Supply & Demand Chain Executive March 2016 by Supply+Demand Chain/Food Logistics

BONUS PULLOUT: GLOBAL ENABLED SUPPLY & DEMAND CHAIN MAP, VERSION 31

MARCH 2016

MADE IN AMERICA

Faribault Woolen Mill keeps manufacturing onshore

2016 PROS TO KNOW

GO BIG OR GO HOME

Savvy supply chains tap into Big Data to optimize operations

DONâ&#x20AC;&#x2122;T LET MILLENNIALS DIE ON THE VINE

Progressive organizations invest in these future leaders

Meet Pro to Know of the Year Jacqueline Bailey of Cargill and the other supply chain innovators on the Pros to Know list

Fresh new content daily at SDCEXEC.COM

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PROS TO KNOW 2016

Here are a few of this year’s

SUPPLY CHAIN LEADERS …

For more Pros, turn to Page 8.

MICHAEL SHAW

CHARLES (JAKE) BARR

ED RUS

Founder and Chief Executive Officer American Council of Sourcing & Procurement Executives (ACSPE)

Chief Executive Officer BlueWorld Supply Chain Consulting

Global Vi Corporate Elemica

CLARK JOHNSON

AARON RUDD

Chief Operating Officer Avercast LLC

Vice President of Business and Product Development BROWZ

THE TEAM FROM E

JASON AVERILL

TOM BERTOLINO

SHARIQ

Executive Vice President Avercast LLC

Manager of Product Development Cass Information Systems Inc.

Chief Tec FusionO

JOHN MORELAND

RICHARD BURDEN

SERGIO

Founder and President Avetta, formerly PICS Auditing

Vice President of Global Supply Chain Management Operations, Strategy and Methods Celestica

Chief Exe Global4P Chain Se

LOUISA GOODING Director of Sales and Strategic Partnerships B2BGateway

THE TEAM FROM CELESTICA

ANTHO D’ANG

Vice Pres and Mar InterTra

MARVIN LOGAN

DOUG WAGGONER

PETER

Director of Consulting Bastian Solutions

Chairman and Chief Executive Officer Echo Global Logistics

Vice Presi Product S JustEno

MAIKE SIEVERS

ALEX KLEIN

DOMIN

Director of Engineering, Sales and Marketing BLG Logistics Inc.

Chief Operating Officer Efficio

Vice Presi Consultin Kinaxis

ALLAN DOW

MARCELL VOLLMER

President Logility

Senior Vice President and Chief Operating Officer SAP Ariba

LEONARDO FELIPE DE ARAUJO Strategic Sourcing Solutions Consultant NeoGrid

SCH

ice President of e Marketing a

EVAN D. MCCAIG President and Managing Principal SCApath

NATASHA J. GAMBRELL

JOHN SIDELL

Supply Chain Management Consultant NeoGrid

Managing Principal SCApath

RICK TUREK

BETH HENDRIKS

Chief Navigation Scientist Omnitracs LLC

Chief Technology Officer SciQuest

LINDA PALANZA

KAREN SAGE

Chief Operating Officer OneView Commerce

Chief Marketing Officer SciQuest

EXTENDATA

Q MANSOOR

chnology Officer Ops

KEVIN E. McCURDY

SEAN RILEY

Co-Founder and Vice President of Strategic Accounts Orchestro Inc.

Global Industry Director of Manufacturing, Supply Chain and Logistics Software AG

O RETAMAL

BARBARA M. ARDELL

OMER BAKKALBASI

ecutive Officer PL Supply ervices

Vice President and Influencing Change Practice Leader Paladin Associates Inc.

Chief Innovation Officer Solvoyo

ONY (TONY) GELO

sident of Sales rketing ade Systems Inc.

LEITH

ident of Strategy ough Software

WOLFGANG WINSTEL

ROBERT F. BYRNE

Chief Executive Officer, North America POOL4TOOL America LLC

Chief Executive Officer Terra Technology

GABRIEL GABALDON

JOHN RICHARDSON

Chief Technology Officer PROACTIS Group

Vice President of Supply Chain Analytics Transportation Insight

NIC THOMAS

ALBERT JACOBS

TODD BENGE

ident of Business ng

Chief Operations Officer and Vice President of Business Relations Puridiom

Vice President of Package Operations Transportation Insight

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March 2016 | Volume 17 | Issue 1

CONTENTS FEATURE

28 ANALYTICS

2016 PROS TO KNOW

Meet Pro to Know of the Year Jacqueline Bailey of Cargill and the other supply chain innovators on the Pros to Know list

o Big or G Go Home

In the battle between humans and algorithms, supply chains can win big by employing business intelligence tools to analyze Big Data and use it to optimize operations.

SPECIAL REPORTS

34 THE INTERNET OF THINGS Transform Supply Chains into Supply Streams

The Internet of Things enables tighter integration between warehouse inventories upstream and downstream.

08 42

36 PROCUREMENT How P2P Can Pay Off

The secret to successful P2P lies in an automated and connected process embraced by everyone from procurement to accounts payable.

32 NEWLY UPDATED! INDEX OF

ERTISERS

. . . . ista . . . . .

. . . . . . . . .

envistacorp.com 84-7700 @envistacorp.com

rtna

. . . . . . . . .

. . . . . Inc . . . . . .

artner Inc

. . . . . . . . .

ww.gartner.com 00-213-4848 m nquiry@gartner.co

. . cs . . . . . . . LeanLogisti com . . . . . . . . Logility . www.logility.com 800-762-5207 Lee White • info@logility.com

a han

MHI . . . . .

. . . . . . . .

. . . . . . . . .

. . . . . . . . inx . . . . . .

. . . . . . . 19

. . 43

SPECIAL INSERT

S . . 25 ADVERTISER . . . . . . . . . Inc . . . . . .

. . .

www.ratelinx.com urt • 262-264-5554 Shannon Vaillanco om consulting nt software and shannon@ratelinx.c Integrated logistics manageme providing actionable RateLinx customizedand predictive analytics, processing and Data SM procurement, increases efficiency leverages Big . By connecting costs, Shipping Intelligencesignificantly reduces shipping payment, RateLinx relations. carrier and improves

. . . . . 45

SafeSourcingcom

Following Page 26

www.safesourcing. • 866-623-9006 Ronald D. Southardurcing.com cloud-based specializing in marketing@safeso ent company offers a full suite is an e-procurem e-sourcing. The company one-stop SafeSourcing making it a complete solutions including procurement procure-to-pay solutions, It™ of SafeSource sourcing offering. 2 global strategic . . . . . . . . .

l® . . . . . . . .

UPS Capita

. . . . . .

m 930 www.upscapital.co • 877-242-7 Kristin DeBates insurance and kdebates@ups.com of UPS®, provides financial, and leverage cash risk a subsidiary companies from UPS Capital®, to help protect payment services chains. in their supply

and Education . . . . . . 51 Warehousing il (WERC) . . . . Counc Research www.werc.org

24 . . . . . . . . .

. . . . . . . . .

www.mhi.org • 704-227-0757 Meredith Watts .com mwatts@bemythic

Numerex

. . . . 26

. . . . . . . . .

www.puridiom.com• 717-691-5691 Samantha Shewan m.com now offers samantha@puridio solution provider, approach to cost e procure-to-pay program. Puridiom, a leading holistic and collaborativ under one unified as a service, a areas of spend procurement savings from all 5 control. Realize . . . . . . . . .

RateL

w.fortna.com 0991, ext. 1201 e Baar • 770-475ebaar@fortna.com

www.leanlogistics. 866-584-7280 istics.com solutions@leanlog

Puridiom

. . . . . . . . 50

Supply

. . . . . . . . 7

. . . . . . . . Corp . . . . .

ns es the solutio edge This map provid supply chains a competitive give your

. . . . . . . 31

www.numerex.com • 877-980- 6208 Numerex Sales operations info@numerex.com Numerex empowers enterprise that are (IoT) solutions the ce provider, As a single-sour , managed Internet of Things company simplifies with world-class scalable and secure. The abling the IoT. simple, innovative, interconnectivity—en machine 17 complexity of

t ion Freigh Old Domin

Global Supply and Demand Chain Map 31.0

Enabled The Global Chain Map and Demand and services that can

Version 31.0

. 16, Line Inc . .

www.odf l.com 800-235-5569 carrier odfl.com ruckload (LTL) for customer.service@ is a leading less-than-t . Contact Old Dominion Freight Line Old Dominion 220 service centers nationwide 69. with more than om or 800-235-55 a quote at www.odfl.c

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FINANCE Navigating Global Trade

7:17 AM

SDCEXEC.COM sdcexec.com/article/12154883

There are tools to help your business prosper.

Exclusive online features and solutions for successful supply chain operations

Four Reasons for the Supply Chain Talent Shortage, Part 1

39 GLOBAL TRADE

2016 Predictions: The Year of the Business-to-Business Customer sdcexec.com/article/12159594

EXECUTIVE FOCUS

40 T RANSPORTATION In It for the Short Haul

Are your transportation vendors committed to perform quality work even when market conditions turn?

42 SOFTWARE

& TECH Hardware that Helps Facilitate Hard Work

The hardware that warehouse and distribution center employees use daily is essential.

46 WAREHOUSING

Upping the Yard Management Automation Ante Yard management systems plan and optimize yard tasks to boost the bottom line.

48 PROFESSIONAL DEVELOPMENT Don’t Let Millennials Die on the Vine

Develop future leaders by investing in them.

COLUMNS

06 EXECUTIVE MEMO 32 MADE IN AMERICA 52 WORK HARD, PLAY HARD

See into the Future of Demand by Unlocking ERP’s Full Potential sdcexec.com/article/12163620

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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Freight Audit is obsolete.

Today there’s a smarter way. Dialing zeros when the world moves in gigabits per second is obsolete. And so is traditional freight audit. It’s slow, and the information is outdated when finally collected and reviewed. RateLinx Intelligent Invoice Management™ is completely different. Unlike traditional Freight Audit, we look forward not backwards. We work with your carriers before they ship so they will comply with your business rules and avoid errors. Our dynamic invoice payment

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system then collects invoice data directly from the carriers in real time. Within 24 hours, you’re viewing the invoice in a valuable standardized data set on the RateLinx Dashboard. With complete visibility to what’s happening in your supply chain, problems can be fixed immediately. Strategy and execution can be fine-tuned before costly errors add up. We don’t collect invoice data to make adjustments. We collect invoice data for the real-time intelligence it brings your

shipping planning and execution. We plug the profit leaks and close the loop on shipping. We help you decide. Am I using the right rules? Am I using the right carriers? Is the billing right? RateLinx Intelligent Invoice Management not only shows you where you are going but how to get there faster and cheaper. This is the smarter way. Learn how RateLinx can put you in the fast lane. ratelinx.com/iim

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EXECUTIVE MEMO By Ronnie Garrett, Editor rgarrett@ACBusinessMedia.com

KICK THE SILENT KILLER TO THE CURB COMPLACENCY MIGHT STRIKE WITHOUT WARNING, BUT IT DOESN’T HAVE TO KILL

hat is the silent killer reports; and in-depth coverage of today’s that strikes without top topics, including risk management warning, and can bring and corporate social responsibility. a company and its Additionally, we have a Made in America supply chain to its knees? Complacency. series to profile companies deciding to When companies and supply chains resist keep operations in the states. adapting to changes in the marketplace, We also introduced a Work Hard, Play they can lose their competitive edge. Hard column that takes a look at the Complacency can also bring a magazine after-hours lifestyles and hobbies of supply to its knees. At Supply & Demand Chain chain executives. From extreme sports Executive, we were to wine-making Today’s dynamic supply and travel, we’re never content with running in place, but chain leaders must rapidly already finding you recently, we decided it are spending your was time to ensure we respond to constant off-hours in some keep kicking this silent interesting ways. change to fashion With all these killer to the curb. We launched resilient supply chains. changes, Supply Supply & Demand & Demand Chain Chain Executive 16 years ago to Executive stands poised to help supply chain address growing interest in supply leaders position their companies for future chain management, particularly from a growth. But the more things change, the senior executive perspective. But supply more they stay the same. As the new editor, chains and virtually every industry they I plan to draw upon my 22-year background touch evolved over the years. After a in business-to-business writing to provide comprehensive soul search, we decided the cutting-edge supply chain coverage it was time for us to tweak our content, that our readers have come to expect. delivery, look and feel to remain relevant Today’s dynamic supply chain leaders to our dynamic executive audience. must rapidly respond to constant change In this first issue, and in the ones to to fashion resilient supply chains that come, you will see some exciting changes can adapt and manage risk in an everas we devote more coverage to emerging changing global economy. And at Supply areas impacting supply chains. Each issue & Demand Chain Executive, we plan to will include special reports on the Internet continue delivering the content to help of Things, procurement and trade finance; you do just that—today, tomorrow and executive focus features on transportation, well into the future. warehousing, software and technology, and professional development; global regional 6

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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

www.SDCExec.com PRINT AND DIGITAL STAFF GROUP PUBLISHER Jolene Gulley ASSOCIATE PUBLISHER Judy Welp EDITORIAL DIRECTOR Lara L. Sowinski EDITOR Ronnie Garrett MANAGING EDITOR Elliot Maras ASSOCIATE EDITOR Carrie Mantey WEB EDITOR Eric Sacharski AD PRODUCTION MANAGER Cindy Rusch ART DIRECTOR Kayla Brown AUDIENCE DEVELOPMENT DIRECTOR Wendy Chady AUDIENCE DEVELOPMENT MANAGER Angela Kelty ADVERTISING SALES (800) 538-5544 JOLENE GULLEY, jgulley@ACBusinessMedia.com STEPHANIE PAPP, spapp@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 BOB RUDZKI, President, Greybeard Advisors 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: (800) 543-5055 Email: circ.sdcexec@omeda.com LIST RENTAL Elizabeth Jackson, Merit Direct LLC (847) 492-1350, ext. 18, Fax: (847) 492-0085 Email: ejackson@meritdirect.com REPRINT SERVICES JOLENE GULLEY, jgulley@ACBusinessMedia.com AC BUSINESS MEDIA INC. CHAIRMAN Anil Narang PRESIDENT AND CEO Carl Wistreich EXECUTIVE VICE PRESIDENT Kris Flitcroft CFO JoAnn Breuchel VP CONTENT Greg Udelhofen VP MARKETING Debbie George DIGITAL OPERATIONS MANAGER Nick Raether DIGITAL SALES MANAGER Monique Terrazas Published and copyrighted 2016 by AC Business Media Inc. 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 Inc., 201 N. Main Street, Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, Wisconsin and additional entry offices. 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 p ublisher cannot assume responsibility for the validity of claims or performances of items appearing in editorial presentations or advertisements in the publication. March 2016 / Volume 17 / Issue 1

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PROS TO KNOW 2016 By Editorial Staff, Supply & Demand Chain Executive

LEADING T Cargill’s Jacqueline Bailey tops the list of an impressive class of supply chain visionaries who are leading initiatives to prepare today’s supply chains for the future

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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hen Supply & Demand Chain Executive asked Jacqueline Bailey, our Pro to Know of the Year, what she would look for in a Pro to Know, two primary qualities came to light: curiosity and fearlessness. Bailey explains these two traits combine to create a person who is willing to explore new territory and try new things. These are individuals who let go of the “this is how we have always done it” mentality and instead “lead strategy and get things done.” These are people who are living as Pros to Know. Today’s supply chain requires leaders who can rapidly respond to constant change in order to fashion resilient supply chains that can adapt and manage risk in an ever-changing global economy. Identifying and recognizing these leaders, and bringing their achievements to the forefront, is a mission Supply & Demand Chain Executive takes very seriously. Every year, our staff sifts through hundreds of entries—nearly 400 in 2016—to find the best and the brightest leaders in the supply chain. These leaders become the Supply & Demand Chain Executive Pros to Know. Once we narrow this impressive group of nominations, our job becomes even tougher—we then must select our Pro to Know of the Year. This individual is the one who rises to the top of a long list of accomplished supply chain leaders, and embodies the attitude, business acumen and exceptional leadership skills we seek in an award of this distinction.

