Global Supply Chain Solutions Covering Procurement, Risk, the IoT and More
APRIL 2020
LOGISTICS 2020 Traveling through rough terrain in 2020.
AGVs IN THE SUPPLY CHAIN
Filling the gaps between human and automation.
2020
PROS TO
KNOW
Karin Bursa, Exec.VP and CMO at Logility, was named this year’s Pro to Know of the Year.
THE FINANCIALS BEHIND FINTECH
Helping partners on both sides of the payment process.
Fresh new content daily at www.SDCEXEC.COM
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PROSPROS TO KNOW 2020 2020 TO KNOW JASON VINCELETTE Director of Product and Business Management, North America Basware
Here Are a Few of this Year’s
SUPPLY CHAIN LEADERS! RYLAN HAMILTON
DAVID LANDAU Chief Product Officer BluJay Solutions
Co-Founder and Co-CEO 6 River Systems
FIONA LOWBRIDGE Vice President of Client Success ALOM
ED BOWERSOX CEO DSC Logistics
LISA DOLAN Vice President, Supply Chain Planning ALOM
DAVE WHITLOCK
KEN CURRIE
Strategic Account Manager B-Stock Solutions
Vice President, Business Development Barcoding Inc.
DAN PERLAK Vice President of Operations Barcoding Inc.
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MIKE FRANK Senior Director, Business Development Jarrett Logistics
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TODD GOULD
TE
CEO and Founder Loren Data Corp.
siness ica
ARA ARSLANIAN Senior Vice President, Private Sector OMNIA Partners
ANNE ROBINSON
HANNAH KAIN
Chief Strategy Officer Kinaxis
President and CEO ALOM
MIKE FIELD SCOTT DEVER Regional Director OMNIA Partners
CEO,
The Raymond Corporation
VISH PUTCHA DUSTIN COCHRAN Managing Director, West Region OMNIA Partners
Senior Manager Strategy of Supply Chain Walmart Inc.
CAI LOGISTICS TEAM ROBERT MIETUS Managing Director – Central OMNIA Partners
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Yasir Hasan (see left), Jacob Leddy, Vladimir Polukeev Amber Caron
Go to page 18 for more Pros to Know.
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LEADING
THE WAY
To Faster Fulfillment
“We found a great partner in 6 River Systems and a great technology in Chuck. We depend on that relationship in our operations.” – Bob Abbondanza, Office Depot
Scalable. Flexible. Available. Now backed by Shopify
“We will continue to operate, build and sell the 6 River Systems solution.” – Tobi Lütke, CEO, Shopify
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April 2020 | Volume 21 | Issue 1
CONTENTS SPECIAL REPORTS
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18
FEATURES
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COVER STORY The State of Logistics in 2020
Discover how the logistics industry is traveling through rough terrain throughout 2020.
AWARD Pros to Know in 2020
Karin Bursa, executive vice president of Logility, was named 2020 Pro to Know of the Year..
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EMERGING TECHNOLOGY How Blockchain is Rekindling Our Connection to Food Purveyors Find out how blockchain technology aims to spotlight the work of food artisans and reconnect them to the consumers who enjoy their products.
PROCUREMENT Additive Manufacturing Will Change Procurement as We Know It
Find out how additive manufacturing is turning current manufacturing processes upside down.
EXECUTIVE FOCUS
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34
36
COLUMNS 04
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06 16 44
EXECUTIVE MEMO CHAIN REACTIONS MADE IN AMERICA WORK HARD, PLAY HARD
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SDCEXEC.COM
Exclusive online features and solutions for successful supply chain operations
Special SDCE 20-Year Anniversary Coverage
Global Supply Chains Get Familiar with “Force Majeure”
https://sdcexec.com/20-year-anniversary
https://sdcexec.com/21123932
How Coronavirus Pushes the “Amazon Effect”
In Times of Crisis, Manufacturers Demonstrate Humanity
https://sdcexec.com/21124544
https://sdcexec.com/21124562
TRANSPORTATION Creating “The Amazon Experience”— Last-Mile Delivery for E-Commerce Discover how last-mile delivery is an essential offering that can make or break the customer experience.
What’s Ahead for Last-Mile Delivery in 2020 Check out the trends impacting the way retailers improve and expand their last-mile delivery options.
WAREHOUSING How AGVs Fill Gaps in the Supply Chain
Learn how automated guided vehicles fill the gap between humans and robotics.
SOFTWARE & TECH Is FinTech the Future of Supply Chain? Here’s how FinTech helps partners on both sides of the payment process.
PROFESSIONAL DEVELOPMENT Using Assessment Centers to Pull Out Necessary Leadership Skills Leaders can be found through a series of tests that help bring certain skills to the surface and prime an employee for leadership.
www.SDCExec.com | April 2020 | SUPPLY & DEMAND CHAIN EXECUTIVE
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EXECUTIVE MEMO By Marina Mayer Editor-in-Chief mmayer@ACBusinessMedia.com
ROADS? ROADS.
WE DON’T NEED
A
I
n one of our company’s quarterly meetings, I was asked that if I had a time machine, would I go back in time, or go ahead to the future. As someone who firmly believes in things happen for a reason and what’s done is done, I chose back to the future. It’s easier to make the present-time matter the most when you know what’s coming, right? But, the back-to-the-future theme resonates more now to Supply & Demand Chain Executive (SDCE) than ever before. That’s because this year marks SDCE’s 20-year anniversary—and where we’re going, we don’t need roads. The supply chain profession is the most exciting it’s ever been. With cutting-edge technologies designed to help the industry run smoother, easier and safer, coupled with professionals leading the charge for change, innovation and sustainability, it’s an exciting time to be in the supply chain industry. To learn more about the practitioners, providers and teams leading the charge, check out this issue’s annual Pros to Know (page 18), which details the best of the best from every corner of the industry. 4
WHERE WE’RE GOING,
To further honor SDCE’s 20 years of service, we’re putting together a series of exclusive online-only content centered around the evolution of supply chains. Look for more contributed content and how-to solutions from industry experts. Check out our revamped website to read through case studies, press releases and market research studies. Be sure to follow us on social media to get up-to-date notifications on everything impacting moving product from Point A to Point B. Download our 2020 editorial calendar, and let’s chat about how we can work together. Keep an eye out for content focused on sustainable supply chain trends and professional development, along with webinars devoted to procurement, transportation and software solutions. And, we’re looking to you— our readers and advertisers—to help us build—and sustain—a long-lasting relationship that better supports and grows the supply and demand chain industry. Where SDCE is going, we don’t need roads. But, hopefully you join us for the ride.
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Published by AC Business Media 201 N. Main Street, 5th Floor, Fort Atkinson, WI 53538 (800) 538-5544 • www.ACBusinessMedia.com
www.SDCExec.com PRINT AND DIGITAL STAFF GROUP PUBLISHER Jason DeSarle SALES ASSOCIATE Brian Hines EDITORINCHIEF Marina Mayer ASSOCIATE EDITOR Brielle Jaekel WEB EDITOR Mackenna Moralez SENIOR PRODUCTION MANAGER Cindy Rusch ART DIRECTOR Willard Kill AUDIENCE DEVELOPMENT DIRECTOR Wendy Chady AUDIENCE DEVELOPMENT MANAGER Angela Franks ADVERTISING SALES (800) 538-5544 JASON DeSARLE jdesarle@ACBusinessMedia.com BRIAN HINES bhines@ACBusinessMedia.com CIRCULATION & SUBSCRIPTIONS P.O. Box 3605, Northbrook, IL 60065-3605 (877) 201-3915, Fax: (847) 291-4816 Email: circ.sdcexec@omeda.com LIST RENTAL Jeff Moriarty, Infogroup (518) 339-4511 Email: jeff.moriarty@infogroup.com REPRINT SERVICES BRIAN HINES, (647)296-5014 bhines@ACBusinessMedia.com AC BUSINESS MEDIA CHIEF EXECUTIVE OFFICER Barry Lovette CHIEF FINANCIAL OFFICER JoAnn Breuchel CHIEF DIGITAL OFFICER Kris Heineman CHIEF REVENUE OFFICER Amy Schwandt VP AUDIENCE DEVELOPMENT Ronda Hughes DIRECTOR OF DIGITAL OPERATIONS & IT Nick Raether DIRECTOR OF DIGITAL STRATEGY Joel Franke GROUP CONTENT DIRECTOR Jon Minnick Published and copyrighted 2020 by AC Business Media 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 four times a year: March, June, September and December by AC Business Media, 201 N. Main Street, 5th Floor, Fort Atkinson, WI 53538. 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. The information presented in this edition of Supply & Demand Chain Executive is believed to be accurate. The publisher cannot assume responsibility for the validity of claims or performances of items appearing in editorial presentations or advertisements in the publication. April 2020 / Volume 21 / Issue 1
SUPPLY & DEMAND CHAIN EXECUTIVE | April 2020 | www.SDCExec.com
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CHAIN REACTIONS
NEWS FROM ACROSS THE DIGITAL SUPPLY CHAIN
Getty Images
INDUSTRY 4.0 MUST WEAVE INTO CLOTHING SUPPLY CHAIN
STUDY REVEALS HOW AI HELPS WITH SUPPLY CHAIN MANAGEMENT
Artificial intelligence (AI) in the food and beverage market is expected to register a CAGR of over 65.3% by 2024, according to “Artificial Intelligence (AI) in Food & Beverages Market - Growth, Trends, and Forecast (2019 - 2024),” released by ResearchAndMarkets, London. AI has been actively gaining prominence over the last five years, with many companies investing in exploring the potential AI to improve logistics, predictive analytics and transparency. Many consumers are adopting chabots, as they can effectively work in an offline mode. AI can also help to analyze, monitor and deduce the customer behavior and sentiments across the various social media channels. Therefore, when AI builds an in-depth customer profile, it matches it to their social experiences about the product. With the help of such insights, firms can now aim to improve the customer experience and make it more productive.
The clothing sector must embrace Industry 4.0 to boost productivity and harness creativity by providing a single, connected platform for all supply chain processes, according to a GlobalData report. “For the labor-intensive clothing industry with its long and complex global supply chains, Industry 4.0 has the potential to improve efficiency, speed up the whole planning and production process, reduce lead times and allow brands to interact with supply chain partners in real-time,” says Leonie Barrie, apparel analyst at GlobalData. “We already have 3D design and virtual prototyping tools, as well as intelligent cutting and sewing systems, but imagine the possibilities of a truly networked supply chain, where every step is seamlessly connected from design to manufacturing to the consumer.” The most exciting opportunities lie in the ability to shake up the traditional model in which designs are pushed out to the consumer in the hopes that they sell vs. one that instead enables companies to design and sell products based on consumer demand. This would pave the way for mass-customized clothing made only after the order is received, as well as more localized manufacturing. It would also help brands get closer to the consumer by providing more information about each product.
LOCUS ROBOTICS PASSES 100M UNITS PICKED, BREAKING WAREHOUSE AMR ROBOTICS INDUSTRY RECORDS Locus Robotics announced they have crossed the 100 million units picked milestone. Locus is said to be the first company to reach this mark in the history of warehouse autonomous mobile robots (AMRs). “We are excited to have reached this significant milestone–one that showcases the tremendous impact that our revolutionary, multi-bot fulfillment solution is having on productivity and throughput for our customers worldwide,” says Rick Faulk, chief executive officer, Locus Robotics. “This marks a significant moment in the industry. We continue to see tremendous year-on-year growth, and we look forward to continuing this momentum in 2020 and beyond.”
