The SupplyChainBrain Podcast

Are supply-chain managers finally getting the respect they deserve? A new four-year study by Professor Douglas Boateng of the University of South Africa suggests they are. Surveying a wide range of private- and public-sector organizations, with combined revenues of around $1tr, he found a growing move to bring supply-chain experts into the executive suite. While the position of Chief Supply Chain Officer (CSCO) isn't especially new, its presence hasn't been widespread. Now, that might be changing. A substantial portion of respondents to Professor Boateng's study say they consider supply-chain management as ''crucial for long-term wealth creation.'' Their newfound sense of awareness dovetails with the need for supply-chain managers to do more than cut costs. It also signals a trend toward combining two previously separate disciplines: procurement and logistics. But are there enough individuals out there who can do both jobs? Are they being compensated fairly? And what about that 30 percent of executives who don't consider supply chain to be an essential element of long-term profitability?

Online shoppers are ready for a new wave of innovation in the e-commerce experience – and retailers had better be ready, too. The P.R. and social marketing agency Walker Sands Communications recently conducted its second annual study on the future of retail. The effort zeroed in on the technology aspects of online shopping. Key findings focused on three major developments: the use of delivery drones, the shift to mobile payment, and the deployment of virtual reality to create an in-store experience for home-based buyers. Interestingly, a large percentage of respondents declared themselves ready for some of these trends, especially drones. Two-thirds said they expect to receive their first drone-delivered package within the next five years. But are these cutting-edge technologies really practical? How will they transform the face of e-commerce? We get answers from Dave Parro, senior account director and retail technology practice lead with Walker Sands. He also talks about which e-commerce giant will likely prevail in the technology race. And he outlines some of the obstacles that might delay full deployment of these innovations.

Even the most dominant companies in the world need to take a look in the mirror now and then. Intel Corp. is no exception. Back in 2007, the company felt that it was slipping in some key areas, including reliability, customer responsiveness and supply-chain costs as a percentage of revenues. It was time for a serious reassessment. So Intel proceeded to implement a number of key performance metrics, and benchmark itself against the competition. ''We had to get our house in order internally,'' says Sharon J. Hall, our guest on this episode. She is director of equipment planning and procurement, as well as of Intel Resale Corp. Hall discusses how Intel went about evaluating itself, and implementing improvements to the organization where necessary. It adopted five key tenets to which its metrics would be aligned. The result: Intel today has once again been designated a ''Supply Chain to Admire'' by Supply Chain Insights. The effort, says Hall, stemmed from a realization that supply chain can help the company not just to control costs, but to deliver growth.

It's safe to say that no child yearns for a career in supply chain. But schools and educators are working to change that. The shift can be seen at all levels – college, high school and even the elementary grades. Until recently, the education system wasn't doing a very good job of producing graduates who were qualified to take on even entry-level jobs related to supply chain, logistics or global trade management. Now, though, schools are starting to listen to the private sector. On this episode, we talk to PJ Shelton, deputy sector navigator for global trade and logistics in the San Francisco Bay Area, and director of the Centers for International Trade Development. She assesses the state of supply-chain education at all grade levels. She explains how colleges are starting to do a better job of aligning their programs with the needs of business. And she talks about how high school and elementary kids can be made aware of the rich possibilities offered by a career in supply chain. Maybe there's hope for closing that looming supply-chain talent gap after all.

Today's fashion industry is obsessed with getting product to store shelves quickly, changing out assortments constantly, and charging rock-bottom prices. But there's a price to be paid for that behavior. So says Maxine Bédat, chief executive officer of Zady, Inc., an advocate of the concept of ''slow fashion.'' The company has launched a year-long research effort to examine the impact of traditional fashion supply chains on people and the environment. At the same time, it's spearheading a new way of making and selling clothing – one that supports decent wages and humane treatment for factory workers, while minimizing the industry's impact on oceans, drinking water, forests and climate change. Apparel is the second-most polluting industry in the world today, Bédat says, and she's determined to change that state of affairs. She talks about how Zady is emphasizing ''quality over quantity,'' and whether the practices of a relatively small apparel maker can be extended to much larger entities. Success, however, will require a major overhaul of apparel supply chains.

