David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
In June, the Council of Supply Chain Management Professionals (CSCMP) named Mark Baxa its full-time president and CEO, a role he had filled on an interim basis for the previous 16 months. Baxa has extensive experience as a supply chain executive, working for much of his career at Monsanto in procurement strategy and international trade roles and, most recently, as the president and CEO of FerniaCreek, a supply chain consulting company he founded in 2018. He is also a longtime member of the supply chain organization he now leads, having previously served on CSCMP’s board of directors and as its chairman in 2019. He recently spoke with David Maloney, DC Velocity’s group editorial director.
Q: Congratulations on being named the full-time president and CEO of CSCMP. What are your hopes for the organization?
A: I am honored and humbled at the call to fill the role as CSCMP’s next president and CEO. During my tenure as interim, I had the distinct pleasure of working alongside the CSCMP staff and our strategic business partners to expand the benefits this great organization offers to the supply chain profession … practitioners, academics, collaborators, events and sponsorship teams, and many more. We have a well-placed and large mission as an organization. I intend to continue leading in that direction to not only fulfill that mission but also to create greater meaning and value within for all that are a part of CSCMP.
Now, more than ever, our CSCMP team is needed to support supply chain capability and competency building across the member lifecycle, and create powerful and relevant learning and networking opportunities so that the supply chain of today and tomorrow serves society well. We will advance many new initiatives that accelerate supply chain sustainability learning, talent development, creating functional centers of excellence, new content curation models, and enhancing the executive development experience, to name a few.
Q: We have seen a lot of supply chain disruptions this year. How is CSCMP helping its members navigate the current environment?
A: By staying true to our mission: educating the broader membership and guests of CSCMP. Supply chain leadership begins and ends with the competency of our people; that in turn will result in a more capable supply chain that delivers shared value for both customers and the business itself. We’ve invested in connecting the solutions found within the provider community with the practitioners who need those solutions by way of unbiased, credible research and content curation … presented live and in person, virtually, and through digital content.
Additionally, the critical-to-success live events at the roundtables and Edge Conference, supply chain courses, and certificate and certification programs are building up talent to solve for the challenges supply chains face as 2022 and 2023 unfold. We have, of course, always remained steadfast in providing those solutions, but equally important, making the connections within our global network of members, both practitioners and academics, that are vital.
Q: How will inflation and predicted slowdowns in transportation markets affect the industry for the remainder of 2022?
A: We heard about this very topic during the recent unveiling of CSCMP’s 33rd State of Logistics Report, held in Washington, D.C., on June 21. Slowdowns in the transportation sector typically result in a lowering of rates. The rate spot market will be a direct indicator of supply vs. demand and pricing, as an outcome will always be the “tell.” Inflation will impact the speed of any potential lowering of rates as the transportation sector assesses the demand curve. The degree of transportation demand softening will play a significant role in any downward rate pressure that may outweigh the rising cost of transportation operations.
Additionally, cost of fuel comes into play here and will remain in the picture for the foreseeable future given the impacts of both political pressure on fossil fuel consumption vs. alternative energy sources and that of the ongoing war in Ukraine and its lasting impacts.
Q: Retailers are now stocking up for the holiday peak. Do you have any advice for how they should prepare their supply chains for the season?
A: Yes. Believe in your digital investments to improve the predictability and reliability of your supply chain, but trust in your people even more! Our studies have shown that companies have continued to invest in planning software that improves the visibility of their supply chain events in order to achieve better business results. But it takes competent, knowledgeable, and prepared teams to execute. Invest in your people!
Second, keep in mind that nothing will stay the same from day to day. Attempting to predict what will occur in this environment—or making statements of the absolute such as guaranteed delivery dates—requires caution. Naturally, we want competitive advantage in the marketplace. That advantage is more likely than not to come from overcommunicating across your supply chain and the customer. Why? Think about it. How else shall we deal with the uncertain but to connect everyone to the events as they happen. To deliver on a promise now means “I am your trusted partner who knows what can happen, and when it does, I will be there to solve it—all the while, letting you know [what’s happening] before you read it in the news!”
And finally, if you haven’t already done so, it may be too late, but building trusted, strategic partnerships that afford a level of resiliency in your supply chain will be a big win when it comes to meeting demand. To trust your suppliers is one thing. But to have suppliers who show you why they can be trusted is something completely different.
