Skip to content
Search AI Powered

Latest Stories

outbound

are we there yet?

Who's ultimately responsible for your company's supply chain? If it's not your CEO or president, then you could be in trouble.

Who's ultimately responsible for your company's supply chain? If it's not your CEO or president, then you could be in trouble. For a decade now, the message has been hard to miss: Without support from the top—the very top—you may never be able to truly optimize your operations.

To find a success story that supports this claim, you need look no further than your friendly neighborhood Wal-Mart. The late Sam Walton, founder of Wal-Mart, saw the value of his retail stores' supply chain as a competitive force back when terms like "logistics" and "supply chain" either didn't exist or were limited to military usage. Shortly before his passing, Walton cited logistics excellence as the primary reason why his little variety store in Bentonville, Ark., had grown into one of the greatest business successes of the 20th century.


For every CEO who gets it, of course, there are dozens who don't. Yet Walton's pioneering vision for supply chain excellence has not been lost on academics and consultants. For more than 15 years, they've churned out research projects, white papers and dissertations on the topic, often accompanied by charts and graphs that would give Albert Einstein a headache. They've all drawn much the same conclusion: If your corporate-level executives aren't actively involved in driving supply chain optimization, your operation will fall short of its potential.

So why aren't we there yet? Perhaps it's the complexity of supply chain operations and the lack of a clear, simple, understandable definition of the supply chain itself. Harried CEOs often don't have the time to sit and listen to a 60-plus minute presentation. These folks need sound bites and bullet points.

That's why a comment made by Cliff Lynch, the subject of our May issue's Thought Leader Profile (see DC VELOCITY, May 2003), stopped me in my tracks. "Your supply chain is your company," he said. As soon as I heard it, I started to think about how beautiful that statement was in its simplicity. Great minds in this field have spent countless hours struggling to define a supply chain. The result has been widespread disagreement and confusion. With six simple words, Lynch cleared it all up.

His rationale is equally clear. Lynch maintains that supp ly chain operations are so complex and far-reaching that the only person who can truly manage all the moving parts is the person who manages the overall company. "You've got logistics, which includes your transportation, distribution center and warehouse activities. You've got manufacturing. You've got procurement, human resources, sales and finance." he says. "It encompasses everything, and then some."

Maybe , just maybe, Lynch's comment will prove to be the magic bullet: When presented with the simple notion that "the supply chain is the company," CEOs will take note and begin leading the charge.

If that happens, maybe we won't have to keep asking ourselves: "Are we there yet?"

The Latest

Artificial Intelligence

AI: Is it the real deal?

More Stories

Logistics economy picked up speed in January

Logistics Managers' Index

Logistics economy picked up speed in January

Economic activity in the logistics industry expanded in January, growing at its fastest clip in more than two years, according to the latest Logistics Managers’ Index (LMI) report, released this week.

The LMI jumped nearly five points from December to a reading of 62, reflecting continued steady growth in the U.S. economy along with faster-than-expected inventory growth across the sector as retailers, wholesalers, and manufacturers attempted to manage the uncertainty of tariffs and a changing regulatory environment. The January reading represented the fastest rate of expansion since June 2022, the LMI researchers said.

Keep ReadingShow less

Featured

Disrupting the furniture supply chain: An interview with Jay Rogers

Disrupting the furniture supply chain: An interview with Jay Rogers

As commodities go, furniture presents its share of manufacturing and distribution challenges. For one thing, it's bulky. Second, its main components—wood and cloth—are easily damaged in transit. Third, much of it is manufactured overseas, making for some very long supply chains with all the associated risks. And finally, completed pieces can sit on the showroom floor for weeks or months, tying up inventory dollars and valuable retail space.

In other words, the furniture market is ripe for disruption. And John "Jay" Rogers wants to be the catalyst. In 2022, he cofounded a company that takes a whole new approach to furniture manufacturing—one that leverages the power of 3D printing and robotics. Rogers serves as CEO of that company, Haddy, which essentially aims to transform how furniture—and all elements of the "built environment"—are designed, manufactured, distributed, and, ultimately, recycled.

Keep ReadingShow less
chart of GenAI effect on workforce

Gartner: GenAI tools create anxiety among employees

Generative AI (GenAI) is being deployed by 72% of supply chain organizations, but most are experiencing just middling results for productivity and ROI, according to a survey by Gartner, Inc.

That’s because productivity gains from the use of GenAI for individual, desk-based workers are not translating to greater team-level productivity. Additionally, the deployment of GenAI tools is increasing anxiety among many employees, providing a dampening effect on their productivity, Gartner found.

Keep ReadingShow less
warehouse worker driving forklift between racks

German 3PL Arvato acquires two U.S. logistics firms

The German third party logistics provider (3PL) Arvato this week acquired the U.S.-headquartered companies Carbel LLC and United Customs Services, saying the move would grow its client base, particularly in the fashion, beauty, and lifestyle segments.

According to Arvato, it made the move in order to better serve the U.S. e-commerce sector, which has experienced high growth rates in recent years and is expected to grow year-on-year by 5% within the next five years.

Keep ReadingShow less
photo collage of warehouse tech

Supply chain pros are wary of inflation and labor woes

The top worries that supply chain leaders hope to address with new innovations this year include inflationary concerns (68%) and labor shortages (50%), according to a survey on innovation from the third-party logistics provider (3PL) Kenco.

And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.

Keep ReadingShow less