That has placed supply chain leaders into the optimal position to drive impactful, lasting transformation within their organizations.

Indeed, the supply chain challenges that arose in 2020 and 2021 from the COVID-19 pandemic have inspired a tsunami of investment in emerging and innovative technologies. That revelation was among the key findings of this year’s ninth 2022 MHI Annual Industry Report, researched by MHI and Deloitte Consulting LLP, “Evolution to Revolution: Building the Supply Chains of Tomorrow” (free download at mhi.org/publications/report). 

As nearly every major company’s forecasts were impacted by continued supply chain bottlenecks and constraints, 87% of the more than 1,000 manufacturing and supply chain leaders surveyed said COVID-19 elevated the strategic importance of their supply chains. Nearly 78% of supply chain leaders from both large (+ $1 billion) and smaller (+$50 million) operations say their digital transformation accelerated due to the pandemic, and 64% of them increased their digital supply chain investments. 

(By the way, we’re currently conducting the survey for the 2023 MHI Annual Industry Report. Add your input at surveymonkey.com/r/2023AIR.)

Where Investments are Focused

Two out of three organizations reported plans to spend more than $1 million in the next two years. Notably, over 2021, the biggest jump in projected spending was in the middle range of $5 million to $10 million. Overall, 41% of respondents plan to spend between $5 million and up to $100 million, while 18% plan to spend at least $10 million.

Investment has been primarily devoted to the following innovations, and MHI’s ninth Annual Industry Report tracks the current level of adoption and the expected level over the next five years:

• 3D printing
• Artificial intelligence (AI)
• Blockchain
• Cloud computing and storage
• Driverless vehicles and drones
• Internet of Things (IoT)
• Inventory and network optimization
• Predictive analytics
• Robotics and automation
• Sensors and automatic identification
• Wearable and mobile technology

Respondents said all these digital solutions will achieve an adoption rate of 66% or higher over the next five years. Cloud computing and storage has the highest current adoption rate at 40% and will grow to 86% in the next five years. Although presently used by only 28% of respondents, inventory and network optimization tools will match that growth rate, hitting 87% in five years. 

Other technologies expected to approach or exceed 80% adoption in five years included sensors and automatic identification (31% currently use), and robotics and automation (28% currently use), predictive and prescriptive analytics (22% currently use), and IoT (21% currently use). The technology expected to grow fastest is AI, which participants said will rise from 15% current use to 73% in five years—a nearly five-fold jump.

Further, expected investment levels over the next two years are rising, with 82% of respondents saying they will spend between $1 million and $10 million. This is a clear acknowledgement that supply chain is now a technology-driven industry, and organizations that do not invested in transformational digital solutions will fail to meet their top 2022 challenges:

• Supply chain disruptions and shortages (57%)
• Hiring and retaining qualified workers (54%)
• Customer demands for faster response times (51%)
• Out-of-stock situations (48%)
• Forecasting (46%)

Notably, the tight labor market is also prompting investment in technologies that reduce their need for labor, as well as in those that help them better prepare for unknown disruptions. COVID-19 proved that supply chain leaders could no longer address issues solely on experience-based judgment. Instead, they need technologies such as digital twin simulations that analyze data and filter through potential solutions quickly to increase resiliency and the ability to navigate future uncertainty.

Making the Business Case

As for companies who have not deployed transformational technologies, the biggest investment barrier was the lack of a clear business case. Although leadership may understand philosophically that their supply chains will benefit tremendously from digital supply chain innovations, they are stymied by ongoing pressure for profitable growth as well as concerns about anticipated costs and potential operational distractions. 

To help build a successful digital supply chain technology investment business case, MHI offers the free Supply Chain Digital Consciousness Index (DCI) self-assessment tool (mhi.org/dci). The tool allows companies to quickly assess their digital mindset and evaluate their adoption progress. Further, this year’s report shares a framework for building a business case that minimizes risk, creates discipline, establishes a case for change, and provides control.

Both clear skies and stormy weather are in the forecast for the agricultural sector. That’s the mixed-bag conclusion from a September 2022 panel discussion at the Ag Outlook Forum in Kansas City, Missouri.

The panel of experts—including Kip Tom, former ambassador to the U.N. Food & Agriculture Organization, and Daniel Whitley, administrator for USDA’s Foreign Agricultural Service—stated that U.S. farmers right now are in a good economic position. Both incomes and land values are far higher now than they were before the pandemic, they noted.

The group pointed to ongoing macro-economic challenges and impact from the war in Ukraine as factors that are wreaking havoc on supply chains and putting increasing expectations on U.S. farmers to increase production of crops such as wheat.