Locus Robotics
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A study released by Harvard Business Review Analytic Services (HBRAS), commissioned by Basware, identifies a clear link between commercial success and the visibility of supplier practices. As well as placing importance on ethical considerations, the most common factors for evaluating suppliers remain economic. For example, 60% of respondents cite “value for money” and 54% call out “cost savings” as their top criteria. Firms identified as more successful are nearly twice as likely to be effective at evaluating suppliers Nine in 10 of the 779 business executives interviewed for the “Using Transparency to Enhance Reputation and Manage Business Risk” report believe a culture of transparency is essential to increasing employee engagement and simplifying processes. The majority (59%) expect their finance and accounting arms to drive that culture of transparency, with one-third (36%) attributing operational savings in excess of 10% to visible commerce. Nearly 40% of firms are keen to do more to ensure ethical best practice amongst suppliers.
PROGLOVE COLLABORATES WITH SAMSUNG TO MEET DEMAND FOR WEARABLE SCANNERS ProGlove is collaborating with Samsung Electronics America to announce a combined product solution that will address the growing need for wearable scanners in retail, transportation, logistics and manufacturing industries. The combined solution consists of ProGlove’s MARK product family of wearable barcode scanners and Samsung’s latest ruggedized smartphone for business—the Galaxy XCover Pro—providing enterprise users a seamless, secure flow of information, enabling consistent traceability and increased user comfort. When using the joint solution, mobile workers effectively have the information they need at their fingertips and can enter requested data into their IT systems on-the-go. Removing the need for first-line workers to return to stationary terminals to conduct business, memorize directions or pick up conventional scanner guns, increases efficiency and user comfort while decreasing user error. Other capabilities include an enhanced touchscreen that works in any condition, “enhanced touch” for gloves on use in wet conditions and multiple programmable keys to conveniently create custom actions with one click. By leveraging the Samsung Knox platform, users can also increase data security while improving worker’s guidance.
Samsung
COMMERCIAL TRANSPARENCY CONTINUES TO DRIVE BUSINESS SUCCESS
VECNA ROBOTICS ANNOUNCES $50M FINANCING TO EXPAND DEVELOPMENT OF WAREHOUSE ROBOTS Vecna Robotics raised $50 million in Series B funding to expand its footprint and accelerate the development of new product offerings. This round is led by Blackhorn Ventures, with participation from new investors Highland Capital and Fontinalis Partners, and additional funding from existing investors Drive Capital and Tectonic Ventures. In the last year, Vecna Robotics deployed its robot and software solutions in many distribution centers at FedEx Ground, DHL Supply Chain and more. This new capital will help Vecna Robotics continue to rapidly scale its products and services to the material handling market. “Vecna Robotics’ focus on the Pivotal platform and innovative AMRs to create unprecedented resource productivity for industrial applications is strongly aligned with our investment strategy,” says Trevor Zimmerman, co-founder and managing partner of Blackhorn Ventures. “We are excited to be a part of their growth.”
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COVER STORY
By Brielle Jaekel
THE STATE OF LOGISTICS
IN 2020
Pexel
The logistics industry is traveling through rough terrain throughout 2020.
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With the rapid evolution of technology, thirdparty logistics (3PLs), trucking and rail companies are dealing with an extremely different landscape than even just a few years ago. The Coronavirus disease (COVID-19) pandemic, technology disruptions, changing demographics, an upcoming election and growing sustainability concerns are just a few of the factors that have the retail industry and its supply chains on alert for the duration of 2020.
DRIVING WITH INNOVATION One of the biggest concerns for the trucking industry for the remainder of 2020 is the shrinking number of drivers in the sector. Millennials make up the bulk of the total workforce today, while boomers are aging out. These younger workers have drastically different values and are looking for jobs that they are passionate about or provide higher quality of life. Millennials also find the long work hours away from home, among many other factors, unappealing. While the driver shortage is nothing new, it is increasingly getting worse and making a greater impact on delivery and supply chains. A report from the American Trucking Association (ATA), Arlington, Va., stated that 46
years old is the average age of an over-the-road driver and 35 for a new driver and that 1.1 million new drivers will need to be hired each year to offset the shortage. As current drivers continue to retire, the delivery industry is growing at rapid speeds, causing an even greater strain on demand. Thanks to the previous recession, logistics companies are also experiencing capacity issues, as many downsized their resources to stay afloat, adding to problems caused by the driver shortage while retail consumption continues to flourish. Trucking companies are looking to offset these issues and make the job more appealing to young potential drivers by offering hotel stays on long hauls and some even building driver lounges. Many even target students coming out of high school by highlighting the high pay rates and job security in the hopes of getting young employees who have decades of working years ahead of them. In the future, technology may be able to offload drawbacks associated with the driver shortage. Autonomous vehicles and perhaps even hyperloops, a high-speed transportation concept, may alleviate these issues and provide faster shipments. Currently, drivers are using technologies such as electronic logging devices
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With the rapid evolution of technology, 3PLs, trucking and rail companies are dealing with an extremely different landscape than even just a few years ago. (ELDs) to track their routes and to be sure they are not passing the regulated number of driving hours, which many say are hindering the process. “I’m very concerned with e-logs, which put unnecessary time constraints on drivers and on shippers who aren’t familiar with the issues, such as drive time,” says Chris Pemberton, operations analyst at Pemberton Trucking, Knoxville, Tenn. “ELDs are putting time constraints on drivers and closing off potential workers. Comps are not being respected. Many truckers will get out of the industry sooner or later because of the issues with ELDs. “Trucking companies need to know how to troubleshoot e-log and make it more worker friendly.” Drivers waiting for shipment loads to start and be completed are automatically recorded in the ELD as well, sometimes adding number hours to their total time and maxing them out past regulation time early on. It is likely that regulations will become even stricter, with California’s AB5 regulation as an example, which requires companies to prove workers are independent contractors with a threepronged testing system. If workers who consider themselves independent contractors are forced to be labeled as full employees, this means stricter schedules and guidelines for them, which is a less attractive way of working. However, what these drivers lose in flexibility, they gain in stability. Companies are then required to ensure that they pay these workers minimum wage, benefits, breaks and other staff regulations mandated by the government. While the bill is on hold for now, there is talk of this model going nationwide. There are both pitfalls and benefits to the bill, but the trucking industry loses the flexible lifestyle factor in attempting to recruit young individuals. It is likely that the landscape of shipping could change altogether, with trucking focused on last mile while other forms of transportation that are less reliant on over-the-road drivers completing the bulk of the distance in intermodal shipping. Poor infrastructure and congestion on roadways are another attribution, causing truckers to
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hit their regulation times early on and costing companies significant funds. Sitting in traffic and searching for parking are just a few of the obstacles that drivers come across in their routes. A report from the American Transportation Research Institute (ATRI), Arlington, Va., exhibited that congestion has grown 92% in five years in locations already noted for having significant congestion for heavy-duty trucks.
PRESSURE FOR VISIBILITY AND SUSTAINABILITY As ELD technology is a frustration point to trucking companies, digital is also putting pressure on logistics to show greater visibility throughout the entire process. With digital solutions becoming more commonplace, consumers’ expectations are growing even more in the workplace. Companies want to see where their shipments are, which means providing trucks equipped with GPS tracking and as much detail as possible. Trucking companies, as well as 3PLs, are also tapping into technology to provide end-toend visibility for more cost-effective forms of operations. These trucking groups allow partners to see exactly where a truck is and synchronize with other companies to reduce downtime for all the moments beyond just driving. For instance, Nolan Transportation Group, Atlanta, partnered with Descartes Systems Group to develop a freight visibility solution that interacts between the group and its customers with real-time information on location, route status, rates, payment status and other functionality. Designed to enhnace shipping visibility, the app helps drivers focus on driving. Other companies are following similar formats to ensure optimal customer satisfaction. “As the economy grows, there will be more output, and a need for more trucks on the road and more opportunities for growth,” says Perry Falk, senior vice president of carrier operations at Nolan Transportation. “Digital tools will add ease-of-use and help to lower the cost of operation. Other things that compete against www.SDCExec.com | April 2020 | SUPPLY & DEMAND CHAIN EXECUTIVE
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COVER STORY
Continued
transportation are regulations—we need to make the regulations easier and provide fewer constraints.” Technology is also helping the trucking industry augment the load planning process. “The trucking industry is always looking for new ways to streamline, automate or improve its processes through smarter uses of technology,” says Tim Carey, executive vice president of strategy at Target Freight Management (TFM), Pittsburgh. “For example, innovations like TFM’s own Dimensionalizer technology has led to more efficient load planning for less-than-truckload (LTL) shipments, faster and more accurate weighing and dimming processes and clearer communication throughout the entire supply chain. This practical application of freight management technology helps shippers prevent costly overages while keeping receivers accurately up-to-date on inbound shipments.” There are also more aggressive forms of technology that logistics companies experiment with that could present a different landscape in the future. Since the trucking industry is one of the most prominent contributors to carbon emissions, many are toggling with the idea of going electric. Last September, Amazon purchased billions of dollars’ worth of battery-powered delivery vans manufactured by Rivian, Plymouth, Mich., as part of its mission to only use renewable energy by 2030. This Amazon fleet is expected to cut carbon emissions by 4 million metric tons within that projected timeline. Volvo Trucks North America is also working on a project for a fleet of electric trucks, which could deliver market-ready Class 8 Volvo VNR Electric trucks by the end of next year. But, it is not just emissions that technology is helping to cut; it is also drivers themselves. As manufacturers become increasingly sophisticated in terms of autonomous vehicles, the trucking industry could likely see driverless shipment methods on the road. A ResearchAndMarkets report cites that the global
“AS THE ECONOMY GROWS, THERE WILL BE MORE OUTPUT, AND A NEED FOR MORE TRUCKS ON THE ROAD AND MORE OPPORTUNITIES FOR GROWTH.”
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autonomous last-mile delivery market could be valued at $11.13 billion by next year, and $75.65 billion within 10 years. This means that consumers could see product delivery to their doors without any human intervention within the last mile, reducing possibility of human error, the need for more drivers and costs for logistics companies. In addition to driverless vehicles, drone delivery is getting closer to reality. Amazon also introduced Prime Air, where drones deliver packages under 5 pounds to customers within 30 minutes or less. The e-retailer began testing this in the private sector in 2017. Drone Delivery Canada is completing testing for cargo carrying drones for customers like DSV Panalpina, where the Denmark-based 3PL will use the drones to deliver packages up to 10 pounds. DDC’s Robin XL drone is currently undergoing real world testing. While autonomous and electric vehicles could change logistics in the long-term future, in the short term, last-mile delivery could shift toward trucking while freights handle the longer distances.
FROM STEAM TO DIESEL TO BATTERIES In addition to battery-operated trucks, electric locomotives with high horsepower are in development with rail companies to help improve safety as well as reduce emissions. “BNSF pilots several technologies to increase safety, efficiency and our customers’ return on investments,” says Tom Williams, group vice president of consumer products at BNSF Railway Co., Fort Worth, Texas. “Currently, we are piloting automated horizontal container movements at Logistics Park Kansas City, a battery-electric road locomotive in Southern California, and various safety programs that increase network efficiency and reduce employee exposure, among other pilot programs.” An entire fleet that operates solely on battery is likely years away, but its potential could be a game changer. While an electric car battery has a few hundred storage cells, the prototype BNSF is building would have a battery with an estimated 20,000 cells. Future versions of the electric
SUPPLY & DEMAND CHAIN EXECUTIVE | April 2020 | www.SDCExec.com
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COVER STORY Many in the rail industry are using LiDAR radar technology, which attaches to a drone or a road vehicle to track and display the health of the rail lines through artificial intelligence.
