FOR THE PAS T SEVERAL YEARS, I HAVE DEVO TED MY JANUARY
column to predicting what lies in store for the supply chain in the year
ahead. This year, it will be a little bit different, however. This is the
178th “Fast Lane” column I have written for DC VELOCITY, and regrettably, it will be my last. I have worked in this industry for six decades;
but as Kenny Rogers sang, “You have to know when to hold ’em; know
when to fold ’em.” That time has come for me. (Some might argue that
it came several years ago.)
It has been a great run. I have loved (almost) every day I have been
involved with logistics and supply chain activities. I have developed
many great and long-lasting friendships, and have seen over a half-century of progress in our industry.
The most exciting thing about working in the logistics arena has
been the almost constant change we’ve dealt with
for as long as I can remember. I witnessed the birth
and growth of the first national logistics service
provider in the warehousing industry. I also saw it
quietly fade into history because of greed and a failure to understand how to forge strong outsourcing
relationships. Then there were the pivotal events of
1980, when, after over 100 years of government regulation, Congress finally freed carriers and shippers
alike to be more creative and innovative in their
business dealings. Before then, they had very little
incentive to attempt anything new because of government intervention and bureaucracy. It is difficult
to describe to anyone under, say, 55 what it was like
to manage a transportation function prior to 1980.
During my career, I have seen the leading supply chain organization change its name twice. What started out as the National
Council of Physical Distribution Management became the Council of
Logistics Management, then the Council of Supply Chain Management
Professionals. (If you think the acronym “CSCMP” is a mouthful, try
“NCPDM.”) One can only imagine what might come next.
And the list goes on. But what about the future? That has become
increasingly difficult to predict. The winds of change are buffeting us
from all sides, primarily because of the sophisticated technology now
available to us. Our industry has never been short on good ideas; we
just lacked the technology to implement them. That has now changed.
Whether it’s blockchain, autonomous vehicles, robotics, taller warehouses, or drones, they’ve all been made possible through the magic
of technology.
We hear a lot today about the “Amazon effect.” Certainly, it is true
that Amazon has changed the rules of the retail logistics game, but
it’s also true that the e-tailing giant has reset consumers’ service and
BY CLIFFORD F. LYNCH fastlane
The time has come
delivery expectations. Today’s online shoppers take speed and visibility for granted. We
must adopt the mindset that we are living in a
world of instant gratification and must manage
accordingly.
If I could leave you with any advice for the
future, I would offer guidance on two fronts.
managers must keep a much
closer watch on what’s going
on in Washington than we’ve
had to in the past.
Second, and most important, we must become—and
required to manage them effectively.