The SupplyChainBrain Podcast

Are robots taking over the warehouse? The science of robotics has long been critical to manufacturing. It has had less of a presence in the logistics sector, where automation has often taken the form of state-of-the-art conveyors, sorters and systems limited to directing the picking process. One reason for the disparity is safety. Another is cost. But all that might be about to change. New robots are being developed that can perform some of the numbingly repetitive tasks that have been the responsibility of humans. One of the newest companies on the scene is Fetch Robotics, which has developed two models of robots that can pick from inventory and efficiently move items to the shipping area. On this episode, we speak with Fetch chief executive officer Melonee Wise, who traces the development of robotics in logistics environments. She also discusses the changing public perception of robots, which in their early days were seen as a threat to the jobs (and even the lives) of people. Only in the last decade or so, she says, has that view begun to change. Increasingly, robots are being developed that can work side by side with humans. But just how smart are these machines? And are they fated to edge out people entirely?

Change in the organization is inevitable. So how do you get your employees to stop blocking it? Shifting consumer markets, a constant stream of new products, technological innovation, personnel changes, economic upheaval, mergers and acquisitions: they all contribute to the ceaseless march of transformation within every business. Yet managers find themselves battling the natural human tendency to avoid it. Such reluctance is entirely understandable, given the increasingly shaky nature of job security today. But companies must find a way to confront people's fears and enable change. On this episode, we speak with Renée Robertson, founder and chief executive officer of Trilogy Development, a consulting firm specializing in talent development. She outlines her strategy for effecting change in business, including a reliance on internal coaches. She explains where those individuals can be found, where they sit in the organizational chart, and what their job entails. Maybe change isn't so scary after all.

Multi-tiered manufacturing supply chains can end up in some unexpected places – including prisons. The use of unauthorized subcontractors, even prison labor, is a disturbingly common practice in China and elsewhere in Asia. The problem surfaced a few years back, when an Oregon woman discovered a hastily scribbled note in the Halloween decoration kit that she had purchased at a local Kmart. The writer purported to be a laborer in a Chinese prison. And while the source of the note was never traced, it highlighted a pervasive problem of which many retailers and original equipment manufacturers are unaware. Greg Hallahan, senior director with FTI Consulting, is an expert on the problem of unauthorized subcontractors in Asia markets. He joins us on this episode to detail the severity of the trend, caused by lax supplier vetting on the part of buyers. He also shines a light on the practice of rigged bidding among suppliers who are nominal competitors. (You'll never guess what the number-one product made in Chinese prisons is.)

What's going on behind the veil of secrecy that masks China's economy? Recently we've seen a steep plunge in share prices on China's stock markets, signaling the bursting of a bubble that was long in forming. Meanwhile, questions persist about the condition of China's banks, which have long been rumored to be saddled with large amounts of non-performing loans. Does all of this threaten China's economic future? Can the nation sustain its massive investments in infrastructure, both at home and abroad? And how is the yuan, which China recently devalued, performing against the dollar these days? On this episode, we hear from one of the leading experts on China, David Dollar, senior fellow in the John L. Thornton China Center at the Brookings Institution. He helps us to understand what's behind China's recent economic woes, how serious they are, and what impact they might have on the nation's quest to become the world's largest economy.

Another short-term extension of funding for transportation infrastructure improvements? This story is getting old. The Senate Committee on Commerce, Science and Transportation has come up with a six-year transportation bill, the Comprehensive Transportation and Consumer Protection Act of 2015. That's not to be confused with the DRIVE (Developing a Reliable and Innovative Vision for the Economy) Act, which came out of the Senate Environment and Public Works Committee. Ideally, these measures would be successfully combined into a comprehensive, multi-year bill that nails down funding for transportation projects once and for all. But don't get your hopes up. Meanwhile, Congress has passed yet another extension of the Highway Trust Fund, but only until the end of the year. Have we made any progress at all, since enactment of the last big transportation bill in 2012 (which, by the way, didn't include a long-term funding solution)? On this episode, Joshua Schank, president and chief executive officer of the Eno Center for Transportation, returns to the podcast with an update on a perennially contentious issue. It's time to come up with a new way of paying for transportation projects, he says. But what will that look like? Nobody can seem to agree.

