Art of Supply

On April 9th, Rene Haas, CEO of Arm Holdings, a British semiconductor and software design company came out and made a statement about data center energy consumption that most people would find shocking. He said, “by the end of the decade, AI data centers could consume as much as 20% to 25% of U.S. power requirements. Today that’s probably 4% or less.” Everyone wants to talk about AI, but this reality is something we don’t discuss nearly enough. AI may be the greatest unrecognized threat to the environment today, because AI is an energy hog. Example: It requires nearly 10 times as much energy to do an Internet search in ChatGPT as using Google. Are the added benefits or the improved experience worth it? What about at scale? In this episode of the Art of Supply podcast, Kelly Barner takes an honest look at the very real problem of AI-driven energy consumption: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletterArt of Supply on AOP Subscribe to This Week in Procurement

“We know what matters to our employees, and we know what matters to our customers, and we know where the leadership view is. That alignment means that you make progress more easily because you’re focused on stuff that matters and that people care about.” - Gareth Hughes is the Business Services and ESG Director for Whistl If the road to hell is paved with good intentions, as they say, what is the road to sustainability paved with? Put another way - if the road you are journeying down is lined with little more than good intentions, how can you be sure you’re traveling in the right direction? This week’s episode of Art of Supply is the monthly interview, and it features a guest that both knows where he is headed and is armed with more than good intentions. Gareth Hughes is the Business Services and ESG Director for Whistl, a UK based e-commerce and logistics business. They provide business mail services and eFulfillment services. His current responsibilities include procurement, property, facilities, fleet, and delivering ESG impact. In this conversation, Kelly Barner invites Gareth to speak candidly about how he has taken his passion for ESG and turned it into a successful and fully operational program: Links: Gareth Hughes on LinkedInKelly Barner on LinkedIn Art of Supply LinkedIn newsletterArt of Supply on AOP Subscribe to This Week in Procurement

Heavy-duty trucks include tractor-trailers, ambulances, garbage trucks, and school buses. All of these are now on an official timeline for reduced emissions, in alignment with a new Federal mandate. Manufacturers of heavy-duty vehicles must reduce their overall emissions by mandated percentages according to model year, starting with their 2028 models and extending through 2032. When the rules were released on March 29th, we heard the usual responses from the usual cast of characters. Environmental advocacy groups love it, and trucking industry associations say it is ridiculous. But will it work? In this week’s episode of the Art of Supply podcast, Kelly Barner investigates the details of the new rules to better understand: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletterArt of Supply on AOP Subscribe to This Week in Procurement

80 percent of all ship-to-shore (S2S) cranes at ports in the United States - and 75 percent of all S2S cranes in the world - are made by just one company: ZPMC. Short for Shanghai Zhenhua Heavy Industries Company Limited, ZPMC is a Chinese state-owned manufacturing and engineering firm. It was founded in 1992 and quickly grew to become the largest S2S crane manufacturer in the world. U.S.-China relations have been on shaky footing in recent times, making concerns about these cranes, and the critical role they play in major ports, a top priority in both the private and public sectors. In this episode of the Art of Supply podcast, Kelly Barner looks at the high stakes associated with port security and why cranes are at the center of everyone’s attention: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletterArt of Supply on AOP Subscribe to This Week in Procurement

On February 28, 2024, New York Attorney General Letitia James sued JBS, the largest meat company in the world, for civil fraud. James is accusing the company of ‘greenwashing’ or making statements to sound more environmentally friendly than they truly are. In 2021, JBS made a commitment to reach net zero emissions by 2040. James says this statement is “unsubstantiated” and “unachievable” without reducing production, and that their marketing campaigns “in effect, provide environmentally conscious consumers with a ‘license’ to eat beef.” What earned JBS the unwanted attention of the Attorney General’s office in New York? The company has plans to be listed on the New York Stock Exchange before the end of the year - and a vocal chorus has risen up to oppose the move. In this episode of the Art of Supply podcast, Kelly Barner looks at this case in the context of the overall corporate sustainability movement: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletterArt of Supply on AOP Subscribe to This Week in Procurement

