No matter what your role in the supply chain, sooner or later you're going to have to make tough calls about recruiting, hiring, or promoting your successor.
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.
"The old order passeth." In times of old, this is the manner in which English citizens were informed that the former king had died (or been dispatched in treason) and that a successor, usually an heir, had been elevated to the throne. When a comparable event takes place in business, our first inclination is to think of issues in business continuity, of top leadership succession. But the issue is broader, deeper, and more pervasive than machinations in the C-suite.
It will happen sooner or later. You'll have done all the right things, built an "A" team, and backed it up with two-deep talent for the future. Then, the skies will open, dumping any number of things all over your desk.
It doesn't matter whether you're a line supervisor, a mid-manager, a VP with global responsibility, even a CEO. Whatever your role in the supply chain, you are going to have to make tough calls—and more than once—about recruiting, hiring, or promoting your successor (or replacing your loyal wingman).
WHERE TO BEGIN - THE OPENING SHOTS
So much to consider, and quickly. One thing we know for sure is based on the principle that people get promoted to their level of incompetence. Basically, the Peter Principle (the brainchild of USC's Laurence Peter) suggests that the best forklift driver may not be the best choice to lead an operation team, or that the best order picker is not necessarily a natural line supervisor in fulfillment. The head of sourcing and procurement is not a slam-dunk to take over full supply chain management leadership, and the North American transportation savant may not be the greatest pick to take charge of global logistics and supply chain management.
We have had this drummed into our heads for decades, but, under stress, we forget—or we feel obliged to somehow reward the folks who have worked like dogs, against all odds, to get the job done.
But we must be prepared for the likelihood that the best forklift operator will find almost any excuse to tool around the DC instead of leading, managing, and developing the staff. The world-class order picker/packer will, with little to no provocation, jump in to bail out a tough wave rather than motivate and measure the crew, or remove performance barriers and improve processes. The manager thrust into a leadership role will continue to make sure that all of the paper clips have been accounted for instead of dealing forthrightly with the essential question of why paper clips are really needed at all.
NEXT STEPS?
Or maybe all those possibilities are the right selections. What's important is not what they've done but what the new job requires—skills, experience, intelligence, people capabilities, analytic strengths, problem-solving ability, values, vision, whatever.
If the "natural" candidates don't have the goods, can they acquire what's missing? Hard skills, soft skills, contextual vision. Can you build from within, or must you go outside? Or is there a mix-and-match solution?
BEGIN AT THE BEGINNING
The core question is what is needed, whatever the position and scope of responsibilities. Skills, talents, experience—sure. But what about intrinsic personal qualities and how those can increase the odds of success?
What were the drivers of the departed's behaviors: his or her motivations, communications abilities and styles, and working and decision-making preferences? Does the replacement need these—or is a change in order to elevate unit and organizational performance?
All too often, organizations fall into the trap of selecting candidates because "they fit our culture" or because "they are just like us." This is a deadly protracted downward path. Truly mature, confident, and self-challenging organizations deliberately seek out diversity in styles, because teams of leaders that are incapable of groupthink generally develop superior programs and solutions.
This vital element is too often ignored in considering how, and with whom, to replace those individuals who are moving on or moving up. Don't be one of those looking for the comfort of the same when the different might be exactly what's called for. But also bear in mind that getting different solely for the sake of difference can lead to a crash of epic consequences.
AND THEN?
Going a step further, how important is emotional intelligence (EQ)? How good is the young prince, the king-in-waiting, at understanding the needs and styles of others?
How important is this? It affects the probability of success at every level and in every organizational function.
IS TIME ON YOUR SIDE?
Then there's the added complication of timing. Having some time to work with unties your hands a bit. Is the need yesterday, or next year? Can you provide serious training and development to elevate the baseline of essential qualities in an internal candidate? Do you have interim assignments that relate to key elements of the new position's skills and experience?
