DC Velocity - July 2019

Thomas Goldsby doesn’t sit still for long. As a national-caliber endurance runner, he can often be found breaking the finish-line tape at masters (over 40 years old) races ranging from the mile to the marathon. But if you can get him to slow down and talk business, you’ll find that the race results are not a fluke. He applies a similar laser-focus on his academic research interests: logistics strategy, supply chain integration, and the theory and practice of Lean and agile supply chain management strategies. He has published more than 50 articles in academic journals and co-written five books on transportation, logistics, supply chain management, Lean operations, and sustainability.

Today, Goldsby is the Harry T. Mangurian Jr. Foundation Professor and chair of the department of marketing and logistics at the Fisher College of Business at The Ohio State University. Colleagues say he delivers a top-rank performance as a leader, editor, scholar, and professor.

Outside of Fisher College, Goldsby has served since 2015 as co-editor-in-chief of the Journal of Business Logistics and holds positions such as associate director of the Center for Operational Excellence (COE), research fellow of the National Center for the Middle Market, and research associate of the Global Supply Chain Forum.

Q What drew you to the field of logistics?

A Like so many others, I would say logistics is a field that found me, rather than the other way around. I studied economics and finance as an undergraduate at the University of Evansville (Ind.). That led to a graduate fellowship in transportation during my M.B.A. studies at the University of Kentucky, an assignment with the Transportation Research Board in D.C., and, later, a job as logistics analyst for Valvoline. I found that transportation was an exciting application of economics. I got caught up in the “action” of transportation and logistics—and the rest is history.

Q What are some of the biggest changes you’ve seen during your career?
A [A former professor] spoke of a “logistical renaissance” occurring in business, where more change was taking
place due to globalization, computerization, deregulation,
and the like than at any other time in modern history.
Certainly, those forces are instrumental in where we find
ourselves today, but I would point to the emergence of
logistics and supply chain management as go-to compet-
itive weapons for reaching the market, building customer
loyalty, and, ultimately, winning or losing in business. We
are no longer merely “a cost of doing business.”
The advent of online shopping is taking this premise even
further, as it extends our focus from busi-
ness-to-business engagement to competing
on the basis of customer experience at the
consumer level. The truth is, we are far from
understanding how to manage the provision
of “eaches”—including the economic, envi-
ronmental, and societal impacts of last-mile
fulfillment and delivery operations. It’s going
to continue to be a wild, interesting ride!

Q What hasn’t changed?

A Logistics has long been known as a “people business.” Even though there is increasing interest in robotization, artificial intelligence, and autonomous operations, people still buy from and sell to other people. Inherent in these transactions is the notion of trust and reliability—that promises made are going to be kept. Logistics is the function that literally delivers on these promises.

Q What are some of the truisms that should be forgot- ten? In other words, what rules do companies need to break?

A Logistics is often regarded as a function of trade-offs: better service means higher cost; satisfying customers relies on high levels of inventory… and the like. As a student of Lean thinking for two decades now, I’ve come to appreciate that trade-offs are not absolute. It is possible to improve service and reduce costs, for instance.

Q What advice would you give someone just beginning a career in supply chain management? A Be ready for continuous disruption—both big and small. Sometimes, you’ll be the disrupter; at other times, you’ll be disrupted. The best way to maximize the former and mitigate the latter is to constantly learn. Don’t assume that a degree or certification marks the end of the learning. Consume information through formal and informal means perpetually.

Q How is the industry doing at addressing the labor shortage in distribution centers? A The industry is adopting an array of strategies to address the labor shortage: enhanced recruiting and retention tactics, creative use of flex employees, and robotization as a complement to or substitute for labor. It’s clearly a top-of-mind challenge when the economy continues to expand and pressures for shorter order leadtimes drive greater decentralization in operations. I will stop (well) short of wishing for an economic slowdown, but another unpopular option that the economist in me looks toward is … pay. The law of demand suggests that when supply is low and demand is high, there should be an upward adjustment in price to reach equilibrium.