Food safety encompasses the origin, processing and packaging of food so that consumers don’t get sick from the food they buy. Increased food production, growing market demand and faster delivery are just three of the many challenges companies face in trying to keep food safe all along the food supply chain.

RFID increasingly provides the most effective means to solve these challenges and to ensure compliance with recently enacted legislation designed to protect consumers.

The MIT Enterprise Forum is bringing together key experts for a panel discussion of the major issues, technologies, and business cases surrounding the RFID-enabled food chain. Come and hear for yourself how RFID is making food safer and food-borne illness easier to trace.

Moderator: John Greaves, President and CEO, SSI

John Greaves has been actively involved in AIDC (Automatic Identification and Data Capture) including RFID for many years. His pioneering work in the area of global logistics, inventory management and the returnable transport Items sector with both active and passive RFID has led to the significant adoptions occurring in supply chains, health care and security.??He was the founding chair of the US RFID standards group, led the European Spectrum Initiative, was the leader of the GTAG program for EAN.UCC, and developed — among many significant RFID implementations worldwide — the one-tag-per-pallet UHF solution with CHEP.

Click here to register for this event!

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 report reveals that the majority of shippers worldwide are increasing their use of 3PL services, with 64 percent of respondents reporting a rise. At the same time, the report indicates an average of 42 percent of total logistics expenditures being spent on outsourcing, the same as last year’s study. However, 24 percent of shipper respondents reported some return to insourcing 3PL services and 58 percent report they are reducing or consolidating the number of 3PLs they use, indicating uncertainty about the global economy continues to impact 3PLs.

The 2012 Third-Party Logistics Study is based on over 2,250 responses from both shippers and logistics service
providers in North America, Europe, Asia-Pacific and Latin America, as well as other locations throughout the
world such as the Middle East and Australia. In addition to documenting the evolution of the third-party logistics market, this year’s report also provides an in-depth analysis of logistics operations in emerging markets and the electronics industry as well as talent management to address the skills shortage in the logistics industry.

Today’s 3PL marketplace is experiencing significant change and established 3PLs are adjusting their business
models to provide greater value to shippers. The report shows relationships between shippers and 3PLs continue
to be successful with 94 percent of 3PLs and 88 percent of shippers stating communication, flexibility and
openness are key to contributing to their success. However just 68 percent of shippers judge their 3PLs as
sufficiently agile and flexible, down from 72 percent last year suggesting this is an area where 3PLs can make
significant further contributions to supply chain success.

“The responses from this year’s study represent an interesting record of the shifting use of 3PL services,” said
Dan Albright, Vice President and North American Supply Chain Leader at Capgemini Consulting. “Whilst some
companies are increasing outsourcing services, we are still seeing the consistent churn that occurs each year
with 3PL respondents observing that some of their customers are returning logistic activities back in-house. It’s vital that 3PLs and shippers work in close collaboration and that 3PLs remain innovative by offering value
added services to provide true value to shippers to help reverse this trend.”

Spotlight: Growth in Emerging Markets while Traditional markets are slowing

A substantial 80 percent of shippers in the survey conduct business with or within an emerging market, with the
majority (52 percent) doing so from a mature market. China, India, Brazil and Mexico are considered the top
emerging market opportunities amongst respondents. With mature, industrialized markets largely growing at a
slower pace, the emerging markets offer significant growth potential. The 3PL capabilities shippers most value
when entering emerging markets are expertise on the latest global trade regulations and managing and
optimizing shipment routing based on free trade agreement (FTA) knowledge. The majority of shippers in
mature (65 percent) and emerging markets (73 percent) recognize 3PLs’ knowledge of FTAs as very important.
“Entering any new market requires due diligence and this is more critical when it’s an emerging market.
Government investment in infrastructure will contribute to attracting global manufacturers and 3PLs to do
business in emerging markets.” said Nicholas Wyss, Senior Vice President, Global Head of Industry Vertical
Fashion, Panalpina Management Ltd. “Shippers based in mature and emerging markets favor strong support
from 3PLs for a successful 3PL operating model in emerging market countries.”

