Well, here we are, starting a new year yet again, which to me means taking a look back at the year that was in supply chain 2012. As I have noted before, even for someone like me who does this for a living, it is amazing how easy it is to forget key issues, trends and events.This week, I am going to identify important themes for the year, and note a few of the important events that occurred. Next week, in our On-Target newsletter, we’ll have a timeline of important events (a feature that has proved very popular). Then next week, I will finish it off with a review of the year in numbers, largely in chart form.For the last four years, I put the supply chain and the economy at the top of the themes list, as economic considerations (mostly a weak economy) sort of dominated supply chain thinking and strategy. I am not doing that this year, as it was a fairly calm 12 months, even if economic growth was still weak, the never-ending financial woes in Europe played on, China’s economy softened, etc. This appears to simply be the so-called new normal. We have just adapted to it.That said, in rough order of import, here are the top trends I identify in supply chain and logistics over the past year:

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The global economy is in the worst shape since the dark days of 2009.

Six of the 17 countries that use the euro currency are in recession. The U.S. economy is struggling again. And the economic superstars of the developing world — China, India and Brazil — are in no position to come to the rescue. They’re slowing, too.

The lengthening shadow over the world’s economy illustrates one of the consequences of globalization: There’s nowhere to hide. Read the rest of this entry »

Take a look at Apple, Nike, Toyota, or any other world-class company—and it will be backed by a industry-leading supply chain. These exceptional networks of planning, sourcing, manufacturing and logistics empower powerful businesses.

Moving forward, sustainability will be a defining characteristic of these supply chains. Consumers are demanding it, shareholders are beginning to take notice and resources are becoming fewer by the day. According to the authors of one Oracle white paper:

“Today, sustainability has replaced cost, value and speed as the dominant topic of discussion among purchasing and supply professionals.”

So what are the types of discussions that need to be had at the leadership-level to ensure that sustainability coincides with cost reduction, risk mitigation, corporate social responsibility and other initiatives?

Michael Koploy, ERP Analyst at Software Advice, interviewed four sustainability experts to find out how leaders can make gains to ensure the right investments are being made within the supply chain. After speaking with these four experts, Koploy synthesized five questions that corporations have to ask about their supply chains:

1. How can we better measure sustainability?
2. How can we instill sustainability into our suppliers?
3. How can our products be designed to be more sustainable?
4. How can we avoid suppliers that are socially-negligent?
5. Who can we trust to lead sustainability initiatives?

You can read more of the discussion over on Michael Koploy’s website at: 5 Questions to Start the Sustainable Supply Chain Conversation.

Cloud-based solutions are being aggressively adopted throughout the private sector. But what about the public sector, specifically in terms of public-sector procurement?

To find out more about the state of Cloud-based solutions within the public sector, Michael Koploy, ERP Analayst at Software Advice, caught up with government IT expert Alan Webber of Altimeter Group. Webber believes that security, data ownership and perceived control are all deterrents to public-sector groups deploying Cloud-based solutions, but that the public sector will likely follow the private sector in deploying these systems–it will just take time.

Koploy asserts that procurement is one area of the public sector where the Cloud can be embraced. He feels that vendors can do the following to improve their eprocurement solutions for the government:

(1) Deployment via “Private Clouds”: The ownership infrastructure ownership is shifted to the user–perfect for public-sector groups worried about their data security.

(2) Specialization for the Public Sector: While some vendors already do this well, many others can focus on the adjusting the functionality of their procurement systems to match the needs and peculiarities of public-sector procurement.

Koploy also spoke with Mary Scott Nabers, a public-sector procurement expert on trends that could lead government groups to the Cloud. Nabers feels that there are two trends that will lead to more public-sector groups to the Cloud:

(1) Increasing Number of P3s: Nabers believes that the importance of public-private partnerships is going to reach a crescendo soon. These new groups will need software solutions, and because of budget-constraints, subscription-based programs hosted in the Cloud may be the only options.

(2) Popularity of Software Buying Groups: Because these solutions are often accessible through any computer’s web-browser, local groups can band together to purchase them. One example of this that is becoming popular is with school districts.

For more on Koploy’s discussions with Webber and Nabers, check out the original post: State of the Union: Public Sector and the Cloud.

In a February 1 report, Wanted Analytics found that almost 50,000 supply chain jobs were posted in the previous 90 days–an increase of 24 percent over the same period the year prior.

Jobs are up, but which jobs are in the highest demand? Michael Koploy, an ERP Analyst that specializes in WMS systems for Software Advice, interviewed other industry experts to find the fastest growing jobs in logistics and the supply chain. Here are his top 5 along with some of the skills and certifications that these professionals need to find success:

1. Demand Planner: Many of these professionals have experience with various ERP systems, such as Oracle and SAP, are Six Sigma Black Belts and have obtained advanced certifications such as the CSCP through APICS.

2. Procurement Manager: A background in marketing, sales and supply chain operations are all important in this role, as the person must be both an analytical-thinker and a negotiator. Many professionals have obtained certifications through groups such as the ISM (CPSM) or Next Level Purchasing (SPSM).

3. Distribution Center Supervisor: These individuals are essential in running an efficient logistics operation. They must possess the ability to not only communicate with both in-bound and out-bound transportation units but also a crew of warehouse workers. While advanced degrees in supply chain management or certifications are not absolutely necessary for career success, a grounding in the supply chain is beneficial.

4. 3PL Business Development Manager: More and more companies are outsourcing their logistics operations, leading to an increasing importance within 3PLs to efficiently manage communication between clients. A background in account management, sales and finance are all very helpful–and an understanding of the supply chain is great for relating to clients, as well.

5. Supply Chain Analyst:Many consulting firms, from those that specialize in supply chain management to the Big Four accounting firms are always looking for more supply chain talent. This is a hot destination for many supply chain undergraduates, as well as newly-minted MBAs. These professionals are exceptionally hard workers and often earlier in their career–ready to to do their time to become the next leaders within the supply chain.

For more on these positions, check out Michael Koploy’s report: Top 5 Fastest-Growing Jobs in Logistics.

Large scale software evaluations can take months if not years and include many stakeholders. Project risks can go unnoticed causing delays, quality degradation, or in some cases inability to make a decision at all on a purchase. Although each project and approach is unique, we’ve listed a few tactics for getting around these obstacles and would love to hear how you handle these situations. Read the rest of this entry »

What were the key themes, trends and issues in the Supply Chain in 2012?

This week, we are going to take a look at those areas with a fairly broad brush, followed by a more detailed month by month review of key events in 2011. So let’s go.

For the fourth straight year, I would have to say the economy was once again the main supply chain theme of the year. The lack of relative clarity on the economy’s direction – let alone signs of a strong economic recovery – continued to weigh on supply chain strategy and investment. The US economy was modestly strong at best, and there were several periods, notably around mid-year, when threats of a “double dip” recession seemed to loom large. GDP growth was .4% in Q1, 1.3% in Q2, and 2% in Q3, though there are signs the economy is now picking up, and many expects Q4 GDP to be stronger than these weak numbers in what is supposed to be a recovery. Read the rest of this entry »