newsmakers
Supply chain executives have plenty of ambition, but they
worry about having the resources to execute their plans.
A new study issued by the industry association MHI and
Deloitte Consulting LLP found that developing the capability to handle multichannel fulfillment is high on the agenda
for most supply chain executives. And making use of supply
chain analytics to help reach that objective is also a major
goal. But they say they are constrained by a shortage of
talent and their businesses’ relentless focus on cutting costs.
The study, the first edition of what is expected to be an
annual report, was the focus of a keynote presentation at
Modex 2014, MHI’s material handling and supply chain
exhibition and conference in Atlanta. MHI CEO George
Prest and Scott Sopher, a principal for Deloitte Consulting
LLP and leader of its Supply Chain & Manufacturing
Operations practice, presented the findings from the study,
The 2014 MHI Annual Industry Report—Innovations That
Drive Supply Chains.
Sopher discussed the challenge supply chain managers
face in shifting operations to meet the demands of multichannel or omnichannel fulfillment. “What’s happening is
that the way customers can order is much more advanced
than fulfillment operations,” he said. The majority of
respondents to the survey saw multichannel as a strategic
imperative. But a large proportion admit to a lack of capabilities in current operations to execute a multichannel
strategy.
However, 74 percent of respondents expect their investments in multichannel fulfillment to increase over the next
three years. Sopher expects to see companies developing
distribution centers that can fulfill demands from all channels from a single set of inventory. He also believes that
significant innovation in material handling equipment will
be needed for those strategies to work.
Analytics will be a key tool in improving supply chain
operations, respondents said. Sopher described analytics as
leveraging both internal and external data to reduce costs
and improve operations. The availability of vast amounts
of data, lower data storage costs, greater processing speeds,
and visualization tools have made greater use of analytics
possible, he said. But while 80 percent of respondents see
analytics as very important or moderately important, many
said they lack the capabilities to execute. “Clearly, there are
gaps in capabilities,” Sopher said.
Another obstacle reported by survey respondents is a
scarcity of supply chain and logistics talent. Prest, cit-
ing MHI’s “U.S. Roadmap for Material Handling and
Logistics” report, said that by 2018, supply chain-related
activities are expected to generate 1. 4 million jobs with a
median salary of $80,000. But finding the talent to fill those
jobs is proving a major problem, as evidenced by the 65
percent of respondents reporting a gap in needed skill sets
in their companies.
The executives also expressed frustration with their com-
panies’ focus on cost cutting, which many see as impeding
needed investment. “The study showed that the number
one priority for supply chain executives is controlling costs.
That’s nothing new,” Prest said.
MHI and Deloitte plan to repeat the survey later this
year and will report the results during the ProMat show in
Chicago in March 2015.
—Peter Bradley
Supply chain executives’
ambitions exceed their grasp—
for now
go figure …
79%
The percentage of respondents to an MHI-Deloitte survey who have no plans to invest in
3-D printing technology, don’t plan to boost
their investment in it, or aren’t convinced of its
value to their firms.
SOURCE: MHI-DELOITTE CONSULTING
Southeastern Freight Lines, a provider of regional less-than-truckload (LTL) transportation services, has received Echo Global Logistics’ 2013
Platinum Award for Outstanding Regional LTL
Service. … Hyster Co. has announced its 2013
Dealer of Distinction award recipients. The 12
top-performing Hyster dealers were chosen for
the award based on a range of criteria. … Yale
Materials Handling Corp. has likewise recognized
its top-performing dealers with its 2013 Dealer
of Excellence awards. The awards are based on
the dealers’ performance level and overall service to their customers. … Averitt Express was
named Walmart’s Less-Than-Truckload Regional
Carrier of the Year for the third straight year.
… Clark Material Handling Co. has presented its
Dealer of the Year Award for 2014 to Equipment
Depot of Houston, Texas. … Material handling
equipment company W&H Systems has been
named to the list of “Best Places to Work in
New Jersey in 2014” in the small/medium-sized
business category.
accolades
