what might be possible, and a lot of companies are surprised at the ability to get some value while you continue to add data.” At JDA, Fullmer says they are aware that in the real world, data is going to be incomplete, and it’s not going to be completely clean. “We’ve seen some real surprises in terms of what you can do even with limited data… so we’ve focused a good bit of our time on building machines and machine learning that account for the realworld quality of data,” he adds. Siloed data, and in return, managing it so it’s usable is also a significant problem for most organizations. “Companies are still trying to understand the enterprise approach to collecting data. We’re still seeing that there are a lot of silos that exist

GAPS REMAIN There are several challenges companies must address, however, before they reach this level of efficiency. The quality and amount of data harnessed is No. 1. “AI and machine learning, in particular, require a very large amount of data in order to create a model that has a clear signal. These big data are

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in functions that are starting to collect data. They’ve come up with a place that they’re going to put that data, but that results in a lot of redundancy,” Fullmer says. He adds that companies need to create a holistic strategy for where their data should reside, and how they then make sense of it. Use of public cloud providers is one possible solution. In 2018, trust in the cloud increased dramatically as companies began to initiate projects with these providers to create data lakes, which can store data at scale. “There are some signs of promise there, but how to keep the enterprise data and harmonize that across all the functions is an area that I think we continue to see steeped in challenge,” notes Fullmer.

In regards to data management, Shamir doesn’t see storage technology as the problem, but the need for a new business culture. “We need to introduce a new business culture not only to enable data collection, but also to manage it in a way that it can be usable by new and powerful technologies,” he says. What that culture looks like is still to be determined, but Shamir suggests companies start by creating an organizational structure that is not necessarily under the IT department but a chief information officer. “You need a special unit that is dedicated to data management and data scientists that are working to correctly manage and store the data based on how it can and should be processed in the future,” he explains.

www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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CASE STUDY

SAPUTO SAVES KILOMETERS AND CASH WITH PARAGON Paragon route optimization software solves a Canadian dairy wholesaler’s delivery inefficiencies.

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hen Montreal-based Saputo Inc. decided to integrate its milk and cheese deliveries, the resulting delivery complexity proved difficult. Because the products were previously delivered from separate warehouses, the integration caused routes to unnecessarily crisscross, duplicating truck kilometers driven. Also, delivery windows at each location were not considered as carefully as they should have been. In response, the dairy company turned to Paragon. “We realized we just couldn’t lick a finger and put it in the air to determine our routes any more. We brought in Paragon to help us map out and determine the best routes, the most efficient order of deliveries—the best approach in general,” says Danny Panunto, manager, Distribution-Quebec at Saputo Inc. “After we put all the constraints into the Paragon system, that really changed. We’ve eliminated many of the habitual problems we faced, like trying to deliver to a store when it’s closed.” Saputo was founded in 1954 by the Saputo family, which makes and sells dairy products, including

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cheese, milk and dairy ingredients. Its biggest-selling product is fresh mozzarella. Saputo uses its own fleet purely for larger, repetitive, inter-warehouse deliveries. For directto-store deliveries, Saputo uses 45 contractordistributor routes, which is where Paragon software is being deployed to optimize routing and handling of deliveries in the province of Quebec for its Saputo Dairy Products Canada G.P. division. The software factors in constraints such as truck sizes and delivery windows, and monitors the kilometers driven against the distance planned. Direct-to-store deliveries total an average of 5,000 deliveries a week, largely made from Saputo’s two Montreal-based warehouses to the urban region, but also around Quebec City and Ottawa, sometimes cross-docked from a satellite warehouse. Customers typically receive deliveries 2-3 times a week, up to 900 kilograms, and can generally place orders up to 4:30 p.m. to receive them the next day.