“China’s supply chain has gone through significant, transformative changes in the last five years. For executives or engineers, designers or buyers, who have not been here since before COVID, they’re going to see a completely different China.” - Jeffrey Goldstein, Founder & President of Onward Global It is impossible to discuss global supply chains without being hyper aware of the role of China. Whether it is their access to critical raw materials, specialization in certain production processes, or labor advantages, relocating supply chains to other parts of the world is harder than it sounds. Even companies looking to embrace a China +1 strategy have found that few +1s are ready to come online as quickly as industries need. Jeffrey Goldstein is the Founder & President of Onward Global. Based in Shanghai, he and his team serve as the ‘boots on the ground’ for companies around the world that are sourcing in China, helping them overcome cultural and strategic obstacles to value. In this episode of the Art of Supply podcast, Kelly Barner welcomes Jeffrey to share his first hand perspective on doing business with Chinese suppliers today: Links: Jeffrey Goldstein on LinkedInKelly Barner on LinkedIn Boots on the Ground in Shanghai, China feat. Jeffrey Goldstein, President of ONWARD Global (Dial P for Procurement) Art of Supply LinkedIn newsletterArt of Suhttp://artofsupply.compply on AOP Subscribe to This Week in Procurement

In October of 2021, Hertz announced that they would purchase 100,000 Tesla Model 3’s for their rental fleet, followed by 175,000 from GM, and 65,000 from Polestar. The move was supposed to help them overcome shortages of conventional cars, lend the recently ex-bankrupt company a ‘cool factor,’ and lean on the sustainability trend to drive revenue. Instead, it backfired. On April 1, 2024, Hertz will get their fifth CEO in four years. How could this strategy, one that seemed to be in alignment with corporate and consumer sentiment, go so wrong? In this episode of the Art of Supply podcast, Kelly Barner looks at the series of events that have made it hard for a series of CEOs to lead the company successfully: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletterArt of Supply on AOP Subscribe to This Week in Procurement

The global off-price apparel and home fashion market is estimated to be worth $900 Billion. While retailers like Macy’s and Bed Bath & Beyond faltered or fell over the last few years, the chains owned by TJX - notably TJ Maxx, Marshalls, and Home Goods - have thrived. TJX has seized the opportunity to snatch up excess brand name inventory and sell it at a discount over the last few years, but their growth is not a COVID-related fluke. The foundation for their success was laid decades ago, and continues thanks to investments in talented buyers, strong supplier relationships, and company culture that wisely puts profits above pride. In this episode of the Art of Supply podcast, Kelly Barner goes on a treasure hunt much like the TJX shopping experience to discover: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletterArt of Supply on AOP Subscribe to This Week in Procurement

In early February, news hit that there was a problem with the new Major League Baseball uniforms. Redesigned by Nike and made by Fanatics, the new uniforms were unveiled with tremendous fanfare. They were designed to be more comfortable, cooler, and better at moisture wicking. Unfortunately, one man’s breathable is another man’s translucent. Pictures started to appear on social media that revealed far more than anyone would want. The LEAST of the players’ concerns was that tucked in jerseys were visible through the pants. In this episode of the Art of Supply podcast, Kelly Barner covers the supply chain relationships and issues at play in this year’s MLB uniform debacle: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletter Art of Supply on AOP Subscribe to This Week in Procurement

“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena…” - President Theodore Roosevelt, 1910 The last four years of supply chain challenges have taken a toll. People are exhausted, stressed, and scarred. Unlike many areas of life that have gone back to ‘normal,’ supply chains continue to be batted about by geopolitical strife, the economy, and literal attacks. The result of all that pressure? A generation of brilliant supply chain professionals ready for anything the future might throw at them, says David Moran, a 25-year supply chain executive with experience working for companies like Procter and Gamble, Diageo, and Kentucky Fried Chicken. In this week’s Art of Supply, Kelly Barner welcomes David to share his perspective on the unique opportunity to have survived supply chain work since 2020: Links: David Moran on LinkedInKelly Barner on LinkedIn Art of Supply LinkedIn newsletter Art of Supply on AOP Subscribe to This Week in Procurement

