The Buzz for October 21st

Introduction

Hey, hey, good morning, good afternoon, good evening, wherever you may be! Scott Luton and the one and only Kim Mor are with you here on Supply Chain Now. Welcome to today’s live stream! Kim, how are you doing today?

Good morning! I'm doing great, how about you?

Wonderful! It seems like you had a great weekend, enjoying some early fall festivities outside, which is a gorgeous thing to do this time of year.

It is! The temperature is just perfect during the day and chilly at night. We have to soak it in before winter comes!

And yard work is a different ballgame this time of year compared to early spring. Not yet!

Folks, we have a fantastic show lined up for you today! Every Monday at 12 noon Eastern Time, we discuss a variety of news and developments across the global supply chain, global business, and much more. Kim, we have some intriguing stories to dive into today.

The first topic may scare some folks, but we will approach it in a way that informs and educates you! We’ll discuss the impact of the U.S. elections around the world. A lot of times, we focus on what's happening here in the U.S.; however, we will learn from our guest about how the U.S. elections impact beyond our shores. We will also delve into how organizations are increasingly leaning on logistics in our VUCA environment and share key takeaways from the latest McKenzie Global Supply Chain Leader survey.

I hope you’re buckled up, as we have a jam-packed show today, and we may need to add a couple of more hours!

We'll finish on time, I promise! We are excited to welcome Dayve Food from Prophetic Technology in just a moment.

Before we dive in, we want to issue a couple of quick challenges on the front end. Just like Trisha often says, please share your comments in the chat during the show! We’d love to hear your thoughts on the stories and topics we’ll be discussing today. Also, if you enjoy this show, please share it with a friend or your network; they’ll be glad you did!

Now, Kim, we have a couple of items to tackle before our guest joins. First, over the weekend, we released the latest edition of our newsletter, “With That Said." Do you know which episode number it was?

I don’t know – was it the 100th?

Great guess, but it was episode 99! However, most people don’t care about episode numbers except for those who create them. Nonetheless, we put a lot of effort into each episode, and with episode 100 coming next weekend, we are excited.

Our recent episode, powered by our friends at Vector Global Logistics, recognized International Chef Day, which was yesterday. We touched on several stories at the intersection of food and global supply chain. Did you know that the global food market is over $ 9 trillion in size and is growing almost 7% annually?

We included an interesting article from the World Economic Forum on how to make the food supply chain more sustainable. One prevalent issue is the knowledge gap between different tiers and entities across the food ecosystem. This gap is a significant driver of many issues affecting our global supply chains, sustainability, and business at large, for that matter. We also featured an inspiring story of a chef in L.A. transforming the seafood supply chain.

Kim, you have a wealth of experience in this area. Any comments on the seafood supply chain?

Unfortunately, many people aren’t aware that a large majority of the seafood consumed in the U.S. is imported, especially if you're purchasing from big retail chains. It’s essential to check where your seafood comes from and support local providers when possible, such as local fishermen. It’s fascinating how oysters, for instance, have transformed from being considered a poor man's food to a luxury item today.

Now, folks, we dropped a link to “With That Said” in the chat. Check it out and let us know what you think!

Moving on to resources, we want to remind everyone that October is Cyber Security Awareness Month, and we recently hosted an outstanding webinar featuring Ara Arslanian from Omni Partners and Bill Harden from Charles River Associates. Bill, especially, shared incredible insights based on his experience in handling thousands of cybersecurity incidents. It's available on-demand, and you can learn so much from it.

Additionally, if you’re looking to support hurricane recovery operations, please check out the American Logistics Aid Network (ALAN) at alan.org. They’re a proven nonprofit that has been doing great work to help communities in need.

On a lighter note, today is Back to the Future Day! October 21st is the day that Marty McFly traveled back to in the original film. I have a couple of questions for you, Kim – what’s one thing that’s as relevant today in supply chain leadership as it was in the 1980s?

