The SupplyChainBrain Podcast

There's just too much data out there for a human to make sense of. Can artificial intelligence save the day? The question is especially relevant for logistics providers. One study finds that ocean carriers will lose at least $5bn this year, in large part due to a glut of unneeded capacity. Clearly they need to do a better job of matching supply and demand, and the age of Big Data offers a tempting solution to the problem. But Big Data can also lead to Big Chaos, unless providers have a means of sifting through that mass of information and interpreting it properly. That's where artificial intelligence and machine learning come in. On this episode, we speak with Adam Compain, founder and chief executive officer of ClearMetal, who outlines recent advances in A.I. and talks about how it can be used to enable true ''predictive logistics.'' Humans, it seems, just aren't up to the task anymore.

Global companies today live or die by the effectiveness of their social compliance programs. The term ''social compliance'' embraces virtually every stage of the supply chain, covering concerns such as workplace safety, slavery and forced labor, child labor and banned materials. So it's not surprising that many companies have experienced failures in that area. At the same time, the rules, regulations and standards for operating conscientious supply chains are more stringent than ever. The failure to comply with them can lead to injury, illness and death, not to mention lasting damage to a wayward company's brand. On this episode, we speak with Cheryl Layne, customer success director with Amber Road, who discusses how companies can collaborate with suppliers and other supply-chain partners to minimize lapses and violations. Today, she says, they must be able to track production from the raw-material stage all the way to the end customer. This episode is sponsored by Amber Road.

Recent months have seen major car recalls by GM and Ford Motor Co. They're just the latest in a seemingly endless series of failures. Can this trend be stopped? Automotive recalls are serious business. Past component and system failures have resulted in multiple injuries and deaths. Even when the problem doesn't threaten passenger safety, it can have huge ramifications for manufacturers and brand reputation. On this episode, we speak with Robin Hopper, senior vice president of product management with Intelex Technologies Inc., a provider of software for managing environmental, health, safety and quality issues for regulatory compliance. He explains why system failures and subsequent recalls keep happening, how the growing complexity of global supply chains is at least partly to blame, and what steps carmakers can take to increase quality assurance and improve communications with both suppliers and consumers. Recalls might be inevitable, but their frequency and severity can be controlled through better supply-chain management.

Everyone agrees about the importance of adjusting to change. So why do so many companies fail in that effort? We're in the Age of Disruption, notwithstanding the tendency of modern-day marketers to overuse that word to the point where it becomes meaningless. Real disruption is roiling companies and industries everywhere, and executives and employees need a plan to cope with it. On this episode, we speak with Shane Cragun, co-author with Kate Sweetman of Reinvention: Accelerating Results in the Age of Disruption. Their new book offers basic principles, strategies and a set of tools for confronting radical change in the business world. We learn how forward-looking companies can survive an endless series of tidal waves, the ones that have succeeded, and a few that have failed – despite the fact that they saw the change coming. It's a matter of learning to swim, or be swept away.

There's not an aspect of modern life that won't be affected by advances in robotics and artificial intelligence in the coming years. But the impact will be especially felt in transportation and distribution. The science of robotics has made huge leaps in recent years, to the point where robots are taking over an increasing number of tasks that once were the exclusive province of humans. And the future promises to be even more disruptive. One study predicts that by the year 2050, up to 47 percent of all current employment will be affected by robotics and automation. To explain the trend and its implications on the workplace, we speak on this episode with Joe Brusuelas, chief economist with the audit, tax and consulting firm RSM US LLP. He is the author of a recent analysis that appeared in The Real Economy, RSM's monthly economic publication devoted to business issues for the middle market. Brusuelas talks about the economic and regulatory drivers behind the new wave of robotics, and explains why transportation and warehousing will be particularly hard hit.

The platforms of both major political parties are based on the belief that the actions of presidents have a direct impact on the U.S. and global economy. But is that really so? Of all the issues to be discussed during presidential campaigns, none dominates the debate more than the economy. Presidents and would-be presidents insist that they have the power to create jobs, drive growth and spur investment on both Wall Street and Main Street. On this episode, we hear a contrary view. Our guest is financial adviser and author Jonathan Citrin, who makes the argument that we wildly over-inflate the ability of the president to influence the economy. He speaks of ''the myth of the economic commander-in-chief.'' Listen to a lively debate about whether there's really any correlation or causation between presidential actions and economic performance. And find out why Citrin believes that ''things are more out of control than we think.''

The boom in e-commerce is a global phenomenon, but each country has its own unique requirements for ensuring the smooth flow of shipments to the buyer. Canada is no exception. Given its proximity to the U.S., American companies might tend to underestimate the need for intimate knowledge of the Canadian e-commerce landscape. There are issues of currency, language, packaging requirements, units of measurement and vast distances between urban centers to consider. On this episode, we speak with John Costanzo, president of Purolator International, who details the ins and outs of shipping e-commerce orders to and within Canada. He talks about why some U.S. companies have failed to penetrate the Canadian marketplace. And he offers valuable tips and strategies for succeeding in this unique environment, including an explanation of what constitutes a ''Canadian-like'' transaction.

The ''sharing economy'' is supposed to empower workers and usher in a new era of job satisfaction. Can it deliver? The answer lies in understanding just what this new work regime is replacing. And the answer to that can be found in the title of a new book called The Vanishing American Corporation: Navigating the Hazards of a New Economy. Author Jerry Davis, Professor of Management at the University of Michigan's Ross School of Business, joins us on the episode to detail the transformation of the American workplace. He's concerned about the rise of the ostensibly independent worker, driven by ventures such as Uber, Lyft, Airbnb, Facebook and LinkedIn. The traditional corporation, he says, provided job security, health insurance and an open career path – all keys to a vibrant middle class. What does the modern-day ''gig'' economy have to offer in its absence? Might it be leading to even more social inequality?

The aerospace giant Pratt and Whitney plans to double production of a new and innovative jet engine by 2020. Proper supply-chain management will play a huge role in the success of the venture. Pratt and Whitney, a subsidiary of United Technologies Corp., has orders for more than 7,000 of the new engines, which are more powerful, more fuel-efficient, quieter and result in fewer emissions. The model is the centerpiece of the company's bid to increase its presence in commercial aviation. But success hinges on tight coordination with an army of suppliers upstream, and aircraft manufacturers downstream. On this episode, we're joined by Sam Abdelmalek, vice president of global supply chain, who outlines the company's journey in developing the new engine. It's the product of a decade-long effort, costing billions of dollars. Abdelmalek talks about the challenges that Pratt Whitney has already encountered in building the ''game-changing'' engine, as well as its bid to take a more proactive and preventive approach to dealing with suppliers. ''Supply chain is now a critical part of our success,'' he says.

The U.S. trade deficit is continuing to decline – but don't blame imports for the widening gap. In fact, in trade figures published by the U.S. Census Bureau for the month of June 2016, imports were actually down by 2.9 percent from a year earlier. The problem is that exports dropped by an even greater margin of 5.2 percent. Blame a strong dollar and weak commodity sales, among other factors. On this episode, we delve into the trends behind the numbers with Chris Rogers, research analyst with Panjiva. He identifies the weakest areas of U.S. trade, based on such factors as currency exchange, interest rates, competition from Chinese manufacturers and the impact of the U.K.'s decision to withdraw from the European Union. And he discusses the prospects for future improvements in the nation’s balance of trade.