They expect supply chain challenges—a backlog of agricultural equipment and parts, manufacturing disruptions stemming from China’s continued zero-COVID policies, and the potentially fragile energy situation in Europe as a result of the Russia-Ukraine conflict.

Agricultural labor is another potential disturbance. A glut of unfilled jobs in the dairy industry is particularly worrisome, the panel noted.

Food Commodity Prices Dropping—But Still Inflated

The latest Food Price Index, released in September 2022 by the UN Food and Agriculture Organization (FAO), shows that the prices of five key commodities—cereals, vegetable oil, dairy, meat, and sugar—have fallen for a fifth consecutive month. The good news is tempered by the fact that prices are still nearly 8% higher than they were one year ago.

The Index, which tracks the monthly international prices of these breadbasket staples, averaged 138 points in August, down nearly 2% from July, though 7.9% above the value one year before. Here’s a breakdown:

• Cereal: A landmark agreement in July 2022 that unblocked Ukraine grain exports amid the ongoing war has helped to lower cereal prices. Production expectations are still tight, however: FAO’s global cereal production forecast projects a decline of nearly 40 million metric tons, or 1.4% from the previous year.
• Cheese: Although dairy prices saw a 2% drop, they remained 23.5% higher than in August 2021. The price of cheese increased for the 10th consecutive month.
• Meat: The price of meat declined by 1.5% but remained just over 8% higher than the value last August. Meat prices declined due to weak domestic demand in some top exporting countries, the report notes.
• Sugar: Sugar prices hit their lowest level since July 2021, largely due to high export caps in India and lower ethanol prices in Brazil.
• Vegetable oil: Prices decreased by 3.3%, which is slightly below the August 2021 level. FAO attributes this to increased availability of palm oil from Indonesia and the resumption of sunflower oil shipments from Ukraine.

Much Ado About Cotton

The world’s most widely used natural fiber for clothing, cotton is a key agricultural staple around the globe. As such, the twists and turns in its pricing tell an important economic story. After a super-high peak in spring 2022, cotton prices dropped significantly, according to the September 2022 USDA report. A variety of factors, including demand, harvest conditions, and the value of the U.S. dollar all come into play.

Key highlights from the USDA’s most recent data include:

• Cotton futures shed 25% since late August.
• The most actively traded futures ended the month at 88 cents a pound, down more than 40% from May’s peak of 140 cents per pound, which was the highest price in more than a decade. (Also worth noting: Cotton prices have only exceeded $1 a pound three times since the late 1950s.)
• One factor driving the cotton price drop is negative forecasts from clothing manufacturers, who cite concerns over high energy costs and waning consumer demand.
• Another reason: Analysts believe inflation will drive consumers to focus their spending on essential items, leading to a decrease in clothing purchases.
• Drought is also an issue. The U.S. cotton crop has been hard-hit by dry weather over the growing season, causing supply worries, which impact prices.

Green Snapshot: ScottsMiracle-Gro

North America’s leading recycler of compost, ScottsMiracle-Gro, redirects green waste into its products to support the concept of circularity. Doing so prevents green waste, such as grass and tree trimmings and waste from commercial landscaping, tree cultivation, and agriculture, from ending up in landfills. The company also supports a “growing local” strategy, counting on a network of small and mid-size companies as agricultural partners.

The result? A bag of ScottsMiracle-Gro soil is sourced, produced, and used within a 120-mile radius on average. And, the company recycles roughly 9 billion pounds of green waste each year.

Moving Fertilizer Production Forward

The U.S. Department of Agriculture recently announced $500 million in federal grants under The Fertilizer Production Expansion Program, part of a government effort to promote competition in agricultural markets. The funds are being made available through the Commodity Credit Corporation and will be used to support independent, innovative, and sustainable American fertilizer production to supply American farmers.

Funds also will expand the manufacturing and processing of fertilizer and nutrient alternatives in the United States and its territories.
The program will support fertilizer production that is:

• Independent, and outside the orbit of dominant fertilizer suppliers. Because the program’s goal is to increase competition, market share restrictions apply.
• Made in America. Products must be produced by companies operating in the U.S. or its territories, to create good-paying jobs at home, and reduce the reliance on potentially unstable, inconsistent foreign supplies.
• Innovative. Techniques will improve fertilizer production methods and efficient-use technologies to jumpstart the next generation of fertilizers and nutrient alternatives.
• Sustainable. Ideally, products will reduce the greenhouse gas impact of transportation, production, and use through renewable energy sources, feedstocks, and formulations, incentivizing greater precision in fertilizer use.
• Farmer-focused. Like other Commodity Credit Corporation investments, a driving factor is providing support and opportunities for U.S. agricultural commodity producers.

