As with every year, there are opportunities to learn new things and meet new people. Here’s a link to my recent tweetstream for shoutouts to some of the great people I met this year!

Held again in Philadelphia, this year’s event brought back memories of 2004, the year the old CLM: Council of Logistics Management became today’s CSCMP: Council of Supply Chain Management Professionals!

New of course, in it’s second year, is The CSCMP Supply Chain of the Future exhibition. And I’m pleased to report I did come across the retail & consumer products supply chain of the future but NOT at the exhibition (more on this later)

Those who know me are aware I’m active on Twitter both as @JeffAshcroft and @SupplyChainNtwk. Last year in San Diego we held the very first SCN Tweetup at CSCMP to which 3 people came. Happy to report this year we had a 100% increase in attendees and many, many more tweeting under the #CSCMP and #CSCMP2011 hashtags.

For the first time some social content was also included on Wednesday with @TerriGriffith (also presenting at our CCE2011 event in two weeks) and Adrian Gonsalvez sharing their insights. I am fascinated by the coming potential of social networking for supply chain improvement. Since 2009 I have been writing and presenting on the same, in fact Social is one of The Seven S’s of Supply Chain Management which highlights seven key trends emerging to support future state SCM.

So where did I see the Retail & Consumer Products Supply Chain of the Future you may be wondering? Well it was in the first and best session I attended this year including Del Monte, Ahold USA and a name you may not be familiar with yet, ES3!

In 1995 I lead a team which created a visionary company called Crosslink to deliver on the Efficient Replenishment benefits of ECR. Key to this success was very tightly synchronized multi-vendor product and data flows creating significant inbound transport & process savings and service improvements.

Suffice it to say I was more than pleased, and very excited, to hear what Ahold, Del Monte and ES3 have now created in York Pennsylvania. Based on complete product data synchronization this highly automated 110 foot high facility is a shared Supplier / Retailer storage and consolidation facility. On the outbound side the system automatically creates fully cubed mixed vendor and retailer owned goods to be shipped direct to store.

This facility eliminates the need for a retailer Distribution Center and savings have been pegged at 54 cents a case! Not chump change and funnily enough quite close to the projected 58 cents projected savings for a similar network called NonStop Logistics. NonStop was a consortium of major 3PL and Transport firms which proposed 29 similar facilities across the US in the 1990?s but never got off the ground.

It seems the powers that be for the CSCMP Supply Chain Innovation Award tend to agree with me. Ahold USA, Del Monte and ES3 were named as this year’s recipients and as you can see deservedly so! Not only does such a shared supply chain create savings and service improvements, it also represents the most sustainable supply chain model.

In my first Constellation Research report The Search for Synergy in Supply Chains I breakdown the component Types, Indicators and Facilitators of supply chain synergy. Part Two of this report is in process now including specific case studies such as ES3 demonstrating real world implementations validating these major synergy savings opportunities. These benefits are still on the table and available to those ready to join The Supply Chain Synergy Revolution!

See you at next year’s CSCMP in Atlanta Georgia where I have already proposed to chair a track called The Social Supply Chain!

Please ping me if you have any use cases for social networking in supply chain to share. Likewise if you have developed any socially enabled supply chain solutions please bring them to my attention. Until next year’s CSCMP and feel free to follow and reach out to me at anytime through @JeffAshcroft or @SupplyChainNtwk

Jeff Ashcroft

The SCPro™ program is a rigorous, three-level certification that offers global supply chain management professionals a way to demonstrate a broad range of industry skills and mastery of end-to-end supply chain functions.

“We are extremely excited to unveil CSCMP’s groundbreaking certification program at our annual conference,” said Rick Blasgen, CSCMP president and chief executive officer. “Our members overwhelmingly asked us to develop a comprehensive certification that diligently measured and accurately reflected an individual’s skills and knowledge across the entire supply chain.”

The program’s three levels are as follows:

• Level One: Cornerstones of Supply Chain Management
SCPro™ Level One covers the entire end-to-end supply chain with a focus on building customer relationships. This level is open to candidates who have either a bachelor’s degree or four years of relevant experience.