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G THE WAY

Bailey, an active leader in supply chain that ensures the enterprise is forward-thinking management her entire career, emerged as our and nimble. “We cannot rely on our sheer size and front-runner for 2016. It’s clear the industry agrees. scale to compete,” she explains. “We need to seek When we selected Bailey for this honor, she was innovative ways to gain efficiency throughout our the Transportation Leader at Cargill Inc., but she network to ensure flawless execution to the customer was since promoted to North American Truck while driving cost out of the supply chain.” Transport Lead, Cargill Transportation & Logistics, Technology-enabled solutions drive value and Cargill Inc. efficiency beyond daily operations. Bailey was Her logistics experience, financial background, the key driver in implementing a fully integrated and proven track record selling and implementing transportation management system (TMS), and technology-enabled solutions centralizing all transportation for Fortune 1000 companies and logistics activities within make her an effective her business unit. The TMS leader and innovator. As provides multi-party visibility Transportation Leader for and business intelligence. one of the country’s largest This added visibility enables privately held corporations, the supply chain to be more Bailey led the Transportation intelligent in forecasting, and Logistics group through detecting and reacting to one of the company’s largest market fluctuations that have joint ventures. She currently large bottom-line impacts. leads truck sourcing for North Cargill’s centralization of America and is a core team resources also improved the member setting the truckload quality of service. Much of strategy for the overall Bailey’s focus in 2015 was enterprise. on professionally managing — JACQUELINE BAILEY, NORTH While some might take carrier partners. With the AMERICAN TRUCK TRANSPORT LEAD, credit for the success of a team, added data and visibility, she CARGILL TRANSPORTATION & LOGISTICS Bailey is quick to explain her was able to take an unmanaged achievements are due to the hard work of the entire transportation segment to market delivering team. She views her role as “ensuring teams are significant savings to the enterprise. “The benefits engaged in the right work, challenged on a daily of both a TMS and centralized activities are basis and performing at their highest level.” She adds, discipline and process control,” says Bailey. “As “If the team is performing at a high level, we will be a result, we were able to establish meaningful driving toward the right results, and delivering value metrics to manage the business. In time, we gained to both the organization and our clients.” efficiency and improved performance.”

UNLIKE OTHER BACKOFFICE FUNCTIONS THAT ARE ONLY INTERNALLY FOCUSED, ORGANIZATIONS NEED TO RECOGNIZE THAT SUPPLY CHAIN AND LOGISTICS EXPANDS BEYOND THE INTERNAL FOUR WALLS.

A SPIRIT OF INNOVATION

A STRATEGIC APPROACH

In a market where changing regulations and ongoing driver shortages are common, it is critical for Cargill to manage capacity demands in a way

To ensure the Transportation and Logistics practice is nimble and meets the demands of the enterprise, Bailey and three other core

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PROS TO KNOW 2016

team members delivered a transportation and procurement strategy in 2015 to meet the more than $1 billion in truckload services required to support the customer. The strategy, in its second year of deployment, is changing the way Cargill manages service partners and sources truckload needs, making certain to have the right capacity, service and cost in place to flawlessly service the customer. By strategically managing a private, dedicated and for-hire fleet, Cargill will gain access to cost-saving freight and capacity, improve fleet utilization and increase work efficiency, delivering both value and results to all parties. “We are in the final phase of implementing the North American strategy and still expect great benefits from more strategically managing our carrier relations,” says Bailey. “To date, we delivered significant value to the enterprise by leveraging Cargill’s network and spend. We now have dedicated corporate resources professionally managing transportation and logistics with a focus on simplifying and improving our function.”

BECOME THE SHIPPER OF CHOICE To combat concerns over driver and capacity shortages, Bailey also kicked off an initiative to become “Shipper of Choice.” She says, “Becoming Shipper of Choice is a long journey that we just began. The initial phase was to create awareness and empower our business units to make change. We surveyed drivers and shared the results. We also hosted a carrier panel to speak to our transportation leaders about what it means to be a partner of choice.” The guest carrier panels helped expand people’s knowledge and understanding of the broader marketplace. This initiative also expanded across functions as manufacturing and operational leaders gained awareness and supported change within their areas. Sales and marketing are also engaged in building external customer communication to share Cargill’s point of view and perspective on current market conditions. Bailey also worked closely with external consultants to model network costs, and design new procurement processes and transportation go-to-market strategies.

SHUT DOWN THE SILOES Bailey believes it’s essential to move past the idea that supply chain is a siloed or back-office function.

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The supply chain function needs to broaden its scope in terms of accountabilities, according to Bailey. Supply chain should cut across all business functions, supporting the overall goals of the entire organization. “Unlike other back-office functions that are only internally focused, organizations need to recognize that supply chain and logistics expand beyond the internal four walls,” she says. “As organizations embrace this new reality, there is an opportunity to collaborate across the supply chain to drive incremental value and savings. Companies need to leverage cross-functional teams in their own organization and their customers’ organizations. Doing so can create a unique value proposition for partnering organizations, even a strategic advantage.” Bailey states supply chain’s focus should be on process efficiency and cycle time reduction, beginning with internal processes and extending to external partners. It should be a “shared accountability across the organization” and among collaborative partners. And technology needs to be part — JACQUELINE BAILEY, NORTH of the process. “By adopting and AMERICAN TRUCK TRANSPORT leveraging technologies that make LEAD, CARGILL TRANSPORTATION supply chain management a more & LOGISTICS transparent and efficient process, businesses can lower their own costs while enabling all parties to ultimately reap the benefits of reduced costs and stronger business relationships,” she says. Bailey is a true supply chain visionary and worthy of our Pro to Know of the Year status, but there are many others on our list who are also worthy of recognition as Pros to Know. The Pros to Know is a listing of exceptional corporate executives at manufacturing and non-manufacturing enterprises who are leading initiatives to help prepare their companies’ supply chains for the significant challenges in the year ahead. Their accomplishments offer a roadmap for other leaders looking to leverage the supply chain for competitive advantage. Now let’s pay tribute to all of 2016’s Pros to Know …

WE NEED TO SEEK NEW AND INNOVATIVE WAYS TO GAIN EFFICIENCY THROUGHOUT OUR NETWORK TO ENSURE FLAWLESS EXECUTION TO THE CUSTOMER WHILE DRIVING COST OUT OF THE SUPPLY CHAIN.

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re tu Fu . E LE AD M .

O E E S VAT AWI N N O n . a

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PROS TO KNOW 2016

2016

Provider Pros to Know MICHAEL SHAW, Founder and Chief Executive Officer, American Council of Sourcing and Procurement Executives (ACSPE)

Shaw founded the 4,000-member organization in 2013 to share information, ideas, resources and best practices between members. The organization’s primary focus is to use disruptive thinking to prepare for the inevitable changes taking place in people, process and technology. More than 600 chief procurement officers and senior supply chain vice presidents participate in this fast-growing organization.

CLARK JOHNSON, Chief Operating Officer, Avercast LLC

Johnson believes that sales and operations planning is the way for supply chain to transcend any organization. Each division in a company must come to consensus as to what assumptions are being held, what contingency plans are in play for best- and worstcase scenarios, and what the company looks like going forward for the next three to five years.

JASON AVERILL, Executive Vice President, Avercast LLC

Averill consistently helps his customers reduce their lead times, increase inventory turns and improve overall customer service levels, all while operating on less inventory (typically achieving a 25 percent or better reduction in the first six months) and facilitating an overall lower supply chain cost that is shared by all trading partners.

KEVIN HOYLE, Chief Executive Officer, B2BGateway By bringing electronic data interchange (EDI) into the cloud age, Hoyle was a pioneer in helping to make EDI solutions affordable and open to all. Furthermore, Hoyle and B2BGateway, a third-party EDI solution provider, foresee EDI technology being used in the Internet of Things (IoT) and smart machines to order new parts, maintain agreed-upon inventory levels and provide greater business intelligence to the customer.

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LOUISA GOODING, Director of Sales and Strategic Partnerships, B2BGateway

Gooding helps organizations of all sizes take advantage of cloud-based EDI solutions, which helps them successfully navigate today’s omnichannel marketplace. B2BGateway is currently working to give a customer a complete automated warehouse solution incorporating radio frequency identification (RFID), EDI, pick and pack, and tracking to eliminate mundane and labor-intensive tasks, speeding up the overall supply chain, reducing errors and cutting costs.

ROGER LEYDEN, Director of Global Business Development, B2BGateway Leyden thinks, “With the ever-increasing adoption of the IoT and smart machinery, one of the key challenges [in the year ahead] will be to get the right data to the right applications in the right timeframe. Opportunities, such as when a smart machine contacts the enterprise resource planning (ERP) system of its manufacturer to request a new part after 3,000 labor hours, will be present.”

MARVIN LOGAN, Director of Consulting, Bastian Solutions

Logan regularly contributes to the supply chain community, including developing data profile analysis tools customized for goods-to-person technology solutions. Through his creativity, Bastian Solutions is able to appropriately analyze order volumes and profile various goodsto-person technologies, delivering its customers fast order fulfillment solutions.

AD VAN DER POEL, Senior Vice President of Financing Services, Basware Van der Poel has 20 years of experience in the financial services industry. He brings expertise in product innovation to Basware’s recently launched Financing Services business and drives the implementation of strategy on an international level. He brings new and innovative financial services to the market for buyers and suppliers, as well as grows the Basware Commerce Network.

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CHARLES (JAKE) BARR, Chief Executive Officer, BlueWorld Supply Chain Consulting “Cycle and reaction times to market are continuing to compress, and cash and margin pressures have never been greater, but each [global player] needs to add products/services and geographic footprint to their business, while concurrently optimizing what has made them successful to date,” according to Barr in regard to upcoming challenges. “All of this will accelerate further in 2016.”

Drake works to advance women’s leadership in the supply chain industry. She founded Achieving Women’s Excellence in Supply Chain Operations, Management and Education (AWESOME), a women’s leadership network for the supply chain. According to Drake, “We need to change the leadership landscape so outstanding women and men have the same opportunities, and can work together to harness the full power of the supply chain.”

AARON RUDD, Vice President of Business and Product Development, BROWZ

DOUG WAGGONER, Chairman and Chief Executive Officer, Echo Global Logistics

Rudd and his team provided the first mobile app for checking contractor compliance and deficiencies— BROWZ for Clients—which allows clients to view a list of their suppliers/ contractors, and compliance details, deficiencies and contact information for each. Rudd’s team also released BROWZ for Suppliers, so suppliers/ contractors could access their own compliance information—the same data clients view.

RICHARD BURDEN, Vice President of Global Supply Chain Management Operations, Strategy and Methods, Celestica

As a supply chain leader, Burden’s philosophy is to be personally involved with the company’s senior leaders and customers, understanding their strategic requirements and value creation needs. His team leverages both internal and external supply chain networks to ensure strategy is aligned with Celestica’s broader vision. Burden’s priorities are to deliver the strategic needs of Celestica and their customers, providing best-inclass end-to-end supply chain solutions that meet their goals.

BILL HARRISON, President, Demand Management Inc. Bill Harrison and Demand Management are committed to helping their customers understand, embrace and implement the principles of integrated business planning so that they can achieve higher levels of supply chain excellence. One customer— Kimberly-Clark Professional—is saving many hours per month for its planners and analysts, and reduced its forecast error by 19 percent. 14

ANN DRAKE, Chief Executive Officer, DSC Logistics

Waggoner has built Echo into a leading, publicly traded, billion-dollar provider of technology-enabled transportation management. His prior experience with less-thantruckload (LTL) transportation provided initial focus and quickly turned Echo into a premier provider of LTL in the third-party logistics provider (3PL) space. Waggoner has led the acquisition of 20 3PLs. He has also helped Echo develop a strong Managed Transportation solution.

ALEX KLEIN, Chief Operating Officer, Efficio

Klein helps companies design, launch and execute two-year procurement transformations, which not only deliver financial savings, but also upgrade the procurement function through the on-the-job introduction of better processes. The impact of these projects is significant—depending on the sector, 30 to 80 percent of a company’s costs are externally procured. Klein helps many organizations reduce their cost base by 10 percent.

IAN BOLGER, Principal, Efficio Bolger has the interpersonal confidence and skills to consult at the senior executive level, using his extensive experience to drive innovative supply chain strategy and help clients meet the challenges they face. He is an experienced senior procurement consultant and chief procurement officer, with a track record of identifying and delivering transformational change in a range of business sectors and expenditure types.

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JAMES JENKINSON, Vice President, Efficio Finding talented procurement professionals is difficult. Jenkinson believes that the industry needs to look beyond procurement skills for individuals with the right set of competencies, then couple that with a comprehensive training program. He built a suite of applications that not only measures capabilities, but also provides video learning support that procurement professionals can use to learn the skills they need.

ED RUSCH, Global Vice President of Corporate Marketing, Elemica

Benefield thinks the biggest challenge facing his clients is transitioning into an omnichannel retailer to meet today’s sophisticated consumer needs. Some traditional retailers don’t know how to, or are not equipped to, manage and operate all that technology, but in order for these companies to remain relevant, it is enVista’s duty to come up with a solution that works for everyone.

JASON DENMON, Retail Industry Leader, Fortna

Rusch innovatively approaches supply chain communication, breathing fresh air into older disciplines and causing industry leaders to think about the market in more modern ways. He has directed annual customer conferences, both in Europe and the United States. These events gather executives, industry analysts and thought leaders from the global community to share ideas that can push supply chains to the next level of growth and profitability.

TED HIGUCHI, Vice President of Asia, Elemica Higuchi helps his clients make better decisions about the suppliers they connect with, what logistics service providers to use and how to best work with these organizations. With the Elemica supply chain operating network, his clients gain global visibility into material flows at any given moment, so they have options to sustain production and meet their customer service level goals.

VINCE SQUILLACIOTI, Chief Information Officer and Head of Global Support, Elemica As chief information officer, Squillacioti ensures that Elemica’s supply chain operating network, which processes more than $400 billion in commerce value annually, is operating efficiently and effectively, and helping clients drive bottomline results by promoting reduced operational costs, faster process execution, automation of key business processes, removal of transactional barriers and seamless information flow between trading partners.

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JIMMY BENEFIELD, Partner, enVista Design Solutions LLC, enVista

Denmon is an innovative supply chain strategist who helps companies transform their complex distribution operations into a competitive advantage by developing a strong business case for investment and getting alignment across a diverse group of stakeholders. He also helps high-growth companies develop their distribution network strategy, conduct operational assessments, design distribution centers, implement systems and manage labor.

JUAN RECONDO, Vice President of Sales for Latin America, Fortna Recondo is currently helping a client design and implement two omnichannel distribution centers—one in Chile and one in Colombia. He’s helping to not only implement the right processes, technology and level of automation, but also making sure people are going to be trained, transition plans are going to be well-executed and the distribution centers are going to perform as expected, maximizing return on investment.

PATTI SATTERFIELD, Vice President of Marketing and Business Development, Fortna Satterfield doesn’t mince words when it comes to the importance of supply chain: “The supply chain is an integral part of a company’s financial success. The sole purpose of a supply chain is to deliver on customer promises. A clear understanding of the customer’s needs and wants is required. Even if it has the products, a company will not reach its financial goals if the supply chain cannot deliver them accurately and efficiently.”

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SHARIQ MANSOOR, Chief Technology Officer, FusionOps

Mansoor is a visionary with experience in bringing multiple supply chain software products to market. Mansoor’s first application automated the entire material procurement process, which dramatically reduces costs and lead times, thus increasing the efficiency of the material team. With more than 5,000 suppliers online, his Streamline application is used by many industry leaders.

SERGIO RETAMAL, Chief Executive Officer, Global4PL Supply Chain Services

Retamal believes that anybody can support Europe or Canada, but once you have to deliver in India, Bangladesh or one of the more difficult countries, it is a completely

different game. In that vein, Global4PL expanded to operate in over 74 countries to help its clients deliver to their customers, which means that the company needs tremendous knowledge of how to do business in over 74 countries. And Global4PL does.

ANTHONY (TONY) D’ANGELO, Vice President of Sales and Marketing, InterTrade Systems Inc.

D’Angelo is a member of the GS1 Image and Extended Attribute Committee, which is finishing the third round of newly standardized data attributes for e-commerce use. The challenge is collaborating with suppliers/ manufacturers to provide these new data fields to retailers for use in product information management systems and e-commerce sites. He thinks standardizing and automating images is crucial for retailers/e-tailers to provide rich content to consumers.

Old Dominion’s focus on premium service means every item arrives with one of the lowest claims ratios and one of the best on-time records in the industry.

Old Dominion Freight Line, the Old Dominion logo, OD Household Services and Helping The World Keep Promises are service marks or registered service marks of Old Dominion Freight Line, Inc. All other service2016 marks| identifi ed herein are the intellectual property of their respective owners. 16 SUPPLY & DEMAND CHAINtrademarks EXECUTIVEand | March SDCExec.com © 2016 Old Dominion Freight Line, Inc., Thomasville, N.C. All rights reserved.

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PETER LEITH, Vice President of Product Strategy, JustEnough Software

Leith drives the direction and design of the JustEnough Demand Management product suite and leads the JustEnough pre-sales team. Leith has implemented JustEnough solutions across five continents, and for a customer list that includes Levi Strauss, Abercrombie & Fitch, Chanel, Kathmandu, GO Outdoors and Mr Price.

DOMINIC THOMAS, Vice President of Business Consulting, Kinaxis

Thomas has spent 20 years working with supply chain planning solutions, and is passionate about technology designed to streamline supply chain processes and eliminate cost. Thomas guides the Kinaxis pre-sales consulting service and helps companies identify solutions that fit their needs. He joined Kinaxis as a business consultant

OD Domestic offers:

in May 2015 before assuming his current role in November 2015.

BILL MADDEN, Director of Managed Transportation Services, LeanLogistics Inc. Madden brings his past roles—from dispatcher to fleet manager to freight broker and logistics coordinator—to his current position leading a team of 90 logistics managers and coordinators, and account managers supporting 13 managed services clients and $2 billion in annual freight movements. His focus is on building better supply chain professionals and delivering operational excellence through engineered simplicity.

