The SupplyChainBrain Podcast

The boom in e-commerce is a global phenomenon, but each country has its own unique requirements for ensuring the smooth flow of shipments to the buyer. Canada is no exception. Given its proximity to the U.S., American companies might tend to underestimate the need for intimate knowledge of the Canadian e-commerce landscape. There are issues of currency, language, packaging requirements, units of measurement and vast distances between urban centers to consider. On this episode, we speak with John Costanzo, president of Purolator International, who details the ins and outs of shipping e-commerce orders to and within Canada. He talks about why some U.S. companies have failed to penetrate the Canadian marketplace. And he offers valuable tips and strategies for succeeding in this unique environment, including an explanation of what constitutes a ''Canadian-like'' transaction.

The ''sharing economy'' is supposed to empower workers and usher in a new era of job satisfaction. Can it deliver? The answer lies in understanding just what this new work regime is replacing. And the answer to that can be found in the title of a new book called The Vanishing American Corporation: Navigating the Hazards of a New Economy. Author Jerry Davis, Professor of Management at the University of Michigan's Ross School of Business, joins us on the episode to detail the transformation of the American workplace. He's concerned about the rise of the ostensibly independent worker, driven by ventures such as Uber, Lyft, Airbnb, Facebook and LinkedIn. The traditional corporation, he says, provided job security, health insurance and an open career path – all keys to a vibrant middle class. What does the modern-day ''gig'' economy have to offer in its absence? Might it be leading to even more social inequality?

The aerospace giant Pratt and Whitney plans to double production of a new and innovative jet engine by 2020. Proper supply-chain management will play a huge role in the success of the venture. Pratt and Whitney, a subsidiary of United Technologies Corp., has orders for more than 7,000 of the new engines, which are more powerful, more fuel-efficient, quieter and result in fewer emissions. The model is the centerpiece of the company's bid to increase its presence in commercial aviation. But success hinges on tight coordination with an army of suppliers upstream, and aircraft manufacturers downstream. On this episode, we're joined by Sam Abdelmalek, vice president of global supply chain, who outlines the company's journey in developing the new engine. It's the product of a decade-long effort, costing billions of dollars. Abdelmalek talks about the challenges that Pratt Whitney has already encountered in building the ''game-changing'' engine, as well as its bid to take a more proactive and preventive approach to dealing with suppliers. ''Supply chain is now a critical part of our success,'' he says.

The U.S. trade deficit is continuing to decline – but don't blame imports for the widening gap. In fact, in trade figures published by the U.S. Census Bureau for the month of June 2016, imports were actually down by 2.9 percent from a year earlier. The problem is that exports dropped by an even greater margin of 5.2 percent. Blame a strong dollar and weak commodity sales, among other factors. On this episode, we delve into the trends behind the numbers with Chris Rogers, research analyst with Panjiva. He identifies the weakest areas of U.S. trade, based on such factors as currency exchange, interest rates, competition from Chinese manufacturers and the impact of the U.K.'s decision to withdraw from the European Union. And he discusses the prospects for future improvements in the nation’s balance of trade.

The age of the driverless commercial truck is coming. It's just a question of when. Someday you'll look in your rear-view mirror and see an 18-wheeler bearing down on you with no one in the cab. But there's nothing to fear, according to Gary Girotti, executive vice president of Chainalytics. He believes the technology already exists to make self-driving trucks safe and viable for everyday use. What's more, he says, they're a solution to the driver shortage problem, and are 15 percent more fuel-efficient than traditional trucks. So what's holding them back? It's largely a matter of public perception, Girotti says. (Which wasn't helped by the recent fatal crash of a supposedly self-driving Tesla Model S.) He joins us on this episode to discuss the development of the driverless truck, and when it might become a regular sight on roads and highways. ''I would feel much safer if the computer was driving the truck [rather] than a human being,'' he says.