It’s hard to imagine any context where one company can address surging demand, container shortages, port bottlenecks, and other disruptions. The door is wide open for new and different perspectives and a prudent move away from just-in-time approaches to industry integrated approaches that incorporate just-in-case strategies.

From a holistic perspective, industries already have the capacity to build their own structural frameworks. They could unite their own supply chains, study points of failure, and develop pre-competitive strategies that help build durable and resilient supply chains. These strategies could center around logistics, technology, and transportation concerns and address macro policy issues that would impede application of supply chain solutions.

This approach is not far-fetched. CNBC reports that American Eagle has developed a new strategy to compete with Amazon: reinventing its supply chain strategy through a proposed “frenemy network” of vertical logistics.

American Eagle built out a logistics platform that others in the apparel industry can use. Shekar Natarajan, chief supply chain officer at American Eagle, leads the effort. Nearly 50 other companies use the platform and Natarajan is seeking to add 200 brands. Few would have envisioned this approach over the past decade.

Trade Associations Play a Part

There are other approaches to building strategic partnerships between industries and their trade associations to deliver pre-competitive solutions. These organizations have the capacity to build their own structural frameworks and include companies throughout the supply chains in all deliberations.

Trade associations could lead and convene industry supply chains and serve as neutral data and knowledge integrators that gather information on points of supply chain failure. Notably, trade associations can use their advocacy efforts to deliver policy solutions that help assure implementation of resilient supply chain solutions.

The recreational boating industry has its own strategic partnership and built a durable ecosystem with their trade association. The National Marine Manufacturers Association, which includes industry suppliers, manufacturers and retailers, partners with the recreational boating industry. They build industry solutions and, through their ecosystem, shape the external environment and implement strategies that achieve accretive growth.

Through a collaborative effort, the recreational boating industry achieved a 20% year over year (2019 to 2020) increase in revenue. Structural frameworks like these could incorporate companies throughout the industry supply chain including logistics, transportation, and technology.

Strategic partnerships have unlimited opportunities when it comes to supply chain solutions, from developing industry fail-safe options to where and how to store excess parts and goods in the next national emergency. Other opportunities could include how industries reshore or nearshore production. These same partnerships have the capacity to work with transportation authorities to secure the necessary transportation or rail infrastructure to move goods.

Every company wants to build its own resilient supply chain in a time when we need industry solutions. Based on the magnitude of challenges that industries face, we need something that incorporates innovation and takes us from just-in-time to just-in-case strategies. It’s time for supply chain reimagination.

To support companies looking to reshore manufacturing and supply to keep business from cratering, the U.S. Administration floated initiatives in February 2022 aimed at encouraging the reshoring trend. Mandating where private companies source and manufacture products is difficult even with a mix of incentives—subsidies, tax breaks, loan-guarantees and funding for R&D—to encourage them to bolster domestic supply chains.

But government efforts to spur reshoring are exactly wrong, say some global trade deep thinkers, especially considering that national policy created more headwinds in the past two years despite the incentives. For starters, there’s an anti-transportation and manufacturing energy policy. Add overall inflation and dramatically rising domestic costs for manufacturing. Tax rates are not going down, either. Is an activist U.S. government intent on more regulations? Ya think? How about green policy costs? High over here, very low, if at all, over there. Then there’s the labor issue, if you can get enough skilled workers.

A new survey confirms that supply chain and logistics executives are indeed struggling to measure their sustainability efforts effectively. Released by Google Cloud and commissioned by The Harris Poll, the study surveyed some 1,500 C-level and VP respondents across 11 industries, including supply chain and logistics.

The inability to reliably measure what works and what doesn’t hampers sustainability efforts aimed at curbing emissions, reducing carbon footprints, and encouraging more ethical and sustainable business practices. The research also shows a troubling gap between how well companies think they’re doing, and how accurately they’re able to measure it.

Here’s how responses from supply chain and logistics executives stack up:

• Only 10% of respondents are capturing the impact of programs that have been put in place (compared to 19% global average).
• Only 12% are acting on measurement findings to make their program stronger (compared to 17% global average).
• 65% of organizations have overstated their sustainability efforts (compared to 58% globally).
• 51% say their companies are making an effort to offset carbon footprint (compared to 45% global average).
• 49% conduct research into business partners to actively support green vendors (compared to 44% globally).

1. Update job descriptions. Be as specific as possible in your job postings and define the required experience level, position demands, and company expectations. It’s also important to outline the exact skills you are looking for, taking into account not only technical skills, but also soft skills such as collaboration and multitasking.

2. Leverage industry-specific organizations. It may feel logical to post your open position on every job board you can find, but this will cost you more work in the long run. To make sure you get applications from qualified candidates, focus efforts on industry-specific job boards and social media groups. LinkedIn is a great place to begin your search for targeted groups.

