The SupplyChainBrain Podcast

Even in a strong economy, finding the perfect job can be a challenge. That's especially true in the highly specialized world of supply-chain management. As of the early summer of 2018, the U.S. had racked up 92 consecutive months of job growth. That suggests a wealth of opportunities for college graduates seeking a career in supply chain. Nevertheless, it can be a challenging world in which to find a foothold. What kind of college degree carries the most credibility? Which skills are companies looking for? Which ones, exactly, are looking to fill supply-chain positions? These and many other questions are answered on this episode by Tisha Danehl, vice president of Ajilon, the staffing and recruitment firm. She offers expert insight into how young people can break into the supply-chain field, a discipline that remains unfamiliar to a large section of the general public. Even today, the rules for excelling in that area are changing. Danehl explains what job candidates need to know get hired.

Success in the modern-day world of financial leadership is about more than a game of numbers. Financial executives are stereotypically viewed as individuals with a passion for numbers, lacking the ability to communicate and collaborate with the rest of the organization. And, by the way, they're overwhelmingly male. Today, though, that image is being undermined by dramatic changes in the role of corporate finance. On this episode, we meet Lisa Wu, chief financial officer of Haven, a provider of global trade management software. She relates the story of a young woman from China who was determined to succeed in the male-dominated world of finance, accounting and legal oversight. Wu has held a number of high-level positions with companies large and small, many of them in the tech arena. She offers valuable advice to women who desire to follow the path that she has blazed over a 25-year career. Her secret? "Keep walking," she says.

With the U.S. on the brink of a global trade war, importers and exporters are asking: Is there method to President Trump's madness? The past few weeks have seen a dizzying series of actions by President Trump against what he considers to be unfair treatment against the U.S. by China, Canada, Mexico and Europe. His statements have, of course, been met by threats of retaliation by those valued trading partners. With billions of dollars' worth of international goods at stake, is the U.S. about to launch a full-scale trade war? On this episode, we get a bird's-eye view of the global trade landscape from attorney William Perry of Harris and Bricken. He reviews recent actions taken by the Administration on aluminum and steel, autos, agricultural goods and technology, among other products. And he addresses the possibility of whether the U.S. economy, which has shown remarkable strength in recent years, will be seriously damaged by the fallout from the rapidly escalating dispute. As Perry puts it: "It's a true mess right now."

Other than press the panic button, what actions should your company take in the event of a data security breach? Companies large and small are susceptible to data breaches. In fact, it's highly likely that your organization will suffer one at some point in time. So how should you respond? Should you follow the example of a company like Equifax, which did everything wrong in a wake of a cybersecurity breach and incurred hundreds of millions of dollars in costs, not to mention a stain on its reputation? On this episode, we speak with Karla Jo Helms, "chief evangelist and anti-P.R. strategist" with the international public relations agency JoTo PR. She'll tell us how companies can take a proactive approach to a data breach, minimizing the damage and preserving their brand. We’ll hear about some of the most common mistakes, and how to develop a "playbook" that can be called upon in times of crisis.

Artificial intelligence promises to have a profound impact on the way in which shippers and carriers do business together. Assuming, of course, that they're able to make use of the wealth of data that the technology offers. A.I. is seeping into virtually every industry, and logistics isn't immune. Imagine systems that can sift through huge volumes of information to formulate "smart" recommendations as to routes, scheduling and pricing. Their capabilities would far exceed those of the human brain. But will carriers be able to take advantage of the output? Are containership schedules, for example, flexible enough to be tweaked every time an A.I. machine suggests it? On this episode, we learn about the progress of A.I. in logistics from Dan Stoll, senior technical manager of Nintex, a provider of workflow automation systems. He also discusses the limitations of the technology, which has yet to truly mirror the workings of the brain, notwithstanding the A.I. label.

And now, in the latest transition from science fiction to reality: the coming of "flying taxis." In just a few years, you might well see vehicles passing overhead, on their way to delivering passengers or packages in the same manner as earthbound taxis and vans. Uber, for one, is reported to be planning the launch of an air taxi service by 2020. The craft might even be pilotless, at the same time that driverless cars will be making headway on roads and highways. Among the pioneers of the air taxi concept is SkyRunner, developer of a military-grade utility vehicle that can take to the sky as a light sport aircraft (LSA). On this episode, we hear about the progress of the technology from SkyRunner chief executive officer Stewart Hamel. He talks about how such vehicles might transition from military use to commercial applications, as yet another means of solving the problem of the "last mile." But there are barriers to be overcome: logistics, regulatory and psychological. Hamel tells us how soon that's likely to happen.

Blockchain is being touted these days as a revolutionary way of maintaining global supply chains. Is it living up to that promise? When it comes to the deployment of blockchain in the supply chain, or anywhere else for that matter, these are still early days. The technology shows promise, but is far from fulfilling its touted role as an indelible system of record for transactions among supply-chain partners. Most companies are still just in the "tire-kicking phase," says Chris Kirchner, chief executive officer and co-founder of Slync, provider of a blockchain platform for the supply chain. On this episode, he talks about the prospects for blockchain, as well as what's holding it back from full adoption. There are issues of standards, cost and complexity yet to be addressed. And what's the deal with cryptocurrencies? Are they inextricably linked to blockchain, for better or worse?