Continued
Rapidlasso
locomotive could have up to 50,000 cells. BNSF says that a charger will need to be installed at its Mormon Yard in Stockton, Calif., later this year to begin pilot testing. In addition to electric rails, high-speed freight trains are also growing in potential to disrupt the sector. In November 2018, Italy-based Mercitalia Logistics launched a high-speed freight rail system that runs on the pre-existing Italian HighSpeed network used for passenger trains, running between Caserta and Bologna in just one hour and 30 minutes. Currently, China and Europe both have a mix of passenger and freight highspeed rail systems. Despite the American Recovery and Reinvestment Act being signed into law 10 years ago with a significant portion of it dedicated to new rails, the United States is still lagging in high-speed train systems. In terms of true highspeed train systems, there is none currently in existence in the country; only parts of Amtrak’s Acela line in the Northeast Corridor, but that is devoted to passengers. If high-speed freight trains eventually do gain a footing in the United States, this could revolutionize the way retailers and supply chains operate. This concept is highly different than the possible hyperloop concept created by Tesla founder Elon Musk. The idea of the hyperloop is sealed elevated tubes using air to propel pods of passengers and cargo at speeds up to 600 miles per hour. Musk’s concept for a hyperloop that would connect San Francisco and Los Angeles is estimated to connect the two cities in about a half an hour, while the high-speed train project that is
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under way in the same area would take more than two hours. Other companies are investing in the beginning of hyperloop, with a few even starting to create test cylinders in places such as Dubai and Europe. Virgin Hyperloop One, Los Angeles, is working to make these tubes a reality. Non-profit development organization Kansas City SmartPort has partnered with the company to complete feasibility studies and create a blueprint on how this would be possible in Kansas City. “We’ve identified a route, and then Kansas city is actively trying to locate the Hyperloop certification center here in Kansas City that would allow the regulatory and bodies in the U.S. to regulate it and certify that this technology in this mode is safe and is viable,” says Chris Gutierrez, president of Kansas City SmartPort. “It’s pretty exciting. I mean it seems cutting edge, but it’s pretty basic technology that’s been perfected by Virgin Hyperloop One, or VHO as they’re known.” Another technology that already exists in Japan is the maglev train, which uses magnets to propel the cars. Both the maglev and hyperloop would mean creating a whole new infrastructure impacting the supply chain and logistics industry.
MODERN MAINTENANCE One way that companies are keeping up with track maintenance is with drones, following along the tracks to see the condition they are in. Many also use LiDAR radar technology, which attaches to a drone or a road vehicle and tracks and displays the health of the rail lines through artificial intelligence. “The rail infrastructure goes in some of the remote parts of the country using those drones to really understand the condition of the tracks and what might be happening,” says Gutierrez. “You also have this LiDAR radar technology, I think it is where they’ll put a LiDAR system either on a drone or the back of a vehicle on the track and it immediately identifies all of the track and surrounding areas for any challenges or things that need to be repaired as opposed to someone physically having to do that. “That’s credible technology and artificial
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While rail companies are keeping an eye on technology, they also need to watch for trade tensions and growing border concerns, which are serious points of contention in logistics, especially in rail. Many use transload services to make border crossing simpler, but as partners’ interest in flexibility grows, the more pressure mounts on freight rail companies to innovate ways to make that happen. “BNSF’s biggest growth opportunity is the continued increase of using intermodal in domestic supply chains,” says Tom Williams, group vice president of consumer products, BNSF. “Consumer sentiment and confidence is good, and with the surge in online retailing, the economy has shifted to shipping a majority of consumer goods directly to the consumer. Intermodal is the most efficient way to position goods near densely populated areas, so that consumers’ expectation of fast delivery can be met, whether to a distribution center, a brick-and-mortar store or directly to the consumer’s house.” Maersk
intelligence, again with that positive train control and command centers that are controlling trains and supporting the engineers. I think that’s going to continue to grow with the rail sector.” While the driver shortage is running the trucking industry ragged, the rail system is less affected because it requires fewer workers. That’s because rail companies are now focused on creating a better quality of life for more employees. Using the rail industry in tandem with trucking can help alleviate a variety of pain points in logistics altogether. Instead of having drivers complete long-haul shipments with significant time behind the wheel, the trucking industry will likely take the bulk of shorter shipments and lastmile delivery, while rail focuses on the long haul. This can help with congestion, as less trucks will be on the road. “We see a lot of opportunities resulting from rampant traffic congestion and the associated strains on public infrastructure,” says Greg Ferraro, vice president, supply chain at OmniTRAX, Denver, Colo. “Taking long-haul trucks off public roads and putting that freight on private rail infrastructure not only helps with the congestion and related road maintenance and safety issues, [but] it is also a much more environment-friendly alternative.” Rail companies such as OmniTRAX leverage their resources to focus on a more precise experience for customers, similar to trucking’s lean into visibility. These groups ensure their transload services are readily available at key locations, so that partners can receive shipments exactly when needed in ways like creating transfer sites closer to manufacturing or distribution centers. Creating mobile apps and automated gate systems for drivers can also help reduce wasted time. BNSF, for instance, has created an app that embeds in drivers’ dashboards for easy use. As shipments move from trucks to rail or vice versa, partners still want precise visibility on exactly where their cargo is, so rail services incorporate GPS tracking technology as well. This technology, named Positive Train Control, is even used to help prevent train collisions, keep the rail industry safe and is now required by law.
STAYING AFLOAT IN 2020 For ocean carriers, the issues are widely similar to trucking and rail, with many focused on sustainability, adopting technology for better visibility, improving quality of life for their workers, mitigating problems caused by the coronavirus and managing growing trade tensions. Maersk, for example, has made a pledge to be carbon neutral by the year 2050. Meanwhile, the industry deals with heightened registrations on fuel and sulfur emissions. Beginning in 2020, the International Maritime Organization issued a ban on ships operating
○ Maersk made a pledge to be carbon neutral by the year 2050.
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COVER STORY Port of Oakland’s Cool Port is a temperaturecontrolled, stateof-the-art facility that expedites operations between ship and warehouse.
Continued
Port of Oakland
with a .5% sulfur content and above; previously, the limit was 3.5%. These companies will have to deal with fines and vessel hold-ups if they do not turn to cleaner fuel options such as natural gas in liquid form and lower-sulfur fuel or scrubbers that pull out sulfur from fuel. These regulations will be enforced at ports. Collaborative cloud-based solutions connect ocean carrier companies together to partner, scale and attack the pain points. For instance, Ocean Network Express, Japan, worked with Navis and Terminal Pacífico Sur Valparaíso to integrate XVELA, a network connecting carriers and terminal operators. The solution helps with physical stabilization, and reducing the number of times in which a ship needs to be restowed to ensure it will not sink based on its cargo. The platform also taps data from a variety of parties, including the vessel, to determine proper stowage. Ports have also helped significantly increase the technological advances in the supply chain on oceans and have adopted similar platforms to the ocean carrier collaboration. These locations are increasing connectivity between each other to make transloading easier for both ships and truckers. An important factor to note is that with growing connective technology, there also comes new risks. Ports involved in these collaborative platforms must heighten cybersecurity to protect against potential attacks. For its part, Port of Los Angeles has worked on combining customs data across the board, working with nine of the Top 10 carriers to provide information for what it calls a Port Optimizer. In addition to technology advancement, another factor that follows ocean carriers into the ports is the need for sustainability and updated infrastructure.
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Ports are looking to substantially decrease their emissions to help comply with growing concern for climate change as well as modern infrastructure and design for easy access for truckers. “The port always seeks to increase operational efficiency to keep our seaport competitive,” says Robert Bernardo, communications manager at Port of Oakland. “Our temperature-controlled, state-of-the-art facility, Cool Port, will expedite operations between ship and warehouse due to proximity to the port’s marine terminals. Our Seaport Logistics Complex will have a similar advantage due to location. We’re also using technology solutions to reduce turn time for truckers moving containers to and from marine terminals by getting more information about gate times to truckers. The port is investing between $250-500 million to make its roadways more truck friendly and adding more lanes. The port also plans to expand its two turning basins.”
COLLABORATION IS KEY As is the importance of working with trucking companies to create a better physical location, this is also true for rail. Port of Los Angeles aims to increase on-dock rail facilities from 26% to 30-32%, likely to help with the growth of agricultural exports, which brings its own series of issues. China’s consumption of pork continues to rise, forcing supply chains to rethink international agricultural shipping. Experts believe that the amount of pork consumption would likely continue to grow, but since the devastating effects of COVID 19 have set in, they are unsure of how the industry will go on from here. Tying all these sectors together are the 3PLs, who handle the entire logistics processes for partners. This is where some of the most deployments of technology have occurred, introducing autonomy and technological solutions to speed up the packing, sorting and shipping process. “Now, such tools are trending to even greater supply chain visibility, and result in more collaboration between players in the supply chain ecosystem,” says Sanjay Lall, executive vice
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DHL implemented a goal to be 95% Smart Way carriercertified within five years.
DHL
95% Smart Way carriercertified within five years. In this world, digital freight marketplaces are also becoming increasingly commonplace, eliminating the need for a human broker between companies. 3PLs access these databases to find partners that move shipments in a more timely fashion, which allows them to see who is the best fit, with the best price. For its part, Convoy received $400 million in in its Series D funding round in order to expand its on-demand trucking platform. DHL might reach out to their primary carrier for a shipment on a specific day, but if it is not available that day, then DHL can turn to Convoy or Uber’s freight platform to find a carrier available for the right price. Other digital tools such as Happy Gig allow individuals in the warehouse industry to find freelance work in a similar manner on how ride sharing operates. However, these individuals are not amateurs. These are experienced employees looking for extra work or experienced a change in circumstances. These platforms are growing the flexibility and capabilities for everyone in the logistics process. While the rest of the year will see certain upheaval due to COVID-19 and the subsequent shutdowns, other facets of the industry such as sustainability, technology and employee management will continue to be at the forefront of these companies’ strategies as they look to the future. “Without trucking, there isn’t a U.S. economy,” says Carey. “That makes the freight industry a crucial component of every other sector, but also one of the most overlooked in terms of its impact on people’s daily lives.”
president and CIO, Americold, Atlanta. “Today, our customers are not satisfied with just a status update of orders in our four walls. They want to start allocating and making decision on product in transit. It’s about building a full blockchain visibility of orders from farm to fork.” Real-time visibility is key for 3PLs, all the way through the final mile. But, in terms of augmenting the warehouse and supply chain sectors, a variety of autonomous robotics, advanced conveyor systems and more help the sorting, loading and unloading processes. While many warehouse workers are wary in terms of automation, companies focus on making the job easier on the workers instead of replacing them with robots. And, there are many points of the distribution process that cannot be replaced with autonomy. For instance, robots working in tandem with hands-on employees will likely be the future of the distribution process. In terms of sustainability, 3PLs are urged to use the Smart Way program, which allows for these companies to input information regarding their fleets and its relation to climate change. This way, partners can view a 3PL’s sustainability. DHL, for example, made a pledge to be more sustainable, and has implemented a goal to be
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MADE IN AMERICA
Vortic Watch Co.
By Mackenna Moralez
Vortic Watch Co. brings back a classic look with refurbished wristwatches.
