The SupplyChainBrain Podcast

You can't optimize your logistics network if you don't know how much you're spending on it. That was the challenge confronting Blount International, Inc., a global maker and marketer of equipment and replacement parts for the forestry, lawn and garden, farm, ranch and concrete-cutting industries. On this episode, we speak with Alfredo Camacho, Blount's director of global logistics. He explains how the company tackled the problem of inadequate visibility of its army of logistics providers. What began as an effort to better manage freight payment and auditing became an initiative that allowed Blount to restructure its carrier base, achieve greater visibility of spend, negotiate better contracts with logistics partners, and streamline the entire settlement process.

It takes a big port to handle a big ship. Can East Coast ports meet the challenge of handling the new generation of mega-container vessels? Container lines are engaged in a frantic race to build ever-larger ships, which promise to have a ripple effect throughout the global transportation network. For their part, ports must invest billions of dollars in new and expanded facilities in order to accommodate the big ships. They need deeper water, longer berths, taller cranes, bigger container yards and improved connections to trucks and trains. Such projects also have the potential to alter the competitive landscape. On this episode, we speak with Andy Saporito, deputy director of the port department of the Port Authority of New York and New Jersey, and Capt. Eric Wiberg, marketing manager with McAllister Towing and Transportation Co. They talk about how U.S. East Coast ports are taking advantage of the big-ship trend, as well as the impact of the recent widening of the Panama Canal.

The U.S. Department of Transportation is applying a surprisingly light hand to the regulation of driverless vehicles. Not that DOT intends to cede its authority to oversee the new technology. On the contrary. But a new proposed policy, replacing one from three years ago, allows automakers and designers some wiggle room in how they meet the agency's strict safety standards. For example, DOT has laid out a 15-point safety assessment that's entirely voluntary in nature – as long as the end result satisfies the agency's requirements. On this episode, we speak with Katie Thomson, partner in the law firm of Morrison Foerster. She is a former senior counsel at both DOT and the Federal Aviation Administration, with extensive experience in parsing the legal and regulatory ramifications of driverless vehicles. Thomson also weighs in on certain key questions yet to be resolved, such as the proper balance of regulatory authority between states and the federal government, and legal liability for accidents involving driverless cars.

The Trans-Pacific Partnership agreement, and free trade generally, are political poison these days. But what's the cost of rejecting the 12-nation treaty? In the presidential election season, the TPP has come under fire from both major political parties, a state of affairs that threatens to reverse years of progress toward free trade. The Office of the U.S. Trade Representative is pushing the agreement as a means of ''leveling the playing field for American workers and American businesses.'' Other supporters say the TPP is essential to countering the growing influence of China in Asia and the world at large. But opponents blame trade agreements for the steady erosion of U.S. manufacturing jobs over the past several decades. On this episode, we hear a spirited defense of TPP and the doctrine of free trade, from Sue Welch, chief executive officer of Bamboo Rose, a provider of software for business-to-business digital marketplaces. She describes the multiple consequences of a failure by the U.S. Congress to ratify TPP, and offers a realistic appraisal of the agreement’s chances.

There's just too much data out there for a human to make sense of. Can artificial intelligence save the day? The question is especially relevant for logistics providers. One study finds that ocean carriers will lose at least $5bn this year, in large part due to a glut of unneeded capacity. Clearly they need to do a better job of matching supply and demand, and the age of Big Data offers a tempting solution to the problem. But Big Data can also lead to Big Chaos, unless providers have a means of sifting through that mass of information and interpreting it properly. That's where artificial intelligence and machine learning come in. On this episode, we speak with Adam Compain, founder and chief executive officer of ClearMetal, who outlines recent advances in A.I. and talks about how it can be used to enable true ''predictive logistics.'' Humans, it seems, just aren't up to the task anymore.

Global companies today live or die by the effectiveness of their social compliance programs. The term ''social compliance'' embraces virtually every stage of the supply chain, covering concerns such as workplace safety, slavery and forced labor, child labor and banned materials. So it's not surprising that many companies have experienced failures in that area. At the same time, the rules, regulations and standards for operating conscientious supply chains are more stringent than ever. The failure to comply with them can lead to injury, illness and death, not to mention lasting damage to a wayward company's brand. On this episode, we speak with Cheryl Layne, customer success director with Amber Road, who discusses how companies can collaborate with suppliers and other supply-chain partners to minimize lapses and violations. Today, she says, they must be able to track production from the raw-material stage all the way to the end customer. This episode is sponsored by Amber Road.

Recent months have seen major car recalls by GM and Ford Motor Co. They're just the latest in a seemingly endless series of failures. Can this trend be stopped? Automotive recalls are serious business. Past component and system failures have resulted in multiple injuries and deaths. Even when the problem doesn't threaten passenger safety, it can have huge ramifications for manufacturers and brand reputation. On this episode, we speak with Robin Hopper, senior vice president of product management with Intelex Technologies Inc., a provider of software for managing environmental, health, safety and quality issues for regulatory compliance. He explains why system failures and subsequent recalls keep happening, how the growing complexity of global supply chains is at least partly to blame, and what steps carmakers can take to increase quality assurance and improve communications with both suppliers and consumers. Recalls might be inevitable, but their frequency and severity can be controlled through better supply-chain management.

Everyone agrees about the importance of adjusting to change. So why do so many companies fail in that effort? We're in the Age of Disruption, notwithstanding the tendency of modern-day marketers to overuse that word to the point where it becomes meaningless. Real disruption is roiling companies and industries everywhere, and executives and employees need a plan to cope with it. On this episode, we speak with Shane Cragun, co-author with Kate Sweetman of Reinvention: Accelerating Results in the Age of Disruption. Their new book offers basic principles, strategies and a set of tools for confronting radical change in the business world. We learn how forward-looking companies can survive an endless series of tidal waves, the ones that have succeeded, and a few that have failed – despite the fact that they saw the change coming. It's a matter of learning to swim, or be swept away.

There's not an aspect of modern life that won't be affected by advances in robotics and artificial intelligence in the coming years. But the impact will be especially felt in transportation and distribution. The science of robotics has made huge leaps in recent years, to the point where robots are taking over an increasing number of tasks that once were the exclusive province of humans. And the future promises to be even more disruptive. One study predicts that by the year 2050, up to 47 percent of all current employment will be affected by robotics and automation. To explain the trend and its implications on the workplace, we speak on this episode with Joe Brusuelas, chief economist with the audit, tax and consulting firm RSM US LLP. He is the author of a recent analysis that appeared in The Real Economy, RSM's monthly economic publication devoted to business issues for the middle market. Brusuelas talks about the economic and regulatory drivers behind the new wave of robotics, and explains why transportation and warehousing will be particularly hard hit.

The platforms of both major political parties are based on the belief that the actions of presidents have a direct impact on the U.S. and global economy. But is that really so? Of all the issues to be discussed during presidential campaigns, none dominates the debate more than the economy. Presidents and would-be presidents insist that they have the power to create jobs, drive growth and spur investment on both Wall Street and Main Street. On this episode, we hear a contrary view. Our guest is financial adviser and author Jonathan Citrin, who makes the argument that we wildly over-inflate the ability of the president to influence the economy. He speaks of ''the myth of the economic commander-in-chief.'' Listen to a lively debate about whether there's really any correlation or causation between presidential actions and economic performance. And find out why Citrin believes that ''things are more out of control than we think.''