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Innovation: Journey to Excellence Volume 20, 2017 $10.00 Innovation: Journey to Excellence Customer-Centricity = Talent Supply & Success-ifi cation Demand: More Than an The Urgency Economics to Digitally Problem Transform Global Supply 2017 Circle of Chains Excellence Award Recipient: IBM The Evolution of Supply Supply Chain Management Forecasting: Foggy with a Chance of The Very Model Progress of a Modern The Keys to Executive Business Risk Presence: Balancing Approach Authenticity and Authority What You Need to Know SCLA 2017 About the Directory and Physical Internet Reference Guide Distribution Business Management Journal 9 Editor’s Letter 23 SCLA 2017 Directory and Reference Guide 10 Customer-Centricity = Success-ification 56 IBM Earns the 2017 DBMA Today’s customers have more Circle of Excellence Award options — and higher expecta- IBM continues to live up to tions — than ever before. Busi- — and beyond — the corporate- nesses that want to thrive have social responsibility principles it to make customers’ priorities first codified more than 50 years their own priorities. ago. In recognition of IBM’s farsightedness and its commit- 12 The Urgency to Digitally ment to sustainability, DBMA Transform Global Supply is honored to name Big Blue Chains the winner of the 2017 Circle of From different computer lan- Excellence Award. guages to unorthodox spread- sheet formatting, the world of 59 Doug Evans Earns DBMA’s supply chain is full of inefficien- 2017 Distinguished Service cies that could be solved by Award harnessing the power of multi- enterprise networks. 60 Supply Chain Forecasting: Foggy with a Chance of 14 The Evolution of Supply Progress Management Item proliferation, not sales, has In our fragmented supply world, made supply chains into the price matters, just not nearly as complex behemoths many have much as you think. become. Collecting the right data and analyzing it using the 16 The Very Model of a Modern right tools will enable you to Business Risk Approach wring order from chaos. The strongest aspect of your supply chain may well be your 64 The Keys to Executive Pres- ability to recognize its weak- ence: Balancing Authenticity nesses and adapt accordingly. and Authority Commanding a room can seem 18 What You Need to Know like a magic trick or genetic gift. About the Physical Internet It’s neither, and you can do it Imagine a world where trucks once you believe it’s possible carried goods as efficiently as and put a little work in. the internet carries information. That world is closer than you 66 Georgia Tech Supply Chain might think. & Logistics Institute (SCL) Each year the DBM Association, 20 Talent Supply & Demand: in conjunction with a recognized More Than an Economics university, awards the Certificate Problem of Advanced Education at the To find and retain the best SCLA Annual Executive Busi- employees, start by identifying ness Forum. For 2017 Georgia exactly what you want them to Tech was chosen to co-award be the best at. the certificate. 5 Distribution IN THIS ISSUE: Business Management The Permanent Journal Revolution of Amy Z. Thorn Editorial Director Progress John T. Thorn Executive Publisher Ron Malec Director Creative Services Amy Marie Patton The world we live in now is becoming ever more intercon- Director of Administration nected and interdependent, and modern business operates Contributing Columnists with a speed, responsiveness and awareness that would have Kurt Cavano Sean P. Goffnett, Ph.D. sounded like science fiction in the not very distant past. Omar Keith Helferich, Ph.D. John Lash While technology boosts our ambition and expectations like a Jeff Metersky Allison Shapira moon rocket, certain fundamentals remain. Customers expect Jim Tompkins Shelley Wunder-Smith value; shareholders expect returns; resources remain finite Richard R. Young, Ph.D. and corporate-social responsibility remains paramount. Zach G. Zacharia, Ph.D. If someone tells you they know what the world’s going to look Published annually by: like in 10 years, smile politely and remember “The Jetsons.” Distribution Business The promise of technology is virtually boundless, making the Management Association change it will bring essentially unknowable. So, while we wait 2938 Columbia Ave., Suite 1102 Lancaster, PA 17603 for our flying cars and robot maids, we should always keep Phone: 717-295-0033 Fax: 717-299-2154 sight of the fundamentals. e-mail: [email protected] www.DCenter.com This issue of the DBM Journal as well as the 2017 Supply Distribution Business Management Journal, Chain Leaders in Action executive forum offers strategic in- A DBM Publication 2938 Columbia Avenue, Suite 1102 sights for companies hoping to get more from their supply Lancaster, PA 17603 Internet: http://www.DCenter.com chains in the years to come. Journal Reprints: 717-295-0033 Distribution Business Management Journal (ISSN 1535-1254) is published annually by DBM, Inc., 2938 Columbia Avenue, Suite 1102, Lancaster, PA 17603, phone 