3. Diversify your hiring panel. You’ll attract a more diverse pool of candidates if you employ a diverse group of hiring managers. The interview process is your chance to make a great first impression, so it’s important to emphasize all backgrounds to show that everyone has an equal opportunity.

4. Partner with universities. Recruiting directly from undergraduate programs is a great way to find workers with the right knowledge. You also can engage in a partnership to offer skill-building workshops that prepare graduating seniors, or work with colleges to align specific job skills with those today’s supply chains need most.

5. Get creative on social media. Show potential recruits what it’s like to work for your organization by highlighting examples of your company’s biggest successes or top performers on your website and social channels.

6. Offer paid internships. Paid internships or scholarships are mutually beneficial for students and the future of supply chain organizations. Providing paid opportunities to students can help draw more young people with potential to the field.

7. Provide training programs. Employees will benefit from professional development and skills training opportunities. As new technologies and business models continue to shift, you can secure talent by offering in-house training to close any skills gaps.

8. Offer competitive salaries. Salaries are expected to increase by 2.9 percent in 2017, according to the 2017 Ajilon Salary Guide. Avoid losing strong candidates or valuable employees to competitors by researching salaries to make sure they are competitive.

9. Emphasize opportunities for growth. What does a career path at your company look like? When will there be opportunities for promotion or advancement? These are questions you should anticipate from job seekers and be prepared to answer before they are even asked.

10. Bring in external resources. Recruiting firms can be a resource to help find pools of specialized candidates. The partnership allows you to focus on other responsibilities and ensure that talent is qualified and a good cultural fit.

According to predictions made by the U.S. Roadmap for Material Handling & Logistics, there will be 1.4 million new jobs in the supply chain and logistics field by 2018. In addition, it is projected that the number of supply chain employees will increase from a rate of 8.4 percent for tactical occupations, to 14.9 percent for managerial occupations by 2017.

As the demand for talent in this industry continues to grow, new candidates are seeking advice on how to make a smooth transition to an exciting career in this field, while current supply chain and logistics professionals are focused on how to move their career forward. By taking advantage of key resources and tools available to you, you can land the right position in an organization that will offer you room to grow your career.

Take Inventory of Your Skill Set

To advance your career in supply chain and logistics, you will first need to evaluate your skill set to assess what your strengths are and where your interests lie. It’s important to understand how your knowledge and expertise can benefit an organization to determine what kind of position you would thrive in. This will also allow you to better market yourself to prospective employers.

Since there is no traditional succession planning in the supply chain industry, the possibilities for growth are endless. You may be surprised by how transferrable your skills could be or where they will take you, so be sure to keep an open mind when it comes to new opportunities that may help build your exposure to the industry as a whole.

Network for Success

Building a strong network is crucial in making a successful career transition and meeting other influential experts in your field. Start by joining a professional association, such as the American Production and Inventory Control Society (APICS), Council of Supply Chain Management Professionals (CSCMP) or the Institute for Supply Management (ISM). By doing so, you’ll have the chance to meet a specialized group of industry professionals who can offer career advice, share best practices, and help you make new connections—which can be incredibly valuable if you are seeking a mentor to help guide you in your career development.

Another way to network within the supply chain and logistics industry is to utilize social media. Social media can be used to research job openings, connect with like-minded professionals, and understand company and industry areas of focus. Create a professional profile on LinkedIn, Facebook, and Twitter to help build your personal brand, and leverage these sites to find companies and people you may want to work with. It’s also a good idea to follow key industry blogs, and interact with both the authors and other followers by posting comments and sharing their posts with your followers.

Stay Relevant With Emerging Technology

New technologies are helping to evolve the supply chain. With software services such as Tableau and SAP that allow you to forecast, plan, and report more efficiently, companies are now more interested in hiring candidates with up-to-date knowledge and skills within the software and technology space.

To help your resume stand out from the crowd, highlight any software experience you have and consider enrolling in classes and programs that focus on these technologies. Hiring managers will be impressed if you have a working knowledge of key software programs and the latest technologies.

Never Stop Learning

As innovative technology continues to make its way into the supply chain and logistics sector, it’s crucial for professionals to continue developing new skills. For example, data security is now at the forefront of the industry, due to the Internet of Things (IoT) as well as advances in cloud computing that give businesses, sellers, marketers, manufacturers, and suppliers real-time information from their connected devices. Logistics professionals may therefore want to consider certifications in data security, such as the TENEX Security Management System for the Supply Chain, to help protect sensitive consumer and company data stored in the cloud. Remaining educated on this topic will help enhance your resume and show employers that you place value on growing your skill set.

