Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
We've written often about the differences between managers and leaders, between bosses and visionaries. But those most lacking in a higher order of attributes seem to be the last to sense their absence. Nothing, it seems, makes a boss feel more powerful than the conceit that he or she is actually a leader.
The folks who organize pay-to-play "conferences," "forums," and "summits" get this and play to audiences that tend to be overloaded with pretenders to the crown. Advertising to bosses who aspire to recognition as leaders is like hanging out a Free Catnip sign at a cat convention.
Without revisiting the tit-for-tat comparisons of managers and leaders, there are some telltale signs that a cloud of self-delusion is settling in. We've seen this recently, in a setting in which a mob of bosses declared themselves to be leaders and positioned their deepest thoughts about supply chain management as the insights of leaders. The net effect registered alarmingly high on the barf-o-meter.
ENTERPRISE PERFORMANCE
Reality is that supply chain management, done right, can have a profound effect on overall corporate financial accomplishment. What we, in the aggregate, do ultimately elevates such measures as return on assets. We can help drive sales volume, profit margins, and market position. And, by the way, we can manage costs for optimized investment.
But while leaders get the picture, bosses and managers fall into the trap of thinking that supply chain management's job is to slash inventories, squeeze suppliers on price, and reduce transport expenditures. In short, their supply chains are supposed to drive cost performance—nothing more, nothing less.
WHICH FURTHER INDICATES THAT ...
The manager typically has a cost mentality. The only thing that matters is cost reduction, and what's important about customer service is the transient cost of a single transaction, not the down-the-road and sustainable consequence of loyalty and increased sales.
The leader has a value mentality and sees dollars as investments with recurring payback, not as margin erosion. The leader wants suppliers and service providers to be profitable, to be able to invest in continuous improvement, and to share in win-win solutions that benefit all partners in the end-to-end supply chain.
The manager might not even see that there is an end-to-end integrated chain that creates success and value up and down the chain, but often confuses the robust supply chain with functional execution of logistics tasks, a deadly perspective and a limiting factor in long-term performance improvement.
AIDED AND ABETTED BY THE STREET
Admittedly, pressures for immediate financial performance can drive bosses and managers to a short-term perspective in supply chain management decisions. But, frankly, they also tend to be comfortable with the immediate gratification of monthly and quarterly earnings.
Leaders, by contrast, tend to naturally look toward the long term in assessing what investments make sense, when positive outcomes should be expected, and how sustainable improvements ought to be.
THE PEOPLE PART OF THE EQUATION
The bosses, flinty-eyed managers, and pretenders to leadership sometimes talk the talk about doing right by people. But more often than not, there's not room enough under the bus in which to throw the human resources that elevate enterprise performance.
In the wake of 9/11, fake leaders discovered that it was not an immediate life-and-death decision to curtail the travel involved in training and education activities. The Great Recession provided evidence that if less training was all right, even less was surely better. Economic decline pushed some wavering managers over the edge and encouraged cutting employee development in the guise of making the tough calls that would allow the business to survive hard times.
The visionary leaders understood that slow times were an ideal period in which to invest in people development, hone skills, build loyalty, and create a stronger infrastructure with which to prosper in a business recovery.
Some companies had no intention of continuing development. The thesis was and is that "we pay good money for people who already know what they're doing, so they'd better deliver." This works only until the world changes and yesterday's truths become tomorrow's traps. The same companies inherently believe that the workforce marketplace is loaded with interchangeable parts, that any associate can be replaced by any of a number of available candidates.
So, the embedded culture becomes one of "use 'em up and throw 'em away." Bad news: There is not an inexhaustible supply of supply superstars. Worse news: These companies and managers don't care. In the short term, these can be exciting places to work. In the long term, clinical depression is a risk for the associates, and disappointing performance becomes the enterprise norm—and the bosses are the next layer to be scraped into the dustbin.
IN SHORT
In the end, it comes down to this. If the boss feels compelled to anoint him (or her) self as a leader, run like the wind. If the manager has to announce "You know, I am a people person," keep your eyes peeled for an emergency exit.
If the hierarchy doesn't get the big picture in supply chain management, be wary. If associates aren't worth the investment of educating for continuous improvement, make sure your network is active and up to date.
If the boss's long-term vision extends only six months out, don't let your commitment get too far beyond that. And if there is a magnifying glass on cost rather than a telescope on value far into the future, remember what happens to a fly under a magnifying glass.
Better yet, remember the old song about The Great Pretender and try to stay out of the frying pan in the first place. Life's too short to waste on "leaders" who can't lead and managers who can't manage. And you are too good to sell your soul to make the great pretenders look like geniuses.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.