717-295-0033, fax, 717-299-2154, internet http://www.DCenter.com. Periodicals postage paid at Lancaster, PA and at additional mailing offices. Postmaster send address changes to DBM Journal, 2938 Co- lumbia Avenue, Suite 1102, Lancaster, PA 17603. Subscriptions in the U.S. $20.00 for one year, $35.00 for two years, single copies $10.00. Subscriptions in Canada $25.00 for one year, $45.00 for two years, single copies $7.00. Outside the U.S. and Canada, $30.00 for one year, $55.00 for two years. Interna- tional single copy $15.00. Send remittance in advance to DBM, 2938 Columbia Avenue, Suite 1102, Lancaster, PA 17603. Printed in the USA copyright ©2017 by DBM, Inc. No part of this publication may be reproduced or transmit- ted by any means without permission from the publisher. Permission to photocopy for internet use or the internal use of specific clients is granted by DBM Inc. for libraries and other users registered with the Copyright Clearance Center, CCC provided that a base fee of $1.25 per copy of the article plus 60 cents per page is paid directly to CCC, 222 Rosewood Dr., Danvers, MA 01923 6 5 LETTER FROM THE EDITORIAL DIRECTOR This issue of the DBM Journal addresses As most everyone knows, fixing some- the industry-wide challenges facing thing broken is worlds harder than doing today’s supply chains and provides bright the minor — but continual — upkeep that perspectives and apt strategies on how prevents the thing from breaking. In this to drive performance through lean lead- way, supply chains are just like every other ership, innovation and a winning global thing. Understanding your supply chain’s strategy. weaknesses will allow you to address We are proud to share with you not just them and keep working, instead of burning the sound and effective practices that time and money fixing a system knocked separate ordinary businesses from firms offline by a problem that could have been that achieve truly exceptional success, but planned for. it’s also our pleasure to get together every Penn State Professor Richard Young tells year at SCLA to share the struggles we all the engaging story of why modern compa- face and discuss how we overcome them nies operate their supply chains the way together. they do. Along the way, you’ll see how Innovation: The articles presented here offer some of OPEC, the Federal Reserve and Al Qaeda the creative and pioneering ideas in supply helped shape our journey to where we are Journey to chain management, corporate leadership today. Excellence and philanthropic efforts from the best Finally, Zach Zacharia of Lehigh University minds in business and academia. gives a clear, thorough and enlightening Harvard University’s Allison Shapira lays explanation of the “Physical Internet.” out the fundamentals — and fundamental Using real-world examples and jargon- importance — of carrying yourself with free English, Zacharia elucidates what the what she calls “Executive Presence.” It “Physical Internet” is, and how it has the doesn’t matter how talented or intelligent potential to change all our lives. you are if you don’t comport yourself with Progress demands that courageous, skill- authenticity and confidence, Shapira says. ful leaders seize the opportunity to change Any aspiring leader should take her les- things for the better. The SCLA 2017 sons to heart. program was crafted by such leaders to As the complexity of supply chains have provide the prerequisites for creating sus- grown, they’ve become increasingly inef- tainable innovation, a collaborative team ficient and costly for many businesses. culture and sanguine worldview. Armed with the right data and the know- Many thanks to the following SCLA 2017 how to interpret it, however, companies program chairs: Ken McDowell, Execu- can improve their forecasting and trim this tive Committee Chair; Jeff Corbett and waste. Rick Sather, Education Committee Chairs; Identifying employees’ skills is a prereq- Renee Ure, Supply Chain Women in Action uisite for corporate success. Strategies for Chair; and super session chairs, Igancio managing talent can mean the difference Arranz, Tom Goldsby, Steve Holic, and between keeping good people or losing Mark Heinrich. A full list of all the exem- them. plary professionals who volunteered their time and talents to bring you the SCLA Technology continues to revolution- 2017 program begins on Page 23 of the ize every aspect of business it touches. program directory. A unified, thoughtful approach to data management and adopting multi-company I thank you all. networks offers a way to harness the power of technology rather than letting it overwhelm you. Acquiring and retaining new customers demands an unwavering focus on four Amy Thorn core tenets. Companies keen on growing Editorial Director, DBM Journal would do well to embrace these. 9 INDUSTRY ARTICLE • Flexible return options. Customer-Centricity = • Pricing and quality alternatives. Success-ification • Suggestions for related purchases.
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