Data! Back in the '80s, it was hard to get data. Now, it’s so much easier to access real-time data.

Communication would be another one. Although we are closer than ever, it's become more challenging due to the various platforms and media we use.

Let’s shift gears and welcome Dave Food, Strategy Director with Prophetic Technology.

Dave, how are you doing today?

Doing well, thanks!

Great to see you! We’ve talked about the U.S. elections, which can be a sensitive topic. Can you share your thoughts on how the upcoming elections impact the rest of the world?

Absolutely. First, let’s think about the implications for major manufacturers in Europe and Asia. Many are already reconsidering their sources to avoid potential protectionism that might arise if Trump gets re-elected. This has led some European automotive suppliers to reevaluate sourcing from the Far East and it’s creating a ripple effect in how they plan their supply chains.

Kim, what are your thoughts on that?

Excellent point, Dave. We need to remember that importers are impacted too. If U.S. exporters lose business, it affects everyone in the supply chain.

Dave, can you elaborate on your second point regarding inventory management?

Sure! The pharmaceutical industry is particularly concerned about active ingredients that come from North America. Companies are reviewing their stocking policies as they don’t know what might happen in the short term.

Kim, anything to add on that?

Certainly! Companies are starting to hoard inventory because they aren’t sure what’s going to happen next, which could drive up freight rates.

Now let’s transition to your points about logistics and policy, Dave.

From a logistics standpoint, the cost of transportation is still a major concern, especially the challenge around port capabilities. As we face challenges from the Panama Canal, we must consider new policies that support improved collaboration and sustainability.

Kim, how would you respond?

Collaboration is key. The supply chain world is interconnected, and we often forget that every change impacts the entire chain, not just one aspect.

Let’s delve into the McKenzie Global Supply Chain Leader survey findings.

The survey indicates that many firms feel they have comprehensive visibility with their tier one suppliers; however, there’s been a decline in visibility in deeper tiers. This low percentage of visibility isn’t sufficient, especially with companies continuing to cut back on inventory strategies that have historically served them.

Dave, what do you find most concerning about this data?

The fact that many executives still lack a deep understanding of supply chain risk is troubling.

Kim, your final thoughts?

Yes, we must never lose sight of the ongoing nature of supply chain challenges. Just because it seems stable today doesn’t mean it will remain so.

Moving to a lighter note, I shared a personal experience visiting a local café that made me reflect on leadership values—especially the importance of the Golden Rule.

Dave, what are your thoughts on the relevance of the Golden Rule in today’s environment?

It’s very important. How executives treat those they interact with can set the tone for an organization. It’s not just how you lead but also how you interact with all levels of the organization.

Kim, your thoughts?

Exactly, we need to walk the floor and connect with those doing the work. Leaders must understand the realities of their teams and what they encounter every day.

Closing out, please stay tuned for upcoming discussions and do reach out to Dave and Kim through LinkedIn for more insights.

Let’s remember to practice the Golden Rule in both our professional and personal lives.

Thanks to all our listeners who joined us today! Do good, give forward, and be the change that’s needed. See you next time!

Keywords

U.S. elections, global supply chain, supply chain management, logistics, inventory management, data, visibility, risk, collaboration, sustainability.

FAQ

1. What impact do U.S. elections have on global supply chains?

• The U.S. elections can lead to shifts in trade policies, influencing sourcing decisions and creating ripple effects across global supply chains.

2. What challenges are companies facing with inventory management?

• Companies are becoming cautious due to uncertainties and are hoarding inventory, leading to potential increases in freight rates and logistics costs.

3. Why is it important for executives to understand supply chain risks?

• A deep understanding of supply chain risks enables organizations to be better prepared for disruptions and uncertainties.

4. How does the Golden Rule apply in leadership?

• The Golden Rule emphasizes treating others respectfully and highlights the importance of leaders connecting with and understanding their teams’ experiences and challenges.