Spotlight: Challenges facing 3PLS in the Electronics sector

Multiple layers, supply constraints and the specific challenges the various channels present, coupled with short
product lifecycles, mean the electronics industry demands a fast and nimble supply chain. Because electronics
products are often high value, they pose specific challenges including assuring security, preventing counterfeit
and packaging sufficiently to handle long distance transportation. Pressure to reduce operating costs was cited
as the top logistics challenge for shippers in the electronics industry (59 percent), but just 28 percent believe
3PLs can help them with this challenge. The report’s findings suggest that within the electronics industry, 3PLs
need to perform better in selling to electronics customers and shippers need to be more open to collaborating
with 3PLs to address their top challenges.

“Logistics operations within the electronics industry are faced with a number of unique challenges. Close
communication and collaboration between shippers and 3PLs is vital as supply chains become more complex”
said Dr. C. John Langley, Clinical Professor of Supply Chain Management, and Director of Development for
the Center for Supply Chain Research, Penn State University. “As the demand for high value electronic goods
increases, it is more important than ever that shippers are able to draw on 3PLs’ knowledge to achieve a solid
supply chain.”

Spotlight: Importance of Talent Management for 3PLs

Despite the positive reports of the supply chain’s role as a significant contributor to attaining business goals, the
logistics industry is experiencing a shortage of capable supply chain managers prepared to work in vital
management positions. As supply chains grow more complex, they require leaders who are more diverse and
multi-faceted. The report revealed shippers and 3PLs most highly value operational execution (51 percent and
60 percent respectively) followed by people management and development skills (54 percent and 43 percent
respectively) in their leaders. To date, the majority of both shippers and 3PLs recruit from inside their own
industries but many are increasingly looking to recruit talent from other industries. Company success and
performance, attractive salary and benefits and personal development opportunities within the company are
considered the top qualities needed to attract talent.

“As logistics become ever more intrinsic to a company’s ability to attain its business goals, shippers and 3PLs
must be able to put trust in supply chain leaders to be prepared for future business challenges.” said Neil
Collins, Managing Partner, Transportation & Logistics – Americas, Heidrick & Struggles. “The logistics market
must look to develop programs for talent management to create a clear, well-defined business strategy for the
recruitment, retention and development of talent.”

For more information and to access the full study please log onto: www.3plstudy.com

About the 2012 Third-Party Logistics Study

2,258 logistics executives from both 3PL users and providers in North America, Europe, Asia-Pacific and Latin
America, as well as other regions and geographies, participated in the 2012 Third-Party Logistics Study via a
web-based survey. The findings were supplemented with a significant number of focus interviews with industry
observers and experts, primarily relating to the special topics identified for this year. Facilitated workshops were
also conducted where shipper participants collaborated on shared issues to help provide a better understanding
of the survey’s results and to gain their valuable perspective as 3PL users. Though last year the 2010 3PL study
was published, this year’s report is called 2012 since that will be when the results will be in active discussion.

About Capgemini

With around 115,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting,
technology and outsourcing services. The Group reported 2010 global revenues of EUR 8.7 billion. Together
with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive
the results they want. A deeply multicultural organization, Capgemini has developed its own way of working,
the Collaborative Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model.
Learn more about us at www.capgemini.com.