ALLAN DOW, President, Logility

Dow helped launch Logility Cloud Services, which increased the adoption of Logility’s cloud services and software-as-a-service (SaaS) offerings. He added a series of Optimization

• More than 220 service centers nationwide • Competitive transit times and pricing • Proactive shipping solutions

For more information, visit odfl.com or call 1-800-235-5569.

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and Managed Services. He also led the concept of enabling the “supply chain at your fingertips.” His work to release Logility Voyager Thumbprint gives supply chain managers access to the information they need via smartphones or tablets.

LEONARDO FELIPE DE ARAUJO, Strategic Sourcing Solutions Consultant, NeoGrid

De Araujo can address a plethora of supply chain processes to improve complex circumstances before they become problems. He began his career at NeoGrid as a customer support specialist helping to train European users on the e-sourcing tool, while managing the accounts payable (AP) support team. He currently serves North American customers. De Araujo trains new customers, oversees full service events, and delivers results to customers while supporting daily processes.

NATASHA J. GAMBRELL, Supply Chain Management Consultant, NeoGrid

Gambrell produces management processes for NeoGrid’s vendormanaged inventory, sales and operations planning, and trade promotion management supply chain services. She is passionate about expediting business goals with strategic communication plans, bestpractice processes, and improvements to devise winning strategies and solutions. Gambrell thrives at cross-functional team leadership and competitive market positioning, which helps companies deliver positive outcomes with strong and sustainable gains.

RICK TUREK, Chief Navigation Scientist, Omnitracs LLC

Turek deftly leads a team of 19 technology engineers, and his creative and innovative style enables them to deliver industry-leading products and exemplary customer service. Turek led Omnitracs’ 2015 debut of Omnitracs Navigation. He requires employees to participate in driver ride-alongs to understand how this product aids drivers and learn what improvements can be made to help drivers perform at an optimal level.

LINDA PALANZA, Chief Operating Officer, OneView Commerce

Palanza co-founded OneView Commerce in 2010 to help companies replace legacy point-ofsale (POS) systems with a mobile inventory trading platform. With more than 30 years of retail supply chain experience, Palanza understood these technologies would make store associates more efficient and empower them to improve the customer experience. Today, OneView’s reach spans 28 countries. Palanza oversees day-to-day operations, development and services, and strategic business partnerships.

BARBARA M. ARDELL, Vice President and Influencing Change Practice Leader, Paladin Associates Inc.

Ardell brings intersecting skills in strategic sourcing, change management, quality, training and e-procurement to her role. She helped develop Paladin’s Influencing Change training. Employees and project teams from Fortune 50 to Fortune 1000 clients say they appreciate Ardell’s subject-matter expertise and the course’s best-in-class approach. Ardell now offers two new courses—Crucial Conversations and Crucial Accountability for the Supply Chain, which are based on the The New York Times bestsellers, Crucial Conversations and Crucial Accountability, and tailored specifically for the supply chain.

GABRIEL GABALDON, Chief Technology Officer, PROACTIS Group

Gabaldon directs technology-related processes at PROACTIS Group. He plays an integral role in setting the group’s strategic direction, development and future growth, and in positioning the company’s service offering as a leader in the procurement market. He has served in many technical roles, including customer product branding, new product development and digital virtual memory system administration.

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ALBERT JACOBS, Chief Operations Officer and Vice President of Business Relations, Puridiom

Jacobs has more than 25 years of domain expertise, and has helped more than 250 organizations improve their supply chain in the areas of procurement, sourcing and AP by promoting best-practice strategies, bringing lessons learned, leveraging technology and providing outsourced services. He emphasizes the importance of procurement within the supply chain through blogs, webinars, panel discussions and speeches.

MARCELL VOLLMER, Senior Vice President and Chief Operating Officer, SAP Ariba

Vollmer is responsible for supporting and collaborating with Alex Atzberger, president of SAP Ariba, to ensure the company remains functional, competitive and

innovative. Vollmer was named COO after spending four years as the chief procurement officer (CPO) of SAP’s Global Procurement Organization. During his tenure as CPO, Vollmer reduced procurement costs by more than 20 percent, transitioned corporate procurement policy away from local purchasing and refocused it on the global market, and was a key player in the onboarding and integration of Ariba after its acquisition.

MICHELE SARKO, Vice President of User Experience and Chief Design Officer, SAP Ariba Sarko joined Ariba to lead the transformation of all Ariba products to a more modern and usercentered experience. Sarko spent the past 20 years leading multi-disciplinary, user-centered design teams focused on interaction design, visual design, user research, writing and front-end development. Her tenure spans across enterprise, consumer,

control, manage, and dramatically improve your bottom line.

supplier network

business services

technology

outsourced services

support services

more than just a p2p suite introducing a total profit improvement service ONE SOLUTION. ONE SERVICE. COMPANY-WIDE SAVINGS. for more information visit puridiom.com/procurement-as-a-service

puridiom.com

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•

info@puridiom.com

•

800.388.1415

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search and e-commerce industries, with additional focuses in internationalization, localization and accessibility.

EVAN D. McCAIG, President and Managing Principal, SCApath

McCaig founded SCApath in response to growing market demand for multichannel supply chains driven by a rapidly changing digital retail landscape. He spent the last 18 years successfully deploying supply chain solutions that optimize material and information flow for Fortune 500 companies. He is an industry thought leader in global supply visibility, supply execution and omnichannel integration.

JOHN SIDELL, Managing Principal, SCApath

Sidell has more than 25 years of experience in supply chain execution systems, including consulting, implementation, software design and deployment. Sidell provides executive consulting services focused on revenue growth strategies, profit optimization and exit positioning. In 2012, he started New Course LLC, which merged with SCApath in late 2015. He is a managing principal at the new firm.

BETH HENDRIKS, Chief Technology Officer, SciQuest

Hendriks is enhancing the breadth and depth of the SciQuest Spend Management Suite, while accelerating technology and user experience innovation. She has more than 25 years of experience with a variety of technologies and industry domains, working with startups to Fortune 500 companies in the computer storage industry. Previously, she was with EMC, where she managed the protection of customer data, and created technology roadmaps and delivery plans for multiple products.

KAREN SAGE, Chief Marketing Officer, SciQuest

Sage has a good reputation for building customer growth, new market creation, thought leadership, and managing brand awareness and reputation. The 20-year veteran’s research in the performance

analysis and design of large-scale communication networks is the foundation of most analysis and design tools today. She aids in the successful use of supply chain management technology for a customer’s business objectives.

SEAN RILEY, Global Industry Director of Manufacturing, Supply Chain and Logistics, Software AG

Riley has a unique combination of experience, education and expertise that is formed around supply chain, logistics, technology and manufacturing processes. This helps him formulate forward-thinking resolutions to issues that plagued supply chains for years. He leads industry strategy at Software AG, and works in academia as a curriculum advisor for the DePaul University graduate operations and supply chain programs.

OMER BAKKALBASI, Chief Innovation Officer, Solvoyo

Bakkalbasi is leading Solvoyo’s efforts to build the next-generation business planning platform to help retail, consumer packaged goods and manufacturing companies close the gap between supply chain planning and execution, using the cloud as a massively scalable computational engine, in-memory computing and event-based planning driven by large data from the Internet of Things (IoT).

ROBERT F. BYRNE, Chief Executive Officer, Terra Technology

In his role at Terra, Byrne works with some of the world’s largest manufacturers, including Shell, Procter & Gamble, Unilever, Mondelēz International, KimberlyClark and AkzoNobel. He led the company to create the first demand sensing solution and, for the past nine years, the firm was recognized as a top five supply chain planning provider on Consumer Goods Technology’s Reader’s Choice Award.

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JOHN RICHARDSON, Vice President of Supply Chain Analytics, Transportation Insight

Richardson leads the Supply Chain Analytics group that partners with clients to design and implement innovative supply chain solutions by merging deep data analysis with a continuous improvement mindset. For more than 15 years, he has worked with top companies to improve their supply chain efficiency while lowering costs through advanced analysis techniques. His industry experience includes retail, industrial equipment, automotive, transportation and more.

TODD BENGE, Vice President of Package Operations, Transportation Insight

Benge has been on the cutting edge of innovation in parcel logistics for more than 20 years. He developed operations, marketing and sales experience as managing partner of the BirdDog professional services team of consultants and analysts, and as marketing manager at UPS. He helped develop the UPS corporate pricing structure and brings this unique perspective to Transportation Insight clients.

1808 SWIFT DRIVE, OAK BROOK, IL 630.586.8000 | centerpoint.com

CenterPoint Properties is focused on the development, acquisition and management of industrial property and transportation infrastructure that enhances business and government supply chain efficiency.

Locations of Assets

WEST 20%

MIDWEST 47% EAST 20%

SOUTH 13%

2016

Practitioner Pros to Know JOHN MORELAND, Founder and President, Avetta, formerly PICS Auditing

Moreland leverages deep domain expertise in risk management, health and safety, compliance and auditing. A trailblazer, visionary and innovator, he is credited with developing a global platform that streamlines and simplifies the often-redundant supplier prequalification process. Moreland grew Avetta from a single-person operation to one of the worldâ&#x20AC;&#x2122;s leading providers of risk management solutions.

MAIKE SIEVERS, Director of Engineering, Sales and Marketing, BLG Logistics Inc.

Sieversâ&#x20AC;&#x2122; work includes part-to-picker or picker-to-part equipment analysis, and the implementation of slotting software to develop optimized slotting, selecting and order staging strategies. Benefits range from reducing labor expenses and partial order shipments to improving order fulfillment cycle times and space utilization. Slotting

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Key Statistics

53.7Million SF

348 Tenants

318 Buildings

3,171 Acres

CenterPoint is the leader in transportation advantaged industrial real estate that premier logistics companies and shippers rely upon to make their supply chains more efficient and more profitable.

REGIONAL OFFICES

CHICAGO HOUSTON KANSAS CITY LOS ANGELES MILWAUKEE NEW YORK/NEW JERSEY NORFOLK

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software implementation optimizes move lists and reduces double handling of parts.

years in customer service in manufacturing with a logistics and supply chain focus.

TOM BERTOLINO, Manager of Product Development, Cass Information Systems Inc.

RONALD D. SOUTHARD, Chief Executive Officer, SafeSourcing Inc.

Over the last several years, Cass positioned itself not only as a global freight audit and payment services provider, but also expanded its offerings to include other valueadded services. Bertolino is contributing to this effort by working with clients to identify opportunities to more effectively analyze and structure carrier pricing, and develop ongoing reporting to provide better cost visibility.

KEVIN E. McCURDY, Co-Founder and Vice President of Strategic Accounts, Orchestro Inc. McCurdy leads the strategy and development of Orchestro’s on-shelf availability and promotion execution products. These products improve promotion execution and increase revenues due to improved on-shelf execution for consumer goods customers. Before co-founding Orchestro, McCurdy was co-founder and vice president of Professional Services at Mercari Technologies.

Over his 40-year career, Southard has come to believe data must be at the heart of all decisionmaking and cloud-based SaaS solutions should be the focus of all organizations. Southard’s focus has been to add application breadth to the company’s portfolio to generate and preserve cost reductions in all areas of spend.

2016

Team Pros to Know

WOLFGANG WINSTEL, Chief Executive Officer, North America, POOL4TOOL America LLC

Winstel is a driving force behind POOL4TOOL’s solutions geared toward automating and integrating the request for quotation (RFQ) and costing processes. Winstel promotes the concept of all-in-one platforms that integrate departments on a process level independent of place and time. His mission is to lead his team in growing the company’s customer base in the Americas.

HEATHER A. POWELL, Director of Customer Focus Team, SafeSourcing Inc. Powell serves in her current position while continuing daily duties as a project manager. In this role, she proactively supports customers’ safety and environmental standards in the global supply chain. She has more than 20 years of experience in customer service in the retail sector, and most recently, four 22

THE TEAM OF CELESTICA The team includes Richard Burden, vice president of global supply chain management operations, strategy and methods; Danny Colavecchia, director of global supply chain management, strategies and inventory management/optimization; Jackie Look, director of global supply chain applications and synchronization; Ian Hayhurst, director of global rapid response deployment; Dominic Carabine, director of global logistics; Larisa Mottaz, manager of global supply chain flexibility and analytical inventory optimization; Andrea Rickets, manager of global supply chain business controls; and Jason Bernais, supply chain management manager of solutions and analytics; and Khavita Khan, consultant, Global Supply Chain Learning and Development Academy. Celestica involves the supply chain in its corporate strategy development process. The company’s supply chain team successfully orchestrates strategic programs that deploy processes and detail knowledge, which enables

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new approaches in the transformation of supply chain enablement. The team leverages insightful contributions from both internal and external supply chain network sources to accelerate the delivery of the company strategy. The team works with customers to understand their requirements, using information from the companyâ&#x20AC;&#x2122;s innovative supply chain tools and processes. The team collaborates with the end-to-end supply chain to drive customer value. This allows the supply chain team and customers to make more informed and profitable decisions that deliver on their strategic goals.

THE TEAM OF EXTENDATA The team includes Steve Sager, president and CEO; Bob Specchio, director of solution consulting; Fernanda Jacques, director of product development; Darrell Wilson, product manager; and Georgia Brown, director of marketing.

The ExtenData team sees the key challenge facing the industry as the increasing need to comply with regulatory and technology requirements. Drivers are tasked with more business-critical functions each year, which distracts them from driving. ExtenData released a new version of its MobileConductor and MobileConductor Delivery Management System to give drivers a mobile dashboard and reliable driver workflow. The ExtenData team relies on several sources of information to help inform their corporate strategy. Customers, partners, and industry content experts provide the ground work while feedback and success from events, marketing efforts and project implementations provide the subtle details.

IMPROVE COLLABORATION AMONG FINANCE, PROCUREMENT AND YOUR TRADING PARTNERS DRIVE BOTTOM LINE PERFORMANCE BY INCREASING SPEND UNDER MANAGEMENT ACROSS YOUR ORGANIZATION Start your own path to success. www.basware.com

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OTHER PROVIDER PROS TO KNOW ❯❯ Jon Gustafson, 4SIGHT Supply Chain Group ❯❯ Shivaz Sekhon, 4SIGHT Supply Chain Group ❯❯ Stuart Smith, 4SIGHT Supply Chain Group ❯❯ Trevor Read, Agistix ❯❯ Hannah Kain, ALOM ❯❯ Lisa Dolan, ALOM ❯❯ Subu Subramanian, ALOM ❯❯ Glenn Gorman, Amber Road ❯❯ Thomas K. Ng, Amber Road ❯❯ Blake Shumate, American Global Logistics ❯❯ Jim Briles, American Global Logistics ❯❯ Brad Steger, Aptean ❯❯ Kevin Plets, Aptean

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❯❯ Steve Adams, Aptean ❯❯ Matthew York, Ardent Partners ❯❯ David Paulson, Avnet Inc. ❯❯ Robert Brenner, Avnet Inc. ❯❯ Chase Sowden, Barcoding Inc. ❯❯ Jeff Bordinhao, Baxter Planning Systems ❯❯ Marc Kalman, BizSlate ❯❯ Greg White, Blue Ridge ❯❯ John Moffitt, Blue Ridge ❯❯ Rod Daugherty, Blue Ridge ❯❯ Jennifer Vander Zanden, Breakthrough Fuel ❯❯ Dave Gershon, B-Stock Solutions ❯❯ Eric Moriarty, B-Stock Solutions ❯❯ Steve Marbit, B-Stock Solutions ❯ ❯Kelly Barner, Buyers Meeting Point ❯Colby ❯ Beland, CaseStack ❯ ❯Curt Cote, Censeo Consulting Group ❯ ❯Derrick Moreira, Censeo Consulting Group ❯ ❯Kelly Hahn, Censeo Consulting Group ❯❯ Darren Jorgenson, CHAINalytics ❯ ❯K irk Waldrop, CHAINalytics ❯ ❯Mike Eaton, CHAINalytics ❯ ❯A nn Grackin, ChainLink Research ❯ ❯Drew Merrill, CHEP Pallecon Solutions ❯Derek ❯ Rickard, Cimcorp ❯Don ❯ Heelis, Cimcorp ❯ ❯Simon Drexler, Clearpath Robotics ❯ ❯David Landau, Cloud Logistics ❯Mark ❯ Nix, Cloud Logistics ❯ ❯Brian Hume, Comprehensive Logistics

