The SupplyChainBrain Podcast

Can we ever really know the Unknown? Or are we doomed to be forever surprised by economic, political and diplomatic upheavals? History suggests the latter. We never seem to have a grip on events that appear obvious in retrospect. Still, global business planners need to understand what might happen in crucial markets. It's a constant struggle to reach an impossible goal, but there are certain steps that managers can take to alleviate the pain, and maybe even be ready for some curve balls. Joining us on this episode is Amanda Mattingly, senior director of The Arkin Group, an international risk consulting and intelligence firm. A former foreign affairs officer at the U.S. State Department, Mattingly offers advice to companies on how they might cope with – and possibly even foresee – unexpected events. The future will forever remain unknown, but businesses can do a better job of preparing for it.

The imposition by UPS and FedEx of dimensional weight pricing on all ground shipments is bound to raise the price of moving parcels and packages. But there are ways that shippers can mitigate the increase. Up to now, dimensional weight pricing has been applied by the two big parcel carriers to air and express moves, as well as to packages greater than three cubic feet in size. As of the beginning of this year, however, the formula was extended to include all ground shipments. The idea is to charge shippers for the space that a package actually takes up on a truck. Boxes with lightweight contents or lots of filler will be especially impacted by the change. On this episode, we talk with Kevin Lathrop, president of Unishippers, a nationwide reseller of shipping services. He offers advice on how shippers can offset at least some of the increase. And he explains how the pricing change might actually yield benefits to shippers and manufacturers, in the form of reduced packaging materials and more efficiently designed products.

Who better to assess the most serious risks confronting global business today than one of the world's largest insurance companies? Each year, a few weeks before the World Economic Forum conference in Davos, Switzerland, Zurich Insurance Group co-produces a report on global risk. The 2015 edition marks the tenth year of the report, which began by merely identifying risks, but now analyzes the connections between them, along with the ''cascade effect'' of such events as natural disasters, economic crises and geopolitical strife. The result is one of the most comprehensive references available for businesses and supply chains engaged in global commerce. On this episode, we speak with Linda Conrad, director of strategic business risk for Zurich, who reviews the conclusions of the report as it relates to both developed and developing countries. She also discusses why this year's report marks a change in the list of top global risks.

Are the doors open to women looking to pursue a career in logistics? The answer is a qualified yes. Without question, the field of logistics has shed much of the sexism that marked it over the years. Changes in the business, driven by globalization, technology, the internet and a widening talent gap, have resulted in new opportunities for all prospective entrants, male and female. Still, it's not easy starting a logistics business from scratch – and learning about it as you go. On this episode, we talk with Sharon McWilliams, franchise owner of BlueGrace Logistics in Fair Oaks, Calif., just outside Sacramento. She describes her own path, which involved casting aside a career as a successful litigator in favor of owning a business about which she knew virtually nothing at the outset. She also touches on the issue of work-life balance that preoccupies so many professional women – and men as well, even though they're seldom asked about it.

With the current boom in U.S. oil and natural gas production, it might be tempting to put aside the notion of shifting to more sustainable fuels for commercial transport. Why venture into this unknown area when traditional supplies are so plentiful? The answer: the current state of affairs can't last. Now is the time to begin exploring which kinds of alternative fuels have the greatest potential to power heavy trucks and other modes of transport in the years ahead. On this episode, we speak with Ryan Schuchard, associate director for climate change with BSR, a non-profit network of multinational companies dedicated to reducing carbon emissions and forging greener supply chains. He shares the results of a recent study by BSR's Future of Fuels initiative, laying out the various options and answering some key questions: Which alternative fuels are best? What will they cost? How effective will they be? And how will we cope with a 40-percent increase in energy consumption between 2012 and 2030?

Apple is known for consistently maintaining a smooth-running global supply chain. But every once in a while, something blows up. That's what happened in the relationship between Apple Inc. and GT Advanced Technologies, which was contracted to supply sapphire for the new iPhone 6 screens. The deal carried enormous promise, not least because it involved manufacturing in the U.S. But it quickly went sour. Despite the existence of seven separate contracts, GTAT was unable to deliver on Apple’s demands. The reason for the failure? Depends on whom you ask. But the outcome isn't in dispute: the two parties descended into acrimony and expensive court proceedings, and GTAT ended up seeking protection under Chapter 11 of U.S. bankruptcy laws. On this episode, attorney Sarah K. Rathke, partner with Squire Patton Boggs, offers her perspective on what went wrong between Apple and GTAT. And she details the lessons to be learned from that disaster, with tips on how other manufacturers and suppliers can avoid a similar fate.

Is it feasible to scan every one of the 15 million containers that enter U.S. ports each year? With a new technology, the long-term answer might well be yes. Decision Sciences International Corp. has developed the Multi-Mode Passive Detection System, a new means of scanning containers at the port for radiological, nuclear and explosive materials, as well as contraband. The technology differs from previous such efforts in that it doesn't bombard containers or nearby people with x-rays or other types of potentially hazardous radiation. On this episode, Decision Sciences president and chief executive officer Stanton Sloane explains how the device works, how far along it is in development, how much it costs and how it would mesh with modern-day port operations. The system, he claims, solves the health, safety, logistical and political problems that, according to critics, make the notion of 100-percent scanning of containers at foreign ports impossible.

What does it take to overcome the logistics challenges of serving customers in emerging markets? The short answer: a lot. Emerging markets present manufacturers, distributors and retailers with numerous pitfalls that can break a supply chain. Some of the most important considerations are laid out in a recent paper from PwC, ''Overcoming Network Logistics Complexities in Emerging Markets.'' On this episode, we speak with Sandra Gosling, U.S. supply chain director, about the content of that report. In particular, we discuss the six most important categories that companies must consider when entering emerging markets – and hear Gosling's opinion about which one of them poses the toughest challenge.

What will the typical factory look like five years from now? Manufacturers today are undergoing a major evolution in their global sourcing strategies. No longer is it sufficient to build product in a single country that offers the benefits of low-cost labor, then distribute worldwide. At the same time, manufacturers are laboring to juggle the need for optimal plant efficiency with buyers' demands for customized product sourced close to end markets. On this episode, we hear from Pierfrancesco Manenti, vice president of research with SCM World, which recently surveyed more than 150 leaders in the manufacturing sector. They underscored the importance of flexibility, responsiveness, cost control and the hiring of workers who can perform tasks that require a whole new set of skills. In the discussion, we get a glimpse of what the factory of the future might look like, where it will be located, and how technology will revolutionize production techniques.

Global trade: Love it or hate it. But don't overestimate its impact on individual economies. Proponents of trade point to the benefits of global ''connectedness,'' while opponents damn that very thing. Asked about the actual impact of trade on domestic jobs and products, however, people tend to wildly overestimate the figures. What's more, a continuing study of trade's impact, sponsored by DHL, suggests that the world isn't quite so connected as one might think. On this episode, we talk to study co-author Pankaj Ghemawat, a professor at both the Stern School of Business at New York University, and the IESE Business School in Madrid, Spain. He lays out the study's unique and rigorous method of measuring the flow of trade, capital, people and information across international borders. And he pinpoints just how much globalization has impacted trading nations to date – with a particular focus on the ''globaloney'' that seems to accompany public perceptions of trade.