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2019 | www.SDCExec.com

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CUTTING KILOMETERS, MAKING BETTER BUSINESS DECISIONS When Saputo launched its newly optimized route plan, the company instantly reduced truck miles by 35 percent, triggering knock-on benefits like lower fuel and maintenance costs. But Panunto notes that the benefits of automated route planning were as much about improved decision-making as cutting truck kilometers. “We can now measure changes on any aspect of the business,” he says. “For example, if we lose or gain a customer, we can immediately measure the impact of that change. That has been a very, very big benefit. It has allowed us to make much more intelligent business decisions about when we should deliver, where we should deliver, and even if we should take on that business in the first place.” The Paragon implementation has also helped Saputo: ❯❯ Manage seasonal demand spikes. The software helps to assess what extra equipment is needed for more or bigger deliveries. “If we need to put a couple of extra trucks on the road to handle that peak, Paragon ensures we’re functioning as efficiently as possible,” Panunto says. ❯❯ Set accurate time windows. In a manual planning environment, this had been a challenge, given the wide range of delivery locations Saputo handles—from urban grocery stores with front-door drop-offs to supermarkets with long waits at the loading dock. Better planning has greatly reduced

the risk of a morning delay threatening an afternoon delivery. ❯❯ Improve competitive stance. “What differentiates us is our service, delivery and the customer experience. Paragon has allowed us to focus on the areas where we’re strong, and to improve on areas where we’ve been less competitive,” Panunto notes. ❯❯ Manage complex delivery schedules. Alongside Paragon route optimization software, Saputo is using Multi Period Planner to help manage the different delivery patterns their customers need them to meet. ❯❯ Reduce carbon emissions. Saputo is serious about managing a sustainable business. Reduced mileage cuts carbon emissions, too.

FROM GUESSWORK TO SCIENCE One by-product of the route-planning project is that Saputo had to make sure the data it was feeding into the routing software was timely and reliable. “We went through a process of filtering and cleaning up, which was very good because it forced us to clean up the data in our AS 400 system. Now, we can take that data and feed it into any other system, making our operations overall much more effective,” Panunto explains. “Our business decisions are now based on palpable results, solid data and real metrics, instead of in the past, when X more kilograms of product meant Y extra kilometers of delivery routes,” he adds. “Now, it’s more like a science than guesswork.”

“IT HAS ALLOWED US TO MAKE MUCH MORE INTELLIGENT BUSINESS DECISIONS ABOUT WHEN WE SHOULD DELIVER, WHERE WE SHOULD DELIVER, AND EVEN IF WE SHOULD TAKE ON THAT BUSINESS IN THE FIRST PLACE.” — DANNY PANUNTO

AT A GLANCE PARAGON SOLUTIONS WWParagon Multi Depot WWMulti Period Planner WWStreet Level Mapping

SECTOR Dairy Foods Wholesaler COUNTRY Canada CHALLENGE Integrated deliveries led to crisscrossed routes and duplicated kilometers driven

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RESULTS WWCut 35 percent of delivery kilometers WWLowered carbon emissions WWEnhanced strategic business decisions for new and existing customers WWImproved competitive differentiation www.SDCExec.com | March 2019 | SUPPLY & DEMAND CHAIN EXECUTIVE

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EXECUTIVE FOCUS

{ PROFESSIONAL DEVELOPMENT}

By Bill Michels

USING MINI-CLINICS TO EMBED LEARNING Mini-clinics build integration with a process, provide learning by doing and embed skills that last a career.

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ow effective is learning in your organization? After training occurs, are individuals applying new skills and tools in their job roles? Is skills uptake demonstrated? In working with organizations on development initiatives, I’ve found mini-clinics are very effective in embedding learning across the organization.

THE ESSENCE OF MINI-CLINICS The description for development programs is typical. The high-potential individuals attend an intense 5-day boot camp. The boot camp has four primary focuses: build a common vocabulary for procurement and supply, embed the company process, provide tactical and strategic tools and templates, and build networks for collaboration. For the rest of the organization, a series of custom e-learning modules are developed. The high potential people who attend the boot camp would serve as mentors for the people taking the e-learning programs. After a year, the leadership assesses the program and quickly recognizes that the e-learning participants were familiar with concepts like market analysis, cost analysis, conditioning, stakeholder engagement and supplier relationships, but they did not know how to apply the tools practically. Often, we run an assessment center to understand how many people could use the tools. We discovered that the knowledge of the concept was there, but the application was missing. The solution for these clients was 50