“Wisdom is given equally to everybody. The point is whether one can exercise it.” - Taiichi Ohno, The “Ten Precepts” The supply chain profession has recently run the gauntlet of existential challenges. Is it possible that - given enough time - they could return to the old ways? There have recently been a number of news stories about retailers returning to just-in-time inventory management. If that is the case, and supply chains are returning to pre-pandemic practices with minimal changes, then we may be setting ourselves up to forget… and fall prey to the same failures once again. In this week’s Art of Supply, Kelly Barner starts by looking back at just how ‘out’ just-in-time inventory management was: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletter Art of Supply on AOP Subscribe to This Week in Procurement

On February 2, 2024, news broke on one of the court cases we’ve been following for a while. In May of 2023, two of the companies owned by Byron Allen, a black businessman and producer, sued McDonald’s for $100 Million in California for fraud and false promise. The suit claimed the company lied when it said it was going to spend more money with black-owned media companies. California Superior Court Judge Mel Red Recana dismissed the case against McDonald’s and ordered Allen to pay their legal fees. But if you know anything about Byron Allen, you know that this is not over - not by a longshot. In this week’s episode of the Art of Supply podcast, Kelly Barner reviews the implications of this ruling: Links: The Downside of Supplier Diversity at McDonald’sKelly Barner on LinkedInArt of Supply on AOP Subscribe to This Week in Procurement

In today’s digital age, jokes are often made at technology’s expense. Computers don’t like switching from one virtual meeting platform to another. Sometimes webinar platforms insist upon seeing someone’s earbuds as a microphone rather than as a speaker. And why does software always need to update when we are already 5 minutes late for a meeting? Digital gremlins have become the tie that binds, and we are all conditioned to be patient, recognizing that nothing - least of all software - is perfect. But what if the problems with software go beyond minor inconvenience and actually disrupt people’s lives and livelihoods? What if the software creates a problem that operators are legally blamed for? What if the software provider aids in the process of convicting them rather than owning up to the bugs in their own product? If this sounds crazy, you’re not alone. You’re also probably based outside the UK where this exact story has been playing out in the news and in the courts. In this episode of the Art of Supply podcast, Kelly Barner covers the UK Post Office scandal: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletter Art of Supply on AOP Subscribe to This Week in Procurement

On January 5th, Alaska Airlines flight 1282 left Portland, Oregon en route to Ontario, California. Just minutes into the flight, the Boeing 737 Max 9 lost a door plug, creating a gaping hole in the side of the aircraft. Fortunately, all 171 passengers and six crew members were safe, largely because the plane had only reached 16,000 feet, minimizing the amount of cabin decompression that took place. It also helped that no one was sitting in front of the plug, which was put in place to cover a spot that otherwise would have been an extra emergency exit Once the shock wore off, the questions began. How did this happen? Whose fault was it? And how can we prevent it from happening again? The answer to all three questions involves the supply chain: one specific supplier and a model of outsourcing that is common in the aerospace industry. In this episode of the Art of Supply podcast, Kelly Barner considers the specific issues at play in this situation as well as in the industry as a whole: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletter Art of Supply on AOP Subscribe to This Week in Procurement

In 2013, then-Amazon CEO Jeff Bezos predicted that drone deliveries would be a reality in five years. More than 10 years later, they are still largely in the pilot phase, but a drone final mile is becoming a reality fast for some parts of the company. As the FAA reduces restrictions on drone deliveries in places like the Dallas-Fort Worth metropolitan area, they are kicking off a race to make drone deliveries realistic, affordable, and available to consumers, bringing small items to consumers in 30 minutes or less. Companies like Amazon and Walmart are now locked in a race to incorporate drones in their consumer delivery supply chain. In this episode of the Art of Supply podcast, Kelly Barner looks at the current state of innovation and experimentation in drone final mile delivery: Links: Kelly Barner on LinkedIn Art of Supply LinkedIn newsletter Art of Supply on AOP Subscribe to This Week in Procurement