Rightshore® is a trademark belonging to Capgemini

Capgemini Consulting is the Global Strategy and Transformation Consulting brand of the Capgemini Group,
specializing in advising and supporting organizations in transforming their business, from the development of
innovative strategy through to execution, with a consistent focus on sustainable results. Capgemini Consulting
proposes to leading companies and governments a fresh approach which uses innovative methods, technology
and the talents of over 4,000 consultants world-wide.
For more information: www.capgemini-consulting.com

About Penn State University

Penn State is designated as the sole land grant institution of the Commonwealth of Pennsylvania. The
University’s main campus is located in State College, Pennsylvania. Penn State’s Smeal College of Business is
one of the largest business schools in the United States and is home to the Supply Chain & Information Systems
(SC&IS) academic department and the Center for Supply Chain Research (CSCR). With more than 30 faculty
members and over 600 students, SC&IS is one of the largest and most respected academic concentrations of
supply chain education and research in the world. SC&IS offers supply chain programs for every educational
level, including undergraduate, graduate, and doctorate degrees, in addition to a very popular online, 30-credit
professional master’s degree program in supply chain management. The supply chain educational portfolio also
includes open enrollment, custom, and certificate programs developed by Smeal’s Penn State Executive
Programs and CSCR, which helps to integrate Smeal into the broader business community. Along with
executive education, CSCR focuses its efforts in research, benchmarking, and corporate sponsorship. CSCR
corporate sponsors direct the Center’s research initiatives by identifying relevant supply chain issues that their
organizations are experiencing in today’s business environment. This process also helps to encourage Penn State
researchers to advance the state of scholarship in the supply chain management field Penn State’s Smeal
College of Business has the No. 1 undergraduate and graduate programs in supply chain management,
according to the most current report from Gartner.
For more information, please visit: www.smeal.psu.edu/scis and www.smeal.psu.edu/cscr

The Panalpina Group

The Panalpina Group is one of the world’s leading providers of supply chain solutions, combining
intercontinental Air and Ocean Freight with comprehensive Value-Added Logistics Services and Supply Chain
Services. Thanks to its in-depth industry know-how and customized IT systems, Panalpina provides globally
integrated end-to-end solutions tailored to its customers’ supply chain management needs. The Panalpina Group
operates a global network with some 500 branches in more than 80 countries. In a further 80 countries, it
cooperates closely with partner companies. Panalpina employs approximately 15,000 people worldwide.
www.panalpina.com

About Heidrick & Struggles

Heidrick & Struggles, the leadership advisory firm providing senior-level executive search and leadership
consulting services, has one of the industry’s leading, dedicated Transportation and Logistics practices round
the globe. We have a demonstrable track record of delivery in each niche of the segment with truly global
coverage. Clients include Integrators, Freight Forwarders, 3PL Providers, Ocean Carriers, NVOCCs, Airlines,
Rail Operators, Port Operators, Terminal Operators, and Airport Operators. Our relationships go beyond cargo
transportation and logistics companies themselves as further convergence emerges in the industry – we hold key
relationships with PE Firms, venture capitalists, infrastructure funds, deal makers (both buy and sell side),
investment bankers, management consultants and the academic community. We know the talent and with our
team dispersed all over the world, we are uniquely equipped to serve an industry that is being redefined locally,
regionally and globally.

For more information, please visit
www.heidrick.com.

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!

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

“We have the most powerful distribution mechanism that has been created
in a generation,” Mark Zuckerberg, Founder Facebook at the launch
of the 2006 Connect Platform

Many new technologies are converging simultaneously. It resembles the wild, wild west. For many companies, so many things are happening simultaneously, that it is hard to chose how to get started. In the words of one respondent, “I feel like a hamster on a treadmill. It is hard to get off the treadmill to stop to think what combination of tactics will add the MOST value.”

It includes:

Geospatial. Geospatial data combined with point of sale data to deliver a tailored response to the shopper when they are in the store. The data enables insight on not only what you bought, but where you were when you bought the item. And, what your shopping behavior was prior to the purchase. This is redefining couponing. Examples include Groupon a new social couponing company, Get Satisfaction a new rewards program for purchases, Shopkick that rewards you for going into a store, coupons tendered through your Garmin device in your car, and specialized shopping baskets in the stores to tender special offers.

Gaming. Social gaming to enhance the shopping experience, but also unleashing a new opportunity to learn more about a consumer through their gaming behavior.