Vor t i c
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he late 2010s have been an interesting time for watches. Nowadays, they can track heart rates, read text messages, schedule events on a calendar and even alert a loved one if you’re hurt. Their abilities are so advanced that the basic function of telling time is often overlooked. This is the complete opposite for Vortic Watch Co. The startup company began as an idea in 2012 when co-founder and CEO RT Custer was in college. Knowing that watches were typically made overseas, he wondered if someone could truly make an American-made watch, so he set out to do just that. “Really, it started out as a project to determine if we could make something that was 100% Americanmade. You know, something that was a luxury product that would be a challenge for us as engineering students,” Custer says. “One of the first ideas we had were watches because most of them are made in Switzerland or China. We started doing the research and realized nobody was making American-made watches, so we figured we could.” He then stumbled upon the
history of old pocket watches and began saving them by salvaging the movements—or what some call the guts of the watch—and transferring them to wristwatches. Custer explains that over 100 million pocket watches were made in the United States in the early 1900s. The company uses the antique movements in its watches, creating a unique product as the crown—the winder of the watch, situated on the top of the watch at 12 o’clock because that’s where it was located on the original pocket watch. The movements are bought at estate sales, auctions, pawn shops or jewelry stores as they go out of business, buying hundreds of pocket watches at a time. Custer also travels to different locations across the country to attend live auctions that hold pricier items. “Most pocket watches today are scrapped for gold or silver, so we save the inside and turn those into wristwatches,” Custer says. “We run a whole manufacturing facility here [Fort Collins, Colo.] and employ a team of watchmakers that do the restoration on the old pocket watches and the final assembly to make the wristwatches.”
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Vortic Watch Co.
however. It makes all of its sub-components—the case, the crowns and all the metal parts— in shop, eliminating the need to outsource production overseas. “The biggest things that I’ve done to control the process and make it more efficient is coming up with good inventory management systems and processes,” Custer says. A big portion of Vortic’s management process is listening to the customer. Custer notes that if customers are buying a version of one case compared to the other, then he will adjust inventory accordingly. Meanwhile, transparency is a vital part of the company’s supply chain, as it’s something that customers want to know about. “We make everything in-house, so that we can control the quality without having to rely on anyone else,” Custer says. “Our business is really low volume, so I can’t afford the minimum order quantities of a lot of contract manufacturers for metal parts. When there’s the option to make a part in Los Angeles for $10 or in Hong Kong for 40 cents, I always say that I’d like it to be made in America. We call [the watches] the American Artisan Series; you can’t call it that if it’s made in China. “I’m proud that I made that decision because we can support each other,” Custer says. “That’s what I like about domestic manufacturing, we’re like a little family. I’ve been to most of the places where our components are made, and I get to talk to the owners because they’re a small business owner just like me. Obviously, the global supply chain is important, but if I fly to China, I’m most likely not going
Vortic launched a Kickstarter in 2014—a year before the Apple Watch debuted. The company set a goal of $10,000, but surpassed it in 30 days, totaling $40,000. “Honestly, we didn’t even have a product [at the time of the Kickstarter launch]. We superglued some parts together, put a pocket watch inside of something that looked kind of like a wristwatch and said, ‘Hey, we want to do this. That’d be kind of cool, wouldn’t it?’ And then random people on the internet bought it,” Custer says. Vortic used the Kickstarter as a proof of concept and proof of product market fit. Custer and his co-founders then called customers and asked why they wanted to buy the product and what they liked and didn’t like about it, essentially using it as a market test. “We were making watches in the garage or in the basement, so it wasn’t a sexy business venture at all,” he says. “It was all hard work, and a lot of mistakes were made, but that’s how we did it.”
A FOCUSED MINDSET Vortic has a “product-focused” approach since each watch is unique and customizable. The company has a photo-layering system on its website that allows users to choose the exact watch that they want. “We don’t have the most ideal business model from a manufacturing and supply chain point of view,” Custer says. “Everything you learn is about efficiency, and we don’t do any of those things. They’re all handmade, one at a time—it’s the only way to do it.” The company’s efficiency comes through in the machining process,
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to meet the owner Vo rt i c W a t c h C o . because it’s owned by a big corporation. Made in America is great and creating jobs is awesome, but we also live in a relationship-based world right now and having relationships with those people is more important to me.” Custer explains that the watches are a luxury fashion item. However, they can be viewed as art pieces and have been featured in watch museums, showing how antique pocket watches have been restored into a modern-day accessory. In the end, Vortic Watch isn’t entirely a watch company at all, but a manufacturing and engineering company that strives to remain Americanmade. “There’s a huge skilledtrade gap in the U.S. right now, and a lot of teens don’t realize that they don’t have to go to college to Vo rt i c W a t c h C o . make money. They don’t realize that they can work with their hands,” Vo r ti c Wa t c h C o . Custer adds. “There’s very little skilled trade being taught, so if we make things here, we’re being a good example for the next generation.”
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2020 PROS TO KNOW
By Mackenna Moralez
KARIN BURSA
NAMED 2020 PRO TO KNOW 20th Annual
to
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Logility
oday’s supply chains are global and serve customers that are more demanding than ever. Combined with challenges such as trade wars and the very recent Coronavirus disease (COVID-19), it is easy to see why supply chains are incredibly complex and critically important to driving business success. To be a leader, you must be a problem solver. At least, that’s how Logility’s executive vice president Karin Bursa operates. “A consistent attribute across all the Pros to Know that have been honored over the last 20 years is they are problem solvers,” Bursa says. “They are businesssavvy team builders who understand the goals, objectives and challenges their companies face. These Pros to Know are able to do it all in a very effective and repeatable manner even in dynamic situations.” Challenges change by the week, day and sometimes the minute, and Bursa has helped find solutions that help Logility’s customers compete
Supply & Demand Chain Executive celebrates 20 Years with Karin Bursa being named the 2020 Pro to Know of the Year. more effectively, harness new opportunities, mitigate potential risks and propel their businesses forward in a profitable manner. She is an often-sought expert resource at industry conferences and within supply chain communities to share how companies can become more responsive and successful. In addition, Bursa works closely with college-aged students, sharing insights into a career in the supply chain discipline. These attributes and more are why Bursa earned the top spot as Supply & Demand Chain Executive’s Pro to Know of the Year. Throughout the industry, supply chain leaders are expected to be a source of knowledge, adapters to change and mentors to future leaders, all while maintaining a level a passion for what they do. Over the last 20 years, SDCE has highlighted these individuals, having them stand in the forefront as Pros to Know. “I am overwhelmed and honored to be selected as the 20th year Pro to Know,” Bursa says. “It’s a real honor, and I’m pleased to represent my company and all Logility brings to the
“I AM OVERWHELMED AND HONORED TO BE SELECTED AS THE 20TH YEAR PRO TO KNOW,”
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technology based on AI, machine learning and engaging analytics. With the right technology in place, it comes back to talent. Bursa is enthusiastic about helping younger generations see the supply chain as an exciting and rewarding career field, and is eager to see more universities implement supply chain majors and educate students on how it can be a viable career option.
Logility
marketplace as well as our exciting plans for future innovations to help our customers be even more successful.” Each year, SDCE’s editorial staff vets hundreds of nominations for the annual award to find the best leaders in the supply chain industry. These selected winners then become the Pros to Know. Bursa earned the highest recognition because she continues to address one of the industry’s top challenges—talent. In doing so, she helps the entire supply chain industry welcome a new generation of professionals, bringing new knowledge and skills to the table. “There are estimates that show demand for supply chain professionals exceeds supply by a ratio of 6:1. There is a focus to hire and retain top talent within the supply chain, and that is amplified by the fact that Baby Boomers are retiring at a remarkable rate,” Bursa says. “When this business-savvy talent pool retires, so does their ‘tribal’ knowledge base. Afterall, these are the folks that grew up as the supply chain developed as a discipline. Now, we are pairing that talent transition with the onboarding of digital natives, those that grew up with technology in the palm of their hands, entering the marketplace. This group understands how [technology] can make their lives better each and every day and are quick to embrace new ideas and processes to help make the supply chain more effective and responsive.” In her role at Logility, Bursa helps companies with supply chain planning. Logility’s success is the success its customers achieve. “I think of [Logility’s] team members as problem solvers. They understand business challenges and are able to determine the data that is needed to drive those decisions,” Bursa explains. “Technology-based solutions are becoming more of an answer to problems that the supply chain may face. The industry is currently seeing data double approximately every 18-24 months. There is a real opportunity to harness all of this information more effectively. Bursa believes that the only way to do that is through advanced
“To me, it’s a career field that is color blind and gender blind. Supply chain organizations are looking for talent that bring great communication, collaboration and problem-solving skills to the table. It’s a great opportunity to look at multitasking and solving new and interesting challenges each and every day,” Bursa says. “And, supply chain is evolving in new and interesting areas as well. All of that is coming together from these university programs, and it’s a great honor to work with several universities to help shape the talent pool entering the marketplace.” Afterall, she views them as solutions to the problem. Go to https://sdcexec.com/21122902 to read more about Bursa’s achievements. Read on to learn more about the other 2020 Pros to Know.
Karin Bursa is enthusiastic about helping younger generations see the supply chain as an exciting and rewarding career field.
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2020 PROS TO KNOW
By Mackenna Moralez
MEET
SUPPLY & DEMAND CHAIN EXECUTIVE’S
2020 PROS TO KNOW
This annual list recognizes outstanding executives whose accomplishments offer a roadmap for other leaders looking to leverage the supply chain for competitive advantage.
2020 PROVIDER PROS TO KNOW RYLAN HAMILTON,
COFOUNDER AND COCEO, 6 RIVER SYSTEMS As the co-founder and co-CEO of 6 River Systems, Rylan Hamilton leads corporate and recruiting functions and is dedicated to building a team that’s smart, nimble and effective. His experience spans robotics, technology, startups, sales, client services and global supply chains. Hamilton is well-known for seeking out challenges and “getting it done” by managing teams to the best of their abilities and working across organizations. He maintains a passion for mentoring, developing and retaining winning teams, all of which he does at 6 River Systems.
FIONA LOWBRIDGE,
VICE PRESIDENT OF CLIENT SUCCESS, ALOM With 22 years of experience planning and implementing supply delivery programs, Fiona Lowbridge is an integral member of ALOM’s operations management team. In her role as vice president of client success, she is responsible for developing innovative, technology-driven solutions, including supplier relationships and ensuring that all stakeholder objectives are being achieved. Lowbridge is a member of “How Women Lead,” a San Francisco-based organization dedicated to promoting the voices of all women and propelling their leadership impact forward. She also serves as a mentor, advocate, speaker and panelist at How Women Lead events and workshops.
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Photo by Annie Spratt on Unsplash
DAN PERLAK,
VICE PRESIDENT OF OPERATIONS, BARCODING INC. Dan Perlak is a 15-year industry veteran that consistently evolves as a provider Pro to Know. In his role as vice president of operations at Barcoding Inc., he has implemented companywide processes and systems that help both internal and external customers cut costs, generate cash and improve the customer experience. Over the last year, Perlak has worked with the Barcoding team on coordinating several research initiatives that culminated in a comprehensive resource guide to Android migration. Perlak and his team are also readying the industry for the modernization opportunities migration brings. With this opportunity, he has helped customers and partners in the supply chain community and beyond prepare for a change that will remain top of mind in 2020.
LISA DOLAN,
VICE PRESIDENT SUPPLY CHAIN PLANNING, ALOM After being named 2019’s Pro to Know of the Year, Lisa Dolan has continued implementing breakthroughs in service and technology innovation along with industry advocacy. In the last year, Dolan joined the board of the Women in Manufacturing (WiM) Silicon Valley chapter, where she is a voice for advocacy to increase the number of women entering manufacturing as a career choice and increase opportunities for leadership and professional development. Meanwhile, she continues to excel in conceptualizing and implementing new solutions to solve real-world supply chain challenges for ALOM customers.
KEN CURRIE,
VICE PRESIDENT OF BUSINESS DEVELOPMENT, BARCODING INC. With nearly two decades of experience, Ken Currie has held numerous positions for leading technology companies that have helped him to acquire a multi-faceted view of the industry in business development, sales and account management. As the vice president of business development for Barcoding Inc., he leads the development of business and strategic partnerships that help the company deliver best-in-breed mobile solutions. Additionally, he serves as a member on the board of advisers for eQuip!, a provider of enterprise asset management solutions.