❯❯ Tom Welsh, Comprehensive Logistics Co. ❯❯ Dave Lindeen, Corcentric ❯❯ Andrea Morton, Corporate United ❯❯ Ara Arslanian, Corporate United ❯❯ Gary Como, Corporate United ❯❯ Jim Gaskell, Crown Equipment ❯❯ Patrick Grady, Deem Inc. ❯❯ Greg Anderson, Directworks ❯❯ Michele Myers, Directworks ❯❯ Wes Willoughby, Directworks ❯❯ Jim McLafferty, DMW&H ❯❯ Ariel Weil, DynaSys (division of QAD) ❯❯ Mike Jackson, eLynxx ❯❯ William Gindlesperger, eLynxx ❯❯ Craig McCollum, Epicor Software Corporation ❯❯ Ken Fleming, Eyefreight ❯❯ Shay Sidner, flexis North America ❯❯ Ian O’Brien, Four51 Inc. ❯❯ Kirit Goyal, Gazelle Information Technologies ❯❯ Shankar Iyer, GEP ❯❯ Steve Cochran, Global Healthcare Exchange ❯❯ Robert A. Rudzki, Greybeard Advisors ❯❯ Kurt Cavano, GT Nexus ❯❯ Uwe Bald, Hermes ❯❯ Grant Watling, HICX Solutions ❯❯ Nick Manolis, HighJump ❯❯ Bill Leedale, IFS North America ❯❯ Martyn Gill, InfinityQS International ❯❯ Michael Lyle, InfinityQS International ❯❯ Curtis Greve, Inmar ❯❯ Jeff Karrenbauer, INSIGHT Inc. ❯❯ Doug Van Wingerden, Insight Sourcing Group ❯❯ Elizabeth Connell, Integration Point

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PROS TO KNOW 2016

❯❯ Virginia Thompson, Integration Point ❯❯ Blair Peterson, International Asset Systems (IAS) ❯❯ Bill Tomasi, International Business Systems (IBS) ❯❯ Graham Newland, International Business Systems (IBS) ❯❯ Kanth Krishnan, Intrigo Systems ❯❯ Santhosh Kumar, Intrigo Systems ❯❯ Jay Moris, Invata Intralogistics ❯❯ Scott Lewin, Invoiceware International ❯❯ Puneet Saxena, JDA Software ❯❯ Salim Shaikh, JDA Software ❯❯ Suresh Acharya, JDA Software ❯❯ James Kelly, JVKellyGroup ❯❯ Celeste Catano, Kewill ❯❯ Douglas Markle, Lavante Inc. ❯❯ Tom Flynn, Lavante Inc. ❯❯ Mark Davis, LexisNexis ❯❯ Bob McFarland, LLamasoft Inc. ❯❯ Ginger Stegmier, LLamasoft Inc. ❯❯ TC Baker, LLamasoft Inc. ❯❯ Diego Pantoja-Navajas, LogFire ❯❯ John Motley, LOG-NET ❯❯ Mark Millar, M Power Associates ❯❯ Bob Patel, MEBC Inc. ❯❯ John Boucher, ModusLink ❯❯ Sitaram Geddam, NetSuite ❯❯ Charles Dominick, Next Level Purchasing Association ❯❯ Mark Burstein, NGC Software ❯❯ Jon Winsett, NPI ❯❯ Richard D. Slack, Oildex ❯❯ Pedro Cueva, OnProcess Technology ❯❯ Radu Pavel, OPTIS and TechSolve ❯❯ Charles Grissom, Optricity Corp. ❯❯ Marc Braun, Pcdata Inc. ❯❯ Ian B. Silver, Periscope Holdings ❯❯ Michael Sosnowik, Pharmsaver ❯❯ Matt Yearling, PINC Solutions ❯❯ Dan Grant, Prime Advantage ❯❯ Mike McDonald, Prime Advantage ❯❯ Sheila O’Sullivan, Prime Advantage ❯❯ David Quillian, PrimeRevenue ❯❯ Bernie Donachie, Protiviti ❯❯ John Costanzo, Purolator International

❯❯ Wayne Slossberg, QuestaWeb ❯❯ Lisa Aleman, Radisys ❯❯ Jim Lawton, Rethink Robotics

Continued on page 26

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❯❯ Sean Elliffe, Reveal USA ❯❯ Rolf Zimmer, riskmethods ❯❯ Darcee Scavone, Ryder System Inc.

SDCExec.com | March 2016 | SUPPLY & DEMAND CHAIN EXECUTIVE

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PROS TO KNOW 2016

Other Provider Pros to Know Continued... ❯❯ Scott Moorad, Satellite Logistics Group ❯❯ Samarth Sarthi, SCA Technologies ❯❯ Matthew Campbell, SCMO2 ❯❯ Jeff Christensen, Seegrid ❯❯ Seth Crespin, ShipXpress ❯❯ Gregory Hartunian, Smart Software ❯❯ Jamie Burkart, Source One Management Services ❯❯ Lindsey Fandozzi, Source One Management Services ❯❯ William Dorn, Source One Management Services

❯❯ Brandon Henning, Sparta Systems ❯❯ Brian Broadhurst, Spend Management Experts ❯❯ John Haber, Spend Management Experts ❯❯ Paul Steiner, Spend Management Experts ❯❯ John La Bouff, Spinnaker ❯❯ Kenneth Poore, Spinnaker ❯❯ Anne M. Kohler, The Mpower Group ❯❯ Jim Kandilas, The Shelby Group ❯❯ Ed Brown, Topper Industrial ❯❯ Jerome Malavoy, Trace One

❯❯ Tom Mann, TrakLok International ❯❯ John Kelly, Transplace ❯❯ Dave Hockersmith, Trans-Soft ❯❯ Scott Nelson, Trax Technologies ❯❯ Shannon Potter, UltraShipTMS ❯❯ Brian Neuwirth, UNEX Manufacturing ❯❯ Deryk Powell, Velociti ❯❯ Dave Williams, Westfalia Technologies ❯❯ Ellen Voie, Women in Trucking Association ❯❯ Mick McCormick, Yale Materials Handling Corp.

OTHER PRACTITIONER AND TEAM PROS TO KNOW The Distribution Experts®

Congratulates our 2016 Pros to Know Jason Denmon Apparel Industry Leader

Juan Recondo VP, Latin America

Patti Satterfield VP, Marketing & Business Development

www.fortna.com

1.800.367.8621

❯❯ Orhan Daglioglugil, A101 ❯❯ Sean Smith, Agropur ❯❯ Dan Gerard, Bon-Ton Stores ❯❯ The Team from C3 Solutions ❯❯ Renaud Perray, Cardone Industries ❯❯ The Team from Cargo Chief ❯❯ Michael Hung, CBX Software ❯❯ Steve Schuman, dg3 ❯❯ Heidi Landry, Dow Corning ❯❯ Rob Brimm, Fieldglass ❯❯ Phillip Poston, Hytrol Conveyor ❯❯ Tony Sartin, Hytrol Conveyor ❯❯ Dominic Telaro, I.B.I.S. Inc. ❯❯ Shelley Kiley, Moen ❯❯ Paul Welna, Murphy Warehouse Company ❯❯ Kunal Thakkar, Newegg ❯❯ The Team from ON Semiconductor

❯❯ Ron Atapattu, Overseas Cargo Inc. ❯❯ Shani Atapattu, Overseas Cargo Inc. ❯❯ Gordon Wong, Pace Harmon ❯❯ John Eagleson, Pace Harmon ❯❯ Paul Singer, Pace Harmon ❯❯ Kevin Lawler, Pelican BioThermal ❯❯ Gene Obrock, ShurTech Brands ❯❯ The Team from Spinnaker ❯❯ Pervinder Johar, Steelwedge ❯❯ Bryce Treese, Sunsweet Growers ❯❯ Joey Benadretti, SYSPRO USA ❯❯ Ajay Roy, ToolsGroup ❯❯ The Team from Virtual Logistics Inc.

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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FEATURE

By Ronnie Garrett

GO BIG or Go Home In the battle between humans and algorithms, supply chains can win big by employing business intelligence tools to analyze Big Data and use it to optimize operations

n today’s bigger is better world, where Supersize meals and 28-ounce Big Gulp sodas reign as king, it’s an easy leap for business leaders to think that the more data a supply chain has, the more efficient and profitable the company will be. But data on its own is just a meaningless string of ones and zeros. The successful company is not the one with the most data, but the one that makes the best use of the data it has. The time has come for supply chain managers to harness the power of Big Data. In a recent look at data growth trends, market intelligence firm IDC projects that, by 2020, the digital data universe will reach 44 zettabytes (44 trillion gigabytes). Clearly it’s time for companies to go big or go home. “Supply chains tend to be very data-rich environments. Big Data cannot only tell you where you are now, but potentially where you are going to be in the future,” stresses Karin Bursa, executive vice president of Logility. Big Data represents an untapped gold mine of supply chain information that can help supply chains predict and prevent problems. But before companies can swim in the Big Data sea, they need to dip their toes in the water to gain an understanding of what Big Data really is and the ways it can be leveraged to a supply chain’s advantage. 28

DEFINE THE DATA A simple Google search using the words “Big Data” delivers a sea of results that in and of themselves might classify as Big Data. In reality, Big Data means different things to different people, and it drives a bit of fear and uncertainty among those tasked with analyzing and applying it to business decisions. This uneasiness often translates into a failure to fully utilize the data a company has, notes Jeff Karrenbauer, president of INSIGHT. But how much data is considered big? Karrenbauer calls Big Data one of the biggest buzzwords in business today. And he says, if you ask people what it means, no one seems to know. “They’ll say it means a lot of [data],” he says. “But there is no widespread agreement.” According to Sundar Kamakshisundaram, global vice president of products and innovation for SAP Ariba, Big Data is a broad term that can and should be broken down into two primary categories: structured and unstructured data. Structured data refers to any data that resides in a fixed field within a record or file. This includes data contained in relational databases and spreadsheets. Unstructured data is a generic label used to describe data that is not contained in a database or some other type of data structure. According to a study by independent research firm Aberdeen Group, upward of 83 percent of the data companies have is unstructured. It stands to reason that companies able to harness this data can gain unique insights they may not access any other way. Kamakshisundaram cites the following example to illustrate the differences between both. Structured

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and didn’t have a lot of information on it,” he says. “Predictive analysis tools can help you make informed decisions and predictions. It’s almost like looking at a crystal ball.”

BOOST THE BENEFITS

data might be a company’s sales data for the year, which can then be broken down by salesperson, region and product. This data can be used to create a snapshot of the areas in which the company is doing well, the products that are selling well and which salespeople are making the most sales. With unstructured data, the company can dig deeper and examine the characteristics of its top salespeople, for example, so they can hire more sellers like them. “You have to look at personality information, proficiency tests, social media and so on,” he says. Texts, tweets, blog posts or videos can serve up data for supply chains to use for their advantage. Consumers already do this; they tap into social media, such as Facebook and Twitter, or peruse Amazon reviews to make smart buying choices. “Predictive analysis requires the use of data that is not part of the normal database,” Kamakshisundaram says. “In the supply chain, we’re used to looking at transactional data, operational data and strategic data, but how do you combine this information with extraneous data like weather forecasts and trends? And then use all of it to make predictive decisions?” Kamakshisundaram states companies must add business intelligence tools to maximize data use. A tool that aggregates fundamental information about a supplier, then adds in less readily available data, such as liens, lawsuits and working capital information, as well as intelligence derived from Twitter, Glassdoor or LinkedIn, can greatly aid decision-making. “Imagine what a benefit this would be if you were dealing with a supplier from another country

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Combining gigantic streams of data with analytical tools opens the door for supply chain innovation. It can improve forecasting accuracy, uncover demands and trends, and identify risk. Analytics gives companies insight into broad trends. “Am I continuing the way I expected?” asks Bursa. It also looks at specific outcomes. “When the trend and aggregate are not on plan, it helps me dive down into more detail, identify where problems exist and begin resolving them,” she adds. Wayne Caccamo, chief marketing officer for Resilinc, provides the following example: If news

BIG DATA CANNOT ONLY TELL YOU WHERE YOU ARE NOW, BUT POTENTIALLY WHERE YOU ARE GOING TO BE IN THE FUTURE.

— KARIN BURSA, EXECUTIVE VICE PRESIDENT, LOGILITY reports predict a major storm heading toward a specific area of Taiwan, this intelligence would immediately connect back to which supplier sites are located in this region and which parts originate there, then connect it to inventory levels and shipments to predict which products might have a raw material or component shortfall in the coming weeks. This intelligence allows practitioners to act decisively and surgically to secure supply of these materials. “Connecting semi-structured data, such as a location’s risk profile and parts mapped to that location, to structured data, such as bills of material and revenue, allows practitioners to predict the revenue impact of losing a manufacturing site. This is powerful intelligence that can allow executives to define which suppliers or sites are truly critical so their teams focus on them.” By connecting structured data, such as demand forecasts, to semi or unstructured data, such as supplier capacity availability or utilization, a company can also proactively manage capacity with suppliers in order to support an extra surge

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FEATURE in demand. “The company can plan for scenarios where demand is unexpectedly different from forecast, and identify and address problems long before they manifest,” he says. “Time is money. The faster a company can predict a potential problem, the more time it has to work collaboratively with the supplier, or tweak the levers within their control, to influence a favorable outcome. Information applied in this way can convert a potential crisis into an opportunity for growing revenue, stealing market share from the competition and wielding the supply chain as a competitive weapon.” Predictive analytics can also impact sales and operations planning, which brings together a forecast and inventory policies, inventory and service goals, and supply production distribution. “By bringing data together, you can look at multiple future scenarios and compare those,” says Bursa. “You’re not only looking at volume metrics, but

financial terms, budgetary information, sales plans, topline revenue and margin contributions, so that you can view the plan from many different angles.”

REMEMBER THE ROI Bursa once received a call from a customer considering a proposal from an existing partner who wanted to earn more of its business. The partner was offering a really good deal for the customer to source goods from Asia instead of Latin America. “It used predictive data analysis to determine what would happen if it did this,” she says. “On the surface, it looked 25 percent less expensive,” she says. “But it found it would have six weeks more lead time and higher transport costs.” The company ultimately decided against this option and made the decision within two hours. Bursa says the customer told her the analyses would have taken weeks in spreadsheet form.

MAKE BIG DATA WORK FOR YOU EXPERTS PREDICT 2016 IS THE YEAR Big Data adoption will finally grow beyond buzzwords to delivering actionable insights that can affect a company’s bottom line. The following are steps to take to make 2016 your year for Big Data.

#1: KNOW THE NEW BOSS

The end customer is the new boss with more bargaining power, more access to information and more buying options. The supply chain now has to react more quickly to changes in preferences, with shorter product lifecycles. For a customer-centric and seamless supply chain to work, it’s essential to gather a broad range of customer demand data and turn it into usable information to help make better business decisions. Today, companies have access to both structured and unstructured data about customers that allows them to track customer preferences and deliver better customer experiences.

#2: SEPARATE INSIGHTS

FROM BACKGROUND NOISE

Increasingly, most of the data companies collect will be unstructured, primarily from social media. Unstructured data can be a gold mine for gaining customer insights in real time. Advanced and predictive analytics 30

solutions that can sift through this data to identify patterns, provide reliable insights for decision-making, measure the results of those decisions in real time and make immediate adjustments are therefore essential.

#3: BREAK DOWN DATA SILOS A fully synchronized supply chain, enabled by digitization and employing Big Data analysis, will provide a single version of the truth to all stakeholders supporting the end-to-end supply chain. Only then will they be able to work together to meet the rising expectations of consumers, optimize operations to improve and sustain margins, and maximize returns.

#4: PU T IT TO WORK

The usage of information gleaned from Big Data is endless. It spans the entire supply chain, starting upstream with the assortment. This type of analytics can be used down to the store shelf to provide real-time updates on outof-stock situations and planogram

compliance using image recognition. But it also provides value further upstream in the forecasting and replenishment planning to help more accurately forecast and stage inventory across the supply chain. Further, Big Data analysis enables machine learning to speed decision-making.

#5: BUILD THE F U TURE

There is no end state for what Big Data analysis can do. Just like the supply chain itself, Big Data will continue to evolve in ways that no one can predict. But we can be sure that flexibility and responsiveness will always be competitive differentiators for supply chain companies, and Big Data will play a central role in providing ongoing insights to help companies adapt to change. ABOUT THE AUTHOR PAULA NATOLI is vice president of product management at JDA Software where she helps drive the vision, direction, strategy and enhancement development of the JDA solution suite. For more information, please visit www.jda.com.

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FEATURE When asked about their confidence in the decision, executives told her if they made the assessment with spreadsheets their confidence level would have been 50 percent, but with the software tool and predictive analysis, their confidence hit 90 percent. Karrenbauer suggests predictive analyses can help companies avoid costly outsourcing mistakes. “Outsourcing mistakes occur because people looked at them in isolation,” he says. When a company looks at manufacturing alone and outsources to take advantage of $1 an hour labor, Karrenbauer says it is not looking at the big picture. The labor might cost $1 an hour, but what are the costs of moving goods from an Asian country to the United States?

PUSH PAST THE HOLDUPS In “Deconstructing Supply Chain Analytics,” Gartner reports companies that do a better job of predicting future demand can trim 20 to 30 percent out of their inventory, while increasing fill rate by 3 to 7 percent. These kinds of results can deliver margin improvements of 1 to 2 percent.