A relatively high duty exemption for small packages imported into the U.S. is having all kinds of consequences for the flood of goods generated by e-commerce. In 2016, U.S. Customs and Border Protection raised from $200 to $800 the value of a single imported shipment that's exempt from duties and taxes, as well as certain reporting requirements. There's no question that the higher de minimis value benefits shippers of small packages ordered online. That class of commerce has exploded with the rise of the internet, and the boost in the exemption can only spark further growth. But complications from the increase have arisen, threatening to inundate Customs with packages that bear little information about their contents and destinations, and cut into potential government revenues. On this episode, we get the full picture from Amy Magnus, director of customs affairs and compliance with logistics services provider A.N. Deringer, Inc. She discusses the confusion and uncertainty caused by disagreement among various regulatory agencies over whether to recognize the exemption. To further complicate matters, it turns out that some shippers have figured out how to game the system. Magnus offers a perspective on how this unanticipated mess can be fixed.

With every story of a woman succeeding in the male-dominated world of supply chain and logistics management, another door opens. Suzanne Judy is senior vice president of information technology with Freight Handlers, Inc. (FHI). She joins us on this episode to relate her story of success in two distinct areas normally reserved for men: logistics and I.T. She tells how she managed to combine the numbers-oriented mentality of I.T. with the people skills needed to engage both with customers and colleagues within her own company. She offers her opinion as to whether the field is really open to women today, and rates the quality of higher education geared toward preparing students for careers in supply chain. And she stresses the importance of mentoring, as a means of attracting young women into this complex and demanding world.

For many consumer brands today, it's a life-or-death struggle to stay relevant. Never mind loved. Brands have always played a dominant role in the consumer marketplace. Merchandisers are constantly striving to build emotional connections with consumers through compelling brand identities. The task today is more challenging than ever, given the dominance of social media and that e-commerce behemoth, Amazon.com. On this episode, we talk with Deb Gabor, chief executive officer of Sol Marketing, a specialist in brand identification, marketing and maintenance. She reveals the secrets behind cementing a relationship with the consumer, and tells how brand dynamics are changing in the age of the internet. The key, she says, lies in the creation of "irrational loyalty" on the part of the buyer. But does that relationship last forever? Do even the most powerful brands have a lifespan?

We never seem to lack for proposals to fix the nation's broken transportation infrastructure. But the money to make it happen is always missing. And so the cycle continues. President Trump has proposed a plan that supposedly would generate $1.5tr for the repair and upgrading of U.S. infrastructure. But only $200bn of that amount would come from the federal government. The rest would be provided by states and private investors. Or so goes the theory. But can we really accomplish this ambitious goal without greater federal participation — specifically, an increase in the federal gas tax, the basis for the Highway Trust Fund? It has remained at 18.4 cents per gallon for 25 years, during which time it has lost 40 percent of its purchasing power due to inflation. On this episode, we examine the question with Kerry O'Hare, vice president and director of policy with Building America's Future. She assesses the prospects for a viable infrastructure bill in the current Congress. And she explains why a higher gas tax, although necessary, won't solve the entire funding problem.

How do you tell if your supply-chain partners are financially solvent? The crowd knows. Over the years, the concept of the wisdom of crowds has been applied to any number of predictive efforts, from sports and entertainment to economic trends. Now it has emerged as a tool for assessing the financial stability of suppliers and other supply-chain partners. The concept is embodied in a financial-risk score known as FRISK, developed by CreditRiskMonitor. Chief executive officer Jerry Flum joins us on this episode to relate how the company came to realize that the mass of data it was receiving from subscribers, credit managers and purchasing professionals could be aggregated to create predictions of business stability with 96-percent accuracy. Crowdsourcing enables the tool to accurately identify financial stress as the probability of a public company failing within 12 months. Flum identifies a flaw inherent in the perspective of individual credit experts, and explains why the crowd beats them every time.

Few issues in supply-chain management are more polarizing than that of environmental sustainability. The debate over green supply chains often breaks down into extreme positions with no prospect for compromise. Some push for sustainability at any cost. Others argue that any green measures are a threat to jobs and corporate profits. It's clear, though, that a more nuanced approach is necessary if companies are to make any progress on the issue at all. On this episode, we get a look at how nominally clashing viewpoints can move forward with crafting cleaner and greener global supply chains. Our guest is Yossi Sheffi, Elisha Gray II professor of engineering systems at MIT, and director of the MIT Center for Transportation and Logistics. He discusses the findings of his new book, Balancing Green: When to Embrace Sustainability in a Business (and When Not To). Sheffi offers a pragmatic approach to the question, talks about the biggest risks that global companies face today, and explains how they can sustain their sustainability efforts.