Other certification programs with professional organizations can also help you to enhance your operations and supply chain management skills. For example, APICS offers The Certified Supply Chain Professional (CSCP) and Certificate in Production and Inventory Management (CPIM) certificate programs, while CSCMP offers The SCPro™ certificate. Each certification offers different benefits and eligibility requirements depending on which position or career track you are most interested in.

By understanding how your skills can impact an organization, networking with other industry professionals, and continuing to develop critical skills, you can advance your career in supply chain and logistics and become a trusted member of any organization.

Procurement professionals must continually sharpen their skills in negotiation and risk assessment, for example, in order to meet increasing requests from consumers for products that cost less but deliver high quality and are environmentally friendly. They also need to stay current on disruptive technological innovations like robotics and drones that can cause a shift in the business.

Successful companies recognize the need to focus on training and development, and they seek and highly value employees who demonstrate a continuous learning mindset. As a result, companies and professionals who focus on continuous learning and development are positioned for growth.

Companies are demanding increased efficiency and productivity from their employees. And, they are turning to technology as a crucial enabler to meet organizational and individual learning needs and deliver smart, relevant content that is easily accessed anytime, anywhere on any internet-enabled device.

E-Learning revolution

With these benefits, it’s no wonder e-learning as an educational offering is revolutionizing corporate training. In fact, more than 75 percent of companies in the United States offer online corporate training to their employees, according to eLearningindustry.com, an online community of professionals involved in the e-learning industry.

With e-learning, employees can take their courses any time, set their schedule to learn at their own pace, and retain more information in less time. It requires 40 percent to 60 percent less time from employees than learning the same material in a classroom, according to a study by the Brandon Hall Group.

Other research demonstrates additional benefits that combine to make e-learning one of the fastest growing industries in the world:

• E-learning increases retention rates compared to face-to-face training because e-learning students have more control over the learning process, including the opportunity to revisit the training as needed.
• Companies report an increase in their competitive edge and in revenue as a result of offering corporate training through e-learning because it creates a more engaged workforce.
• Companies save millions of dollars in costs associated with travel, lodging and meals, equipment, and instructors as they maximize their employees’ time.

E-learning can be particularly beneficial for corporate enterprises since it enables them to make training available to large numbers of employees whose time for ongoing education in the workplace is limited. It also ensures that employees are receiving consistent training regardless of geographic location or occupations that require significant travel.

The Institute for Supply Management (ISM) introduced its own custom online learning program in spring 2016 called “eISM.” It offers different learning options suited to different styles or requirements such as 15-minute or less learning modules, courses ranging from three to five weeks, and individual modules for self-paced learning.

E-learning educates employees more efficiently and effectively, and enables businesses to adapt more quickly to change, helping both to keep their competitive advantage in this fast-paced world. While many industries can benefit from it, supply management professionals in particular can now consider this as yet another tool to remain competitive.

1. Learn everywhere. Learning opportunities include conferences, webcasts, best practices, and workshops. Learning from members offers another great opportunity. Listen closely to members’ varied perspectives, experiences, successes, and failures.

2. Teach others. What do you do extraordinarily well? Do you succeed with social media or know a way to bring customers value, save them money, and still make a profit? Association members would benefit by learning new ideas and solutions from you.

3. Share experiences. If you would rather not teach, or you dislike public speaking, you can still share your experiences with others one-on-one or in small groups. Professional associations, even though many times composed of competitors, foster a spirit of sharing.

4. Network regularly. Membership offers opportunities to build and nurture relationships. You can get to know people from all facets of the supply chain sector including members, vendors, partners, event speakers, and the media. This network is helpful when you need to hire someone great or if you are looking for a career change.

5. Develop a trusted group of peers. This goes beyond basic networking. Developing career-long relationships with people you can trust helps when you’re facing a logistics challenge or need to share some new ideas confidentially.

6. Get involved. Professional associations offer plenty of opportunities to volunteer, participate in events, work on committees, or even join the board of directors. Most associations are volunteer-led so your participation is essential.

7. Encourage others to join. Help your association grow by encouraging others to join and vendor partners to participate and support it. It is everyone’s responsibility to help the association thrive.

8. Mentor members. Are you an influential industry leader? Many people in your association are new in their roles or new to the industry, and they need you to help them become successful. Are you young or new to the logistics sector? Find people you admire and learn from them. You can return the favor later in your career.

9. Embrace change. Step up and help your association make positive changes if the agenda starts to drift from the core. Conversely, don’t be opposed to change suggested by others just because it’s different than the way you did things in the past. Healthy associations evolve.

10. Enjoy events. Most associations plan social events throughout the year. Go ahead and enjoy. It’s good for your state of mind. There is plenty of work to do in any volunteer group so don’t feel guilty when it’s time to kick back and have some fun.