Mobile Applications. In 2011, 50% of the populations in modern trade countries will have smart phones. Mobile applications in combination with 2-D bar codes can personalize the shopping experience in new ways.

2-D Bar Codes. Direct personalization of the shopping experience through 2-D barcodes to the shelf to either differentiate the product, communicate how to better use the product or connect with gaming to energize the shopping experience.

Virtual Currency. Virtual currency linking the socialgraph, the gaming experiences and the new social commerce sites together. It is a new way of seeing what shoppers really value. Check out the selling of Facebook credits at your Target or 7/11 stores.

Shopping with Friends. Consumers trust their friends. They want to shop with their friends. The Socialgraph enables this new type of shopping experience on Facebook or in a bricks and mortar experience.

Facebook as a Channel. As the conversation is enhanced by commerce, companeis are adding storefronts to their Facebook pages. Community recommendations by friends turns into shopping with friends for enthusiast purchases–hobbies, cosmetics, toys–enhancing the customer experience.

Results from the Research

It has been fun to study. Five months of research culminated last week at Altimeter Group’s sold out event: The Rise of Social Commerce. In an attempt to understand the dawning of this new channel, I drove the research, developed the agenda and delivered the keynote (check it out at http://www.riseofsocialcommerce.com/community/expo-the-rise-of-social-commerce/). I will publish the final report next week.

So you might ask, why is a supply chain gal like Lora Cecere interested in understanding the early days of Social Commerce? The reason is simple. It is an exciting new world of possibilities. It is a both a new channel and a new way of doing business. It is reshaping value chains. More than ever, retailers are now manufacturers and consumer products manufacturers can now sell directly to loyal shoppers. The power is shifting to the shopper. The digital consumer now has the power of the value chain in the palm of their hand, but more importantly, it allows a company to have a direct dialogue with a consumer in a more meaningful way.

I interviewed 53 companies, and as I did the interviews, I could see that they were at very different stages of development. The progression of understanding follows four stages:

Let’s be Social. In this stage, the organization is social for social’s sake. The deployment of the technologies are primarily in marketing and the strategies are very brand-centered; and consequently, not very effective.

Enlightened Engagement. As social maturity evolves, companies have new opportunities for direct dialogue. It enables dialogue and customer service, new product launch, and community development.

Store of the Community. Direct involvement of the community in product assortment, category definition, and demand shaping activities.

Frictionless Commerce. The redefinition of the shopping experience based on mobile, social and ecommerce capabilities that culminate in a TRUE cross-channel experience.

In the interviews, 20% of companies were actively working on social commerce strategies in 2010, but 83% have it on their agenda for 2011. It is NET new spending driven by the line of business leaders. Only 22% of companies have IT leading the charge. However, only 5% of companies have active involvement by the supply chain leaders. My goal is to help supply chain leaders capitalize on this opportunity.

Why should the Supply Chain Leader care?

While marketing colleagues are optimizing the tactics above, and defining new ways to use social to shape demand, promote awareness and energize the shopping experience, it unveils new opportunities for the supply chain team that I find that they are largely unaware of.

Redefinition of customer service. Organizations really don’t have customer service. If you ask what does your customer service department do, you will find that most take orders. There may be another department that receives customer complaints. But, the ability to listen and learn from shoppers and enhance the shopping experience through the integration of social technologies–twitter feeds, Facebook fan comments, private networks, syndication of review data–allows a 360 degree view of the digital consumer for the first time. The ability of the organization to think outside in and engage the shopper in a meaningful dialogue. it unveils the opportunity to listen, to have a meaningful response and to learn. For me, this is exciting.

New ways to sell to loyal shoppers. The concept of anticipation of needs through the social graph is also fascinating to me. Let me give you a personal example. I am going to be a grandmother. I am so excited to be a grandmother, but only my social connections know the full extent of my excitement. For the first time in 20 years, I am a shopper for all things baby. I am also a quilter, a knitter, and an avid crafter. Imagine how a smart company could use this information to anticipate and deliver some exciting offers to me to shape demand. The socialgraph enables unique insight on changes in lifestyle, community sharing, and tailored offers.