• Level Two: Analysis and Application of Supply Chain Challenges
This level tests a candidate’s ability to thoughtfully analyze real world case studies and formulate supply chain solutions which improve the supply chain in the short and long term.

• Level Three: Implementation of Supply Chain Transformation
The highest SCPro™ designation requires an unprecedented use of practical application, and marks the candidate as a leader who is not only valuable within his or her organization, but also of value to the profession.

“The SCPro™ certification will enable professionals to demonstrate to their employers that they are the kind of leaders who will positively impact their organizations’ bottom lines,” said Judy Schieve, manager of certification programs. “When a candidate completes all three levels of the program, he or she will also have a portfolio of work to augment his professional experience.”

The supply chain management profession has evolved dramatically over the past few decades, added Blasgen. “Today’s supply chain requires multidisciplinary capabilities, demonstrable and quantifiable success, and continuous study of the field. CSCMP’s SCPro™ certification provides professionals with an exceptional program that will help them demonstrate 21st century supply chain management skills and expertise.”

About CSCMP

Founded in 1963, the Council of Supply Chain Management Professionals is the leading worldwide professional association dedicated to education, research, and the advancement of the supply chain management profession. With nearly 9,000 members globally, representing business, government, and academia from 63 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management.
For more information, please contact:

Madeleine Miller-Holodnicki, ABC
Council of Supply Chain Management Professionals (CSCMP)
333 East Butterfield Road, Suite 140
Lombard, Illinois 60148-5617 USA
mholodnicki@cscmp.org

Session Details

In addition to Brasca, the panel, entitled “Outsourced versus Insourced – Debated by Case Studies,” features Todd Jackson, president, Alliant Logistics, a division of the U.S. Foodservice; Mathew Menner, senior vice president, Transplace; and William Pollard, vice president, customer service and transportation, Del Monte Foods, Inc.

In the session, panelists representing both sides of the debate will each present a real-world case study: an “outsourced” supply chain and its third-party logistics partner, and an “insourced” supply chain and its pervasive technology solutions partner. Key learnings from each phase of the respective relationships – “spec, build, and run” – will be shared. The session is designed to provide additional fact-based inputs related to each scenario to help attendees in their decision making as they consider the future direction of their respective supply chain strategies.

Founded in 1963, CSCMP is a worldwide professional association dedicated to the advancement and dissemination of research and knowledge on supply chain management. With more than 8,500 members representing nearly all industry sectors, government, and academia from 67 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management. The CSCMP Annual Conference brings together supply chain experts to share insights into streamlining operations, eliminating inefficiencies, deploying cutting edge business processes, reducing costs, inspiring team members, and increasing profitability.

Attendees wishing to schedule a meeting with JDA at the event should send an email to Aaron Lee, solutions marketing manager, at aaron.lee@jda.com. For more information on the event, click here.

Tweet this: .@JDASoftware’s @FabBrasca to speak on #supplychain strategy panel at @cscmp Global Conference on Oct. 4 #CSCMP2011 http://jda.com/cscmp

About JDA Software Group, Inc.

JDA® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company®, is a leading provider of innovative supply chain management, merchandising and pricing excellence solutions. JDA empowers more than 6,000 companies of all sizes to make optimal decisions that improve profitability and achieve real results in the discrete and process manufacturing, wholesale distribution, transportation, retail and services industries. With an integrated solutions offering that spans the entire supply chain from materials to the consumer, JDA leverages the powerful heritage and knowledge capital of acquired market leaders including i2 Technologies®, Manugistics®, E3®, Intactix® and Arthur®. JDA’s multiple service options, delivered via the JDA® Private Cloud, provide customers with flexible configurations, rapid time-to-value, lower total cost of ownership and 24/7 functional and technical support and expertise.