The term "fast fashion" has taken on a whole new meaning today. It's been used to refer to apparel makers who swap out their collections at a much more rapid rate than in the past. No longer are they satisfied with two or three seasons a year. Now it's a dozen or more, and if a shopper puts off buying an item, there's a strong chance that it won't be there a week or two later. That's still the case with many lines of clothing today, but "fast" now has an additional meaning. It refers to the speed at which orders are turned around in the warehouse and rushed to store shelves or online buyers. On this episode, we discuss the trend toward fast fulfillment with Raffaele Destro, fashion and apparel industry manager with TGW Logistics Group. He talks about how material-handling technology is responding to ever-increasing demands for speedy order delivery. It's also leading to big changes in the size, layout and placement of distribution centers.

The debate over privatization of the nation's air traffic control system rages on. But is it skirting the real issue? Proponents of a privatized ATC say the move is necessary to eliminate the delays and congestion that are plaguing airports and traffic lanes across the country. Opponents call the idea a power grab by airlines, who would be able to discriminate against smaller communities and further disadvantage the beleaguered air traveler. But Michael Baiada has a more nuanced view. He is president of ATH Group, Inc., a consultancy serving the air-transport industry. Baiada argues that the solution to air congestion rests with the airlines themselves, who are failing to take responsibility for their own operations, even as they suffer losses of nearly $4bn a year due to system inefficiencies. It's all about how the airlines handle their "day-of" logistics operations. Baiada also offers his view on the Federal Aviation Administration's controversial and long-delayed Next Generation Air Transportation System, or NextGen.

Is there still a place for humans in the automated warehouse of the future? The trend within many warehouses and distribution centers today is clearly toward the use of more robots and fewer people. In fact, the most recent peak holiday shopping season found robots performing better, and in great numbers, than ever before. So what jobs are robots actually doing? And where do humans fit in? On this episode, we get a report card on robots in the warehouse from Karen Leavitt, chief marketing officer with Locus Robotics. She tells us how robots and humans are working side by side for maximum efficiency. And she paints a picture of the warehouse of the future. Expect an even greater level of automation, with some "lights-out" warehouses that require no people at all. When will routine warehouse tasks become entirely the responsibility of robots and automation? For Leavitt, that time can’t come soon enough.

"Zero tolerance" is the only way to approach the issue of human trafficking and slavery in supply chains. But how can companies make that happen? No global supply chain, with its multiple geographies, partners and supplier tiers, can ever be deemed 100-percent "risk-free." But thats no reason not to strive for that goal – especially when it comes to the elimination of slavery from supply chains. Companies must shift their emphasis from reactive to proactive, says Brian Alster, global head of supply and compliance with Dun & Bradstreet. Obstacles stand in the way, not the least of which are the conflicting priorities that businesses often are required to pursue. When it comes to wiping out slavery, he says, "they must go deeper, faster, and with less." Supplier codes of conduct aren't enough; companies need to adopt robust processes for implementing them. On this episode, Alster offers guidance on how to do it. Beyond the primary motivation of doing what's right, they need to be cognizant of the very real threat to brand reputation. Turns out that ensuring fair labor practices is just good business.

Human trafficking and slavery in global supply chains would appear to be an intractable problem. But progress toward their elimination is being made. Humanity United is among the leading organizations fighting to bring an end to trafficking and slavery around the globe. It was formed 10 years ago as part of a larger philanthropic effort by eBay founder Pierre Omidyar. On this episode, we speak with Humanity United managing director Ed Marcum, who describes the organization’s mission and current work. In particular, he discusses its recent collaboration with the Walmart Foundation, The Walt Disney Company, C&A Foundation and others to create Working Capital, a $25m venture fund that will invest in tools for creating ethical supply chains. Marcum explains how the partners plan to involve leading brands, foundations and investors in the effort to promote workers' rights and ensure transparency in supply chains.

Forget about trying to stop ransomware from infecting your computers. It's a losing battle. Instead, businesses should be coming up with detailed plans for responding to the inevitable attack by ransomware or other types of malware. And the need for preparation is more crucial today than ever before: 2017 saw the highest number of malware attacks on record. Ransomware incidents alone increased tenfold over the prior year. On this episode, we get tips on how to devise an effective response plan from two executives of cybersecurity consultant Plixer — Michael Patterson, chief executive officer, and Bob Noel, director of strategic relationships and marketing. They outline the steps that companies should take in the event of a malware infection. And they address a key question: Should you ever pay ransom when you're being extorted by cyber criminals?

Education is falling short at all levels in preparing students for a life in the gig economy. There's nothing especially new about the concept of the "gig" worker – other than, perhaps, the label. Freelancers of all kinds have long been a vital part of the U.S. economy. But with the rise of ventures such as Uber, Lyft, Airbnband TaskRabbit, the ranks of gig workers have swelled. Which raises the question: Is our education system doing enough to get students ready for this new world of work? For author and business consultant Marion McGovern, the answer is a resounding "no." She joins us on this episode to discuss how the educational system – college, high school and even elementary grades – must change to meet the requirements of the gig economy. It's all about teaching basic entrepreneurial skills, incorporating lessons in both "digital and emotional intelligence," McGovern says. And by the way, business needs to step up as well.