Supply Chain Monthly - June 2023

Current News

CSCMP's 34th Annual State of Logistics Report® ─ Available Now!

The 2023 State of Logistics Report^® was unveiled at the Indianapolis Motor Speedway on Tuesday, June 20, 2023, with the 34th annual publication finding that U.S. supply chains responded to the global volatility from the past two years by transforming supply chain networks to improve resilience against future disruption.

Produced annually for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney and presented by leading third-party supply chain provider Penske Logistics, the annual report offers a snapshot of the American economy via the lens of the logistics sector and its role in overall supply chains.

The report is a comprehensive compilation of leading logistics intelligence from around the world and shines a spotlight on industry trends and key insights on ever evolving supply chains across a number of sectors.

While last year’s report highlighted the need to get back in sync, the 2023 version focuses on how logistics operations can build long-term resilience in an effort to best serve customers through a variety of distribution channels.

Among the notable findings:

A key report statistic, U.S. business logistics costs, shows an increase. USBLC now stands at a record $2.3 trillion (was $1.85 trillion last year), representing 9.1% of national GDP—the highest percentage of GDP ever.

While consumers are continuing to return to stores, e-commerce sales are not slowing down. In 2022, the U.S. e-commerce market grew by 8%, to $1.03 trillion (was $871 billion). It is now 14.5% of the entire U.S. retail market.

Third-party logistics providers are investing more capital into their technology offerings, as opposed to shippers (companies that provide goods and services). Respondents indicated that 96% of 3PLs have migrated to the cloud (shippers indicated 86% of them have), while 80% of 3PLs are investing in IoT (77% for shippers).

The reshoring movement continues. For a number of businesses, reshoring has gone from a strategic possibility to a market reality. According to the Kearney Reshoring Index, American imports of Mexican manufactured goods have grown by 26% (dating back to spring 2020).

The annual report is complimentary to CSCMP members. Access to the on-demand presentation will be available the afternoon of June 20. Guests may purchase the report at cscmp.org.

Visit https://cscmp.org/CSCMP/Research_and_Media/Reports_and_Surveys/State_of_Logistics_Report/CSCMP/Educate/State_of_Logistics_Report.aspx?hkey=bdfd8da6-e34f-434c-b39c-d3219dd4a6a2 to view the full article online.

Supply Chain in the Fast Lane︱Listen to the Transportation Technologies Series Sponsored by HERE Technologies

The Council of Supply Chain Management Professionals (CSCMP) and Supply Chain Quarterly (SCQ) bring you a new series-based podcast filled with more content, SCM exposure, and pinpointed, deep industry discussions with top thought innovators from the end-to-end supply chain.

In themed, multi-episode series, the new weekly podcast, Supply Chain in the Fast Lane, fast tracks topics you need to know from leaders you want to know.

Technology is revolutionizing all aspects of the supply chain, but most especially the transportation space. In episode one, Mark Baxa, president and chief executive officer of industry association the Council of Supply Chain Management Professionals (CSCMP), discusses where technology is having the biggest impact and how CSCMP can help supply chain managers navigate the latest trends.

In episode two, Tom Nightingale, chief executive officer for third-party logistics company AFS Logistics discusses some of the emerging technologies that can help improve freight transportation costs and where he sees the future of trucking technologies heading.

Visit https://cscmp.org/CSCMP/Supply_Chain_in_the_Fast_Lane_Podcast.aspx to view the full article online.

Supply Chain Reinvention: Three Vital Principles for Building a Risk-Resilient, Sustainable Future

For decades, the focus for supply chain executives has been relatively straightforward: reduce costs and increase efficiency.

However, the global upheaval of the past few years—from COVID-19, geopolitical conflicts, and other disruptions—has brought into stark relief a newer, more complicated reality: The supply chain is vulnerable and business risk is high. Whether due to port closures, materials and labor shortages, or economic impacts like rising inflation and fluctuating demand, we are in a moment of unprecedented pressures.

These pressures are, frankly, not going away anytime soon. In fact, a CNBC survey found that 61% of logistics managers say the supply chain is still not operating normally—and most of them say they don’t expect it to do so until 2024 or even later. Similarly 82% of supply chain leaders surveyed by Coupa Software say challenges will stay the same or worsen over the next six to 12 months.
So, what are decision-makers to do?

Visit https://www.supplychainquarterly.com/articles/8119-supply-chain-reinvention-three-vital-principles-for-building-a-risk-resilient-sustainable-future to view the full article online.

Three Practical Tips For Designing a More Resilient Supply Chain ─ A CSCMP Hot Topic

Supply chain disruptions have emerged as one of the most significant challenges for organizations worldwide. The call for a resilient supply chain has become paramount, yet resilience often comes with a substantial price tag—one that usually erodes margins. In addition to focusing on resilience, cost efficiency remains a non-negotiable for supply chain executives. This white paper presents three practical tips for designing a more resilient supply chain without compromising cost or sustainability.