What are the risks in hoping that the rookie's strengths will outweigh the weaknesses? Does the candidate have the heart and soul needed to work like a rented mule on shoring up the gaps? And the IQ/EQ capacity? Are you willing to bet your career on a known-to-be-imperfect solution?
If there is no time, the case for finding fully qualified outside talent gets stronger. Although there still might be developmental needs—there is likely no perfect candidate—the overall fit could be much better.
AND YOUR FINAL ANSWER IS?
Even with all of today's personality assessment tools (think Myers-Briggs et al.), these mission-critical people decisions remain a bit of a crap shoot. So, you've got to be prepared to start all over when the new supervisor doesn't pan out, or the all-star global supply chain VP turns out to have a weakness for slow horses and filling inside straights.
Each of those points could have a stark impact on business operations, the firm said. First, supply chain restrictions will continue to drive up costs, following examples like European tariffs on Chinese autos and the U.S. plan to prevent Chinese software and hardware from entering cars in America.
Second, reputational risk will peak due to increased corporate transparency and due diligence laws, such as Germany’s Supply Chain Due Diligence Act that addresses hotpoint issues like modern slavery, forced labor, human trafficking, and environmental damage. In an age when polarized public opinion is combined with ever-present social media, doing business with a supplier whom a lot of your customers view negatively will be hard to navigate.
And third, advances in data, technology, and supplier risk assessments will enable executives to measure the impact of disruptions more effectively. Those calculations can help organizations determine whether their risk mitigation strategies represent value for money when compared to the potential revenues losses in the event of a supply chain disruption.
“Looking past the holidays, retailers will need to prepare for the typical challenges posed by seasonal slowdown in consumer demand. This year, however, there will be much less of a lull, as U.S. companies are accelerating some purchases that could potentially be impacted by a new wave of tariffs on U.S. imports,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management Solutions at Moody’s, said in a release. “Tariffs, sanctions and other supply chain restrictions will likely be top of the 2025 agenda for procurement executives.”
As holiday shoppers blitz through the final weeks of the winter peak shopping season, a survey from the postal and shipping solutions provider Stamps.com shows that 40% of U.S. consumers are unaware of holiday shipping deadlines, leaving them at risk of running into last-minute scrambles, higher shipping costs, and packages arriving late.
The survey also found a generational difference in holiday shipping deadline awareness, with 53% of Baby Boomers unaware of these cut-off dates, compared to just 32% of Millennials. Millennials are also more likely to prioritize guaranteed delivery, with 68% citing it as a key factor when choosing a shipping option this holiday season.
Of those surveyed, 66% have experienced holiday shipping delays, with Gen Z reporting the highest rate of delays at 73%, compared to 49% of Baby Boomers. That statistical spread highlights a conclusion that younger generations are less tolerant of delays and prioritize fast and efficient shipping, researchers said. The data came from a study of 1,000 U.S. consumers conducted in October 2024 to understand their shopping habits and preferences.
As they cope with that tight shipping window, a huge 83% of surveyed consumers are willing to pay extra for faster shipping to avoid the prospect of a late-arriving gift. This trend is especially strong among Gen Z, with 56% willing to pay up, compared to just 27% of Baby Boomers.
“As the holiday season approaches, it’s crucial for consumers to be prepared and aware of shipping deadlines to ensure their gifts arrive on time,” Nick Spitzman, General Manager of Stamps.com, said in a release. ”Our survey highlights the significant portion of consumers who are unaware of these deadlines, particularly older generations. It’s essential for retailers and shipping carriers to provide clear and timely information about shipping deadlines to help consumers avoid last-minute stress and disappointment.”
For best results, Stamps.com advises consumers to begin holiday shopping early and familiarize themselves with shipping deadlines across carriers. That is especially true with Thanksgiving falling later this year, meaning the holiday season is shorter and planning ahead is even more essential.