Unfortunately, Karrenbauer says there is a battle of wills between humans and algorithms that prevents companies from getting the biggest bang for their Big Data buck. “The prize keeps going up if you can convince people to look at the whole thing,” he says. “But because of internal politics, it never goes anywhere.” He explains the siloed structure of business units within a company makes it difficult to optimize supply chains. He adds companies must thoroughly examine whether their objectives align with the incentives given to individual units and individual employees. Big Data can deliver big results for those companies where all business units are united for the greater good. “You’re not supply chain people if you don’t look at the whole thing—you’re just borrowing the term,” he stresses. “When you have vice presidents for every function with separate financial objectives and bonuses tied to those objectives, then you have fiefdoms and people jealously guarding their fiefdoms.”

Control the chaos. Today’s manufacturing companies often struggle to get visibility into their complex logistics operations. iManage™ is a high value asset tracking solution that monitors and tracks the ﬂow of parts, assemblies, and containers throughout the supply chain. Receive instant alerts when the tracked assets deviate from pre-established routes, or when problems occur. Identify waypoints, dwell times, and use dynamic geo-zone capabilities with directional tracking to improve proﬁts by controlling a dynamic and often hard to manage supply chain. Control the chaos in your supply chain with iManage. To learn more about iManage call 1-877-980-6208 today or visit numerex.com/imanage © 2016 Numerex Corp. All rights reserved. Numerex is a registered mark of Numerex Corp.

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MADE IN AMERICA By Ronnie Garrett

Faribault Woolen Mill finds financial security and renewed growth in its U.S.-based heritage woolen business

Success in a

SECURITY BLANKET

innesota is known for winter temperatures that would make a polar bear shiver, so it’s no surprise that 150 years ago a manufacturer of woolen blankets set up shop in Faribault, MN. Today, in a society that moves faster than information travels down the cyber highway, Faribault Woolen Mill slows the pace by continuing to deliver on its rich history of making cozy woolen blankets for customers to curl up with on a cold winter’s day. Comfort goes beyond the blankets, however, as the mill brings growth and strength to the local economy, and to American manufacturing. The Lake Country manufacturer represents the only integrated woolen mill in the United States at a time when it’s common for blanket manufacturers to favor synthetic fibers over natural ones and ship manufacturing overseas in a quest for cheaper labor. It’s safe to say being made in the USA is rooted in the woolen mills’ DNA.

A BRAND WITH HERITAGE The company’s longevity wasn’t always a given. Though the mill thrived through two world wars and the Great Depression, it almost 32

didn’t survive the Great Recession. As manufacturing moved offshore and drove down prices, and $19.95 fleece blankets manufactured in China took over the market, the mill’s business crashed and burned, and in 2009, the textile manufacturer closed its doors. But in 2011, Paul and Chuck Mooty resurrected the firm from the ashes, right before a deal closed to sell all of the mill’s equipment to a Pakistani company. Financial analysis found that reentering the heritage woolen business would deliver a sufficient return, but reviving the mill itself through a facility update and new looms was the easy part. The difficulty lay in the branding. Bruce Bildsten, chief marketing officer and co-owner, states that, over time, “Faribault had become the cheap blanket in the closet.”

Changing this perception required the company to tap into the heritage American goods marketplace. “The time was right because there was a renewed emphasis on Made in America ... There was a hunger for products like ours, especially products with good design and high quality,” he says. “But we are not a heritage brand, we are a brand with heritage. There are plenty of made-up heritage brands. We are the real deal.”

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Faribault Woolen Mill rehired former mill employees to tap into a skilled and trained labor force the moment the mill reopened.

people buy them because they’re made to last. Woolen blankets bend and stretch, making them more resilient than their fleece counterparts. “These products are an investment, one that is going to last for generations,” he says. Faribault promotes this fact through its Memory Mill, where people receive a silver metal card with a unique serial number on it and go online to register a memory for those who LEFT: Though the mill could easily move across town to will inherit the blanket in a larger and newer facility, co-owner Bruce Bildsten says the future. the company plans to stay in the historic brick building they’ve been in since 1892. RIGHT: Skilled laborers Bildsten states the turn raw wool into blankets, throws and scarves on the company does not advertise mill’s century-old equipment. its brand, but rather lets the brand speak for itself. Excellent quality and attention to Social media outlets such as Facebook, artistry were essential, he explains, Instagram and Pinterest provide places because “people for customers and are not going to retailers to tell the buy a product story for it. “We just because it’s don’t do traditional quaint.” Faribault advertising—we Woolen Mill don’t need to,” he sifted through its says. “It’s better to design archives have our customers — BRUCE BILDSTEN, for vintage and Martha Stewart CHIEF MARKETING OFFICER patterns to calling us their AND CO-OWNER, FARIBAULT resurrect, such favorite American as its three-stripe revival blanket, and brand than to place an ad telling renewed its focus on using natural consumers about our products.” fibers, mostly wool sourced in the United States with only its fine Merino MADE-IN-AMERICA wools coming from Australia and New MANUFACTURING Zealand. Faribault plans to keep its Though the blankets come with a manufacturing stateside in the historic heftier price tag than less expensive brick building nestled next to the fleece throws, Bildsten points out Cannon River since 1892. Keeping

“ … WE ARE NOT A HERITAGE BRAND;

WE ARE A BRAND WITH HERITAGE.”

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manufacturing onshore offers some clear advantages. It allows the mill to tap into the skilled labor force that kept the mill going for many years. The manufacturer lured workers, who were laid off in 2009, back into the Faribault fold through competitive pay and excellent benefits. Today these fifth-generation craftspeople use century-old machinery to turn raw wool into blankets, throws, scarves and accessories. Bildsten says rehiring a trained workforce enabled the mill to “make great product from Day 1.” The skilled labor force is just one of the many reasons it made good sense to keep manufacturing in the states. “It’s so much more efficient to have manufacturing right here—you can control so much more,” Bildsten says. Being based in the United States allows for faster turnaround times, which is especially important for the co-labeled products the company produces for Ralph Lauren and Duluth Pack, and custom blankets made for the U.S. Navy. “It might be more expensive to do it this way, but we can better ensure the quality of our products,” Bildsten says. “We increasingly hear how frustrating it is and the long lead times there can be when manufacturing moves offshore. Here we can turn around product much faster; we don’t have all that time in a container ship.” The mill’s rebirth showcases the renewed promise found in producing products in America. When the mill closed, it had 30 employees; today it has 110. Its profits are also healthy. Bildsten reports it is seeing “healthy measured growth year over year.” He adds, “Our goal is not to explode. We are focused on controlled growth, rather than going crazy.”

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SPECIAL REPORT THE INTERNET OF THINGS

By Amarnath Shete

The Internet of Things to

TRANSFORM SUPPLY CHAINS INTO SUPPLY STREAMS

The Internet of Things enables tighter integration between warehouse inventories upstream and downstream

ith the advent of the Internet of Things (IoT), there is tremendous potential to change the structure of the supply chain from a linear, stepby-step process into a seamless, data insight-driven stream. Supply chains are currently being challenged by volatile demand patterns, cutthroat competition and increasing consumer expectations for fast delivery. In recent years, conventional levers were implemented to improve supply chains.

GRINDING AHEAD WITH TRADITIONAL LEVERS Most of these levers are structured around one of three categories: people and process, IT enablement and industrial automation. People and process levers improve efficiency by process engineering, policy change and organization redesign. IT enablement levers can improve supply chains by facilitating communication between various stakeholders and entities in the supply chain. Many of these levers evolved over a period of time from electronic data interchange (EDI) to advanced enterprise resource planning (ERP) systems and supporting applications. They give customers access to vast amounts of data anywhere and anytime. Industrial automation levers 34

automate supply chain elements, such as warehouses, shop floors and logistics. Automation reduces manual efforts and human errors. Pull all three levers and thereâ&#x20AC;&#x2122;s no doubt that the customer experience improves. But while traditional levers may make a supply chain gain speed and efficiency, there are still significant gaps and few opportunities to innovate. This can happen because conventional levers are investment-intensive, and therefore, costly and difficult to modify, requiring a long period of time to reach a break-even point. Since they often consume a huge part of a budget, they leave little scope for supply chain managers to engage other initiatives. Generally, the supporting IT systems of traditional levers operate at a process transaction level. An analysis can provide a holistic view, but completely miss the root cause of inefficiency at the sub-transactional level.

HOW IOT FILLS THE GAPS, CREATING A STREAM Given accelerating pressures, further investment into traditional levers is risky. Thereâ&#x20AC;&#x2122;s a need for a lever that requires incremental investment; is flexible for deployment and modification; operates at a sub-transactional, granular level; and prioritizes the customer rather than the process.

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SPECIAL REPORT THE INTERNET OF THINGS

IoT-enabled levers can do that. IoT does not eliminate conventional levers, but fills in gaps, creating a seamless, predictable and more efficient supply stream by enabling more innovation, more communication and an improved customer experience. It is ideal for transforming supply chains in key areas, such as warehouse, inventory, logistics and new product development.

the overview and insights that support more tactical decisions. Logistics companies can face huge losses if they can’t align operations and weather conditions. Weather services now forecast weather changes at hyperlocalized levels. As IoT integrates this data with route schedules, companies can make more responsive decisions at the route level, so logistics supervisors are better prepared when scheduling and routing shipments. Transporting perishables is also challenging. IoTizing logistics management can help avoid losses by continuously monitoring inventory health and enabling precautionary steps.

IOT-IZATION OF THE WAREHOUSE Integration between intra- and inter-logistics components, which was not possible at an ERP level, can be enabled by leveraging IoT. This reduces wait times, and streamlines coordination between logistics providers and warehouse managers. Supply chain managers can better coordinate and manage inventories because IoT tightens integration between warehouse inventories upstream and downstream.

IOT-IZATION OF NEW PRODUCT DEVELOPMENT Supply chain managers often complain that supply chain inputs are barely considered in the creation of new products. A comprehensive view of a new product as it moves through a supply chain is key to developing superior products and delivering them efficiently to customers. IoT can provide sensors and device capabilities, as well as the platform to view product movement through the supply chain. Product development teams can leverage this data and analysis to improve supply chain efficiency. With IoT-ization, if a company wants to launch a beverage in a certain geography, it can understand how that product will perform before launch. Using IoT, the company can optimize every supply chain and customer touchpoint of the product’s journey, and ensure the customer experience is what it intends. From product development to delivery, IoT fills the gaps left by conventional supply chain levers to create a seamless, predictable and more efficient supply stream.

IOT-IZATION OF INVENTORY MANAGEMENT Another challenge for supply chain managers is inventory traceability. IoT can provide a multi-level view that includes in-transit and at-rest inventory across all echelons, so supply chain managers can see their inventory at any time. A typical inventory management pain point is the discrepancy between physical inventory and what’s shown in records. IoT can integrate data from logistics to provide an accurate, comprehensive view of replenishment and withdrawals.

IOT-IZATION OF LOGISTICS Data from GPS systems is confined to limited space and usage. IoT platforms can marry this with other transactional data to provide logistics operators with

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ABOUT THE AUTHOR AMARNATH SHETE is the global head of the Internet of Things Advisory at Wipro Digital. He is responsible for developing, selling and delivering IoT consulting and advisory services globally. Additionally, he owns the IoTized Supply Chain productized service offering. He has been with Wipro for over seven years, and has served in various roles in the business consulting, outsourcing advisory and digital transformation functions. His areas of expertise are business transformation, process re-engineering, technology enablement and outsourcing. He holds an MBA in operations management, and a bachelor of engineering in electronics and telecommunications.

SDCExec.com | March 2016 | SUPPLY & DEMAND CHAIN EXECUTIVE

3/16/16 8:04 AM

SPECIAL REPORT PROCUREMENT

By Ronnie Garrett

HOW P2P CAN PAY OFF The secret to successful P2P lies in an automated and connected process embraced by everyone from procurement to accounts payable

rocure-to-pay (P2P) should be a simple process. The purchasing manager orders an item, the product or raw material arrives on time and as ordered, and accounts payable pays for it promptly. Unfortunately, the process is anything but easy. Companies often place this behind-the-scenes effort on the back burner where procurement, approvals, invoice validation, accounts payable and spend analytics are disjointed activities performed manually, and often inaccurately. However, technology is pushing this back-office procedure to the forefront, where it’s automated, connected and mobile. For companies like Starwood Hotels & Resorts Worldwide, a hotelier with more than 1,300 hotels in over 100 countries, automating P2P is making all the difference in the world. “We have at least nine procurement systems around the globe; all of varying types and none of which talk to each other,” says Tad Wampfler, chief supply chain officer for Starwood. He cites Starwood’s Middle East hotels as an example of how siloed its procurement process is—each hotel there has a oneoff P2P system. “There is no way to leverage spend above the hotel level,” Wampfler laments. Starwood’s situation is hardly unique. “Supply chains are far flung, they are dispersed throughout the world; it’s really hard to piece them together with point-to-point solutions,” says Bryan Nella, director of

communications at GT Nexus. Aman Mann, CEO of Procurify, stresses he sees many businesses burdened with siloed systems such as the one Wampfler describes. “Data centralization is one of the weakest links in business,” he says. “Many businesses lack a singular platform that can collect data and centralize it.” Wampfler knows the situation these experts describe all too well. Starwood’s disparate purchasing-related processes limited its ability to drive supply chain benefits to hotels from a central point, and contributed to a lack of spend oversight and financial controls. Starwood, well-known for its Westin and Sheraton brands, sought a solution that implemented a global standard for hotel-based electronic procurement in order to enable consistent and efficient supply chain clustering, financial controls, IT support, supplier tracking and uniform hotel operations. The company partnered with BirchStreet, an international provider of P2P solutions for the hospitality space, and ReadSoft for its new P2P solution.

A GAME CHANGER Starwood operates the new system in 75 North American hotels and plans to add hotels weekly until all of its sites are on the same system. The completed effort will automate P2P from product order to approvals to receipt of the order, billing and payment. Wampfler describes this automation as a game changer. Standardizing P2P dramatically reduces costs and errors associated with manual efforts to prepare, place, receive and pay for orders. The results include better financial controls, lower product costs, reduced overhead, and improved relationships with staff and suppliers.

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SPECIAL REPORT PROCUREMENT

Spend visibility and strategic sourcing are two areas Starwood is vastly improving. Fully understanding what hotels are purchasing helps the hotel chain aggregate its spend and leverage the buying power of the Starwood system. It also aids the company in ensuring its hotels source the right products. “If we have a brand standard, like a Westin shampoo, we now have visibility into who is buying it, and who is not, which helps us ensure guests get the experience we want them to have,” Wampfler says.

ERP, the next time the procurement manager cuts a PO, the old pricing will be there. “So strategic sourcing negotiated this great deal where we would get 10 percent off all orders after a $100,000 spend, but because we didn’t put the contract into the back-end system, we never received it,” she says. “A P2P system automatically calculates how much spend you accumulated and applies discounts once you reach a certain threshold.” An automated P2P solution can help supply chain managers get a firm grip

+50%

by the

numbers

Invoices companies receive in paper form

60-70%

The savings that can be achieved when accounts payable is part of an automated P2P solution

Percentage of workers who must be willing to fully use a P2P system to gain maximum benefits and efficiencies This capability also enables the company to identify vendors/suppliers that do not meet Starwood’s global citizenship standards. For example, a paper company that misrepresents its products as green. Emily Rakowski, global vice president of audience marketing and demand management for SAP Ariba, emphasizes that, when P2P is standardized and connected, companies also can fully maximize the benefits of strategic sourcing. If a company’s strategic sourcing staff saves 30 percent on pallets, but that pricing isn’t entered into the

on maverick spending by putting as much spending through an automated and managed tool as possible. “It enables customers to capture the long tail of spend. Those little one-off purchases with one-off vendors add up to quite a bit of spending,” states Rakowski. Companies also must shut off the other channels that make maverick spending possible. “Eliminate purchasing-card uses at stores outside the office, eliminate ex post facto invoices coming in and go with a ‘No PO, No Pay Policy,’ ” Rakowski says.

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6080%

ADD IN ACCOUNTS PAYABLE Standardizing and automating e-procurement enables Starwood to automate accounts payable. Employees scan invoices with ReadSoft’s optical character recognition (OCR) capability. The system routes POs for approval based on company guidelines, reads invoices, electronically compares them to the order and goods receipt, then processes the invoice for payment. “The ultimate goal of P2P is to automate as much as possible and remove inefficiencies,” says Robert Cohen, vice president, North America, Basware. “There’s still a lot of paper out there; more than 50 percent of invoices are received in paper form.” When companies begin drowning in a sea of paper, they often fail to pay suppliers on time—and late payments can cost money. When an invoice with a 30-day term is mailed, the buyer might receive it a week before it’s due, which doesn’t allow much time to route it for approvals and send payment before incurring late fees. “But if I send it electronically, you get it seconds later, and it gives you more options to pay the invoice. I can now ask: ‘If I pay you before the 30-day term is over, can I get a discount?’ ” says Cohen.