Thank you to our CSCMP EDGE 2023 Sponsor Nate De Jong, Sr. Director, Supply Chain Solutions, Data Science & Optimization at Gurobi for sharing this Hot Topic!

Visit https://cscmp.org/store/detail.aspx?id=HT23-GUROBI to view the full article online.

Supply Chains in 2023: Trends, Disruptions and Adaptations ─ A CSCMP Hot Topic

The supply chain industry is facing several significant trends that are already disrupting organizations across verticals. Read about these trends, how they are disrupting supply chain planning and procedures, and how companies can utilize creative technologies to adapt and dominate in 2023.

Thank you to CSCMP Corporate Member Hyland for sharing this Hot Topic!

Visit https://cscmp.org/store/detail.aspx?id=HT23-HYLAND to view the full article online.

Securing the Supply Chain: Mitigating Cybersecurity Risks ─ A CSCMP Hot Topic

Supply chain attacks targeted 1,743 entities and impacted over 10 million people. All this is not to scare you away from implementing crucial technologies to better manage your supply chain. LynnCo places a spotlight on the best practices, trends, and technologies organizations can utilize to reduce cybersecurity risks and ensure the security and resilience of their supply chains. Author, Carsten Sorensen, CEO for LynnCo Supply Chain Solutions, is a technology and finance executive with a broad background in a variety of industries and extensive European work experience.

Thank you to CSCMP Corporate Member Carsten Sorensen, CEO - LynnCo for sharing this Hot Topic!

Visit https://cscmp.org/store/detail.aspx?id=HT23-LYNNCO to view the full article online.

CSCMP Featured Members

Guy Ross, Executive Vice President, Kimmel & Associates

Ambassador Volunteer
"I joined CSCMP to elevate my professional game. CSCMP gives us an educational platform where we can learn what's going on in the industry now, and what's coming down the pike.

It also gives us an opportunity to meet people. In my mind, the 3 keys to a good business partnership are chemistry, integrity, and trust. CSCMP gives us opportunities to meet people that we might otherwise just speak with on the phone. This bonding can help build the foundation of good partnerships.

I use the term partnership intentionally. In my practice, I want to work WITH someone to help provide a solution. Go to conferences, go to your local roundtable events, volunteer if appropriate, but get involved in one way or another. It is impactful having the chance to meet in person people that I've been talking with on the phone, Zoom or MS Teams over the past few years and cementing those relationships."

Visit https://youtu.be/ewluwQKtrZQ to view the full article online.

Dyci Sfregola, CEO, New Gen Architects

Atlanta Roundtable
"I joined CSCMP in 2020 to network with more professionals within the supply chain ecosystem. Always remember that you get out of it what you put into it. There are a lot of programs and networking opportunities to participate in, so make the time to do as much as you can and really take advantage of the membership benefits. The mentor opportunities have been amazing. I love seeing the mentees I've worked with grow in their careers and develop a meaningful relationship with me as a mentor."

Visit https://youtu.be/QoO7N-32Rxk to view the full article online.

Jimmy Cahill, Business Development Manager, LCB Apex Logistics International

Philadelphia Roundtable
"Joined in September 2022 to network with supply chain professionals for insights and opportunities. My advice is to Network, Network, Network! Roundtables are valuable for specific areas of interest and the opportunity to generate business."

Visit https://youtu.be/aFB13KWAmsw to view the full article online.

CSCMP Corporate Spotlight ─ Banyan Technology

Banyan Technology is the leading provider of freight management software for all over-the-road (OTR) shipping, delivering real-time intel, actionable insights, and instant access to information to help drive greater operational efficiencies and cost savings for Shippers, 3PLs, and supply chain partners. The company’s patented LIVE Connect™ platform provides rating and shipping execution from a single screen for Truckload, LTL, Local Carrier, and Parcel.

Banyan is a CSCMP Corporate Member for the professional connections, top notch education, and ability to stay up to date on current industry trends and vital information through CSCMP's resources.

Visit https://youtu.be/1raCXar2kRg to view the full article online.

CSCMP Corporate Spotlight ─ Catena Solutions

Catena Solutions specializes in supporting supply chain-based organizations with their business initiatives, including digital, financial, human capital, and supply chain transformations. Catena Solutions does so by meeting them at any stage of their transformation journey, whether that's needing consulting resources for knowledge gaps or interim support for business continuance.

Catena Solutions is a CSCMP Corporate Member for the great professional growth and networking opportunities. CSCMP is a leading industry organization and through the organization’s events, webinars and training we are able to have access to the most up-to-date training and network with our industry peers.