Q: CSCMP’s Edge conference returns to Nashville next month. What can attendees expect to experience there?
A: Intelligence delivered. Pure and simple. This is the supply chain learning, development, and industry networking conference that touches all direct and supporting functions within supply chain, and it does so across practitioners, academics, and service providers. There is no better option than Edge. No one in supply chain today can meet the challenges of the road ahead without gathering as much intelligence as they can.
I know that some will take this statement as controversial, but if you are in supply chain, you must invest in external learning and intelligence gathering like you never have before. The solutions in this fast-paced, highly dynamic, and out-of-sync supply chain environment we’re in are NOT inside the four walls of your immediate business … the 70 (on-the-job learning)/20 (coaching & mentoring)/10 (external) model of learning and development for the supply chain leader and staff does not work now. You cannot compete in that environment. Be smart and take advantage of this learning and development event. We are looking forward to delivering tremendous value through the Edge experience.
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.
To solve those problems, chief supply chain officers (CSCOs) deploying GenAI need to shift from a sole focus on efficiency to a strategy that incorporates full organizational productivity. This strategy must better incorporate frontline workers, assuage growing employee anxieties from the use of GenAI tools, and focus on use-cases that promote creativity and innovation, rather than only on saving time.
"Early GenAI deployments within supply chain reveal a productivity paradox," Sam Berndt, Senior Director in Gartner’s Supply Chain practice, said in the report. "While its use has enhanced individual productivity for desk-based roles, these gains are not cascading through the rest of the function and are actually making the overall working environment worse for many employees. CSCOs need to retool their deployment strategies to address these negative outcomes.”
As part of the research, Gartner surveyed 265 global respondents in August 2024 to assess the impact of GenAI in supply chain organizations. In addition to the survey, Gartner conducted 75 qualitative interviews with supply chain leaders to gain deeper insights into the deployment and impact of GenAI on productivity, ROI, and employee experience, focusing on both desk-based and frontline workers.
Gartner’s data showed an increase in productivity from GenAI for desk-based workers, with GenAI tools saving 4.11 hours of time weekly for these employees. The time saved also correlated to increased output and higher quality work. However, these gains decreased when assessing team-level productivity. The amount of time saved declined to 1.5 hours per team member weekly, and there was no correlation to either improved output or higher quality of work.
Additional negative organizational impacts of GenAI deployments include:
Frontline workers have failed to make similar productivity gains as their desk-based counterparts, despite recording a similar amount of time savings from the use of GenAI tools.
Employees report higher levels of anxiety as they are exposed to a growing number of GenAI tools at work, with the average supply chain employee now utilizing 3.6 GenAI tools on average.
Higher anxiety among employees correlates to lower levels of overall productivity.
“In their pursuit of efficiency and time savings, CSCOs may be inadvertently creating a productivity ‘doom loop,’ whereby they continuously pilot new GenAI tools, increasing employee anxiety, which leads to lower levels of productivity,” said Berndt. “Rather than introducing even more GenAI tools into the work environment, CSCOs need to reexamine their overall strategy.”
According to Gartner, three ways to better boost organizational productivity through GenAI are: find creativity-based GenAI use cases to unlock benefits beyond mere time savings; train employees how to make use of the time they are saving from the use GenAI tools; and shift the focus from measuring automation to measuring innovation.
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.
The two acquisitions follow Arvato’s purchase three months ago of ATC Computer Transport & Logistics, an Irish firm that specializes in high-security transport and technical services in the data center industry. Following the latest deals, Arvato will have a total U.S. network of 16 warehouses with about seven million square feet of space.
Terms of the deal were not disclosed.
Carbel is a Florida-based 3PL with a strong focus on fashion and retail. It offers custom warehousing, distribution, storage, and transportation services, operating out of six facilities in the U.S., with a footprint of 1.6 million square feet of warehouse space in Florida (2), Pennsylvania (2), California, and New York.
Florida-based United Customs Services offers import and export solutions, specializing in remote location filing across the U.S., customs clearance, and trade compliance. CTPAT-certified since 2007, United Customs Services says it is known for simplifying global trade processes that help streamline operations for clients in international markets.