the creation of mini-clinics. The miniclinic consisted of a visiting instructor who taught a different topic every hour. This enabled individuals who wanted to learn more to attend, listen to the module delivery, and use the tools to do case studies to apply the learning. It was surprising that most people took almost all of the sessions. While this was a great learning experience for the clients and me, the real benefits were in the application and use of the tools. Based on my experience, there is no substitute for applying the tools. At a tech company, for example, students developed and created case studies around their current issues, and the mini-clinic acted as a vehicle to provide learning and problem-solving solutions. The submissions were excellent; the workshop brought the concept home and let the class work through a real-life problem in their business. This session had a high impact and provided people with both tools and confidence to attack the issues. Using company case studies, the content was more meaningful and relatable for everyone in the organization and encouraged collaboration. Another application for mini-clinics is small group coaching. In working with teams for a construction company where we had conducted strategic sourcing and category management process training, teams brought a project to the clinic and applied all aspects of the strategic sourcing

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2019 | www.SDCExec.com

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process to their category of spend. They were asked to look at the current state of the category, assess the good or service through portfolio analysis, review the supplier relationship profile, supplier preferencing model, supplier relationship match, market analysis, Pestle model, supplier history and options for sourcing. The output from this session was a detailed planning process that led to a strategic plan to deliver risk and value improvement. The ability to apply the learning in real time was an experience that will stay with them throughout their career. The people coming to the clinic represented several divisions of the firm. It’s no surprise that their efforts were embraced by senior management when they returned to the division with a solid plan to deliver lower risk and increased value for the business. While teaching and embedding learning in a clinic is a challenging task, the benefits and outputs are rewarding to the individuals, team and management. The procurement leadership of the

company continues to enhance the category planning process by codifying the process, templates and tools.

MINI-CLINICS PROMOTE COLLABORATION It’s not hard to see that this type of approach is especially geared for projects involving cross-functional teams. Typically, I like to launch a cross-functional project by providing a quick overview of the process followed by a session of what data is available to identify what we still have to learn. I ran a project involving marketing, sales, operations, procurement and finance to review an OTC pharmaceutical product. We also developed a specific project charter with a mission statement, objective, roles and responsibilities, and accountabilities. The team discovered that the product bottle was too big, and that the raw material could be purchased cheaper internationally. Marketing included three ways to dispense

the product with it hand-stuffed into a package. The mini-clinic was conducted over two days. The result was that marketing went to one applicator where the bottle was changed to hold the right quantity of material, and the assembly line was automated. Also, the raw material was purchased from a supplier, freeing needed manufacturing space. The product cost was reduced by over 25 percent, enabling the company to be highly competitive. Mini-clinics work best when there is a specific goal to embed the learning, solve a problem, focus everybody on a project, or provide education integrated with a process. They take little time investment nor significant money to run. Once the mini-clinic has been conducted, the follow-up team sessions can be handled by video conference or conference. They build integration with a process, provide learning by doing and embed skills that last a career. Give a mini-clinic a try and enjoy collaboration, networking, learning and value/cost improvements. ABOUT THE AUTHOR BILL MICHELS is the vice president of operations at America for the Chartered Institute of Procurement and Supply Chain (CIPS). He previously served as CEO and founder of Aripart Consulting, president of ISM Services, and CEO of ADR North America. In addition, Michels has held senior procurement and supply chain positions in the manufacturing, paper and food industries.

ADVERTISER INDEX ADVERTISER.................... PAGE NUMBER Blume Global..................................... 41 B-Stock Solutions............................. 43 D.W. Morgan Company LLC............ 23 diCentral Corp................................... 26 DSC Logistics........................................2

ADVERTISER.................... PAGE NUMBER Echo Global Logistics....................... 31 Fortna................................................. 27 Logility Inc......................................... 11 Old Dominion Freight Line Inc...... 54 OMNIA Partners................................ 25

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ADVERTISER.................... PAGE NUMBER ProMat 2019.........................................5 Rapid Ratings International Inc..... 29 RateLinx.............................................. 19 Schaefer Systems International, Inc..... 13 Worldwide Supply Chain Solutions.....30

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WORK HARD, By Mackenna Moralez

E Becoming a commercial pilot allows PathGuide’s CEO Eric Allais to rise above it all.