Online:
Web: http://www.jda.comTwitter: http://www.twitter.com/JDASoftware
Facebook: http://www.facebook.com/JDASoftwareGroup
LinkedIn: http://www.linkedin.com/company/JDA-Software
YouTube: http://www.youtube.com/user/JDASoftware
SlideShare: http://www.slideshare.net/JDASoftware

We do not believe this media alert contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Nevertheless, if remarks in this media alert are considered to be “forward-looking” or to have forward-looking implications, we would remind our investors and prospective investors that future events may involve risks and uncertainties. These risks and uncertainties include the risk that that complex software solutions such as JDA’s may be costly and time-consuming to implement and/or may not produce the level of benefits anticipated by the parties at the outset of the project. Other risks and uncertainties that may affect our business are detailed from time to time in the “Risks Factors” section of our filings with the Securities and Exchange Commission. As a result of these and other risks, actual results may differ materially from those predicted. We undertake no obligation to update information in this alert.

“JDA” is a trademark or registered trademark of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name “JDA” is a trademark and/or property of JDA Software Group, Inc.

JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, Ariz. 85260

What can you expect in 2011? CSCMP’s Annual Global Conference offers supply chain management practitioners more professional education and personal growth opportunities than any other event in the world. Learn from global experts and network with thousands of colleagues.

What’s in it for me?

•Learn ways to cut supply chain costs and improve your bottom line.
•Network with colleagues from all over the world.
•Discover new and innovative ideas that will keep you and your supply chain competitive.
•Get solutions that will improve the efficiency of your supply chain.

Why should you attend in 2011?

How many times do you get the opportunity to…… spend 4 days with “best-of-the-best” supply chain management experts and thousands of your SCM peers?

… explore current and soon-to-be-released technologies, tools, and services?
… attend current educational sessions on topics you want to learn about?
… get never before seen research, information, and trends that you can apply to your own business?
… ask your toughest questions to renowned experts, distinguished speakers, and community influencers

And get those questions answered!

Authored by transportation consultant Rosalyn Wilson of Delcan, Inc., the report has tracked and measured all costs associated with moving goods through the U.S. supply chain since 1988. This year’s report presents an overview of the 2010 economy, the industry’s key trends, and the total U.S. logistics costs for 2010 and their percentage of the U.S. GDP. It also examines which sectors of the industry recovered as well as those that didn’t, and which areas can be targeted for increased profit and growth. The research concludes with industry indicators for the future.

This year’s report revealed that the cost of the U.S. business logistics system jumped up 10.4 percent in 2010, making up for more than half of last year’s decline. Business logistics costs rose to $1.2 trillion, an increase of $114 billion from 2009. Inventory carrying costs increased 10.3 percent last year due to higher costs for taxes, obsolescence, depreciation, and insurance, which were offset by a further drop in the inventory carrying rate and warehousing costs.

Transportation costs were up 10.3 percent from 2009 levels, with trucking lagging behind the performance of other modes, rising only 9.3 percent compared to an average of 15.4 percent for the other modes combined. Manufacturing and business spending were the bright spots during much of 2010, while consumer goods production was almost flat. Industrial production was up 5.3 percent in 2010, after declining 11.2 percent the year before. The recovery from the recession has been elusive and more prolonged than any other in U.S. history, with the slow growth presenting another year of challenges for the logistics industry.

“As the economy recovers, those companies that use the statistics and industry insight contained in this report will be better prepared for their business activities ahead,” said Rick Blasgen, CSCMP President and Chief Executive Officer.

“This research is a key source of information that not only identifies macro trends and how the logistics discipline is impacted, but also details ways that company leaders can capitalize on the recovery as it occurs,” Blasgen said. “Having this knowledge helps supply chain leaders move forward in a more proactive and fact-driven way.

“Penske’s continued sponsorship of the report underscores the significant contribution that quality research makes in driving thought leadership and innovation in the logistics and supply chain industries,” Blasgen stated.

“We’re pleased to be part of this important report,” said Joe Gallick, Senior Vice President – Sales for Penske Logistics. “Over the last 12 months, we’ve seen a slow and steady improvement in business globally. We’ve also witnessed the resilience and importance of how well-managed, dynamic supply chains help companies drive down costs, manage inventories, respond to recalls, and adjust to sudden economic shifts and global crises.”