Visit https://youtu.be/yoN1kiJIPlQ to view the full article online.

Connect

Join Supply Chain's Largest Community Today

CSCMP offers multiple membership options depending upon where you are in your career journey. Whether you are an individual or part of a corporate membership, a student or a retiree, we’ve got you covered. Choose the membership that’s right for you and tap into the resources and network of supply chain’s largest community today.

Visit https://cscmp.org/CSCMP/Membership/Individual_Membership/CSCMP/Join/Individual_Membership.aspx?hkey=6dcb6fea-fe01-4960-a98c-4d0a9e5a1bf7 to view the full article online.

Welcome to CSCMP's New Corporate Members

CSCMP's NEW Corporate Members: Convoy, Forward Air, ITS Logistics, Swisher International, and Betacom Inc. are taking advantage of CSCMP's corporate membership opportunities to develop and grow their supply chain teams.

CSCMP's corporate membership, education, and event opportunities help develop your team, so you can remain competitive in today’s disruptive supply chain industry. Get access to thought leadership, best practices, up-to-date trends, and solutions to challenges from the people who know it best. Improve productivity, build skills, network and increase your team’s supply chain knowledge.

Visit https://cscmp.org/CSCMP/Corporate/CSCMP/Join/Corporate_Membership.aspx?hkey=7df1e7c7-b19f-4eaf-ad56-6ea004f94197 to view the full article online.

CSCMP Corporate Member Spartan Carrier Group is quickly becoming a well-known brand in the transportation community!

In May 2022, after nearly two years of hard work, saving every penny possible for the assets needed, Carlos felt his team at Spartan Carrier Group was ready to take a shot at landing the largest automotive manufacturer in the world, the Fortune 10 company, Toyota.

Toyota wanted to see if Spartan Carrier Group was up for a challenge. An offer for a contract was on the horizon, which would make Spartan Carrier Group only the 12th carrier since 1986 to have a direct contract with Toyota and the first ever to have an MC less than 10 years old.

After months of vetting, negotiations, and countless long nights of strategizing, July 2022 marked the award of a direct contract. Now having over 10 terminals plus other satellite locations, 200+ employees, 100 tractors, and 200 trailers, and with numbers only growing, Spartan Carrier Group is quickly becoming a well-known brand in the transportation community! Stay tuned for what happens next to this exciting organization and come see them here at EDGE 2023 in Orlando as an exhibitor—there's no telling what else this great company will achieve.

Visit https://www.naylornetwork.com/cscm-nwl/pdf/Spartan_Toyota.pdf to view the full article online.

Training and Development

CSCMP Welcome Webinar︱Member Onboarding

June 22, 2023
Learn about member-to-member relationship building, professional development, local Roundtables, the annual EDGE Conference, the Career Center, how to access the Member-Only directory, volunteer opportunities, and more.

Visit https://event.on24.com/wcc/r/4243335/D5760C88EE80D8E248A8B7D738642B03 to view the full article online.

CSCMP's YPC Resume Review Matching | Sign up by June 22

When was the last time you gave your resume a refresh? CSCMP Young Professionals Committee (YPC) is hosting a Resume Review Matching Workshop. You can sign up to have your resume reviewed, review someone else’s resume, or participate in both. The registration period is open until June 22.

Visit https://cscmp.formstack.com/forms/cscmp_ypc_resume_review_matching_2023 to view the full article online.

2023 and Beyond - Rates, Industry Changes and Regional Parcel Provider Options
Hosted by Mike Erickson, CEO of AFMS Logistics.

Visit https://event.on24.com/wcc/r/4218242/B271B00A4DB06046BE93CB9F4466C059 to view the full article online.

May's LMI report reads in at: 47.3

For the third consecutive month the Logistics Managers’ Index has reached a new all-time low and for the first time in its 6.5-year history it has moved into contraction territory, reading in at 47.3 in May—down 3.6-points from April’s reading of 50.9.

Economic Impact:
As has been the case for the last year, the overall economy continues to be a product of shifting interest rates. The Federal Reserve has signaled that they will pause their cycle of interest rate increases at their June meeting. Officials caution that this does not mean that their campaign has finished for this cycle, but they felt that a slowdown was necessary given the recent issues with the banking industry.

Employment Rates:
The latest JOLTS report which suggested that the U.S. had 10.1 million job openings in April. While this is up from the 9.7 million that were available in March, it is a far cry from the 12 million positions that were available a year ago. Job growth continued to be a source of strength in the U.S. economy with a seasonally adjusted 339,000 new positions added in May. Jobs were added in a variety of sectors pertinent to the logistics industry including construction, engineering, transportation, and warehousing.

Visit https://cscmp.org/store/detail.aspx?id=RS17-LMI to view the full article online.