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ric Allais knew he was going to reach new heights in his role as the CEO of PathGuide, but it wasn’t until becoming a commercial pilot that he felt like he could touch the sky. Allais first got the itch to learn how to fly when his late grandfather took him up in an air coop, a late 1930s two-seated aircraft. However, he explains that “life” got in the way, and his interest faded over time. It wasn’t until he was gifted a flying lesson that his passion came back. “I hadn’t thought about it [flying] in a long time, but I took one lesson and was completely hooked,” he explains. “I immediately bought all the books and supplies right then and there. When I went home, I told my wife I signed up for private pilot school.”

The more proficient you are the more fun it is,” Allais says. “It’s about being safe, and it’s about your passengers being safe and having fun in the air. You want to make sure that they’re not in danger or white knuckling the seat. Being able to share the experience with others is the best part.” He views his role as a pilot similar to his position as CEO, saying that passenger and employee safety and enjoyment is crucial. If something happens, he views himself personally responsible for their well-being. It’s empathy that encourages him to power through and understand what others are thinking in the industry. “It’s all about continuous improvement. How can you improve yourself? Technology is now slowing down, so how can we better ourselves,” he explains. “Whether it’s robotics or material handling, we need to be connected. Staying on the cutting edge is similar to flying. If you ignore that, you’re setting yourself up for Allais began his pilot a potential catastrophe.” “It’s all about lessons in 1991 and has Still, flying doesn’t come continuous been flying ever since. easy. For Allais, it was Lessons take time improvement. completely foreign at first. and money, Allais says. The longer he stuck with How can you It took him roughly it, the easier it became for eight years to obtain He encourages others improve yourself? him. his commercial license to do the same if they are as he was moving Technology is now interested, saying that it’s up in his career, worth it to be able to rise slowing down, so obtaining his MBA above it all. and becoming a father. how can we better “It does take dedication. He credits his flying Most people will quit when lessons for learning they first start, but if you ourselves.” the importance of hang on, you’ll find that — ERIC ALLAIS being able to multitask. it gets easier,” Allais says. There were times when he “It starts to become a ballet. was at pilot lessons and had You’ll understand the airspace, a school textbook in his lap weather and communication to study during breaks. techniques and everything “It takes a lot of will start flowing together. discipline and proficiency. You will enjoy it.”

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2019 | www.SDCExec.com

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BE RECOGNIZED FOR YOUR ACHIEVEMENTS

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.

2019

19th Annual

2019

SUPPLY CHAIN

2019 SDCE

PROS TO KNOW AWARDS

SDCE 100 AWARDS

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 projectbased award that recognizes leading software and technology providers that are helping transform supply chains with their products and services.

NOMINATIONS CLOSED.

NOMINATION DEADLINE: 4/3/19

Winners announced in the March 2019 issue.

Winners announced in the June 2019 issue.

12 th Annual

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

NOMINATION DEADLINE: 9 / 6 / 1 9

Winners announced in the December 2019 issue

Award results, information and nominations posted on: WWW.SDCEXEC.COM/AWARDS Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation.

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OUR PEOPLE MAKE US #1.

PROUD TO BE RECOGNIZED BY THE CUSTOMERS WE SERVE Being named the #1 National LTL Carrier for the ninth straight year by Mastio*, the industry’s leading benchmarking study, is humbling. It’s a credit to Old Dominion’s dedicated men and women who are always working toward perfection. But more importantly, the recognition reminds us of our continuing obligation to exceed your expectations. For more information, visit odfl.com or call 1-800-235-5569.

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Old Dominion Freight Line, the Old Dominion logo and Helping The World Keep Promises are registered service marks of Old Dominion Freight Line, Inc. ©2019 Old Dominion Freight Line, Inc. Major League Baseball trademarks and copyrights are used with the permission of Major League Baseball Properties. Visit MLB.com. *Source: 2018 Mastio & Co. National LTL Carrier Report

3/12/19 1:45 PM

Profile for Supply+Demand Chain/Food Logistics

Supply & Demand Chain Executive March 2019  

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 2019  

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...