Channel proliferation. We have talked cross-channel for years; however, in my shopping experience, Nordstrom comes the closest to having a true cross-channel experience. For most companies, the e-commerce and bricks and mortar channels are separate and distinct. But now we have channel proliferation with M-commerce through mobile and social commerce through Facebook. This channel proliferation will force companies to rethink their supply chains. It will give rise to a new wave of supply chain execution applications. A new bar will need to be reached for inventory accuracy the need for a more real-time signal of inventory in the extended supply chain. Removing data latency on inventory movement will become a new corporate focus.

A new need for new type of supply chain transparency. When we communicate all the way to the shelf with the shopper, a new level of supply chain transparency is needed–especially on manufacturing and quality data– to convey the brand promise for health and wellness, food safety, organic, etc. This driver will redefine manufacturing execution systems and force the integration of bill of material, process quality data, and specification information in a new way. It will also tie manufacturing execution systems to supply visibility. Supply chain execution will no longer JUST be about order fulfillment.

Summary

It is happening. It is exciting, and can redefine value chains. Unfortunately, for 95% of companies that I interviewed, it is ONLY happening in marketing. Here is my plea. Please rethink your supply chain strategies for 2011 to welcome the digital consumer. We have talked about the need for shopper-centric supply chains for a decade. Don’t pass up the opportunity to be a pioneer in making the dream a new reality.

Lora Cecere

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 global economy continued to pose a challenge in 2009, with 48 percent of companies surveyed failing to meet revenue growth projections, while 80 percent of them still managed to be profitable. Pressure on 3PLs to share risk with their clients increased in 2009, with 28 of the 31 CEOs reporting that their companies now have performance-based contracts with many of their clients. Only five of the companies were involved in significant merger or acquisition activity in the year.

Eighty-seven percent of CEOs noted that some of their manufacturing customers have begun to move toward near-shoring options in the past year, a trend that is expected to trickle down to 3PLs in the years to come. Labor numbers imply an upturn for 3PLs, with 87 percent of the companies beginning to rebuild their workforces in 2009. CEOs revealed that green practices are still a major priority in the 3PL market and 80 percent of the companies surveyed now have formal sustainability groups within their companies.

“The CEOs involved in this year’s surveys are more optimistic about growth prospects than they were last year, but appear to be more cautious about how growth will be achieved,” commented Lieb. “They are likely to spend more time ‘qualifying’ new accounts, while devoting less attention to accounts in industries that are more cyclical in nature.”

“The last few years have caused global third-party logistics providers to reconsider the structure of their businesses within a shifting industry,” said Gallick. “Many of the CEOs reported adopting new strategies that are more conservative in nature with respect to both market expansion and new service offerings.”

Further insights into this year’s research findings are outlined in additional detail below:

Improved Revenue Projections

The CEOs in all three regions were considerably more bullish about future revenue growth prospects of not only their companies, but also the regional 3PL industry, than they were last year.

One-year company revenue growth projections were 10.4% for North America (6.9% in 2009), 7.2% for Europe (-3.3% in 2009), and 22.5% of APAC (12.9% in 2009). The average three-year company growth projections were 10.6% for North America (11.8% in 2009), 8.3% for Europe (8.7% in 2009), and 19.5% for APAC (16.7% in 2009).
One-year regional 3PL industry revenue growth projections averaged 7.3% for North America (3.5% in 2009), 4.8% for Europe (-1.4% in 2009), and 15.4% for APAC (10.7% in 2009). The average three-year regional 3PL industry growth projections were 7.8% for North America (7.9% in 2009), 5.4% for Europe (4.9% in 2009), and 12.9% for APAC (11.7% in 2009).