A panel of supply chain executives and government representatives from the U.S. Department of Transportation, Penske Logistics, Macy’s, Adelante SCM Corporation, BNSF Rail and Fortna, Inc., today discussed the implications of the report’s findings on their companies, the industry, and their significance in the coming months.

The “State of Logistics Report®” is available to CSCMP members free of charge as part of their member benefits at http://cscmp.org/memberonly/state.asp. The price of the report is $395.00 U.S.

About Penske Logistics
Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing. With operations in North America, South America, Europe and Asia, Penske Logistics provides supply chain management and logistics services to major industrial and consumer companies throughout the world. Penske Logistics delivers value through design, planning and execution in transportation, warehousing, and international freight forwarding and carrier management. To learn more visit www.PenskeLogistics.com and our “Move Ahead” blog.

About CSCMP
Founded in 1963, the Council of Supply Chain Management Professionals (CSCMP) is the leading worldwide professional association dedicated to education, research, and the advancement of the supply chain management profession. With over 8,500 members globally, representing business, government, and academia from 63 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management.
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Unfortunately since that time adoption, implementation and widespread use of these technologies and standards have not followed as quickly as many would have liked and in many industries there is a significant level of frustration with this inertia and lack of solid implementation progress.

The obvious question then becomes why is this happening, or not happening depending on your point of view? The answer to this is not simple, but in my mind it is a combination of complexity, high cost, capabilities and control that has been hampering this growth and widespread standards implementation.

The secret for setting these SCM standards free is to develop a model which addresses all four of the above negative forces resulting in a business environment which will support the rapid and widespread growth of these new SCM standards and technologies. Let’s review these negative forces and discuss some potential solutions and approaches to counteracting them to foster adoption and growth.

Cutting Through Complexity

Although the myriad details behind the unified application of these technologies and standards is somewhat complex, there is the potential of developing and delivering simplified education programs to educate non-technical business managers and leaders on the integrated vision and joint use of these technologies and standards.

By educating and mobilizing these mid and senior level individuals to drive the investment and commitment of the firm and leaving the complex technical details to those best equipped to deal with them, progress can then be made. Getting bogged down in an industry based on lack of vision, understanding can be easy to do in such cases but by simplifying and focussing on results this complexity can be tamed.

High Costs

Many of those personally committed and passionate about implementing these SCM technologies and standards don’t understand why the associated program memberships, registration numbers and onboarding/consulting fees need to be so high. Even more disconcerting for these individuals and their firms is paying these high fees for in some cases up to seven years and still not having proportionate success to show for it.

For the new SCM standards and related technologies such as RFID and Electronic Catalogues (GDSN) to takeoff requires critical mass widespread adoption, acceptance and proper use within an industry vertical. And although the pioneering companies and individuals in these industries are willing to pay high costs to get these initiatives started, the majority of companies will not or in some cases cannot allocate exhorbitant amounts to such endeavours.

In many ways, these SCM standards and technologies are like the first VCRS, they started out very complicated and expensive, but market adoption and sales exploded once the units were simplified and the cost came down.

Proceed to page two

Join supply chain management professionals from around the world in Barcelona to discover the key financial principles that influence and shape your supply chain. You’ll also learn new strategies for entering emerging markets, the role that business culture plays in forging collaborative relationships with suppliers and customers, and how information technology drives supply chain efficiency.

Mastering financial best practices and understanding how they impact your organization’s supply chain—and the ability to use them to your company’s advantage—will be the critical skill sets you will need to manage today’s unprecedented business challenges.

Keynote Speaker

Peter R. Williams, Vice President, Product Supply, Central and Eastern Europe, the Middle East and Africa (CEEMEA), Procter & Gamble

How to Win in Emerging Markets through Effective Supply Chain Management

Drawing upon his company’s experience in markets in Eastern Europe, the Middle East, and Africa, Peter Williams will talk about how we can make the difference between winning and losing through our approach to supply chain management. The scope of his presentation will include managing inbound flows, building local supply networks, and working in partnership with distributors and/or wholesalers. More details and registration information from CSCMP

Erling Johns Nielsen, Damco’s Director & Global Head of Supply Chain Development as well as Jordi Avellaneda, Global Head of Green Logistics spoke on how Damco envisions a future in which technological advances, consumer pressure and regulatory requirements will shape the role of the 3PL as supply chain sustainability advisors. The central theme of Damco’s presentation was that sustainability is a good business case for companies as it helps to find efficiencies, reduce costs and generate additional revenue by developing innovative products. Some companies still see sustainability as a hurdle, but over the past five years Damco has observed that companies are moving up the sustainability ladder, using it initially as a source of efficiencies and finally as a source of competitive advantage.