For Gilmore, one key to rewarding civilian employment consisted of three letters: CTL. They stand for Certified in Transportation and Logistics, a credential he earned from the American Society of Transportation and Logistics (ASTL) in June 2013.

Certification in a supply chain discipline shows that you know your stuff. The work you do to earn this stamp of achievement helps you deepen or broaden your knowledge without investing in an advanced degree. The same is true of a supply chain certificate offered by an academic institution.

Certification vs. Certificate: What’s the Difference?

A certification is a credential from a professional organization. Besides ASTL, some other sources of certification in supply chain-related fields are APICS, the Council of Supply Chain Management Professionals (CSCMP), the Institute for Supply Management (ISM), and the Supply Chain Council (SCC).

To earn a certification, usually you must take an exam or series of exams. Those who pass may add a set of letters to their names—for example, CPSM for Certified Professional in Supply Management (from ISM) or CPIM for Certified in Production and Inventory Management (from APICS). To maintain their certifications, every few years professionals must demonstrate that they have taken classes, attended meetings, or otherwise kept up with developments in the field.

A certificate is a document that proves you have completed a non-credit course of study at a college or university. Don’t let the "non-credit" part fool you: these programs can be rich and rigorous. Unlike a certification, a certificate doesn’t earn you a string of letters after your name. On the other hand, you don’t need to renew it. Like the diploma you earn in a credit-bearing program, once you earn it, a certificate is yours for life.

People may pursue certificates and certifications at many different points in their careers. ASTL, for example, collaborates with several high schools and community colleges to prepare students for the entry-level Global Logistics Associate (GLA) credential.

"We also have a mid-level credential for people who have some experience," says Laurie Denham, president of ASTL in Washington, D.C. Individuals whose companies want them to add logistics to responsibilities in other areas, such as finance, may pursue that credential as well.

ASTL’s CTL—the one Gilmore earned—is an advanced designation. "That designation is pursued by people who have been in their jobs for 25 years but maybe didn’t finish college, or didn’t get a degree in supply chain or logistics and transportation," Denham says.

The certificate programs at Michigan State University (MSU) also attract many experienced professionals. "Sometimes people progress through their careers to a high level in an organization without a formal supply chain education," says David Frayer, director of executive development programs at the university’s Eli Broad College of Business.

Those people want to complement the practical knowledge they’ve gained on the job with the deeper understanding a formal program provides, he says.

Other students in the program come from entirely different disciplines, such as engineering, marketing, or sales. "They are trying to position themselves to take on broader, more strategic responsibilities," Frayer says.

And some people, such as Gilmore, pursue certificates or certifications to ease the transition from the military to civilian supply chain management.

Higher Pay

Besides enhancing a student’s knowledge, a certificate or certification may significantly enhance your career prospects. For example, people who earn certifications from APICS see their earnings increase by 14 to 21 percent. "The certification designates a higher level of knowledge, and better applying the practices within supply chain and operations management," says Abe Eshkenazi, CEO of APICS. Those achievements tend to impress corporate managers.

"Hiring executives tell us that resumes highlighting an industry credential go to the top of the list," says Denham.

Donna Raihl, a purchasing and supply management specialist with the U.S. Postal Service (USPS), earned the CPSM from ISM in 2012. "Having a CPSM behind your name is the golden ticket," she says.

Students who finish the courses for the Supply Chain Management Certificate offered by the University of California, Los Angeles (UCLA) Extension often call Carol Eisman, anxious to know when they’ll receive their documents. "When it comes time for job evaluations, their managers want to see that they’ve finished the certificate," explains Eisman, program manager, technical management.

When a business underwrites the training for certificates or certifications, the advantages are twofold: not only does the company gain more supply chain expertise, but it gains a new benefit for valued workers. "We find that investing in education increases employee retention," Denham says.

Many advantages of certificates or certifications also accrue to people who earn undergraduate or graduate degrees. Deciding which route to follow may boil down simply to how much time and money you feel able to invest.

Each option—gaining an industry credential or pursuing a degree—offers its own advantages. "A certification means you’ve been validated on a body of knowledge," says Denham. "But if you sit in a classroom for 30 hours, you’re going to be digging a little deeper."

Unlike courses leading to a degree, the programs that prepare students for APICS certifications focus on the nuts and bolts of supply chain management. "This is for individuals who want not only to gain the knowledge, but also to apply it," says Eshkenazi.

Many Choices at MSU

If you want to earn a supply chain certificate, you’ll probably apply to the continuing education department at a college or university. MSU, for example, offers two week-long residential programs aimed at people who have reached more senior levels in their careers. These take place on the main campus in East Lansing.

The school also offers a year-long program, the West Michigan Supply Chain Management Certificate Series, at the Steelcase University Learning Center in Grand Rapids. In addition, MSU provides several online Master Certificate supply chain management programs that emphasize logistics, operations, procurement, or integrated supply chain management.

