The SupplyChainBrain Podcast

Up in the sky – it's a solar-powered plane! But what does it mean for the sustainability of the commercial transportation sector? The Solar Impulse 2 is currently on a 21,747-mile journey around the globe, powered only by the energy of the sun. But the project, 10 years in the making, is about more than proving that a small, specially designed plane can successfully draw on a renewable energy source. The aircraft consists of a wide range of innovative materials, many created by Covestro, a supplier of high-tech polymer products. Richard Northcote, chief sustainability officer with Covestro, joins us on this episode to explain how the company dramatically reduced the plane's weight while installing materials that provide an unprecedented degree of insulation and comfort to the pilots. Even more importantly, the innovative materials used in the Solar Impulse 2 have major implications for the transportation industry as a whole. They're lighter, stronger and more sustainable than anything used in traditional aircraft and ground vehicles. Even carbon dioxide can be used in the production of mattress foam, leading to a 30-percent cut in the use of oil. Find out what the Solar Impulse 2 means for the future of all modes of transport.Support the show

Retailers are shelling out huge amounts of money to keep today's omnichannel customer happy. They're spending an average of 18 cents out of every dollar to meet customer expectations of ''buy anywhere, pick up anywhere.'' That's according to a new study from EKN Research in partnership with Aptos, Inc., which set out to determine to true costs associated with the modern-day order-management lifecycle. On this episode, we're joined by Dave Bruno, director of marketing with Aptos, and Sahir Anand, vice president of research and principal analyst with EKN. They explain the findings of the study, which can be found in a new e-book, Threat … or Opportunity: Seven Steps to Overcoming the Shockingly High Costs of the Order Management Lifecycle. They explain how retailers are racking up costs as they struggle to balance store fulfillment with online orders, and home delivery with in-store pickup. The complications of the omnichannel aren't going away, they say. And it's about more than just free shipping. Will they be able to stay in the game against Amazon.com, Inc.?Support the show

The ride-sharing service Uber is threatening to disrupt, if not dismantle, the taxi business. Will it do the same to the package-delivery sector? Uber, Lyft and similar ride-sharing services fully deserve that already overused word, ''disruption.'' Their success is due in large part to their founders' ability to perceive a failure in the way that traditional taxis have operated. Now, there's talk that the Uber model could be similarly applied to freight transportation. In theory, Uber drivers can just as easily carry packages from retailers to the consumer's door. Perhaps they could even skirt many of the regulations that hamper that business. On this episode, we talk to Scott Nelson, vice chairman and founder of Trax Technologies. He explains why an Uber-like service can't necessarily work for logistics. It's all about the need for ''perfect information,'' he says. At the same time, Nelson offers his view on the real transformation that logistics is undergoing today – and how the business can be reshaped to create a ''win-win'' model for buyers and sellers alike.Support the show

Too many ships, too much rate discounting, and too many service providers for the market to support: the outlook for ocean carriers is ''pretty bleak indeed.'' Those are the words of Foster Finley, managing director of AlixPartners, who joins us on this episode to discuss the consultancy's new study on the state of the oceangoing container trades. Its conclusion: Carriers' financial state ''will likely worsen in 2016, and the only thing apt to cure the industry's malaise is further consolidation.'' Years of emphasizing market share over profitability, coupled with a relentless increase in vessel size, are taking their toll on carriers. The argument that bigger ships slash operating costs only holds water if supply and demand are in rough balance, and carriers can exercise some measure of discipline in their ratemaking. Neither of those requirements is in evidence today. Rates are far below what carriers need to break even, let alone make back their cost of capital, and overcapacity persists. How did they get into this state of affairs, and what will it take to right the sinking ship?Support the show

Does a big grocery retail chain have anything to learn from a leading automaker? Apparently so. Toyota, with its well-known emphasis on Lean supply-chain practices, was a key inspiration for U.K.-based Tesco, when the latter set out to overhaul its processes. In particular, Tesco was determined to align production and inventory with customer needs – something virtually every company claims to do, but few have managed to achieve with any degree of success. The company's journey is told in a new book, The Lean Supply Chain: Managing the Challenge at Tesco. Its authors, Barry Evans and Robert Mason, join us on this episode to describe the initiatives that Tesco has embraced over the years to build a world-class supply chain. In the process, they challenge some conventional wisdom that has dominated traditional business practice. Evans has held multiple positions at Tesco and is a senior research associate in the Lean Enterprise Research Centre at Cardiff Business School, where Mason is a senior lecturer in the Logistics and Operations Management section. Learn how Lean Six Sigma can be applied to grocery retailing – and the caveats that come with the concept.Support the show