“Ultimately reaching the final stage of competitive advantage – the so-called eco-advantage companies, requires board level commitment and consequently sustainability is embedded in the way the organisation behaves and does business. Damco’s green logistics portfolio, which includes carbon footprint reduction and monitoring, packaging optimisation, and horizontal collaboration assists its customers in embracing the new sustainability megatrend and in becoming sustainability winners,” said Erling Johns Nielsen.

About SupplyChain CarbonCheck™
Damco’s SupplyChain CarbonCheck™ helps companies assess and reduce their supply chain carbon footprint. Since late 2007, Damco has conducted SupplyChain CarbonCheck™ projects for a wide range of companies globally. Our 5-step methodology has proven that CO2 reductions can be achieved through increased supply chain efficiency, which also translates into reduced supply chain costs and improved service levels. To learn more about our green logistics services, please contact us at environment@damco.com

The SupplyChain CarbonCheck™ has been referenced in a white paper by Massachusetts Institute of Technology (MIT) stressing the significant value of detailed information in carbon footprint calculations.

To read more about this study and its findings, go to www.damco.com

For more information on Damco’s green logistics services, please contact Jordi Avellaneda, Global Head of Green Logistics, at +45 (3363) 5392 or e-mail at jordi.avellaneda@damco.com

About Damco

Damco is the combined brand of the A.P. Moller – Maersk Group’s logistics activities.

Damco offers a broad range of supply chain management and freight forwarding services to customers all over the world, and has 10,500 employees in over 280 owned offices across 90 countries with representation in 120 countries in Africa, Asia, Australia, North America, Europe, Middle East, and Latin America.

In 2009, the company had a net turnover of over USD 2.0 billion, managed more than 2.3 million TEU of ocean freight and supply chain management volumes and air freighted more than 60,000 tons.

Damco is an independent business activity within the A.P. Moller – Maersk Group.

For more information, please visit www.damco.com
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The forum will present the most current research on radio frequency identification (RFID) item-level tagging, a technology that allows merchandise to be identified and tracked through the use of radio waves.

“Major retailers are beginning to take notice of the significant value that RFID item-level tagging creates,” said Heather Morys, CSCMP’s education programs services associate. “And, as more retailers adopt this supply chain tool, supply chain managers need to understand how their companies can leverage this technology as well as how it will impact their suppliers and their customers. RFID Forum 2010 will provide them with the knowledge and information they need.”

Attendees will tour UARK’s RFID Lab and participate in hands-on demonstrations involving case and pallet portals, sweet-spot testing, and point-of-sale (POS) systems and display signs. A question and answer session will follow. An optional RFID primer course is available prior to the tour for attendees to learn RFID basics or refresh their skills.

Following the tour, there will be sessions and discussions led by executives from major retailers who have tested item-level tagging in their stores. Keynote presentations, educational sessions, and panels will focus on digital inventory accuracy, offshore source tagging and in-store testing, connecting customers to the RFID technology experience, and the future of RFID. The content that will be covered is based on studies undertaken by the UARK RFID Research Center, in partnership with CSCMP, VICS, and Dillard’s.

Senior executives from Jones Apparel Group, Macy’s, Wal-Mart, Conair, and IBM Global Business Services will discuss their insights on RFID issues, including the challenges and benefits of item-level tagging implementation.

This forum is sponsored, in part, by ADT, Avery Dennison, Impinj and Motorola. More information is available at http://cscmp.org/events/rfid/index.asp or by contacting Heather Morys at hmorys@cscmp.org or +1 630.645.3454. Registration is available at http://cscmp.org/events/rfid/registration.asp.