According to Stamps.com, key shipping deadlines include:
December 13, 2024: Last day for FedEx Ground Economy
December 18, 2024: Last day for USPS Ground Advantage and First-Class Mail
December 19, 2024: Last day for UPS 3 Day Select and USPS Priority Mail
December 20, 2024: Last day for UPS 2nd Day Air
December 21, 2024: Last day for USPS Priority Mail Express
Measured over the entire year of 2024, retailers estimate that 16.9% of their annual sales will be returned. But that total figure includes a spike of returns during the holidays; a separate NRF study found that for the 2024 winter holidays, retailers expect their return rate to be 17% higher, on average, than their annual return rate.
Despite the cost of handling that massive reverse logistics task, retailers grin and bear it because product returns are so tightly integrated with brand loyalty, offering companies an additional touchpoint to provide a positive interaction with their customers, NRF Vice President of Industry and Consumer Insights Katherine Cullen said in a release. According to NRF’s research, 76% of consumers consider free returns a key factor in deciding where to shop, and 67% say a negative return experience would discourage them from shopping with a retailer again. And 84% of consumers report being more likely to shop with a retailer that offers no box/no label returns and immediate refunds.
So in response to consumer demand, retailers continue to enhance the return experience for customers. More than two-thirds of retailers surveyed (68%) say they are prioritizing upgrading their returns capabilities within the next six months. In addition, improving the returns experience and reducing the return rate are viewed as two of the most important elements for businesses in achieving their 2025 goals.
However, retailers also must balance meeting consumer demand for seamless returns against rising costs. Fraudulent and abusive returns practices create both logistical and financial challenges for retailers. A majority (93%) of retailers said retail fraud and other exploitive behavior is a significant issue for their business. In terms of abuse, bracketing – purchasing multiple items with the intent to return some – has seen growth among younger consumers, with 51% of Gen Z consumers indicating they engage in this practice.
“Return policies are no longer just a post-purchase consideration – they’re shaping how younger generations shop from the start,” David Sobie, co-founder and CEO of Happy Returns, said in a release. “With behaviors like bracketing and rising return rates putting strain on traditional systems, retailers need to rethink reverse logistics. Solutions like no box/no label returns with item verification enable immediate refunds, meeting customer expectations for convenience while increasing accuracy, reducing fraud and helping to protect profitability in a competitive market.”
The research came from two complementary surveys conducted this fall, allowing NRF and Happy Returns to compare perspectives from both sides. They included one that gathered responses from 2,007 consumers who had returned at least one online purchase within the past year, and another from 249 e-commerce and finance professionals from large U.S. retailers.
The “series A” round was led by Andreessen Horowitz (a16z), with participation from Y Combinator and strategic industry investors, including RyderVentures. It follows an earlier, previously undisclosed, pre-seed round raised 1.5 years ago, that was backed by Array Ventures and other angel investors.
“Our mission is to redefine the economics of the freight industry by harnessing the power of agentic AI,ˮ Pablo Palafox, HappyRobotʼs co-founder and CEO, said in a release. “This funding will enable us to accelerate product development, expand and support our customer base, and ultimately transform how logistics businesses operate.ˮ
According to the firm, its conversational AI platform uses agentic AI—a term for systems that can autonomously make decisions and take actions to achieve specific goals—to simplify logistics operations. HappyRobot says its tech can automate tasks like inbound and outbound calls, carrier negotiations, and data capture, thus enabling brokers to enhance efficiency and capacity, improve margins, and free up human agents to focus on higher-value activities.
“Today, the logistics industry underpinning our global economy is stretched,” Anish Acharya, general partner at a16z, said. “As a key part of the ecosystem, even small to midsize freight brokers can make and receive hundreds, if not thousands, of calls per day – and hiring for this job is increasingly difficult. By providing customers with autonomous decision making, HappyRobotʼs agentic AI platform helps these brokers operate more reliably and efficiently.ˮ
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.