FOCUS ON FINANCES “Sometimes building a financial case is what’s needed to get these systems in place,” says Cohen. “If a financial officer can see how the system will impact the bottom line, they start to listen a bit more.” An automated process lowers the labor resources needed to perform three-way matches and get suppliers paid, and ensures the company maximizes its spend and receives agreed-upon discounts. Because of

SDCExec.com | March 2016 | SUPPLY & DEMAND CHAIN EXECUTIVE

3/16/16 8:06 AM

SPECIAL REPORT PROCUREMENT

That’s the ultimate goal of P2P—to automate as much as possible and remove the inefficiencies. — Robert Cohen, vice president, North America, Basware

this, Wampfler predicts Starwood’s system will pay for itself fairly quickly. The hotelier expects to break even on its investment by 2019 and predicts a +30 percent ROI, and this figure does not include the return expected from greater spend visibility. Starwood’s estimated ROI is pretty typical. Cohen says on the accounts payable side the ROI can reach 60 to 80 percent within a year or less. By putting spend under management, the ROI might be as high as 50 percent in saved labor alone. Add in dynamic discounting and the savings might climb even higher.

SECURITY IN THE CLOUD Much has been touted about P2P cloud-based technology, and its ability to connect everyone within a deep and complex supply chain, and have everyone work off a single version of information that’s updated quickly. But how secure is a company’s data up in the cloud? Bryan Nella, director of corporate communications at GT Nexus, states he hears that question all the time. He then questions how secure proprietary data is without a cloud-based system. “If companies do not deploy a cloud-based P2P solution, they are sending emails and spreadsheets around the globe, and the vulnerability there is immense,” he says. “Businesses are actually safer in many ways operating in the cloud.” To fully maximize the safety of proprietary data, Nella recommends companies do the following:

WWDouble and even triple encrypt the data that goes out. Data should be

encrypted at the file level before it leaves the company and heads to the cloud.

WWTrain employees on cyber security. The cloud system might protect data

adequately, but the employees who have access to the systems might not. Educate employees on how to keep data secure. Develop policy, rules and authorizations for employee access, and audit employee behavior online.

WWBuild in security. Provide a unique individual identification key every time an employee logs into the system.

WWBack up the data in multiple places. The cloud should not be the only place data exists.

WWDo your homework. “A lot of the cloud platforms out there are pretty tight

and secure, but you’re always going to find outliers where that isn’t the case,” says Nella. “Perform your due diligence before selecting a system.”

But companies must do their homework to achieve these results. Starwood spent 18 months researching vendors and testing P2P systems before taking action. The company asked each vendor to spend a day performing live demonstrations in front of 40 Starwood employees. When considering systems, Nella also recommends considering the type of procurement you will be doing. Direct procurement, the act of acquiring raw materials and goods for production, is very different from indirect procurement, the act of purchasing services or supplies to keep business running. A system that handles indirect procurement may not work well for direct procurement. “Direct spend is more complex,” he says, and as such, will require a more robust tool. Testing before you buy is also critical. Starwood piloted the system in Toronto, and kept adding pilots across North America to tweak its procurement processes and develop training programs. This effort took the company more than a year. “Training is the most critical thing we did, followed by tracking metrics to ensure the benefits forecasted are being received,” Wampfler says. “When something isn’t working, 99 percent of the time it’s because people have gone off the reservation and tried to do it their own way. It’s not the technology that’s the problem.” According to Mann, there is often only 5 to 10 percent adoption of software within a company, and that’s not enough to gain the full benefit of automated P2P. “Unless you get 60 to 70 percent of the organization on board, you won’t get the real maximized efficiency or effectiveness out of the system.”

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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By Susanne Keough

SPECIAL REPORT TRADE FINANCE

NAVIGATING GLOBAL TRADE

There are tools to help your business prosper

SECURE PAYMENT SOLUTIONS

t is easier than ever for companies of all sizes to reach overseas buyers and expand their supply chains beyond the United States. Technological advances increased accessibility to markets, and allowed for fast, affordable movement of information, goods and money. Businesses are viewing global trade as a key to increase profits and sustain growth. In fact, according to the 2016 SunTrust Bank Business Pulse survey, more than 23 percent of businesses plan to expand into international markets within the next five years. But doing business globally is more complex than trading domestically. Every country has its cultural traits, government regulations and business conventions. Using available resources and finding the right partners—locally and domestically—is vital to success. Businesses that engage in global trade can use a set of risk management tools to balance their ability to compete globally with their need to protect profits and maximize working capital.

Documentary collection assures prompt payment to your supplier’s bank once documents arrive. The supplier presents a bill of exchange to its bank, along with shipping documents. The documentation is sent to your company’s bank, which then makes payment or provides assurance of payment at a specified future date. The documents then can be released to you and your company can take possession of the merchandise. This arrangement offers more protection than open account terms and exposes your company to less risk than payment in advance. Letters of credit are an accepted form of payment that commits a bank to honor drafts and documents that are presented in conformity with stated terms and conditions. The bank substitutes its own creditworthiness and reputation for that of the importer, obligating itself to pay the exporter as long as the stipulated documents are presented within a prescribed period of time, and all terms and conditions of the letter of credit are met. Because your bank is involved, as an exporter, you gain additional security that you get paid. While a letter of credit can’t fully protect against fraud, it provides benefits to you and your supplier.

FOREIGN EXCHANGE Foreign exchange services can provide importers with effective ways to reduce the risks of currency shifts on foreign costs and payables. Even when a company is invoiced or pays in U.S. dollars, there is still a conversion taking place on the other end of the transaction. Companies should gain visibility and control over this process because it usually leads to savings, which can be material given the current volatile environment.

SUPPLY CHAIN FINANCE Supply chain finance is a process in which financial institutions finance imported goods as they move from the country of origin to the United States. As importers find it necessary

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to improve cash flow by extending payment terms to suppliers, the financial burden is shifted to suppliers that typically have little or no access to competitive financing in local markets. However, this financing lessens the burden by offering the supplier U.S. interest rates based on the creditworthiness of the importer, which is usually a large corporate entity. For small and mid-sized businesses, supply chain finance continues to evolve. The biggest challenge is onboarding foreign suppliers as many are not comfortable working with lenders. Letters of credit are the norm, particularly in Asia. Familiarizing suppliers with a new process is critical to expanding supply chain finance to the small and midsized market. Major benefits include the expedited collection of accounts receivable for suppliers and the extension of accounts payable for the corporate buyer as the supplier and buyer of goods are able to improve their working capital position. To succeed, invest the time to learn about global trade, and assemble a team of experts including attorneys, financial partners, customs brokers, etc. Integrating them into your operations can help simplify the complexity of global trade. ABOUT THE AUTHOR SUSANNE KEOUGH manages SunTrust Bank’s trade finance and trade banking business as the head of the Global Trade Solutions department. She is responsible for trade finance sales, compliance and portfolio management areas.

SDCExec.com | March 2016 | SUPPLY & DEMAND CHAIN EXECUTIVE

3/16/16 8:08 AM

EXECUTIVE FOCUS

{ TRANSPORTATION}

By Barry Hochfelder

IN IT FOR THE SHORT H B

Are your transportation vendors committed to perform quality work even when market conditions turn?

anville Wine Merchants imports product from Europe and South America, and delivers it to more than 40 states. The importer was relying on its third-party warehouse and fleet—or anyone else the thirdparty logistics provider (3PL) chose to outsource to—to handle drayage from the port. Rates, however, kept climbing. “Chassis fees went up first, then congestion fees,” says Tim Kealey, the logistics coordinator at Banville. “And the [3PL] would always wait until the last free day to pick up. We tried to plan for the worst case, but even then we ended up having to push them— every time.” Those issues resulted in inconvenient late deliveries. Banville has a lot of short-haul needs as well, which involves less-thantruckload (LTL) capacity. In the world of LTL and truckload (TL) capacity, carriers often are caught in the middle, according to Russ Jones, the CEO of Cargo Chief, a 3PL that uses technology to connect shippers with its carrier network. “Carriers have been hemorrhaging cash for years on both [LTL and TL] loads. Large Fortune 100 shippers were accustomed to longterm contracts, fixed pricing and longterm guarantees. Now they’re willing to be flexible. Traditional contracts don’t work in the new ecosystem that’s driving [transportation].” He says the increase in technology and influx of data, used by smart analysts, are changing the game.

Most of the freight brokers Banville talked to wanted to book full loads, but were of no help with short-haul and LTL deliveries. “We were forced to continue doing business in a way that was neither particularly cost-effective, nor efficient,” Kealey explains. “Other people were offering to do the same job, but not for significantly less money, and we couldn’t risk consistency issues.” Banville turned to Cargo Chief to solve its problem. This 3PL has more than 500,000 trucks via a combination of direct carrier relations, more than 40 load boards for posting and capacity matching, dozens of capacity partners and relationships with multiple corporate-owned fleets. Those connections, along with Cargo Chief ’s unique tracking and vetting technology, and its LTL, TL, reefer, flatbed and intermodal capabilities, made Kealey’s choice easy. Kealey says Cargo Chief also helped identify a weakness in its system and fixed it. “In the past, our shipments were four or five days late; now they’re almost immediate. We do just-in-time delivery and the on-time delivery ensures we always have safety stock for available inventory. I hate having product just sort of floating out there ... We were flying blind; now we have fantastic visibility.”

A FEW TIPS Brian Brenner, senior vice president of sales at Coyote Logistics, believes we’re in a new shipping environment.

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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TRANSPORTATION

Measuring success brings us back to data. As Jones points out earlier, analytics and big data are changing the game, not only in transportation, but throughout the supply chain as well. “Data,” says Brenner, “is a key factor in measuring success. Access to transportation data is an ever-present resource in today’s transportation world. The ability to gather, interpret and act on this information is more important than ever in protecting and growing shippers’ businesses.” Analytics can help predict outcomes and plan for the future. Data can improve supply chain visibility and allow companies to proactively solve gaps in their networks. “Look for a transportation

T HAUL He says that market dynamics are “the softest we have experienced since 2009, with loose capacity and moderate demand. As we head into 2016, shippers are asking: When will the market shift? Am I prepared for it?” Shippers need to ensure their carriers and vendor partners are prepared to perform in this new environment. The first step, says Brenner, is to ask the right questions:

“Large Fortune 100 shippers were accustomed to long-term contracts, fixed pricing and long-term guarantees,” Jones explains. “Now they’re willing to be flexible. Traditional contracts don’t work in the new ecosystem that’s driving [transportation].” — Russ Jones, CEO, Cargo Chief ❯❯ Are your current vendors experienced in different market conditions? ❯❯ Are they committed to perform quality work when the market conditions turn? “No matter what type of market we’re in, customers should look for a provider that strives for the best in quality and technology, and is committed to driving cost out of customers’ supply chains,” Brenner says. “To avoid any network disruptions when the market shifts, question your long-term alignment, and how you would like to measure success now and in the future.”

provider that knows how to build, implement and evolve tools to measure such data in a timely manner,” Brenner advises. “Whatever shape the market is in, technology is vital to business success, and is an impactful ingredient in the shipper and transportation provider relationship.”

ONE MORE CASE Mantua Manufacturing, a maker of bed frames and related products, wanted to focus on its core business. The company decided too much time was spent on quoting freight shipments, reconciling bills and

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tracking shipments. The goal was a solution that would integrate into Mantua’s internal systems, so that customer service employees weren’t spending all their time keying in freight requests. “We were looking for the best fit for ease of use, time and cost savings, as well as outstanding service,” says Kristine Havranek, director of customer relations at Mantua Manufacturing. The company chose Freightquote, which installed an application program interface (API) of its transportation management system (TMS), eTMS, into Mantua’s internal system. After integration, the system was rolled out at one of Mantua’s six warehouse and manufacturing locations, but one other piece had to be worked out: Mantua typically worked with drop trailers. One of the carriers Freightquote introduced into the supply chain did not initially supply that trailer, but quickly rectified the situation. To ensure that the TMS continues to run smoothly, Mantua stakeholders meet monthly to discuss Freightquote and the specific carriers picking up its freight. “It’s time we take to keep one another up to speed on what is working and where we’d like to see improvement,” Havranek says. “We learned a lot about carrier proficiencies and transit expectations. We found that comparing carriers is much more efficient through the eTMS API than going to each carrier’s website for every shipment.” ABOUT THE AUTHOR BARRY HOCHFELDER is the former editor of Supply & Demand Chain Executive.

SDCExec.com | March 2016 | SUPPLY & DEMAND CHAIN EXECUTIVE

3/16/16 9:38 AM

EXECUTIVE FOCUS

{ SOFTWARE & TECHNOLOGY}

By Carrie Mantey

HARDWARE

that Helps Facilitate

HARD WORK

Software and applications may get all of the accolades, but the hardware that warehouse and distribution center employees use daily is just as essential

t used to be that you could rely on the collective knowledge of yourself and your colleagues to get the job done. Now that machines do part of the work and commerce operates on a more frenzied pace, however, it seems impossible to put in a full days’ work without accessing a database or dashboard. And now that it’s easy to connect to the Internet from virtually anywhere, it’s easier than ever to find the solution to your problem with the hardware that connects you to the software or application that holds the key to your particular quandary. While this hardware was originally made for techies and gadget geeks, the equipment is gaining ubiquity throughout the warehouse and distribution center (DC) in one form or another. Mobile computers and tablets, smartphones and wearables, which are essentially vehicles for information, can reduce safety hazards, accelerate employee training, and enhance human and machine communication. Warehouse and

DC employees are gaining from the abundance of hardware, but it is only as good as the applications and software running on it. There are countless options that are compatible with tablets, smartphones and wearables. Bruce Stubbs, the director of supply chain marketing at Honeywell Sensing and Productivity Solutions, says, “There are a variety of applications that can run on these warehouse devices. Most DCs utilize a warehouse management system (WMS) or warehouse control system that manages work process-directed tasks for inbound [logistics], outbound [logistics], inventory control and labor management in real time. The devices give workers the ability to communicate with these systems in real time and allow them to access multiple systems—WMS, enterprise resource planning systems, transportation management systems, yard management systems, labor management systems, etc. “Other edge software can be accessed from the devices easily as

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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SOFTWARE & TECHNOLOGY Photo provided by Honeywell Sensing and Productivity Solutions

well, or even come packaged with the device as a total solution, and can include document imaging software, address verification software, vehicle performance software, device management software and more.” The possibilities are endless.

reduces worker fatigue and the risk of accidents, especially when considering the other employees, lift trucks, etc. that are crisscrossing the aisles of inventory. In turn, this can improve employee morale. “The greatest benefit of using automated data capture solutions for distribution workflows is the documented significant increases in productivity, accuracy and employee wellbeing,” concurs Stubbs. “Traditional paper-based and manual methods introduce greater error and wasted effort in accomplishing the workflow tasks. By automating manual dataentry processes, DC operators can

HARDWARE THAT BENEFITS YOUR HARD WORKERS What employees really gain through the use of mobile computers, smartphones and wearables—which can include everything from digital eyewear to ring scanners—is access to real-time information. Data is increasingly valuable in the warehouse and DC, especially as customer expectations escalate to include short shipping turnaround due to increasing competition form large e-tailers like Amazon. In warehouse and DC environments, conditions are everchanging, so being able to consult with a WMS, on a moment’s notice, to determine if an order got out the door on time is beneficial. Stubbs says, “With data accessible in real time and shared across multiple systems, the workforce and the management team are able to make proactive, informed decisions based upon actionable intelligence as opposed to reacting later to historical information.” The most touted benefit that hardware bestows upon users is productivity. The ability to have a device on you at all times—and all the data you need at your fingertips— eradicates the paper-based orders and spreadsheets that cause delays when they can’t be located easily, and saves on unnecessary travel throughout the warehouse or DC, which has more impact the larger the facility is. As well as saving time, eliminating unnecessary motion in the warehouse and DC

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typically experience up to 50 percent improvements in productivity. We have seen documented accuracy levels increase to 99.99+ when deploying automated data capture, which eliminates a lot of the rework associated with error correction. “The cost savings are derived from the accumulation of gains in productivity, accuracy and management effectiveness,” Stubbs continues, “This can help DC operations contribute to the company’s bottom line by reducing overall operating costs and increasing customer satisfaction levels. While all types of DCs benefit from implementing automated data

SDCExec.com | March 2016 | SUPPLY & DEMAND CHAIN EXECUTIVE

3/16/16 8:17 AM

What Capabilities Are Available?

SOFTWARE & TECHNOLOGY

capture solutions, the largest and most complex operating environments show a greater return on investment (ROI) quicker due to the amount of material typically handled and the larger workforces deployed. The more complex the warehouse operations are, the faster and greater the ROI. However, operations of all types achieve significant levels of ROI when deploying automated data capture solutions to replace manual processes. These ROI timeframes are usually less than 18 months, with some of them being achieved in as little as nine.” While wearables may seem like a buzzword, these devices have been around since the ’90s. This kind of hardware is growing in popularity because it allows warehouse employees to work their data capture devices without tying up their hands, which improves productivity and efficiency. It’s much easier to pick and pack SKUs when you’re not toiling with a scanner. While it may not seem burdensome or time-consuming, picking up, putting down and locating a scanner hundreds of times throughout the day not only takes a toll on worker fatigue, but also reduces operational speed. “The trend is toward hands-free technologies—such as wearables and voice solutions—to drive greater productivity and accuracy while promoting safety, ergonomics and employee morale,” says Stubbs. By definition, wearables are hands-free devices (although a user may wear a scanner or mobile computer on

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their finger, wrist, glasses, etc.), but voice technology is available for most hardware. Voice direction permits near real-time, two-way communication, which helps facilitate tasks that require immediate attention.