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2020 PROS TO KNOW
Continued
JASON VINCELETTE,
DAVE WHITLOCK,
DIRECTOR OF PRODUCT AND BUSINESS MANAGEMENT FOR NORTH AMERICA, BASWARE
STRATEGIC ACCOUNT MANAGER, BSTOCK SOLUTIONS
Jason Vincelette has led the complete procure-to-pay product management for global SaaS companies for more than 15 years. As director of product and business management for Basware, he serves as product liaison, charged with maintaining a product roadmap for e-procurement, e-invoicing and AP automation initiatives that delivers 100% visibility for Basware customers. He does so by gathering critical insights from customers and the sales enablement teams that he then deconstructs and delivers to the product management and research and development functions. Vincelette also possesses a combination of supply chain experience that few can tout—depth in all aspects of the spend management lifecycle, from development through commercialization, plus robust product management expertise. This dual mindset allows him to gather, synthesize and translate industry trends and customer needs quickly and effectively, ultimately contributing to a more strategic supply chain.
On a daily basis, Dave Whitlock continues to deliver reverse supply chain support to today’s largest companies by providing data-driven strategy for B2B marketplaces. Since joining B-Stock Solutions in 2017, Whitlock has immersed himself in providing solutions for the company’s largest mobile customers. Under his guidance, these marketplaces now allow the retailer to increase pricing on trade-in and excess mobile devices while ensuring risk aversion, brand protection and a controlled channel for how the devices enter the secondary market. Whitlock works hard to ensure the business buyers have good experiences purchasing from marketplaces, being the go-to for all B-Stock’s top mobile buyers.
DAVID LANDAU,
CHIEF PRODUCT OFFICER, BLUJAY SOLUTIONS With 25 years of supply chain experience focused on the creation of product strategies, strategic messaging and pipeline development, David Landau understands the logistics solutions that companies need to solve their supply chain challenges. He maintains experience and innovative perspective, guiding the product strategy, innovation and execution to help thousands of companies in achieving supply chain excellence. His product vision includes driving collaboration among companies and partners to strengthen global supply chain networks and provide data solutions that continue to push the industry forward.
ED BOWERSOX,
CEO, DSC LOGISTICS
Ed Bowersox is a long-time industry leader with extensive supply chain and manufacturing experience. He plays an important role in leading global supply chain integration and accelerating innovation in the field of logistics as chief executive officer at DSC Logistics. His collaborative, inclusive leadership style and vision unites talent from both companies across the world to integrate solutions and activate customer value. Bowersox has also championed projects to pilot and implement applications of technology, engineering, systems and solutions across DSC’s nationwide network.
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MIKE FRANK,
SENIOR DIRECTOR OF BUSINESS DEVELOPMENT, JARRETT LOGISTICS Mike Frank, senior director of business development for Jarrett Logistics, maintains over 30 years of experience ranging from parcel operations management with Airborne Express and DHL Express to custom supply chain solutions. He constantly exceeds corporate service, image and productivity key performance indications, making his service center and district among DHL’s top performing locations nationwide. Frank has also been a mentor to many at Jarrett, providing them with guidance and positive feedback. He continues to bring a unique blend of operational experience, a creative vision for improvements and an integrity driven sales process to ensure new clients are comfortable with their decision to partner with Jarrett.
TODD GOULD,
CEO AND FOUNDER, LOREN DATA CORP. As the founder, CEO and chief technologist of Loren Data Corp., Todd Gould has been designing solutions for the U.S. government to be integrated into the FACNET system. Gould has developed the business model for Loren Data to create a new paradigm for all users of EDI standards to become a HUB in the traditional HUB-Spoke model, enabling easier development of programs for the new HUBs to reach down-channel in their own supply chains. In addition to his work with Loren Data, Gould is on the board of directors of X12, the governing body for EDI Standards and is a frequent speaker on several supply chain topics.
ANNE ROBINSON,
CHIEF STRATEGY OFFICER, KINAXIS As Kinaxis’ chief strategy officer, Anne Robinson is responsible for accelerating the company’s strategy development to add further value to customers. She and her team collaborate closely with customers, external stakeholders and the rest of the senior executive team to drive the strategic roadmap, thought leadership and identify emerging technologies and new industry opportunities. Robinson has led an integrated strategic planning process for the company that surfaced the Top 5 trends facing supply chains in the years ahead. When she is not working with Kinaxis, she regularly speaks at universities, serves on boards of academic programs and partners on research opportunities.
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2020 PROS TO KNOW
Continued
SCOTT DEVER,
REGIONAL DIRECTOR, OMNIA PARTNERS Scott Dever maintains over 30 years of leadership experience in transforming procurement organizations for some of the world’s largest organizations. He has helped establish and lead the first indirect sourcing BPO that operated on a pure gainshare basis in the U.S. market, and has built a sourcing consulting practice for a top P2P consultancy. In addition, Dever’s passion is directed toward helping F1000 companies optimize implementation of their adoption of group purchasing to enhance business performance and optimize resource utilization.
DUSTIN COCHRAN,
MANAGING DIRECTOR WEST REGION, OMNIA PARTNERS Dustin Cochran has worked in the procurement space for most of his career, bringing a diverse range of experience in the private and public sectors in companies both large and small. As the managing director for the West region at OMNIA Partners, he works closely with procurement and finance leaders supporting them through their goals and benefit realization. He leverages his experience and background as well as the purchasing power of 1,200 member companies to deliver costsavings and organizational value to these companies. In his role, he helps organizations achieve best-in-class pricing and ongoing category management while freeing up resources to work on other strategic objectives.
ROBERT MIETUS,
MANAGING DIRECTOR CENTRAL, OMNIA PARTNERS Robert Mietus has managed over $5 billion in initiatives and identified over $1 billion in cost reductions and value improvements from supply chain strategies to conduct global strategic sourcing initiatives in over 50 countries. He works with members of OMNIA Partners to deliver on their organizational goals, implementing a governance and reporting structure to see continuous improvement process to keep the program delivering value over time. When Mietus is not with his clients, he is contributing to the advancement of the profession as president of the Institute of Supply Management (ISM) in Chicago, focusing on leadership to help ISM-C members through certification, networking, mentorship and career advancement and excellence.
ARA ARSLANIAN,
SENIOR VICE PRESIDENT OF THE PRIVATE SECTOR, OMNIA PARTNERS Ara Arslanian has helped lead the growth of OMNIA Partners through his leadership by continuing to provide leveraged agreements and category management to support its members. Arslanian has guided the development of programs aimed at creating tremendous value to members, giving them confidence in knowing that their interests are best being served. In addition, he makes it a point to leverage his background in distributed goods and industrial MRO to provide “hands-on” support and strategic guidance, striving to see indirect spend management through the lens of a practitioner.
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2020 PRACTITIONER PROS TO KNOW
HANNAH KAIN,
PRESIDENT AND CEO, ALOM
Hannah Kain has been recognized as a Pro to Know for the last six years. In addition to leading ALOM as president and CEO, she has made an impact on the supply chain by being an industry leader. Kain understands the seriousness of the talent gap facing the industry, and is personally involved in advocating career opportunities through ALOM membership and support of several industry groups. She continues to host events and open houses at ALOM for student groups, and speaks on industry panels nationwide promoting career opportunities in supply chain.
MIKE FIELD,
CEO, THE RAYMOND CORPORATION With more than 25 years of experience, Michael Field continues to serve as chief executive officer of The Raymond Corporation. He is passionate about furthering Raymond’s mission of solving customer challenges in the supply chain and logistics industry with leading technology solutions. Throughout his career, Field has been able to listen to customers, implementing their feedback into future solutions to help them succeed. In his position, he continues to coach his team to not only understand customer concerns, but to also solve them. Field has received several U.S. patents for creating solutions to material handling problems, such as palletized load wrapping and dynamic vibration control systems.
VISH PUTCHA,
SENIOR MANAGER STRATEGY OF SUPPLY CHAIN, WALMART INC. Throughout his career, Vish Putcha’s supply chain experience has varied, whether it be working in logistics, transportation, last mile or sourcing positions. His pragmatic approach to solving problems enables him to be an innovator. He consistently finds new solutions to problems, currently holding 25 patents in the supply chain space—one of which helped transform scheduling and capacity issues. In addition to his role as senior manager strategy of supply chain with Walmart, Putcha teaches supply chain courses at the University of Arkansas and mentors entrepreneurs.
There’s Power in the
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2020 PROS TO KNOW
Continued
2020 PROVIDER TEAMS PROS TO KNOW
CAI LOGISTICS TEAM,
YASIR HASAN, JACOB LEDDY, VLADIMIR POLUKEEV, AMBER CARON ○ Yasir Hasan
CAI Logistics has been refocusing on customer service, offering availability, willingness and a “no problem is too big” attitude for customers in today’s markets. The team addresses the need for more high-touch attention by providing customers with above-and-beyond personalized service, understanding that their role is more of an art than a science. The flatbed logistics team also focuses on anything that exceeds the size capacity of a traditional container and needs to be loaded or unloaded by crane or forklift.
More Providers to Know Stephanie Richelieu Stagger 3Gtms Russ Miceli A. Duie Pyle Frank Granieri A. Duie Pyle Arnaud Morvan Aera Technology Doug Markle Allocation North America, Inc. Roger Layette Allocation North America, Inc. Evan Quasney Anaplan Sivakumar Lakshmanan Antuit Nick Darmanchev Archerhub Danny Shields Avetta Paul Deuchar Avnet David Peterson Beltrees Consulting Chet Taff Beltrees Consulting Yamini Vellore Blume Global Lydia Di Liello Capital Pricing Consultants LLC Karun Alaganan Chainalytics Bryan Wyatt Chainalytics Bill Mrzlak ChainSequence, Inc. Scott Reid CHEP Andrew Grellman CHEP Paola Floris CHEP Canada Derek Rickard Cimcorp Automation Ltd. Bradyn Kelly Cimcorp Automation Ltd.
More Teams to Know Avnet Velocity Bergen Logistics Holman Business Services Jabil Healthcare UPS Customer Solutions ware2go
More Practioners to Know Vaibhav JainDanfoss Industries Pvt. Ltd. Glen Wegel Kitchen Cabinet Distribution Wendy Mannon Merck Animal Health Daniel Stanton Mr. Supply Chain Dana Magliola North Carolina Dept. of Transportation
Brian Kirkpatrick P&G Dawn LaPlaca Penske Logistics Lorcan Sheehan PerformanSC Supply Chain Mika Majapuro Railinc Corp. Pat Nehlsen Regal Beloit Cheryl Wheatley Schneider Transportation Sheri Hinish SupplyChainQueen Nare Thupana Tigap(Pty)Ltd Tugba Serez Unilever Category Planning Scott Ladner Carolina Handling Mahesh Veerina Cloudleaf Mitch Porche CMX (ComplianceMetrix) Steve Cox Command Alkon Emily Branum Command Alkon Ron Haney Commonwealth Supply Chain Advisors Drew Eubank Commonwealth Supply Chain Dan Clark Kuebix, a Trible Company Jon Kirkegaard DCRA Inc. Bill Harrison Demand Management, Inc. Doug Waggoner Echo Global Logistics Peter Wetherill Efficio Blake Schnorf Elemica Arun Samuga Elemica David Cahn Elemica Melonee Wise Fetch Robotics John Flynn Fleet Advantage Mathew Elenjickal FourKites, Inc. Al Girardi GEP David Commiskey GlobalTranz JJ Lewis GlobalTranz
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Abir Thakurta Haverty Furniture Companies Inc. John Conte Holman Parts Distribution Jonathan Wright IBM Jason Chester InfinityQS International, Inc. Hannah Testani Intelligent Audit Paul Reynolds Ivanti Supply Chain ElMarie Hugo Blue Yonder JoAnn Martin Blue Yonder Pia Jala Labelmaster Jay Johnson Labelmaster Ryan Chan Llamasoft Inc. Kobe Ding LLamasoft Inc. Camilo Orbegozo LLamasoft Inc. Madhav Durbha LLamasoft Inc. Scott Fletcher LocatorX Allan Dow Logility Inc. Mark Balte Logility Inc. Henry Canitz Logility Inc. Ken Fleming Logistyx Technologies Dante Fornari Magnate Worldwide Steven Bowen Maine Pointe Adam Kline Manhattan Associates Joe Juliano MercuryGate International Martin Verwijmeren MPO Roger Mayerson NGC Software Fred Isenberg NGC Software Mark Burstein NGC Software Ian Hess Nolan Transportation Group Stephen McIsaac Nolan Transportation Group Yosra Musa OCRC Neil Soni Omnichain Diane Sullivan Omnichain Joe Bellini One Network Enterprises Greg Brady One Network Enterprises Michael Noble Open Sky Group Alan Prillaman Open Sky Group Pawan Singh Open Sky Group Kristen Daihes Opex Analytics, a LLamasoft Co. Alex Ryu Opus9 David Freed Pace Harmon Eshani Deliwala Pace Harmon Vasil Hlinka Pace Harmon Hanko Kiessner Packsize International Matt Yearling PINC Eric Bachrach Plantensive, A Vaco Company Derek Cesarz Plantensive, A Vaco Company Amanda Bohl Primus Intellectual Solutions,LLC Shaun Phillips QAD DynaSys (a division of QAD) Stephen Dombroski QAD Inc.