Is 3D printing poised to bring about ''the next industrial revolution?'' So says attorney John Hornick, author of a new book on the subject. Titled 3D Printing Will Rock the World, it doesn't mince words about the potential for this emerging technology to transform the manufacturing landscape and consumer purchasing practices. Hornick believes 3D printers are nothing less than ''the most powerful machines human beings have ever invented.'' Is he being hyperbolic, or visionary? On this episode, he explains his reasoning. We discuss the types of industries and products that will be most affected by the 3D printing revolution, the differences between industrial and consumer-grade printers, the state of the technology today, problems of quality and consistency that have yet to be solved, and the ''dark side'' of 3D printing – the ability to create perfect knockoffs of products, thereby undermining intellectual property protection.Support the show

Supporters of a longtime proposal to privatize the U.S. Air Traffic Control system have failed again. But the issue is far from dead. The latest measure to reauthorize funding for the Federal Aviation Administration included a proposal to remove the ATC from direct agency control. In its place would be a private, non-profit corporation, funded by fees placed on airlines and owners of private aircraft. Supporters argued that the new body is the only way to rescue a dysfunctional FAA, ensure efficient operations, cut costs, streamline procurement and promote safety of the nation's air routes. But opponents countered successfully that a privately run ATC would raise questions of financial stability, accountability and continuity of service to smaller communities. In short, they said, the public would lose. So the idea was kicked out of the latest funding-extension bill. Laying out the arguments against privatization, and guesting on this episode, is Selena Shilad, executive director of the Alliance for Aviation Across America. She explains why the ATC should remain in FAA's hands – as well as what should be done to fix the agency's chronic problems of funding and bureaucratic inefficiency.Support the show

We might not have to wait that long to see self-driving vehicles become a familiar sight on American roads and highways. By some estimates, the so-called autonomous car won't appear in large numbers until sometime between 2020 and 2030. But there are signs that it could be arriving a good deal sooner than that, with limited production beginning as early as 2018. That's the view of Matt DeWolf, director of product innovation at Runzheimer, a provider of programs and technology in support of mobile workforces. On this episode, he lays out five trends that could speed the arrival of the autonomous vehicle. Technology, competition and supply and demand are all factors that could quickly bring it to market, he says. And there are ramifications for commercial vehicles as well. Find out why DeWolf says that, ''step by step, the autonomous car of the future is coming together.''Support the show

Disputes with suppliers can be costly. Now there's a guide to avoiding them – and defending against them when they do occur. Legal Blacksmith: How to Avoid and Defend Supply Chain Disputes is the title of a new book by Rosemary Coates and Sarah Rathke, our guests on this episode. Rosemary is president of Blue Silk Consulting and executive director of the Reshoring Institute. Sarah is a trial attorney and partner at the international law firm of Squire Patton Boggs. They have collaborated on a comprehensive guide to forging stable and rewarding relationships between buyers and suppliers. Here, they offer advice on minimizing risk throughout the contracting phase – and maintaining harmonious relationships afterward. Their guidance can help companies to manage an aspect of the supply chain that gets too little attention from top executives – yet can have devastating consequences when it goes wrong.Support the show

The reshoring of manufacturing from China is no longer in question. Whether that work ever makes it back to the U.S., however, is another matter entirely. Rising wages in China, coupled with the cost of maintaining long supply lines, are among the reasons why companies are looking for new locations to make their products. If you believe statements by big retailers such as Walmart, a good portion of that capacity is destined for the U.S. Even some apparel production could be coming back. But the trend is by no means guaranteed to stick. On this episode, we speak with Rosemary Coates, executive director of the Reshoring Institute. She traces the extent of the reshoring phenomenon, while laying out the hidden costs that come with shutting down production in China. You don't, for example, want to be that American executive who was held hostage by Chinese workers in a dispute over severance pay. So what will it take to bring manufacturing back to the U.S.? And, for that matter, what kind of work do we want?Support the show