Is there slavery in your global supply chain? Are you sure about that? Governments want to know. The first major attempt to curb modern-day slavery through legislation was the California Transparency in Supply Chains Act of 2010, which took effect in early 2012. It served as a template for the United Kingdom Modern Slavery Act of 2015. Both require companies to disclose the presence of slavery or human trafficking anywhere in their supply chains, or face stiff penalties for failing to do so. Our guest on this episode is attorney Maureen Gorsen, partner in the Environment, Land Use Natural Resources Group of Alston Bird LLP. She discusses how companies can comply with the two laws, and gain visibility into activities of which they might previously have been unaware. As with any human rights violations, it can be tough to uncover such occurrences within complex, global supply chains. Nevertheless, companies will have to step up their game. These initial laws represent only the beginning of what's sure to be a more comprehensive effort on the part of governments to put a stop to slavery once and for all.

The race is heating up over who will dominate the world of ''last-mile'' delivery of online retail orders. It's a crowded field, to be sure. Competitors range from internet giants such as Amazon.com, Google and eBay to traditional brick-and-mortar retailers such as Walmart, Macy's and just about every major department store imaginable. The nature of the service is up for grabs as well. In addition to home delivery, retailers and e-tailers are offering options such as secure lockers, in-store pickup and postal service locations. Finally, there's new technology to be considered. Will drones and driverless vehicles play a part in the delivery model of the future? What about on-demand passenger services such as Uber and Lyft? Our guest on this episode is Rob Howard, founder and chief executive officer of Grand Junction, Inc. He runs down the multitude of players that are jockeying for position in the modern-day delivery market, and discusses their various strengths and weaknesses. Who will make it to the finish line? And what do consumers really want?

What can automobile manufacturers to do stop the endless flood of recalls, some of which result in injury or death to drivers and passengers? There's been no letup of incidents in recent years. The recall of airbags by the Japanese manufacturer Takata Corp., affecting more than 53 million cars worldwide, is only the latest to hit the headlines. In recent years we've seen the failure of brakes, electrical systems, locks, steering mechanisms and even, apparently, floor mats. The trend toward globalized supply chains, involving multiple tiers of suppliers, only makes the problem more complex. On this episode, we're joined by Evan Hirsch, partner at the global consulting firm Strategy. He offers a perspective on why product failures and recalls continue to happen, and what original equipment manufacturers and their suppliers can do to reduce such incidents. Perfection is impossible, but there's plenty of room for improvement, says Hirsch.

It's enough to scare the daylights out of retailers: $1.75tr in lost revenue due to overstocks, out-of-stocks and preventable returns. Welcome to ''The Ghost Economy.'' The term comes from new research conducted by IHL Group on behalf of OrderDynamics. It looks at the costs that retailers rack up by failing to understand what's happening in their businesses today. The problem rests in large part with the additional challenges posed by e-commerce and the advent of the omnichannel. Many retailers have yet to coordinate their efforts across all channels, resulting in pockets of inventory that drag down the bottom line. They just can't seem to match supply with demand. On this episode, we speak with Kevin Sterneckert, chief marketing officer with OrderDynamics, who explains how retailers got into this mess, and how they can escape it. No need for an exorcist: just a comprehensive approach to customer and inventory data, updated far more frequently than it is today.

The Greek people have said a resounding no to their creditors. So where does the country go now, to avert all-out economic collapse? There doesn't seem to be much light at the end of the tunnel. Greece owes the European Central Bank, International Monetary Fund and other lenders a reported €323bn (about $354bn). But the people and government of Greece have balked at the additional austerity measures they would have to adopt, in order to keep getting bailout money from their creditors. Yet those entities show no sign of backing off from their draconian demands. Is there any hope for a solution? On this episode, we speak with David Lea, senior analyst for Western Europe with Control Risks. He traces the history of Greece's economic woes, and speculates about what might happen if the nation leaves the eurozone (or is kicked out). He also explains how the situation in other ailing European economies, especially Spain, differs from that of Greece. And he confronts what is perhaps the ultimate question: Was the eurozone one huge mistake?