Wayne Slossberg QuestaWeb Inc. Bruce Welty Quiet Logistics Richard Martin Requis Gary Jones River Rock Advisors Hans Thalbauer SAP Franz Hero SAP James Lee SAP Ariba and SAP Fieldglass Pat McCarthy SAP Ariba and SAP Fieldglass Mike Stein Signode Ryan Manero Slync.io Raj Patel Slync.io Jagadeesh Aileni Slync.io Prasad Lele Softwell Inc. Asena Yosun Denizeri Solvoyo Brian Broadhurst Spend Management Experts Rich Rosario Spend Management Experts Tom Flynn SpendMend Gary Griffith Spinnaker Paul Gifford Spinnaker Patrick Buellet Symphony Retail Ai Dheeraj Shah Tata Consultancy Services Grant Taylor Taylor Logistics Inc. Bill Denbigh Tecsys Inc. John Reichert Tecsys Inc. Sarah McMullin Tecsys Inc. Nancy Pakieser Tecsys Inc. Doug Niemeyer TEKLYNX International Jenna Wagner TEKLYNX International Marisa Brown The American Productivity & Quality Center (APQC)
Omer Abdullah The Smart Cube Brian Hudock Tompkins International Tony Del Cid Tompkins International Robert Barnes TradeIX & The Marco Polo Network John Richardson Transportation Insight Jim Taylor Transportation Insight Todd Benge Transportation Insight Veronique D’ambrosi Trax Jason Reardon Trax Dimi Kurtti Trax Tony Viaes Trax Craig Stewart Trax Steve Beda Trax Chris Zingrebe TrumpCard Paul Noble Verusen Michael Maris Zebra Technologies Mark Wheeler Zebra Technologies Brad McBride Zero Down Supply Chain Solutions
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SPECIAL REPORT EMERGING TECHNOLOGY
By Ramesh Gopinath, V-P, blockchain solutions and research, IBM
HOW BLOCKCHAIN IS REKINDLING OUR CONNECTION TO FOOD PURVEYORS
Blockchain technology aims to spotlight the work of food artisans and reconnect them to the consumers who enjoy their products. MaytheeVoran | iStock / Getty Images Plus
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or generations, consumers have enjoyed a close bond with their food purveyors. Our grandparents knew their local fishmonger, butcher, even the milkman. But, over time, as food supply chains became increasingly vast and complex, shopping has become a more impersonal affair. Today, the notion of a personal human connection at the grocery store feels like a quaint relic from a bygone time. Even as culinary movements like farm-to-table become de rigueur in dining rooms around the world, consumers as a whole are now farther removed from the people who cultivate their food. On one hand, is it feasible to know the farmer behind the grass-fed Wagyu? But, with labor becoming largely invisible, how long before these skilled workers begin to wonder, “What’s the point?” Fortunately, blockchain technology aims to spotlight the
work of food artisans and reconnect them to the consumers who enjoy their products. In mending that severed connection, the goal is to ensure a future for high-quality, local food purveyors, and ultimately empower producers and consumers by engendering a more equitable and transparent food supply chain. For seafood purveyors like Raw Seafoods, for example, blockchain addresses a myriad of pressing challenges. Using blockchain, Raw Seafoods record the granular details that set their product apart, from the precisely calibrated temperatures that keep their scallops fresh, to the name of the ship captain who pulled the mollusks from the water. That information is stored on a tamper-proof digital ledger that shoppers can access by scanning a QR code affixed to the scallops’ retail packaging. Though it’s not exactly the same as a personal rapport with a fishmonger, it’s a step in the same general direction. Purveyors can also annotate ledger entries with video footage of the catch along with cooking recommendations for consumers and chefs. What’s more, the platform serves a vital marketing function. In France, Labeyrie, for instance, uses the same technology to improve the traceability of its smoked salmon. And, in Italy, Gruppo Grigi leverages blockchain to trace the provenance of its pasta. Thanks to blockchain, food purveyors and processors can re-build that personal human connection with their customers, all while employing cutting-edge functions.
IBM
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BE RECOGNIZED FOR YOUR ACHIEVEMENTS
Each year, Supply & Demand Chain Executive recognizes individual and corporate leaders in the global supply chain. Plan now to enter your company, executive or a cutting-edge client or vendor in one of these industry-leading recognition programs.
2020 SUPPLY CHAIN
13 th Annual
GREEN SUPPLY CHAIN AWARDS Recognizing companies that implement green practices as a core function of their supply chain operations.
NOMINATION DEADLINE: 9/11/20
Winners announced in the December 2020 issue
Award results, information and nominations posted on: WWW.SDCEXEC.COM/AWARDS Nomination dates and issues may change. Consult the call-for-entries email and nomination survey for confirmation.
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SPECIAL REPORT
By Lars Uffhausen, co-founder, CFO, COO, Essentium Inc.
appleuzr |
PROCUREMENT
ADDITIVE MANUFACTURING
WILL CHANGE PROCUREMENT AS YOU KNOW IT Additive manufacturing is turning current manufacturing processes UPSIDE DOWN.
E
Or, let’s say your company develops highly technical electronic devices. 3D printing of electrostatic dischargesafe tools and fixtures for electronics manufacturing of devices such as phones or laptops cuts costs and improves factory-floor agility vs. stocking thousands of variations of raw materials sourced from global suppliers. While manufacturing is widely outsourced due to manpower costs, additive manufacturing is turning current manufacturing processes upside down. It is driving localized production and transforming logistics and supply chains. Additive manufacturing will lead to a more sustainable future, where more consumer items are produced locally and less everyday goods are shipped across the globe. 3D printing also enables companies to shift their sourcing of parts from remote locations like China to on-site production facilities, Zyabich | iStock / Getty Images Plus
very manufacturer can benefit from more efficient procurement and shorter production cycles. That’s why a growing number of manufacturers are now taking a serious look at additive manufacturing. Additive manufacturing describes the technologies that build 3D objects by adding layer upon layer of material, whether it be plastic, metal and more. Consider that you manufacture running shoes. Additive manufacturing gives companies the ability to combine production processes by 3D printing key parts on an industrial scale, such as mid- and outer-soles for shoes, which paves the path today to additively bond soles to the shoe for tomorrow.
Additive manufacturing is driving localized production and transforming logistics and supply chains. 30
significantly reducing procurement costs. Additionly, it accelerates time to market because you can print the parts needed in a matter of hours, rather than waiting days or weeks to receive the parts from a supplier. This gives companies a critical edge over their competition. Rather than stocking a warehouse full of parts that may/may not become obsolete, additive manufacturing condenses the physical space into digital files that can be stored in the cloud and easily accessed if/ when needed. This distributed manufacturing approach enables companies to decentralize production to manufacture the final product closer to the customer. And yet, despite the many advantages that additive manufacturing brings to procurement, a survey commissioned by Essentium found that procurement departments are reporting limited success in the adoption of 3D printing at scale. Specifically, the survey reported that only 29% of procurement teams are finding success with 3D printing at scale, largely due to technological and organizational obstacles to adoption. So, how can companies overcome these challenges? For starters, procurement teams need to ask: Are my engineers trained to design parts using additive? Who in my organization is skilled in using 3D printers? And, from a corporate
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SPECIAL REPORT
appleuzr | DigitalVision Vectors • serkorkin | iStock / Getty Images Plus
PROCUREMENT
perspective, has the management team made it a priority to invest in additive manufacturing equipment? Traditional manufacturing dictates a need for scale to achieve economy, which creates inefficiencies and friction between the product idea and its delivery to the user. This is where additive manufacturing can revolutionize how products find their way to consumers. In addition, it provides an opportunity to economically manufacture lowervolume, lower-scale products. Procurement teams also should understand the ways that 3D printing will change and improve the way they do their job. For instance, with additive manufacturing, procurement teams won’t need to interview potential suppliers and locate parts. Instead, these teams become more of a materials expert. Additive manufacturing processes also enable the production of geometric shapes that otherwise require assembly of multiple parts. Component consolidation dramatically decreases costs, increases production speed and amplifies functional performance on the production floor. Perhaps one reason procurement teams have struggled with additive manufacturing is the fact that the market has been dominated by closed systems in which customers are locked into materials provided by their 3D printer vendor. Until now, procurement teams have had to buy their materials directly from these hardware vendors where the materials are often limited. But, more 3D printer vendors are now providing an open ecosystem
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where customers can pick and choose their preferred materials. Further, due to the ongoing introduction of a wide variety of 3D-printable materials, from high-temperature polymers to durable metals, manufacturers can now produce more parts at industrial scale. Today, many procurement teams are still working overtime to qualify multiple suppliers around the world and source the parts needed at the lowest available price. This kind of self-contained supply chain will prove to be a critical success factor in today’s increasingly uncertain world. If you can produce critical parts yourself without relying on global suppliers, you’ll be in a stronger position to get your products to market and weather any storm—whether it’s a disease, a natural disaster or political upheaval.
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4/7/20 10:12 AM
EXECUTIVE FOCUS
{ TRANSPORTATION}
By Chris Cochran, co-founder and CEO, FreightWise
CREATING “THE AMAZON EXPERIENCE”LASTMILE DELIVERY FOR ECOMMERCE
Discover how last-mile delivery is an essential offering that can make or break the customer experience.
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-commerce has opened avenues for previously unheard of transactions. An average consumer can now purchase almost anything online without ever having to set foot in a store. While this level of access has been liberating for customers, it’s proved challenging for companies and their carriers. Last-mile delivery is an essential offering that can make or break the customer experience. The latest shipping tech solutions can assist companies to not only determine the most efficient and cost-effective delivery options, but to also track orders in real-time and immediately
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identify and remedy any problems that may arise. This is invaluable in an economy where the speed, price and quality of a company’s last-mile delivery offering can strongly influence consumers’ purchasing decisions. Let’s take James for example, who ordered a new swimming pool heater. Instead of buying through an authorized distributor, James orders the heater via his preferred website, AcmePoolHeaters.com. During checkout, he receives a range of delivery options at various prices. An e-commerceenabled order management system (OMS) connects to Acme’s warehouse management system (WMS) and enterprise resource planning (ERP) to confirm inventory. Once availability is confirmed, the system allows
James to place the item in his shopping cart and proceed to checkout. Before he can make his payment, Acme’s transport management system (TMS) checks the stored attributes of the product to see what shipping options are available. After determining that the item weighs more than 150
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TRANSPORTATION
pounds and is a single piece, the system decides it needs to be shipped via less than truckload (LTL) and presents multiple options to James based on Acme’s negotiated rates and accessorials. Once James has made his shipping decision, the
system takes his payment and sends his order to the WMS for fulfillment. James then receives a purchase confirmation email letting him know he’ll receive a tracking number within 48 hours, and that he should expect direct communication from the freight carrier. The carrier’s online portal will keep James engaged throughout the delivery process.