“With deep expertise in retail and apparel logistics services, Carbel and United Customs Services are the perfect partners to strengthen our ability to provide even more tailored solutions to our clients. Our combined knowledge and our joint commitment to excellence will drive our growth within the US and open new opportunities,” Arvato CEO Frank Schirrmeister said in a release.
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.
One of the biggest targets for innovation spending will artificial intelligence, as supply chain leaders look to use AI to automate time-consuming tasks. The survey showed that 41% are making AI a key part of their innovation strategy, with a third already leveraging it for data visibility, 29% for quality control, and 26% for labor optimization.
Still, lingering concerns around how to effectively and securely implement AI are leading some companies to sidestep the technology altogether. More than a third – 35% – said they’re largely prevented from using AI because of company policy, leaving an opportunity to streamline operations on the table.
“Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage,” Kristi Montgomery, Vice President, Innovation, Research & Development at Kenco, said in a release. “Now’s the time for organizations to explore and experiment with the tech, especially for automating data-heavy operations such as demand planning, shipping, and receiving to optimize your operations and unlock true efficiency.”
Among the survey’s other top findings:
there was essentially three-way tie for which physical automation tools professionals are looking to adopt in the coming year: robotics (43%), sensors and automatic identification (40%), and 3D printing (40%).
professionals tend to select a proven developer for providing supply chain innovation, but many also pick start-ups. Forty-five percent said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
there’s room to grow in partnering with 3PLs for innovation: only 13% said their 3PL identified a need for innovation, and just 8% partnered with a 3PL to bring a technology to life.
Volvo Autonomous Solutions will form a strategic partnership with autonomous driving technology and generative AI provider Waabi to jointly develop and deploy autonomous trucks, with testing scheduled to begin later this year.
The announcement came two weeks after autonomous truck developer Kodiak Robotics said it had become the first company in the industry to launch commercial driverless trucking operations. That milestone came as oil company Atlas Energy Solutions Inc. used two RoboTrucks—which are semi-trucks equipped with the Kodiak Driver self-driving system—to deliver 100 loads of fracking material on routes in the Permian Basin in West Texas and Eastern New Mexico.
Atlas now intends to scale up its RoboTruck deployment “considerably” over the course of 2025, with multiple RoboTruck deployments expected throughout the year. In support of that, Kodiak has established a 12-person office in Odessa, Texas, that is projected to grow to approximately 20 people by the end of Q1 2025.
Women are significantly underrepresented in the global transport sector workforce, comprising only 12% of transportation and storage workers worldwide as they face hurdles such as unfavorable workplace policies and significant gender gaps in operational, technical and leadership roles, a study from the World Bank Group shows.
This underrepresentation limits diverse perspectives in service design and decision-making, negatively affects businesses and undermines economic growth, according to the report, “Addressing Barriers to Women’s Participation in Transport.” The paper—which covers global trends and provides in-depth analysis of the women’s role in the transport sector in Europe and Central Asia (ECA) and Middle East and North Africa (MENA)—was prepared jointly by the World Bank Group, the Asian Development Bank (ADB), the German Agency for International Cooperation (GIZ), the European Investment Bank (EIB), and the International Transport Forum (ITF).
The slim proportion of women in the sector comes at a cost, since increasing female participation and leadership can drive innovation, enhance team performance, and improve service delivery for diverse users, while boosting GDP and addressing critical labor shortages, researchers said.
To drive solutions, the researchers today unveiled the Women in Transport (WiT) Network, which is designed to bring together transport stakeholders dedicated to empowering women across all facets and levels of the transport sector, and to serve as a forum for networking, recruitment, information exchange, training, and mentorship opportunities for women.
Initially, the WiT network will cover only the Europe and Central Asia and the Middle East and North Africa regions, but it is expected to gradually expand into a global initiative.
“When transport services are inclusive, economies thrive. Yet, as this joint report and our work at the EIB reveal, few transport companies fully leverage policies to better attract, retain and promote women,” Laura Piovesan, the European Investment Bank (EIB)’s Director General of the Projects Directorate, said in a release. “The Women in Transport Network enables us to unite efforts and scale impactful solutions - benefiting women, employers, communities and the climate.”