Founded in 1963, the Council of Supply Chain Management Professionals is the leading worldwide professional association dedicated to education, research, and the advancement of the supply chain management profession. With over 9,000 members globally, representing business, government, and academia from 63 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management.

For more information, please contact:

Madeleine Miller-Holodnicki, ABC
Council of Supply Chain Management Professionals
333 East Butterfield Road, Suite 140
Lombard, Illinois 60148-5617 USA
mholodnicki@cscmp.org

Since 1988, the State of Logistics Report has tracked and measured all costs associated with moving goods through the U.S. supply chain. The report benchmarks key metrics in U.S. logistics such as transportation and inventory-carrying costs, freight volumes, and revenues, giving practitioners a big-picture view of the performance of the U.S. supply chain process.

Other key findings

In 2009, inventory-carrying costs continued to fall due to a 4.6 percent decline in inventory and a further plunge in interest rates. Pressure on rates and an inability to move goods resulted in warehousing costs falling 2 percent below those of 2008. Although early 2009 saw warehouses full of inventory, by mid-year goods had been drawn down or relocated, leaving facilities with empty space.

Transportation costs were 20.2 percent lower than 2008 levels, with all modes of transportation being negatively affected. Trucking, which comprises a large percentage of the transportation component, had a 9 percent drop in tonnage carried. Rail carload traffic was also down from the previous year. The ocean sector reported sharp declines, lowering rates to stimulate business, with some ocean carriers reporting losses for the first time in their company’s histories. After heavy losses early in the year, air cargo had a much stronger showing by the latter part of 2009.

Due to abundant capacity and decreased freight to move, the industry has experienced significant pressure to reduce costs. Although shippers have responded with reductions, customers have not necessarily noticed a decline in rates.

Overall, indicators show improvements in the fourth quarter with a focus on future direction. “The economy is beginning to recover, and although time will tell how the logistics sector deals with the recovery, those companies that use the statistics and industry insight contained in this report will be better prepared for the business activity ahead,” said Rick Blasgen, CSCMP President and CEO. “This research presents data for company leaders to be able capitalize to on the recovery as it occurs, such as restructuring their distribution networks to maximize efficiency and minimize miles, investing in technologies to facilitate green transportation, and improving real-time data flows to increase visibility and enhance productivity.”

“Logistics providers were among the first to feel the effects of the economic downturn,” said Vince Hartnett, President, Penske Logistics. “Today, we are seeing some positive signs of recovery in the supply chain with increasing truck freight volumes and higher truck fleet utilization rates. If this continues, trucking and logistics firms will likely add capacity to take on additional loads and hire drivers to meet increasing demand.”

“Anecdotally, we are also seeing more Fortune 1000 level companies evaluating logistics outsourcing compared with the previous 12-month period,” Hartnett continued. “This tells us that business leaders are looking to capture emerging growth opportunities while still staying focused on cash and capital – a good combination for our industry and a steady recovery.”

The report, authored by Rosalyn Wilson, a transportation consultant for Delcan Corporation, was released today at the National Press Club in Washington, D.C. A panel of senior supply chain executives and academics from BNSF Railway, Covidien, Delcan Corporation, Jones Lang LaSalle, Miami University of Ohio, Penske Logistics, Staples, and Sustainable SC Consulting discussed the implications of the report’s findings on their companies, on the industry, and on the economy as it recovers.

About Penske Logistics (PenskeLogistics.com)

With operations in North America, South America, Europe, and Asia, Penske Logistics provides supply chain management and logistics services to major industrial and consumer companies throughout the world. Penske Logistics delivers value through design, planning and execution in transportation, warehousing, international freight forwarding, and carrier management.

About CSCMP (CSCMP.org)
Founded in 1963, the Council of Supply Chain Management Professionals is the leading worldwide professional association dedicated to education, research, and the advancement of the supply chain management profession. With over 9,000 members globally, representing business, government, and academia from 63 countries, CSCMP members are the leading practitioners and authorities in the fields of logistics and supply chain management.

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