When James’ order is ready to go, Acme’s WMS sends a pickup request to the applicable LTL carrier, complete with a systemgenerated Bill of Lading and James’ contact information. The carrier schedules a truck to pick up James’ order, which triggers the tracking email sent to James. Next, James is notified via another email that his item has arrived at a local distribution center, and can now schedule his delivery window. He picks a time that works and opts into SMS alerts for extra communication. He receives a reminder message 24 hours before delivery and is given the option to reschedule if needed. When the item arrives at the distribution center and is scanned into the carrier’s system, it triggers the email to James asking him to select his delivery window. Once he does this, the delivery is placed on the last-mile team’s schedule. Here, the carrier might outsource lastmile delivery to small local operators or may stay within their own network. Either way, the carrier’s software is used to coordinate deliveries. On the day of delivery, James can be confident his product will arrive. He uses the carrier’s online portal to track the status. The carrier’s system prompts the delivery team to text or call James when the GPS estimates are 30 minutes away. Upon completion, their company-issued tablet allows them to electronically present the delivery receipt, preventing lost paperwork and allowing for immediate feedback on
issues like damage or missing parts. James is pleased with the ease and efficiency of the delivery. He signs the electronic receipt and is told he’ll receive a copy via email. Once the system recognizes that the delivery receipt has been signed, it triggers a post-delivery customer experience survey. James receives the survey via email and completes it within a few minutes. AcmePoolHeaters.com has immediate access to James’ feedback, which allows them to continue engagement with their customer and monitor the quality and consistency of their partner carrier. This is what’s called “The Amazon Experience,” which online buyers now expect from every e-retailer, distributor or direct selling manufacturer. Amazon is in a unique position to provide that experience because they control so many facets of the supply chain. However, reproducing it is a challenge for some businesses, but it’s something that can be achieved with the right technology, processes and carriers. The technology and partnerships in your last-mile delivery are critical to ensuring customer satisfaction and controls. This Darwinesque survival-ofthe-fittest battle in today’s supply chain landscape will continue to grow. Carriers are increasingly prepared to handle these loads, and technology is easily accessible to provide the experience that consumers demand. The future is bright in last-mile delivery because the focus is on keeping the customer happy, and happy customers buy again.
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}
{ TRANSPORTATION}
By Khalid Naim, co-founder and CEO of Onfleet
LASTMILE DELIVERY
IN 2020WHAT’S AHEAD Check out the trends impacting the way retailers improve and expand their last-mile delivery options.
Onfleet
Onfleet
The micro-mobility industry is especially one to watch, as more companies enter this market that can also help with the last mile, such as food deliveries.
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ast-mile delivery is both a blessing and curse for retailers—a blessing because they know it draws in customers, but a curse because the logistics can be cumbersome and expensive. Nevertheless, its use and adoption are growing at an exponential rate. Here are some predictions for last-mile delivery in 2020: More consolidation among delivery networks. DoorDash’s acquisition of Square’s food delivery platform Caviar and other merger conversations regarding last-mile delivery providers demonstrate that consolidation is key to unlocking a sustainable business model for these networks. That’s because less competition will lead to increased pricing power, which will then allow
companies to increase their take rate and decrease costs due to greater delivery density. Bringing at least some delivery resources in-house is the only real way for merchants and retailers to hedge against this inevitable monopolistic future. Robotic delivery pilots will expand beyond the publicity stunt stage, but the industry isn’t likely to see widespread deployment until 2022. There are still regulatory issues, and the hardware costs are still prohibitive for most. In 2020, look for robotic delivery primarily in major cities and in controlled environments such as corporate and college campuses. Delivery robots will also one day assist with the last-mile. Expect electric vehicles (EVs) and the increased presence of unattended delivery technology to form the first wave of technology that transforms last-mile delivery, according to a McKinsey report. Also, look for players to develop their own mobile machines, whether it be semi-autonomous delivery vehicles or robot-delivery pilots that deliver packages directly to customers’ front doors.
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TRANSPORTATION
across urban areas. Micro-fulfillment and microwarehouses will take off. Target Corp., for example, is on track to remodel 1,000 stores to better position its brick-and-mortar stores to speed up delivery. Furthermore, in May 2019, Target reported that 80% of digital sales (comprised of in-store pickup, drivethrough pick-up or home delivery via Shipt) were fulfilled from stores. Target also reported at that time, “all of Target’s same-day delivery options were now profitable, and more profitable than typical online orders that ship items from fulfillment centers to customers’ homes.” In closing, last-mile delivery can be a huge challenge for retailers—in some cases, it doesn’t make sense for them to build out their own delivery fleets, yet they still want to control the end-customer experience. In other cases, the only option is to build out inhouse capabilities to maintain control, reliability and customer relationships as they scale operations. Regardless of their approach, companies will continue to look for ways to improve and expand their last-mile delivery options to meet today’s ever-changing customer demands.
“The only option is to build out in-house capabilities to maintain control, reliability and customer relationships as they scale operations.” Look for players to develop their own mobile machines, whether it be semiautonomous delivery vehicles or robotdelivery pilots that deliver packages directly to customers’ front doors.
et Onfle
Free same-day delivery will become the standard in 2020, putting more pressure on retailers that want to compete with Amazon. Another McKinsey report details same-day delivery as the next evolutionary step in parcel logistics. Plus, today’s consumers want product immediately, and are more willing to pay same-day delivery prices than ever before. What’s more is, a survey from the National Retail Federation found that more than 40% of retailers say their top customer-facing priority is faster fulfillment of online orders. In a survey conducted in October 2019 between Onfleet and Prolific, 78% of consumers said that their experiences with Amazon have raised their expectations for all types of deliveries, while 76% said they would be more likely to order household items locally (vs. from Amazon) if they could get same-day delivery. Same-day delivery has become table stakes—good news for thirdparty companies and most small- and medium-sized retailers who don’t want to build their own delivery and logistics networks. Fleets will become more ecofriendly, partly to ease exploding emissions and congestion problems in major cities. This could range from more efficient routes that minimize fuel to implementing electric or autonomous vehicles. The micro-mobility industry is especially one to watch, as more and more companies enter this market that can also help with the last mile, such as food deliveries. There’s also a rapid rise in the use of cargo bikes
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{ WAREHOUSING}
By Mackenna Moralez
AGV machines ease strain on employees by guiding them to a certain item in the warehouse.
HOW AGVS FILL GAPS IN THE SUPPLY CHAIN
Find out how automated guided vehicles fill the gap between humans and robotics.
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ow more than ever, it is crucial to have automated solutions within the warehouse, as supply chain disruptions can occur within a blink of an eye. The Coronavirus disease (COVID-19) pandemic, which has already laid off 18% of the U.S. workforce, as of March 18, and displaced several workers from in plant to working from home, is one example. That’s why embracing automation is critical to any organization’s survival in today’s environment. “Robotics are helping in various ways such as reducing walk time for our employees, assisting in repetitive motion processes so our employees can do more valuable tasks and reducing the need for moving product long distances across a warehouse,” says Kevin Stock, senior vice president of engineering at GEODIS, France. “Retaining our employees and making them more productive is key to being successful.” Automation and robotics have improved many tasks typically assigned to warehouse staff. For example, robotics and automated equipment perform assignments at
a quicker pace and with less effort—potentially making the workplace even safer. This allows warehouses to shift human capital to more valuable functions and gain greater efficiencies. “In order to do more, [warehouse operations] have to do something differently. They also want to do things better, which means doing things more safely,” says Jeff Christensen, vice president of product at Seegrid, Pittsburgh. “If you think about the core competencies of human beings, if you’re driving a truck in a loop all day, you’re going to get bored by Day 2. And, when people get bored, they improvise. When they improvise, they make mistakes. If they’re moving 5-10,000 pounds of material when they make a mistake, somebody is going to get hurt.” Technology improvements such as artificial intelligence (AI) and visual detection systems also automate warehouse forklifts, pushcarts and small-vehicle fleets. Automated guided vehicles (AGVs) use sensors and cameras to guide the machine up and down the aisles, acting as the machine’s “eyes.” Because of the technology embedded within, AGVs can sense where objects are going to pick up and drop off, moving at a slower rate than the average human. Safety and utilization of the equipment oftentimes makes up for
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the difference of picking times, Stock says. “Since AGVs rely on cameras and sensors to detect obstacles, they are constantly surveying their environment in 360 degrees,” Stock says. “This allows the AGVs to detect not only static objects that they are approaching, but [also] other moving objects that may be approaching them. Anytime an AGV observes movement in its ‘safety halo,’ it will slow down or stop and not move again until the area is clear.” In fact, AGVs may be the easiest to implement because the motorized cart can reduce strain on humans as it eliminates walking long distances, according to a white paper from Kindred, Louisville, Ky. However, high investment costs and limited flexibility have halted the implementation of the vehicle in warehouses. “I think some of it is just sort of old-fashioned inertia, the technology adoption lifecycle and sort of what level of risk different companies are willing to take,” Christensen says. “In the near term, you will see the whole spectrum of risk acceptance vs. risk aversion in the market.” It is still imperative though to be flexible when implementing robotics, as there are several factors that affect automation.
Grenzebach
For example, Loc us R obo layout of the operation, tics temperature of the warehouse and number of aisles and racks can play a factor into how much time it takes to fulfill an order. Warehouse managers need to ensure that employees understand how AGVs operate. By understanding and measuring return on investment, multiple shift operations can gain the fastest payback. The following technologies are also projected to help fill gaps in the warehouse: Automated storage and retrieval systems (AS/RS). Designed to retrieve and put away goods, warehouses choose an AS/RS based on their needs and software to manage a majority of their operations. This machine also allows employees to work more efficiently while reducing physical activity. Goods-to-person (G2P as applied AS/RS). Created to deliver a desired product, package or SKU to a fixed pick station to help staff fulfill orders, some devices may return goods to their slots if no longer needed. Autonomous mobile robots (AMRs). With these robots, carts
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AGVs eliminate the need for long walking distances, allowing workers to focus on more essential tasks. and trucks move independently without needing direct intervention or assistance from a human. Solutions are integrated with fixed-location robots to bring goods and materials from shelves to the final station. Piece-picking solutions. Often referred to as robotic arms, piecepicking solutions focus on the movement and protection of goods within a certain location. Currently, they are used to help warehouses with product receiving and storage, and support pick-and-pack for goods that move at high volumes.
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EXECUTIVE FOCUS
{ SOFTWARE & TECH}
By Brielle Jaekel
IS FINTECH THE FUTURE OF SUPPLY CHAIN?
Find out how FinTech’s capabilities are helping partners on both sides of the payment process.