When it comes to assessing the impact of business practices on the environment, the bar is being raised. Mere sustainability is no longer enough: now it’s all about becoming ''net positive.'' The idea isn't new, but has recently taken off with establishment of the Net Positive Project. It's the product of a collaboration among Business and Social Responsibility (BSR), Forum for the Future and the Sustainability and Health Initiative for NetPositive Enterprise (SHINE), based at the Center for Health and the Global Environment at Harvard's T.H. Chan School of Public Health. On this episode, we speak with two principals behind the effort: Eric Olson, senior vice president of BSR, and Zoe Le Grand, principal sustainability adviser to Forum for the Future. They explain how the project intends to promote net-positive activities, which companies are already on board, and how supporters plan to attract additional participants. Currently there's no multinational that can claim a net-positive impact on the environment, society and the global economy. But such an entity isn't that far in the future, according to Olson and Le Grand.

The long-term impact of Brexit on European supply chains is yet to be determined, but some early results are in. Just days after the U.K.'s controversial vote to leave the European Union, the Institute for Supply Management polled procurement executives to learn how they felt about the move. According to ISM, it was the first publicly available analysis of the impact of Brexit on U.S. companies, drawing on data collected directly from them. Two weeks after the historic June 23 vote, we spoke with ISM chief executive officer Thomas W. Derry about the results of that survey. He joins us on this episode to discuss how supply chains and distribution strategies in Europe might shape up in the post-Brexit era. Surprisingly, the ISM report reveals relatively little concern over the impact of Brexit on U.S. procurement managers. At the same time, it addresses potentially explosive issues such as the health of financial markets, currency movements, capital spending and labor-use patterns. Discover how U.S. companies might have to shift their European distribution strategies without Britain being part of the E.U. In addition, Derry shares his view about whether Brexit represents an about-face of the decades-long trend toward globalization.

What stands in the way of a solution to the nation's crumbling, outdated and inadequate transportation infrastructure? Judging from the decades of debate surrounding the issue, the obstacles are immense. Legislators can't seem to agree on a way to fix crumbling roads, bridges and highways, let alone built new infrastructure. The sticking point, as usual, is the argument over how we'll pay for the work. But there are also questions about where the money should go, and how eligible projects should be selected. On this episode, we speak with Beth Osborne, vice president for technical assistance with Transportation for America. A transportation policy veteran, she was formerly acting Assistant Secretary for Transportation Policy at the U.S. Department of Transportation. She also oversaw DOT's successful TIGER competitive grant program for infrastructure investment. Now she has a four-point plan for solving the crisis. It's contained in her new report, published by The Century Foundation's Bernard L. Schwartz Rediscovering Government Initiative, which provides a path to funding key transportation projects, while ensuring that taxpayers get a higher return on their investment.

Employment rules and regulations have failed to keep pace with innovation in the American workforce – especially with regard to the growing number of independent workers. There are approximately 40 million independent workers in the country today, but uncertainties surrounding their status make them vulnerable to exploitation, and hinder employers' efforts to hire them. An outdated regulatory system is to blame, says Gene Zaino, chief executive officer of MBO Partners. He joins us on this episode to propose a new way of treating the self-employed, in a manner that will clarify issues such as taxation and benefits, while addressing employer concerns about drawing on this pool of talent. Zaino is calling for a ''Certified Self-Employed'' (CSE) classification, which would essentially allow independent workers to become employees of their own companies. In the event, it would protect them against exploitation while unleashing the potential of the entrepreneurial spirit. No more ''one-size-fits-all'' approach to the manner in which government and business treat workers. Is it workable?

The recall of a single food ingredient can have massive implications for manufacturers and retailers, ranging over multiple supply chains. Take the May 2016 recall of sunflower seeds, triggered by the discovery of Listeria, a bacteria that can cause multiple serious medical issues, especially for pregnant women, children and the elderly. That one action affected dozens of retailers and more than 100 brands and manufacturers, according to Kevin Pollack, vice president of recall with Stericycle ExpertSolutions. He joins us on this episode to discuss the impact of tainted products on public health and supply chains. Such incidents are occurring with alarming frequency, against a backdrop of enhanced public awareness, tighter regulations and more complex supply chains. Pollack offers advice on how companies can reduce the risk of a recall, as well as which steps to take when one occurs. Learn how to combat the dreaded ''multiplier effect'' of supposedly isolated incidents.