RUGGED DEVICES FOR INDUSTRIAL ENVIRONMENTS For hardware to be useful, it should not only be intuitively easy to operate, but also rugged enough to perform in tough industrial environments. When looking to purchase new hardware, make sure to seek out industrialgrade devices unless they will only be used for commercial environments or light-duty applications. Even then, tread carefully and be sure to add aftermarket protection, such as screen protectors or smartphone cases. “The market is inundated with hardware solutions. While smartphones and other commercial-grade devices are being tested by some companies for DC workflows, they are proving to lack the ruggedness to consistently perform optimally in the DC environment,” warns Stubbs. “Rugged, purpose-built devices are still the best option for optimal performance and workflow efficiency,” he continues. “These include both handheld and vehicle-mounted mobile computers, wearables utilizing mobile computers and Bluetooth ring scanners, wearables utilizing voice technology and sleds that enhance commercial devices to perform more like rugged devices.”

These devices can be simple or quite advanced. Bruce Stubbs, the director of supply chain marketing at Honeywell Sensing and Productivity Solutions, says, “Advanced features allow the workforce to perform optimally without interruption at the point of process with an enhanced user experience.” Some of these advanced features include:

WWImaging technology, as opposed to laser technology, to read one- (1D) and two-dimensional (2D) barcodes. These imaging devices can also come with near/far reading capabilities to support workers who need to scan information up close and at greater distances.

WWOptical character recognition

(OCR), which permits scanners to read text from paper, whether printed, typed or handwritten, and translate it into a data format that can be digitally manipulated.

WWDirect part marking (DPM),

which means that the hardware contains imagers that can read barcodes that are imprinted directly into the surface of materials like plastic or metal.

WWCamera capabilities to document quality or damage conditions.

WWEmbedded RFID readers to

capture information quickly from multiple sources that contain RFID labels or tags.

WWHigh motion tolerance for scanning while in motion.

WWExtended battery life.

3/16/16 8:17 AM

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3/16/16 8:17 AM

EXECUTIVE FOCUS

{ WAREHOUSING}

By Carrie Mantey

UPPING THE

YARD MANAGEMENT AUTOMATION

ANTE

Yard management systems plan and optimize daily yard tasks to boost the bottom line

ard management systems and visibility of trailers in your yard. If a yard doesn’t manage its assets (YMSs) are upping the This fills a blind spot that typically well, a domino effect ensues, negatively ante when it comes to exists in supply chain. You generally affecting productivity. Greg Braun, distribution efficiency by have an enterprise resource planning senior vice president of sales and automating manual processes. Rather (ERP) system that helps you plan marketing at C3 Solutions, offers an than tying up staff with mundane tasks resources, a warehouse management example, “Not having sufficient empty like knowing what where inventory is, system (WMS) that controls your trailers on hand at the beginning the systems plan and optimize daily warehouse, and a transportation of a shift delays outbound orders. yard tasks, which helps ensure on-time management system (TMS) that Therefore, the ability to track, filter deliveries, improves inventory and manages the routing and delivery of and report on assets is significant, dock management and increases gate the end product. There is clearly a not simply for the direct costs, throughput. disjoint when it comes to yards.” but most certainly for the costly YMSs contain a central control system to store a Decreased detention costs of up to yard’s business logic. “When a load is delivered or a trailer becomes available for loading, reduction in yard trucks the control system creates and allocates the required tasks. The tasks are either allocated through a device installed in the truck or delivered increase reduction in fleet trailers in time at the gatehouse in dock through a tablet/mobile utilization device,” says Steve Temple, A return on solutions consultant, EMEA, at investment of International Business Systems. increase less than “Automated yard management in dock although this is dependent on the level of yard activity productivity tools enable real-time tracking

estimated YMS benefits by the

numbers

20% 30%

90% 25% 40-50% 15% REDUCTION

12 MONTHS,

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WAREHOUSING

impact mismanagement can have on production and customer fill rates.” YMSs also increase overall yard throughput by better managing assets, such as dock space, inventory and employees, due to enhanced visibility. “As a yard driver becomes available for his next task, the system establishes the optimal yard move for that driver,” says Braun. “This optimization can be realized by making sure an empty trailer that is being released from a door is sent directly to another door requesting a trailer, eliminating a move.” In addition, Braun says that accurate trailer inventory eliminates drivers searching for trailers. Likewise, yards can improve driver productivity if they replace two-way radios and clipboards with discrete tasks sent to wireless devices. Dock crews can also improve productivity by minimizing the time spent waiting for trailers. Historically, only companies operating large, complex yards invested in YMSs because automating manual processes over such vast operations achieves a clear cost savings. But that is changing, according to Braun. “The market for YMS applications ha expanded to include a greater diversity of firms,” he says. “Some small and medium-sized businesses that require logistics decrease in time excellence to looking for lost achieve growth trailers are now investing in YMSs. These companies are seeking to improve the control, scheduling, decrease in and tracking of empty trailers inbound trucking

operations, incoming inventory and overall fleet assets.”

YARD MANAGEMENT AUTOMATION SOLUTIONS YMSs come with a range of functionality: There are those included in a supply chain management suite, such as a WMS or ERP yard module, or standalone YMSs. There are also standalone systems that can function with or without RFID and GPS positioning devices, and those that are dependent on RFID technology, which requires tag management at the gate. Yard management modules that come as part of a larger software suite typically provide basic visibility into yard assets and communicate the simple movement of assets to get them to where they need to go efficiently. Standalone YMSs, in contrast, offer more functionality, and focus on optimizing yard assets and movements for specific sites. Each yard is different, so these systems treat them as such by prioritizing how trailers should move specifically in that yard and among that yard’s other assets. These YMSs permit organizations to stipulate exactly how tasks are created and allocated, depending on yard-specific operational requirements. One yard may want to maximize yard driver labor efficiency, while another maximizes inventory fill rates. The key differentiator between yard management modules and standalone YMSs, however, is that standalone systems are more robust and flexible. Temple believes RFID YMSs are trending. “We’ve seen the re-emergence of passive RFID tags to track trailers in larger yards,” he says. “The benefit of passive RFID tags is they’re little more than stickers with an antenna and small chip built into it, which makes them cost-effective.” Perhaps it’s time to take a look out back and see if a YMS can help clean up your yard.

95%

20%

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What to Do with YMS Greg Braun, senior vice president of sales and marketing at C3 Solutions, says YMS applications:

WWTrack, control and

optimize the movement of trucking assets within one or more yards associated to a site.

WWOptimize the driver labor resources that are tasked to move equipment by minimizing task time duration and/or distance traveled.

WWManage receiving and

shipping dock doors, and parking locations.

WWManage inbound load

scheduling and receiving based on configurable priorities.

WWContinuously adjust

priorities in response to pressures from peaks and valleys in receiving and shipping volumes.

WWManage communications between a centralized control center and all yard driver labor.

WWForecast vehicle

availability through the use of agent technology that looks ahead to prevent equipment shortages.

WWProvide advanced key

performance indicators that give managers intelligence to improve operations.

SDCExec.com | March 2016 | SUPPLY & DEMAND CHAIN EXECUTIVE

3/16/16 9:00 AM

EXECUTIVE FOCUS

{ PROFESSIONAL DEVELOPMENT}

By Carrie Mantey

Forward-thinking organizations can develop future leaders by inv

Don’t Let Millennials D

M PostMillennials

Silents

illennials make up the largest, most educated and diverse generation in history. By 2025, around 75 percent of the workforce will be comprised of them. But what differentiates this generation from the rest of the workforce? It depends on whom you ask. There are lots of contradicting opinions—even on dates, so let’s define Millennials as the generation born between the 1980s and mid-2000s. Then type “Millennials are” into Google, and you may find your impressions turn bleak when the search engine finishes your sentence with lazy, narcissistic, stupid and screwed.

WHAT’S SO GREAT ABOUT MILLENNIALS? Boomers

29%

Millennials

34%

LABOR FORCE DISTRIBUTION BY GENERATION

Not everyone takes a pessimistic view of the up-andcomers, however. John (Buddy) W. Hobart, CEO of

Solutions 21, a company that helps businesses attract and retain Millennial workers, and manage intergenerational challenges, has a habit of turning the oft-negative connotations used against Millennials into positive skills: “People say Millennials need to be constantly reaffirmed. That’s not true. They need real-time feedback.” You say narcissistic, he says goal-oriented; you say lazy, he says technologically driven. Millennials are the first generation to be considered technology natives, which is part of what makes them unique. Hobart elaborates, “Millennials have never known a world without mobile technology, so they’ve never known a world without instantaneous information or that 24/7/365 news cycle. From there, you can start to extrapolate what that means for their uniqueness—the instant knowledge, understanding what’s happening in other industries and companies and locations instantly, and making instant decisions about your career or ways to solve business issues. That did not exist for other generations.”

% of the labor force Pew Research Center

Gen Xers

34%

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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PROFESSIONAL DEVELOPMENT

by investing in them, while also creating a sustainable talent pool

s Die on the Vine “I think they’re looking for autonomy,” asserts Cecilia Mendoza, the director of marketing and public relations at the Institute for Supply Management. “They’re looking to forge their own path to get the results they’re being asked to produce. Millennials bring a different perspective and, because they are very tech-savvy, and accessing information

And survive the recession they did, albeit not without struggle. As the TECHNOLOGY AND THE 2015 Time article “Millennials Are INTERGENERATIONAL Setting New Records—for Living WORKFORCE with their Parents” points out, “Last When working with the Millennials year, 43 percent of young men were on her team, Mendoza prefers to focus living at home, which is the highest on outcomes as opposed to enforcing rate since 1940.” This is probably standard operating procedures. When when the notion that Millennials are people are hired into new positions, lazy because they live in their parents’ they receive the standard procedures basements was catalyzed. However, this to follow and are instructed on how is not necessarily from a generational things were done in the past. Instead, defect. Many Millennials not only she asks, “What does success look faced a tight labor market after college graduation, but also historic student debt, DEMAND SOLUTIONS which led many to stay in school OFFERS longer to avoid SUPPLY CHAIN PLANNING the blighted job IN THE CLOUD market. Now AND ON-PREMISES. that they’re entering the regenerating ranks of employment, Millennials are nothing if not hungry for a career, but What’s behind that beautiful browser-based interface? they’re not always With Demand Solutions, you decide. Whether you looking to do deploy in the cloud or on-premises, your users get the things according to tradition. same full features and intuitive experience. ASK US HOW. The challenge, therefore, is to blend the four-generation demandsolutions.com/cloud | 800 886 3737 | info@demandsolutions.com workforce.

“And unless you plan on going out of business in the next six months, they’re your future of work.”

Our Cloud or Yours?

John (Buddy) W. Hobart, CEO, Solutions 21 in real time, they will move and drive projects very fast. Organizations should use that to their advantage, especially when implementing new technology, which should be led by a team of Millennials. They will have the buy-in and help with the transition period. Inherently, Millennials will help drive a lot of business changes.” “And unless you plan on going out of business in the next six months, they’re your future of work,” opines Hobart. “No one wanted to advocate for Millennials when the recession hit; they figured they’ll fall in line like everybody else. Fast forward to 2014, and the recession did not in any way break the Millennials. It emboldened them. They began to realize they can survive this, and maintain their values and drive.”

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3/16/16 9:01 AM

PROFESSIONAL DEVELOPMENT

“IF WE ALLOW MILLENNIALS TO HAVE THE AUTONOMY TO CREATE THEIR OWN ROADMAP, SUCCESS OFTEN COMES QUICKER THAN HOW WE PRESCRIBED TO GET THERE IN OUR MINDS.” — CECILIA MENDOZA, DIRECTOR OF MARKETING AND PUBLIC RELATIONS AT THE INSTITUTE FOR SUPPLY MANAGEMENT

like? If we allow Millennials to have the autonomy to create their own roadmap, success often comes quicker than how we prescribed to get there in our minds.” She says that she’s often surprised by how quickly Millennials reach those outcomes and success. Part of that success may come from Millennials’ tech-savvy nature. Hobart warns, “Don’t squash it!” He suggests organizations accept and capitalize on it, while also understanding that older colleagues—Gen X, Baby Boomers and Traditionalists—could misread Millennials’ connections to technology in certain situations. If you see Millennials on smartphones during meetings, for example, it’s not correct to assume they are on the devices for entertainment. Millennials view mobile devices as a business tool. Perhaps they are taking notes or responding to a workrelated alert. If the situation escalates into distraction, then it may be necessary to intervene and explain what they can’t do with their phones. “If the rest of my team finds it distracting, as a leader, it’s incumbent upon me to explain why what you’re doing is distracting to the other generations. Millennials will understand and be solid followers,”

according to Hobart. Because of this connection to technology, many companies are implementing bring-your-own-device (BYOD) policies, which let employees not only bring their personal mobile devices—laptops, smartphones or tablets—to work, but also let them install software and applications, and access company information on them. While there are obvious security issues to scrutinize, there are also benefits, such as attracting Millennials with flexible policies, the ability to access work 24/7/365 and employee familiarity with their own devices. Another challenge that crops up is, because Millennials are “always” online, many work longer hours and, in some cases, expect flexibility. Companies are already leaning toward more flexible scheduling, but it may not always be prudent depending on the job and intergenerational sensitivities. Hobart says, “The other generations believe that presence equals work. And that was never true. There are people who spend 12 hours in the office and get two hours’ worth of work done.” While not much can be done if presence is essential for a job function, each organization must determine if flexible scheduling could improve employee morale and retention. “There has to be an understanding of the different work styles and personalities to make a successful team,” concurs Mendoza. The important part of integrating these four generations is hearing all of them and making informed decisions based on their symbiotic relationship. It’s not a matter of adapting your workforce to Millennials or vice versa. “In no way do we advocate doing anything special or bending over backward for Millennials,” Hobart stresses. “We advocate doing the right things for everybody. This is

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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PROFESSIONAL DEVELOPMENT

the first time in history that there are four generations in the workforce. Getting each of those generations to understand the motivators of one another—that’s the challenge.”

outdated career ladder.” Hobart believes that Millennials are more interested in a career lattice. He laments, “The career ladder was step by step, and if we got stuck behind somebody, our mentors told us to just keep our noses to the grindstone and good things will happen.” In contrast, career lattices set up career development as a chess board, so pieces can move more liberally than forward or backward (or up or down the career ladder). Millennials don’t want to spend years in a job that’s not helping them grow, even if the new job is in

CAREER DEVELOPMENT IS MILLENNIAL RETENTION The media exacerbates a lot of the information surrounding Millennials, according to Hobart. “One of the biggest myths that Gen X and Baby Boomers have is that Millennials are looking for this overwhelming flexibility, like the job has to be at a

The important part of integrating these four generations is hearing all of them and making informed decisions based on their symbiotic relationship. Starbucks that has ping pong and pool tables. What are they really looking for? Millennials are willing to hook their career wagon to a strong leadership horse. The ol’ walk the walk.” Walking the walk means that, if you make a speech about how you value employees, provide them with training. If you tell employees that they’re the company’s greatest assets, then help them navigate their prospective careers, or in Hobart’s words, “Don’t tell me you care about me and have me die on the vine on this

a different direction than originally planned. Lateral moves don’t mean the death of a Millennial’s career as long as it’s a milestone on the journey. Navigating these moves and coaching them bodes well in terms of retaining them. An organization must offer them the opportunity for movement if it wants them to stick around. Forward-thinking organizations that actively recruit and retain Millennials can not only intentionally develop future leaders by investing in them, but also create a sustainable

talent pool and proactively plan for leadership succession. Fortunately, the key to keeping top Millennials around is to invest in making them great leaders—through education and career development. Mendoza thinks organizations can show Millennials they’re valued “through a designated career path for growth, investment to obtain certification, support in getting their MBA, or even attending conferences for growth and development.” One caveat is they don’t like to wait to know their value. Hobart says, “We don’t have the luxury of time.” Once you have Millennials with leadership potential, start developing them immediately. While they may be nowhere near ready for a supervisory role, it shows that the organization has plans for them in the future. Millennial retention can also be good for the bottom line. The Forbes article “Rethinking Employee Turnover” reads, “Depending upon the complexity of the job and the level of management, the cost of turnover can equal anywhere from one month’s to several years’ salary for a departing employee.” Mentoring is another great idea. The more time Millennials spend with experienced workers, the more they absorb and faster they become the next great leader at your company.