FinTech is being used as a way for manufacturing and logistics companies and their partners to better manage financial operations, allowing buyers to complete payments faster and suppliers to receive funds faster.
energepic.com from Pexels
Most FinTech platforms are accessed through a cloud management system, which means that businesses simply download an application or access an online site to manage their payment accounts. rambo182 | DigitalVision Vectors
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uarantines and lockdowns worldwide have put a hold on both the global and national economies, causing companies to brace for the recession that some experts say may follow. In fact, some predict the Coronavirus disease (COVID-19) crisis will institute a recession on par with the likes of 2009 or worse. But, how FinTech
platforms will fair in this is unknown. “Given the current COVID-19 crisis, we’re on the cusp of a major financial recession, which means we can expect two larger financial trends in the near future,” says Edrizio De La Cruz, co-founder and CEO of Arcus Financial Intelligence Inc., New York. “During recessions, there is usually a major move toward consolidating high-interest debts. This could be a major issue for any buyers who have outstanding balances with suppliers. However, there have been advancements in FinTech that enable easier debt consolidation, which can help here.” Specific to supply chains, FinTech is used as a way for manufacturing and logistics companies and their partners to better manage financial operations, allowing buyers to complete payments faster and suppliers to receive funds faster. Most FinTech platforms are accessed through a cloud management system, where businesses simply download an application or access an online site to manage their payment accounts. Previously, it could be as long as three months for a supplier to receive payment on an order, whereas FinTech streamlines this timeline immediately. Now, suppliers have more control on payment deadlines,
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SOFTWARE & TECH From here on out, the industry is likely to see FinTech platforms take away processes that have previously only been handled by big banks.
Craig Adderley from Pexels
allowing them to enact a longer period of time for a deadline or finance heavy equipment themselves. FinTech firms also work across banks to determine the most beneficial payment option for each company. This, coupled with their much lower rates, have disrupted the way supply chains operate financially. Those who will benefit most from tapping into FinTech solutions are startups, whose credit profiles are less sturdy and not as successful when working with banks. Suppliers and manufacturers whose processes have longer lead times can also benefit. “A startup in any industry will be most adaptable to FinTech because their riskier credit profile is a good fit for FinTechs, which can use alternate means to determine credit worthiness, instead of the more traditional approaches that a big bank requires,” says Shawn DeVries, managing director of B2B at Kin + Carta, UK. “Industries with long lead times will benefit from the financing options that FinTechs can provide.”
handles and accelerate it, which makes FinTech very appealing to suppliers and buyers seeking funding,” adds DeVries. “Not to be outdone by FinTechs, big banks are taking a hard look at partnering with FinTech firms, and even modernizing the digital experiences they offer for supply chain finance, such as re-imagined treasury systems. These changes are enormous projects for banks though, and take a long time to make it into the hands of CFOs.” FinTech is also more accessible for supply chains, as software-as-aservice (SaaS) has paved the way for software companies to build better solutions. “Fintech has never been more accessible. Now any business can feasibly become a fintech business with the right technology partner,” says De La Cruz. “ The introduction of Software-as-a-Service (SaaS) fundamentally changed the way software companies are built, making it easier and faster than ever to build and launch a software company. The same is now happening in the fintech space which could mean major changes for how buyers and suppliers
NEW TECHNOLOGIES PUSH FINTECH FORWARD One out of four companies are currently using some form of FinTech in their supply chains, according to a report from CGN Global. From here on out, the industry is likely to see FinTech platforms take away processes that have previously only been handled by big banks, or banks will partner with the technology providers themselves. Some banks may adopt FinTech solutions into their own platforms. “FinTech will continue to take processes that a big bank traditionally
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FinTech firms work across banks to determine the most beneficial payment option for each company. rambo182 | DigitalVision Vectors
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SOFTWARE & TECH
The healthcare supply chain is one sector in particular that could benefit dramatically from the use of FinTech, allowing consumers to use these options to better manage medical debt. More importantly, healthcare providers will see advantages from modernizing procurement and protect against fraud.
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approach their own financial needs and requirements.” Some companies have even created their own FinTech solutions and offshoot companies to better handle finances and payouts. Uber Money, for example, allows drivers and couriers to have access to immediate funds after every trip instead of waiting for a weekly paycheck. The platform also offers a variety of services such as debit accounts, a digital wallet and a relaunch of Uber credit card. Braintree, a division of PayPal, helps online businesses manage financial security. And, Carta, Palo Alto, Calif., is a platform that allows companies to manage and track equity, administer portfolios and back office processes and track regulations. The list goes on and on, and the ways supply chains are implementing FinTech are endless. “The always present tension over buyer/ supplier payment terms is another area where FinTech can make an impact,” continues De La Cruz. “Certain FinTechs have created more appealing financing options for suppliers. They work with companies and banks to provide suppliers with options to stay financially sound while also allowing companies to realize the cash opportunity present in their supply chains.” The healthcare supply chain is one sector in particular that could benefit dramatically from the use of FinTech, allowing consumers to use these options to better manage medical debt. More importantly, healthcare providers will see advantages from modernizing procurement and protect against fraud. In using FinTech, these companies are also introduced to significant amount of data that was previously unavailable. “For actors within the supply
chain, data is invaluable,” says De La Cruz. “Access to the right data can result in huge savings. Fintechs understand the value of data more than most and provide access to enhanced financial data and insights that can help optimize supply chain finances.”
FINANCIAL AND TECHNOLOGICAL SECURITY While there are numerous cost-saving and time-efficient benefits to tapping into FinTech solutions, there are also some risks related to falling for FinTech. Regulations differ from country to country, so companies need to pay attention to local rules wherever they operate. Security issues are highly important as well, meaning FinTech solutions need to be heavily guarded in terms of technological security to prevent hackers and attacks. As the supply chains continue to navigate the COVID-19 outbreak, these platforms will become more and more important. Following the pandemic and the sure-tofollow recession, FinTech themes will pivot toward more personal financial operations, as consumers scramble to manage their finances. Debt consolidation and alternative forms of finding money will become a priority for financial institutions in meeting consumer needs, in addition to suppliers and buyers. FinTech will continue to grow in assisting the supply chain with financial services, but it is important for those who develop the solutions to ensure the highest of security. Partners should do their due diligence in ensuring that their own partners are safe, while also looking to the future of payment and financial management.
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FinTech solutions need to be heavily guarded in terms of technological security to prevent hackers and attacks.
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EXECUTIVE FOCUS
{ PROFESSIONAL DEVELOPMENT}
By Brielle Jaekel
fizkes/ iStock / Getty Images Plus
USING ASSESSMENT CENTERS TO PULL OUT NECESSARY LEADERSHIP 42
SKILLS
SUPPLY & DEMAND CHAIN EXECUTIVE | April 2020 | www.SDCExec.com
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PROFESSIONAL DEVELOPMENT
s Plus
Leaders can be found through a series of tests that help bring certain skills to the surface and prime an employee for leadership.
that help employers assess a small group of employees through various exercises, interviews and sample tests. Based on the results, companies can determine whether or not the employee has the skills needed to manage a team. In addition to gaining information on the individual, the employee can often learn more through the process of an Assessment Center. Organizations in the Assessment Center space such as developmental associates say that center ratings are more accurate than other forms of employee rating systems, as it requires observation from a group of trained assessors in a controlled setting. The U.S. Office of Personnel Management (OPM) details a wide range of methods used in Assessment Centers, such as tests in biodata, cognitive ability, emotional intelligence, job knowledge, honesty and situational judgement, along with structured interviews, training exercises and the use of work samples. For instance, a participant may be tasked with the exercise of assuming the role of a manager on his first day. He will then have to walk through processes such as orientation and meetings with fictitious employees. For biodata tests, which offer a series of questions on how the individual has or would react to common life occurrences, the results are based on patterns the taker exhibits rather than each individual answer.
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eadership can certainly be a buzzword for executives in supply chain management looking to put a more exciting spin on the hiring and promotions process. But, the truth is, leadership in management is extremely important in driving production, a positive work environment and the overall success of a company. Managers need to lead, and they need to know how to do so. Here’s how Assessment Centers can pull out the leadership skills necessary to propel professionals forward.
LEADING THE LEADERS A great manager is someone who can find the best skills of their employees and use that to the company’s advantage. The same goes for that manager’s manager. In company leadership, it is important to have a finely tuned system in how to most effectively assist a manager in leading his or her team. Enter Assessment Centers, a tool that supply chain companies have been using since World War II as a way to find senior officers in military operations. Despite the name, Assessment Centers are not physical places that assess each employee and discover their skills and how to best use them. Instead, they are a system of methods
UPSKILLING CURRENT LEADERS The growth of technology in everyday life and work environments also means that leadership along with other employees need continual
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upskill training, where they learn additional skills to stay up to date with technological advancements. PricewaterhouseCoopers reported that 20% of U.S. CEOs believed that upskilling has been very effective in assisting with digital transformation and 17% say the same for workforce productivity. While the percentages are somewhat low today, this could be the future for supply chains and companies whose operations and machines are rapidly advancing. The blue-collar workforce has expressed concern with the advancement of robotics and automated solutions taking their jobs. But, if leadership takes a proactive approach at training their employees to keep up with advancing solutions, it could mean a more positive work environment in the future. Supply chain companies are looking for employees that have a wider range of skills and some with analytical expertise for higher level roles, as data becomes more important. According to a report from Deloitte, 88% of supply chain groups are more likely to proactively search for recruits with analytical experience. With the Coronavirus disease (COVID-19) outbreak, for instance, leadership will be more important now than ever, as employees will look to upper management to make the right call. Unemployment worries will become rampant, as both companies and consumers look to navigate the “New Normal.” This is where real leadership skills come into play and why it is so important for supply chain managers to be equipped and readily prepared.
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WORK HARD, By Mackenna Moralez
P SWEET MAKING
MUSIC
It’s never too late to pick up an instrument and find a creative outlet, especially when it translates to other areas of your life.
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laying the guitar is hard work. The strings hurt your fingers, your hands begin to form calluses and then there’s the whole keeping time aspect. A lot of people give up shortly after trying the guitar, but Joe Albert, vice president of sales for Signode Global Wrapping and Case Handling, proves that sticking with the instrument can be a worthwhile experience. Albert first picked up the guitar when he was 47 years old after experiencing a “mid-life crisis” and discovering country music on a flight to Brazil. “I was watching the Academy of Country Music Awards (ACMAs) and saw an acoustic song performed by Eric Church called ‘Like Jesus Does.’ I knew right then that I wanted to play and sing country music,” Albert says. “A month later, I got my first acoustic guitar.” Still, learning a new skill takes a lot of practice, desire and persistence, he explains. But, the guitar helped Albert emerge from a corporate box he felt stuck inside. “I wanted to see if I could challenge myself to learn to play [guitar] and sing. I was so fascinated by the whole singer-songwriter genre,” Albert says. “Like anyone learning guitar, you have to fight through the fingertip pain, making chords that sound nice, strumming, then strumming and changing chords and finally throwing singing into the whole mix. Through each step you have to fight to reprogram your mind and body to work together.”
For the most part, Albert says that he is 90% self-taught, crediting lessons from the internet to help him get to his skill level. However, maintenance managers at two of Signode’s film plants also played the guitar and had the instrument waiting for him when he would visit. “We would play late at night or super early in the morning. Both guys taught me ways to cheat and gave me the encouragement to continue,” he says. “I think learning on my own gave me the freedom to develop my own style instead of being clinical in my approach.” Still, learning the guitar is an ongoing process—even for the most talented musicians. There are many technical aspects that go into the instrument. Meanwhile, new songs are released frequently that he wants to learn. He also encourages others to push themselves to learn a new instrument and to not let age prevent you from doing it. The skills that he has learned go hand in hand with his role at Signode, as it helps him problem-solve and approach challenges differently, similar to when he learns a new song. “You never stop learning. The day you do is the day you stop playing,” Albert says. “I never thought I would have learned as much as I have.” Go to sdcexec..com/21095939 to learn more about how Albert’s music translates to his career.
SUPPLY & DEMAND CHAIN EXECUTIVE | April 2020 | www.SDCExec.com
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