Twenty-five of the 31 CEOs surveyed reported their companies were profitable during 2010, with three reporting they broke even, and three reporting their companies were unprofitable.

Reorganization of 3PL Industry

Only five of the 31 companies were involved in significant mergers or acquisitions during 2009, and the CEOs generally believe that revenue growth through acquisitions will be very modest over the next three years. A continued restructuring of the industry through mergers or acquisitions and failures ranked first in changes expected to occur in their markets over the next three years.

> Fifteen CEOs indicated long-term strategy changes within their companies as a result of the recession, and eleven said the long-term prospects in the regional 3PL industries has changed as a result of the recession.
> Twenty-seven of the 31 CEOs noted that some of their manufacturing customers have begun to move toward “near-shoring” options during the past year.

More Vigilant Business Practices

> Eighteen of the CEOs reported that their companies had put new risk management programs in place during the past year. Increased pressure to share risks with customers is a major factor in the industry.
> Twenty-nine of the 31 companies have business continuity plans at the corporate level and 20 have them at the regional level.
> Twenty-eight of the 31 CEOs reported that their companies have performance-based contracts with many of their clients.
> Twenty-four of the companies sell logistics services to the supply chain partners of their existing customers. Moving forward, 3PLs are expected to place greater emphasis on “qualifying” customers.

Commitment to Sustainability

In the aftermath of the recession, these companies are still heavily committed to environmental sustainability issues.

> Fourteen of the 31 companies began new green initiatives during the year.
> Eighteen of the companies expanded existing sustainability programs.
> Twenty-five of the companies now have formal sustainability groups within their companies.
> Twelve of the 31 CEOs believe that their sustainability capabilities differentiate them from their competitors.

Opportunities and Issues

In terms of industry opportunities, CEOs in all three regions ranked the overall growth of the market for outsourcing services as the most important opportunity.

Ranking second and third respectively in North America were opportunities related to potential differentiation based upon the companies’ environmental sustainability capabilities and opportunities related to expansion of service offerings.

In terms of problems facing the industry, a shortage of managerial and operational talent was ranked one or two in all three regions.
Among the other important problems mentioned were price compression and procurement’s growing role in the North American survey, the slow economic recovery and decreasing margins in Europe, and managing increased costs and dealing with “unrealistic competition” were highlighted by the APAC CEOs.

For access to the full Executive Summary, please visit http://tinyurl.com/Lieb2010.

Survey Design

Thirty-one CEOs completed surveys via an Internet-based questionnaire during the summer of 2010. Companies participating in the annual survey included: Cardinal Logistics, DSC Logistics, DHL Exel Supply Chain, Genco Supply Chain Solutions, Kuehne+Nagel Logistics, Landstar, Menlo Logistics, Panalpina, NYK Logistics, Penske Logistics, Ryder Integrated Logistics, Schenker, Schneider Logistics, Transplace, UPS Supply Chain Solutions, UTi Integrated Logistics, Caterpillar Logistics Services, CEVA Logistics and Wincanton.

About Northeastern University’s College of Business Administration

Northeastern University College of Business Administration, established in 1922, provides its students—undergraduate, graduate and executive—with the education, tools and experience necessary to launch and accelerate successful business careers. The College credits its success to expert faculty, close partnerships with the business community, and its emphasis on rigorous academics combined with experiential learning. The college also offers graduate and undergraduate concentrations in supply chain management, as well as graduate certificates in supply chain management.

The College is highly ranked by several prestigious publications. BusinessWeek ranks the undergraduate program 32nd in the U.S., #1 in internships, and #19 in the student survey in its 2010 “Best Undergraduate B-schools.” U.S. News & World Report ranks the College’s Bachelor of Science in International Business program #13 in the country. Princeton Review and Entrepreneur magazine ranked the undergraduate business program 14th most entrepreneurial in the U.S.

For more information about Northeastern University’s College of Business Administration, visit http://www.cba.neu.edu/.

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. Visit http://www.penskelogistics.com to learn more.

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