ER s ST ! te GI OW Ra 1st RE N ird ril B Ap rly il Ea unt

✓ Get industry specific continuing education ✓ Benchmark and brainstorm with peers ✓ See how other DCs operate ✓ Meet friends and make new networking contacts ✓ Stay current on products, technology and equipment Find everything you need to know and REGISTER at

SDC0316_48-51_ProfDev_cm RG_LS1.indd 51

werc.org/2016

SDCExec.com | March 2016 | SUPPLY & DEMAND CHAIN EXECUTIVE

3/16/16 9:01 AM

WORK HARD, By Ronnie Garrett

GET UP AND

Supply chain exec Lora Cecere gathers life lessons along her journey to dance en pointe

odern dancer and choreographer Martha Graham once said, “Nobody cares if you can’t dance well, just get up and dance.” Though she will never dance the lead in Swan Lake or perform with the Royal Ballet, Lora Cecere, the founder of Supply Chain Insights and Supply & Demand Chain Executive editorial board member, takes this sentiment to heart as she spends two hours a day, five nights a week en pointe, mastering ballet steps like the glissade and pas de bourrée. Her dance journey started with a discussion about bones. Cecere broke the calcaneus bone in her foot and developed osteoporosis. Her doctor gave her two choices: Take medication or become more active. Cecere decided it was time for her to move off the couch and into the dance studio. Cecere always loved William Butler Yeats’ quote, “How can we know the dancer from the dance?” As she learns ballet, the quote has new meaning. “As I practice performances, I find it’s easy to become one with the music,” she says. “I also learned what dancers make look so easy is seriously hard work.” At the barre, Cecere also learned

to fully appreciate supply chain capabilities. There are hundreds of types of pointe shoes with different fabrics, vamps, heels, widths and sizes, but despite the fact that Gaynor Minden makes 3,211 types of pointe shoes, her feet, which Cecere describes as fat, short and stubby with a high arch, required a custom fit. “Luckily this specialty company had a custom-fit supply chain that could accommodate my requirements,” she says. Her takeaway—besides being able to dance en pointe—includes a number of life lessons she gathered on her journey. She explains it took tons of time, plenty of practice, a dose of determination and many small immeasurable improvements to get en pointe. “I think doing this has made me a better manager. When you struggle to learn something, you realize the benefit of encouragement. I’m more mellow now,” she says. Cecere also learned the value of working hard to hit a lofty goal. “The goal that you really work for is the one that means the most,” says Cecere. “When I completed my first barre en pointe, I became very emotional. For me, it was a great accomplishment. The harder you have to work for something, the more you value the accomplishment.” Cecere also learned the value of taking up new passions. Besides ballet, she quilts and just purchased a baby grand piano to play. “Life is too short to not live it to the fullest,” she says. “We are never too old to follow our passions.”

SUPPLY & DEMAND CHAIN EXECUTIVE | March 2016 | SDCExec.com

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3/16/16 8:59 AM

SUPPLY CHAIN LEARNING CENTER

™

A DIVISION OF THE

LEARNING HUB

NOW AVAILABLE

ON-SITE TRAINING Whether you have a small business or compete on an international level, learn how affordable, on-site training through the Supply Chain Learning Center will help your business stay both profitable and competitive now and into the future. • Meet the needs of rapid growth in international sourcing and partnerships • Address emerging trends and their impact on your business • Improve and streamline customer service and after-sale support • Decrease waste in both fixed assets, inventory and processes • Improve and streamline product delivery • Ensure compliance with legal aspects of supply chain management • Increase your company’s bottom line

For more information or course catalog, visit SupplyChainLearningCenter.com or contact Jolene at jgulley@ACBusinessMedia.com. Brought to you by:

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Anytime. Anywhere. On Your Schedule. Customized, Affordable On-Site Training For more information, contact: Jolene Gulley, Group Publisher Supply & Demand Chain Executive Food Logistics Phone: 480.413.0354 Mobile: 262.473.9285 jgulley@ACBusinessMedia.com SupplyChainLearningCenter.com

Class size: Up to 18 people Training Duration: 1-3 days Cost: Varies - choose from set program modules or customize to meet your needs

3/16/16 8:59 AM

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Untitled-2 1

3/17/16 9:16 AM

The Global Enabled Supply and Demand Chain Map This map provides the solutions and services that can give your supply chains a competitive edge

Version 31.0

PROCUREMENT (DIRECT, INDIRECT & SERVICES) • Benchmarking & Metrics • Content Management • Contingent & Temporary Labor Services Management • Enterprise Supplier Collaboration • Employee Business Services Management (including Travel & Entertainment) • Financial Fraud • Group Purchasing Organizations & Solutions • Hedging Strategies • Marketplaces • Negotiations & Contract Management • Network Optimization

SOURCING

The Global Enabled Supply and Demand Chain Map VERSION 31.0

(This map replaces Version 30. 0 from the September 2015 issue)

• Auctions • Category Management • Commodity Team & Supplier Collaboration • Compliance • Content Management • Financial Fraud • Governance • Market Analytics • New Laws & Regulations • Outsourced Manufacturing, & Offshore/Nearshore/Reshore/ Onshore Strategies

• New Laws & Regulations • Product Cost Management • Purchase Order & Requisition Management • Supplier Enablement & Supplier Information Management • Supplier Performance Measurement & Monitoring • Supplier Relationship Management & Supplier Development • Supplier Risk Management • Sustainable & Green Supply Management • Value-Focused Supply Management

• S pend Analytics, Product Cost Management & Supply Strategy • Sustainable & Green Supply Management • Supplier Relationship Management • Tail Spend Management • Total Cost of Ownership • Trading Exchanges (Public & Private) • Total Cost Analysis

ORDER/DEMAND CAPTURE

SUPPLY CHAIN INTEGRATION & TECHNOLOGY INFRASTRUCTURE (Lean Manufacturing, Manufacturing Resource Planning, Just-in-Time/Sequence Planning, Collaborative Production Management) • Automatic Identification & Data Capture, including Radio Frequency Identification (RFID) & Voice • B2B Connectivity Standards & Integration Planning • Bring Your Own Device (BYOD) (NEW) • Contingency Planning • Cyber Security • Electronic Data Interchange (EDI) • Enterprise Asset Management (EAM) • Enterprise Application Integration (EAI) • Enterprise Resource Planning (ERP) • Hardware Options • Import/Export Compliance Management • Internal/External Portals

• Internet of Things (IoT) (NEW) • Network Infrastructure, & Enterprise Data Management & Data Synchronization • Predictive Analytics • Real-Time Freight Contract, Bid and Tender Automation • Regulatory & Customer Mandate Compliance, & Governance Issues • Security • Solutions Portfolio Management: On-Premise/CloudBased/Software-as-a-Service (SaaS)/ On-Demand/Hosted Applications • Warehouse Management Systems (WMS) • Wireless Applications & Devices

SUPPLY CHAIN INTEGRATION & TECHNOLOGY INFRASTRUCTURE ENABLERS COMPETIBID Demand Management Inc. DSC Logistics Fortna Inc.

LeanLogistics MHI Numerex Corp. Puridiom

RateLinx SafeSourcing Inc.

• Benchmarking & Metrics • Capacity Planning • Demand Planning & Forecasting • Demand Sensing & Shaping • e-Request for Information/ Proposal (eRFI/eRFP) • Merchandise Planning • Network Analysis & Optimization • New Laws & Regulations • Order & Demand Management

• • • • •

Outsourced Manufacturing Predictive Analytics Promotional Planning Quote-to-Order Automation Sales & Operations Planning, & Sales, Inventory & Operations Planning • Supply & Demand Chain Network Design • Supply Chain & Production Planning • Supply Chain Coordination & Event Management

PROCUREMENT ENABLERS Basware Inc. Demand Management Inc. DSC Logistics LeanLogistics

SOURCING ENABLERS Basware Inc. COMPETIBID Demand Management Inc. DSC Logistics

Collaborative Design Design for Supply Chain Design for Sustainability & Environment New Laws & Regulations New Product Introduction Outsourced Design Services Product Data Management Product Portfolio Management Request for Information Reverse Logistics Sustainable Packaging (NEW)

ORDER/DEMAND CAPTURE ENABLERS

PRODUCT LIFECYCLE MANAGEMENT ENABLERS DSC Logistics Logility MHI Puridiom SafeSourcing Inc.

Logility Puridiom RateLinx SafeSourcing Inc.

Basware Inc. Demand Management Inc. DSC Logistics Logility MHI

PRODUCT LIFECYCLE MANAGEMENT • • • • • • • • • • •

MHI Puridiom RateLinx SafeSourcing Inc.

Numerex Corp. Puridiom RateLinx SafeSourcing Inc.

CUSTOMER RELATIONS • Channel Management & Customer Analytics • Contest Management • Field Service & Service Parts Logistics • Mobile Sales Solutions • Reverse Logistics & Material, & Merchandise Returns

• •

•

Fulfillment/Logistics • • • • • • • • • • • • • • • •

Procurement Fulfillment

Sourcing

Supply Chain Integration & Technology Infrastructure

Order/Demand Capture

t en m ge a an M le yc c ife Customer tL c u od Relationship r P

Service

• •

Logistics s Con

• Service Analytics, Planning & Optimization • Service Financial Management

PAYMENT • • • • •

Collaborative Cash Flow Management e-Credit e-Money Electronic Bill Presentment & e-Invoicing Electronic Funds Transfer & All Forms of e-Payment • Financial Fraud • Financial Supply Chain Management

Education

SERVICE SUPPLY CHAIN

• Predictive Analytics • Reverse Supply Chain & Logistics, & Returns Management • Route Accounting & Management, & Direct Store Delivery Solutions • Service Parts Logistics & Service Supply Chain Planning • Simultaneous Outbound & Inbound Management • Supply Chain Event Management • Supply Chain Execution • Supply Chain Security • Transportation Management & Optimization • Vendor-Managed Inventory • Voice-Driven Solutions • Warehouse Control Systems • Warehouse Management Services & Systems • Workforce Management • Workforce Training

FULFILLMENT/ LOGISTICS ENABLERS CenterPoint Properties DSC Logistics Fortna Inc. Logility MHI Numerex Corp. Old Dominion Freight Line Inc. Puridiom RateLinx SafeSourcing Inc.

• Service Operations across Aftermarket Service Supply Chain Areas: Asset Management, Spare Parts, Field Services, Warranty, Service Management, Repairs & Returns

Payment

ultin

Management

Benchmarking & Metrics CO2 Tracking & Management Customized Build & Assemble Cyber Security Dashboards Distribution Planning & Distribution Requirements Planning Energy/Sustainability Assessment Financial Fraud Global Trade Management Inventory Management & Optimization Lean Six Sigma Logistics Resource Management Manufacturing Execution Systems Material Handling Equipment & Services Modeling Simulation Order Management Inputs (from Order/ Demand Management Pie) Order & Delivery Management Outsourcing Services

• Financial Transaction Management (All Request-to-Check Processes) • Freight Audit & Payment Services • Global Trade Finance • Letters of Credit • PayPal & Bitcoin (NEW) • Purchasing Cards • Spend Data Management

SERVICE ENABLERS COMPETIBID Demand Management Inc. MHI Numerex Corp. RateLinx SafeSourcing Inc.

PAYMENT ENABLERS Basware Inc. LeanLogistics Logility Puridiom RateLinx SafeSourcing Inc. UPS Capital®

DECISION SUPPORT CONSULTING

SHIP MANAGEMENT

Sales Force Automation Trade Promotion Management Warranty Chain Management

CUSTOMER RELATIONSHIP MANAGEMENT ENABLERS Basware Inc. DSC Logistics MHI SafeSourcing Inc.

CONTINUING EDUCATION UNITS (CEUS) • • • •

Accreditation Associations Certification Universities

CONTINUING EDUCATION UNITS ENABLERS MHI

CONSULTING ENABLERS Demand Management Inc. DSC Logistics enVista Fortna Inc. MHI Puridiom RateLinx SafeSourcing Inc.

• Benchmarking & Metrics • Business Process & Performance Management; Revenue, Price & Profit Management Automation • Dashboards • Information Sharing & Analysis; Knowledge Management & Enterprise Business Intelligence • Inter-enterprise & Cross-functional Collaboration; Change Management; Staffing & Incentive Management; Supply Chain Skills Management & Education; Professional Development • Market Intelligence & Predictive Analytics • Regulatory & Customer Mandate Compliance; Governance Issues; Supply Change Risk Management; Supply Chain Relationship Management • Research, Advisory & Consulting • Six Sigma, Quality & Lean Six Sigma

DECISION SUPPORT ENABLERS Demand Management Inc. DSC Logistics MHI Puridiom RateLinx SafeSourcing Inc. UPS Capital®

INDEX OF ADVERTISERS Basware Inc. . . . . . . . . . . . . . . . . . . . . . . 23

enVista . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

www.basware.com Robert Cohen • 203-487-7900 robert.cohen@basware.com Basware, the global leader in providing purchase-to-pay and e-invoicing solutions, helps businesses simplify and streamline their financial supply chain to strengthen control, reduce costs, proactively manage cash flows and improve buyer-supplier relationships.

www.envistacorp.com 877-684-7700 info@envistacorp.com

CenterPoint Properties . . . . . . . . . . . . 21 www.centerpoint.com Michael Murphy • 630-586-8142 mmurphy@centerpoint.com CenterPoint Properties is focused on the development, acquisition and management of industrial property and transportation infrastructure that enhances business and government supply chain efficiency.

COMPETIBID . . . . . . . . . . . . . . . . . . . . . . 44 www.competibid.com Scott Britton • 636-944-3525 sbritton@competibid.com

Demand Management Inc. . . . . . . . . . 49 www.demandsolutions.com Anne-Cecile Fuchs • 314-991-7116 afuchs@demandsolutions.com

DSC Logistics. . . . . . . . . . . . . . . . . . 10, 12 www.dsclogistics.com Jennifer Nix • 847-390-6800 customersolutions@dsclogistics.com DSC Logistics is a leader in transforming logistics and supply chain management into a critical business strategy based on collaborative partnerships, innovative thinking and high-performance operations. DSC achieves the business goals of Fortune 500 and other dynamic companies by designing, integrating, managing and adapting customized supply chain solutions.

Emirates SkyCargo . . . . . . . . . . . . . . . . 54 www.skycargo.com From Emirates SkyCargo’s location at the crossroads of Europe, Africa and Asia—you can reach more than 1.5 billion customers in less than eight hours with multiple destinations and a young, able-bodied fleet.

Fortna Inc. . . . . . . . . . . . . . . . . . . . . . . . . 26 www.fortna.com Kate Baar • 770-475-0991, ext. 1201 katebaar@fortna.com

Gartner Inc. . . . . . . . . . . . . . . . . . . . . . . . 45 www.gartner.com 800-213-4848 inquiry@gartner.com

LeanLogistics . . . . . . . . . . . . . . . . . . . . . 43 www.leanlogistics.com 866-584-7280 solutions@leanlogistics.com

Logility . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 www.logility.com Lee White • 800-762-5207 info@logility.com

MHI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 www.mhi.org Meredith Watts • 704-227-0757 mwatts@bemythic.com

Numerex Corp. . . . . . . . . . . . . . . . . . . . . 31 www.numerex.com Numerex Sales • 877-980-6208 info@numerex.com As a single-source provider, Numerex empowers enterprise operations with world-class, managed Internet of Things (IoT) solutions that are simple, innovative, scalable and secure. The company simplifies the complexity of machine interconnectivity—enabling the IoT.

Old Dominion Freight Line Inc. . . . 16, 17 www.odfl.com 800-235-5569 customer.service@odfl.com Old Dominion Freight Line is a leading less-than-truckload (LTL) carrier with more than 220 service centers nationwide. Contact Old Dominion for a quote at www.odfl.com or 800-235-5569.

INDEX OF ADVERTISERS Puridiom. . . . . . . . . . . . . . . . . . . . . . . . . . 19

SafeSourcing Inc . . . . . . . . . . . . . . . . . . 25

www.puridiom.com Samantha Shewan • 717-691-5691 samantha@puridiom.com Puridiom, a leading procure-to-pay solution provider, now offers procurement as a service, a holistic and collaborative approach to cost control. Realize savings from all areas of spend under one unified program.

www.safesourcing.com Ronald D. Southard • 866-623-9006 marketing@safesourcing.com SafeSourcing is an e-procurement company specializing in cloud-based procurement solutions including e-sourcing. The company offers a full suite of SafeSourceIt™ procure-to-pay solutions, making it a complete one-stop global strategic sourcing offering.

RateLinx. . . . . . . . . . . . . . . . . . . . . . . . . . . 5 www.ratelinx.com Shannon Vaillancourt • 262-264-5554 shannon@ratelinx.com RateLinx customized logistics management software and consulting leverages Big Data and predictive analytics, providing actionable Integrated Shipping IntelligenceSM. By connecting procurement, processing and payment, RateLinx significantly reduces shipping costs, increases efficiency and improves carrier relations.

UPS Capital®. . . . . . . . . . . . . . . . . . . . . . . . 2 www.upscapital.com Kristin DeBates • 877-242-7930 kdebates@ups.com UPS Capital®, a subsidiary of UPS®, provides financial, insurance and payment services to help protect companies from risk and leverage cash in their supply chains.

Warehousing Education and Research Council (WERC). . . . . . . . . . . 51 www.werc.org