When it comes to teaching the complexities of supply-chain management, is digital learning as effective as the traditional in-class experience? Actually, it's a little late to be asking the question. ''Virtual'' teaching experiences are becoming increasingly common in all areas of education. And they deliver some real benefits. Supply-chain professionals looking to hone their skills don't have the time to physically attend classes. In fact, some of the world's largest companies are relying on remote learning to improve their executives' leadership skills. But are there trade-offs to be considered? Can a professor really interact in a meaningful way with multiple students in a virtual environment? We address these questions in this episode with two guests: Alan Todd, founder of the digital learning platform CorpU, and Steve Tracey, executive director of the Center for Supply Chain Research at Penn State. They offer some surprising observations about the ability of students of all ages to absorb knowledge through digital media. In the future, says Todd, ''all higher education will be blended learning.''

Corporations pay lip service to enforcing human rights and fair working conditions in offshore factories. But the deaths and injuries continue. An estimated 2.3 million deaths each year, in fact, from work-related accidents or diseases. Many are the result of unsafe factory environments, despite efforts by original equipment manufacturers to ensure that their suppliers are meeting high standards for ethical behavior. Recently the European Union announced financial support for the Group of Seven's Vision Zero Fund, a multi-donor initiative that provides cash for fire inspection and enforcement of safety regulations in factories worldwide. But our guest on this episode, Pierre-François Thaler, co-founder and chief executive officer of EcoVadis, believes that effort is inadequate. It's not enough money, he says, and it's the wrong approach. Here, he explains his reasoning, and offers advice as to what companies really need to do, in order to ensure that factory workers are being treated in a fair and safe manner – despite the lack of visibility that many companies have to all partners within their multi-tier supply chains.

Can playing a game help supply-chain managers cope with the uncertainties of the real world? Experts would say yes. As far back as the early 1960s, professors at MIT's Sloan School of Management developed the Beer Game, which despite its frat-friendly name was a sober attempt to demonstrate the principles of supply-chain management. Since then, academics and practitioners have developed a number of so-called ''serious'' games and simulations to address the complexities involved in achieving the proper balance between supply and demand. The latest version is SCI Impact, developed by Sterling Simulation in partnership with Supply Chain Insights. It extends the concept of the Beer Game to encapsulate the realities of entire supply chains. Pairs of teams compete to see who can dictate the most effective inventory and ordering policies in response to shifts in demand. On this episode, we get an introduction to SCI Impact from Paul Rohrbaugh, president of Sterling Simulation. He talks about the history of gamification in supply-chain management, what his new game hopes to accomplish, and how it might evolve in future.

Commercial delivery drones are in our future – or so we're told. What will it take to make them a reality? Drone technology is advancing quickly. Amazon.com is well along in its development and testing of drones for delivery of packages. And now Wal-Mart says it wants to start testing drones as well. Soon, it seems, the skies will be filled with these futuristic flying machines. First, though, there are some practicalities that need to be addressed. Chief among them is a proposed ruling by the Federal Aviation Administration that places onerous restrictions on commercial drone operators. And there are economic factors to be considered. Can online merchandisers really operate drones in a profitable fashion? On this episode, we get answers from Lisa Ellman, partner in the law firm of Hogan Lovells. A former advisor to President Obama on drone policy, she fills us in on the progress of retailers' efforts to make drones an everyday part of our online shopping experience.

There's more to reshoring than simply moving a factory from Asia back to the U.S. Higher wages for Chinese factory workers, coupled with the headaches of maintaining long supply lines, are prompting manufacturers to relocate plants closer to markets in the western hemisphere. In some cases, that means a return to the U.S. But there's an important link in the supply chain that needs to come back as well: the ability to recycle, repair, refurbish or dispose of excess, obsolete and defective parts. The two main pieces of the reverse supply chain – post-industrial recovery and post-consumer recycling – must be situated close to the point of manufacture. Producers need to set up a locally based ''ecosystem'' of partners and resources to make it all work. On this episode, Linda Li, chief strategy officer with the Li Tong Group, returns to the podcast to talk about the challenges that technology and telecommunications companies face when they attempt to set up remanufacturing and recovery operations in the U.S. – not the least of which are far more stringent environmental regulations than in Asia. How can that hurdle be overcome?