The West Michigan series is designed particularly for people who execute company strategies. Class assignments include a project that students must scope out, design, review, and implement, then report on.

But all of MSU’s supply chain certificate programs take a broad view, showing how supply chain strategies can drive innovation and financial health. "The courses help open people’s minds to the real potential of supply chain," Frayer says.

That’s why the MSU programs often attract professionals from other fields—such as business planning, information technology, and customer service—who want to take on broader, more strategic roles, he adds.

Kevin Johnson, human resources manager, supply chain operations at the retail chain Meijer in Grand Rapids, entered the West Michigan program to learn more about the organizations he serves within the firm. "I felt that getting some cross-functional knowledge would better position me," he says.

Johnson manages HR for the company’s distribution centers and manufacturing facilities, and for related operations such as logistics, food safety, and asset protection. He holds a bachelor’s degree in business economics from Florida A&M University, and is finishing an MS in employment law from Nova Southeastern University. He also holds an HR certificate from MSU.

For their project, Johnson and three other Meijer employees in the program developed a plan for moving privately branded milk from two Meijer-owned dairies into stores. This wasn’t just an academic exercise: the company might implement the new strategy. "We ran it by our executive team, and they liked it," Johnson says.

Collaborating with colleagues from Meijer helped Johnson forge ties that serve him well on the job. "This has enhanced my knowledge as an HR professional, to become a better partner to the businesses I support," he says. Interacting with peers from other companies, and with the instructors, also proved extremely valuable, he adds.

Meijer sends four employees to the West Michigan Supply Chain Management Certificate Series each year. It’s a way to cultivate people who have shown potential. "This incremental exposure, providing better knowledge of supply chain management, will position them as leaders," Johnson says.

UCLA Extension offers its Supply Chain Management Certificate program mainly online, although companies can arrange to offer it in-house as well. "We’re currently holding the program on site at the Boeing Company in Huntington Beach," notes Eisman. The school has also sent instructors to teach the course for the Los Angeles Unified School District, the Los Angeles Metropolitan Transportation Authority, Northrop Grumman, and Raytheon.

To qualify for the certificate, students take six required courses and two electives. Instructors post narrated PowerPoint presentations, and some also schedule live Web sessions, allowing students to interact. Instructors archive those sessions for students who aren’t able to attend.

In some courses, students team up to conduct projects, often with a practical bent. "Most instructors allow students to pick projects relevant to their work," Eisman says.

GLOBAL ATTRACTION

The online program draws students from all over the world, including military personnel on deployment. Demand has increased in recent years, reflecting a corresponding demand in the job market. "Supply chain management has become an important skill and asset for a company," Johnson says.

One special feature of the UCLA program is its relationship with the Los Angeles chapter of ISM. The school encourages students to participate in ISM’s events and to pursue its CPSM certification. It also keeps that certification in mind when it designs its curriculum.

"We have worked with ISM-LA to look at elements on the CPSM exam, to make sure our classes are comprehensive and cover all those topics," Eisman says. "Our program is hands-on and practical; it’s not just geared to an exam." But it does cover the subject matter that ISM considers important.

Raihl at USPS says the UCLA program was invaluable to her preparation for the CPSM exam, in part because the instructors explained how to handle real issues one might encounter on the job. "Without that education, along with book knowledge, I would have failed," she says.

Raihl started working on the UCLA certification in 2008 and completed it in 2011. She entered the program because she wanted to advance in her career without committing to graduate studies. "I wasn’t sure I was ready to spend the money and time on a master’s degree," she says.

After earning the CPSM in 2012, Raihl found that the two credentials attracted attention from potential employers such as Lockheed Martin, Accenture, Hilton Worldwide, and Nike. She joined USPS in 2012, and is currently working on an MS in government contracts through George Washington University.

ASTL: Avatars and Cohorts

Students who want to prepare for ASTL certification have several options. Some high schools and community colleges teach the GLA curriculum to qualify students for entry-level jobs in logistics.

In Florida, ASTL’s Jacksonville chapter underwrites the course at 15 high schools. "Any student who graduates and passes the GLA exam can articulate 12 hours in college credit to any state college in Florida," Denham says.

Curriculum specialists at ASTL designed the GLA course with advice from industry professionals. Schools that deliver the course can employ both classroom instruction and online modules using avatars and gaming strategies.

Students also can study for the GLA on their own. "We send the student materials, and they do the online avatar program," Denham says. "Then they go to a test site or to their HR department to get a proctor, and take the exam."

