BY MITCH MAC DONALD, GROUP EDITORIAL DIRECTOR outbound
Shifting the focus to people
THE TRADE ASSOCIATION MHI IS IN HIGH COTTON
right now. From March 17–20, it welcomed 800 exhibitors—many with lavish displays of eye-popping equipment
and systems—and an estimated 25,000 attendees to the biennial Modex show in Atlanta. And by co-locating with a new
transportation- and logistics-focused show called Supply Chain
& Transportation USA, MHI, which already has double-barreled action going with Modex and its ProMat material han-dling-focused show, has solidified its position as a dominant
player among vendor-based logistics and supply chain trade
organizations.
where the labor will come from.
Amazon.com, for one, isn’t waiting to find out.
The giant e-tailer staked out a very conspicuous
presence at Modex—at the heart of the vast exhibit floor—with one goal in mind: recruitment.
The Amazon armada was not there to talk up the
company’s value proposition to customers, but to
demonstrate how cool it is to work there.
As for analytics, MHI and Deloitte said they were
heartened that 80 percent of the survey’s respon-
dents viewed analytics as either very important or
MHI runs a very tight ship, and it shows
in the professionalism of its staff and its
events. Its recent success, though, can also
be chalked up, at least in part, to being in
the right place—meaning the right logistics
market segment—at the right time. Since the
start of the Great Recession in 2007, many
businesses have cut costs by shedding labor
and capping hiring in favor of investing
in automated material handling equipment
that can do the job more efficiently and
cost-effectively. As a result, a lot of vendors
in the material handling space, MHI’s core
membership base, have prospered greatly.
moderately important to their
business. That embrace has
come none too soon, because,
as the report said, the supply
chain side of the house is “a
step or two behind the commercial side” when it comes to
tapping analytics’ full potential.
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So has, by extension, MHI.
But a new “State of the Industry” study by
MHI and the consultancy Deloitte released
at Modex concludes that the cost-cutting binge may have gone
too far. The study, which canvassed 450 high-level supply chain
executives across multiple verticals, warned that a “singular
focus” on cost control could begin working against companies
by choking off investments in “essential innovations that are
the key to long-term growth, performance, and efficiency.”
What’s interesting about the
report’s conclusions is they
are seemingly at odds with the
views of most of the respon-
dents. Over 70 percent said that
The study acknowledges that businesses expect to increase
their supply chain investments during the next three years.
However, in many cases, these investments “will be just enough
to get by and not nearly enough to drive disruptive innovation
and competitive advantage,” MHI and Deloitte said.
This is MHI’s first stab at crafting a “State of the
Industry” report. Only time will tell how it will
evolve, but so far, we have to give it a tip of the
DCV hat. MHI could have simply reported the
research findings without comment. Instead, it
dared to point out the potential risks inherent in
staying the current course. So far, so good.
The study suggests that businesses begin steering their capital
investments toward people and software (think analytics). The
supply chain field needs to add 1. 4 million new jobs by 2018
just to keep up with demand, the study said. With older workers retiring and incoming talent in short supply, no one knows
Group Editorial Director