People who want to prepare for the mid-level Professional Designation in Logistics and Supply Chain Management (PLS) or the advanced CTL can study on their own or work with colleges or universities that offer the relevant courses. The University of North Florida (UNF), for example, offers a program leading to the CTL. The classroom experience in this "cohort program" provides terrific opportunities for networking, Denham says.

The classes draw a wide range of participants. "Some people have had no experience in logistics at all; some have just had military experience; some are shippers; some are carriers," she says.

Gilmore says he chose UNF’s cohort program in part because the ASTL credential is widely recognized in and around Jacksonville.

During his job hunt, the CTL provided an extra edge. "I was proud to put those letters behind my name," Gilmore says. "They spark some people to ask, ‘What does that mean?’—and I get to describe it."

The certification also put him one step ahead of applicants with college degrees but no professional credentials. "It proved that I knew what I was talking about when I applied for some of those jobs," he says.

Gilmore holds a bachelor’s degree in business from St. Leo University and a master’s degree in management, with a concentration in procurement and contracting, from the University of Maryland University College.

For people trying to decide which supply chain or logistics certification to pursue, a good first step is to define the job you want, then find out which credentials are most valued by employers in that field. "Make sure you take the right path to get you where you want to go," Gilmore says.

One other route to ASTL certification is an academic waiver. Under a recent agreement between ASTL and American Public University System (APUS), students who complete an undergraduate or graduate degree in transportation and logistics from APUS can also receive the PLS from ASTL.

APUS is an online institution that includes American Public University and American Military University. It draws students mainly from the military (including veterans), public safety organizations, and the private sector.

The certification is a valuable addition to the undergraduate or graduate degree. "Professional certification is a great way of validating your expertise in a given field," says Jennifer Batchelor, director of the transportation and logistics management program at APUS.

APICS Options

APICS offers two certifications. CPIM is designed for someone who has two or more years of experience in the field but doesn’t necessarily hold a bachelor’s degree. To earn it, the candidate must pass exams in five areas: Basics of Supply Chain Management, Master Planning of Resources, Detailed Scheduling and Planning, Execution and Control of Operations, and Strategic Management of Resources.

Certified Supply Chain Professional (CSCP) is geared to professionals with five or more years of experience in the field, or with a bachelor’s degree and two or more years of experience. The exam includes three modules: APICS Supply Chain Management Fundamentals; Supply Chain Strategy, Design, and Compliance; and Implementation and Operations.

Both credentials have a practical orientation. "This is for individuals who want not only to gain the knowledge, but to apply the knowledge," Eshkenazi says.

For example, the CPIM covers subjects such as inventory control, materials resource requirements, and strategic management of resources. "Each module for the certification trains individuals on a specific content area in the organization’s planning, manufacturing, inventory control, and production," he says.

APICS updates the content of its training and exams every few years, based on its studies of real-world supply chain practices. "We focus on the skills necessary to maintain an individual’s current job and competencies, as well as on what the organization is looking for to advance the enterprise and the individual," Eshkenazi says.

A candidate can prepare for the CPIM or CSCP exam by taking an instructor-led course sponsored by more than 200 local chapters across the United States or 90 partners around the world. "We also have an online program and self-study opportunities," Eshkenazi says.

Jason Wheeler, process improvement manager at Roche Diagnostics in Indianapolis, and the chairman of APICS’ board of directors, started working on his CPIM in 2004. At the time, he worked for tomato processor Red Gold, and started taking the review class sponsored by his local APICS chapter.

When he moved to Roche, Wheeler joined an on-site class, and earned the credential in 2005. In 2006, he was part of the first wave of candidates to earn the newly developed CSCP. Wheeler also holds a bachelor’s degree in statistics, with a minor in math, from Eastern Kentucky University.

Although experience taught him a great deal, Wheeler says the certifications deepened his understanding of certain aspects of his work.

For example, he has learned to appreciate what the supply chain looks like from the perspective of his vendors. With a good understanding of those motivations, Wheeler says he has been able to build several collaborative relationships that benefit both Roche and its suppliers.

People sometimes turn to Wheeler for advice about whether to pursue certification or enter an MBA program. His answer depends on the person’s goals. For those who want to keep working in supply chain management, an APICS certification offers a great advantage. "I describe it as a specialized MBA," he says. But if your ambition has a broader scope, an MBA is probably the better choice.

online only gets lonely

For those who decide to pursue certification, Wheeler suggests that they not rely entirely on online preparation. "You get the education and the content online, but you miss out on valuable real-life examples," he says. Sitting in a review class with colleagues from different industries, and from companies large and small, you’ll hear many stories about strategies that worked or didn’t work in various settings, he says. Those stories will stick in your mind.

Whichever option you choose from the many available, the chance to gain in-depth knowledge and practical insight will likely make a certification or certificate well worth your while.