In June 2023, Sharat Ganapati, an Assistant Professor of International Economics at Georgetown University and a Faculty Research Fellow at the National Bureau of Economic Research, and Woan Foong Wong, Assistant Professor of Economics at the University of Oregon, wrote a research paper that was published in the Journal of Economic Perspectives. Titled How Far Goods Travel: Global Transport and Supply Chains from 1965-2020, the paper takes a new look at global transportation. Unlike traditional trade metrics, which often fail to reflect the role of distance, they examine transportation usage worldwide by weight and value as well as distance. In this episode of the Art of Supply podcast, Kelly Barner takes on the rewarding challenge of digesting the key findings expressed in this highly relevant academic paper: Links: How Far Goods Travel: Global Transport and Supply Chains from 1965–2020Kelly Barner on LinkedIn Art of Supply LinkedIn newsletter Art of Supply on AOP Subscribe to This Week in Procurement

On New Year’s Eve, weeks of rising tension in the Red Sea reached a boiling point. Houthi militants tried to board the Maersk Hangzhou just one day after hitting the vessel with a missile. The ship’s crew sent out a distress signal that was picked up by the USS Eisenhower and the USS Gravely, which sent helicopters to support the on-ship-security team. Three Houthi ships were destroyed and ten assailants were killed, according to the Houthi military’s own report. The crew of the Hangzhou is safe and there were no indications of fire resulting from the missile strike. That skirmish marked a new level of escalation in a string of missile strikes and drone attacks that have plagued commercial vessels traveling through the Red Sea since November. In this week’s episode of the Art of Supply podcast, Kelly Barner provides a supply chain point of view on a story that has been featured above the fold for weeks: Links: Houthi Rebels Seize Israeli-Linked Cargo Ship in Red SeaKelly Barner on LinkedIn Art of Supply LinkedIn newsletter Art of Supply on AOP Subscribe to This Week in Procurement

Effective today, Dial P for Procurement is the Art of Supply. Rather than being a change in content, this rebrand brings the name and brand identity of the show into alignment with the content we have already been creating. Building on the strength of the category-leading Art of Procurement podcast, Art of Supply will focus on supply chain topics and news stories while advocating for the impact all supply management professionals can have on companies, industries, the environment, and people everywhere. Art of Supply will continue to provide in-depth researched coverage of trending supply chain news stories, and we will welcome thought leaders, executives, and newsmakers to the show to share their point of view in their own words. In this episode, Kelly Barner will provide a series of updates to start the new year: Links: Kelly Barner on LinkedIn Subscribe to This Week in Procurement

Looking all the way back to the beginning of the year has a way of putting everything into perspective. The individual and cumulative impact of all of the events that took place in 2023 can not be understated: from legal action, to labor unions, to geopolitics. In this episode, Kelly Barner reviews the stories and topics covered on Dial P for Procurement this year - following the lead of the listening audience. She goes back to the beginning of the year to see which three Dial P for Procurement episodes had the greatest number of downloads and reveals which of the ‘honorable mention’ episodes topics the procurement social media community voted for as most representative of the general business tone in 2023. Links: Kelly Barner on LinkedIn Subscribe to This Week in ProcurementListen to Dial P for Procurement on Art of Procurement Dial P for Procurement on Apple PodcastsDial P for Procurement on Spotify Dial P for Procurement on Google Podcasts Episodes and newsletters referenced: The Power and Danger of Asking Good Questions Socrates: Ignorant Influencer or Disruptive Thinker? A GAAP in Judgement at Kraft Heinz I’ll Gladly Pay You Tuesday for a Hamburger TodayLoss Aversion Theory and the Collapse of SVB We are Hardwired to Avoid Loss More than Risk Case Dismissed: Spencer Patton Prevails Over FedEx The Fine Line Between Free Speech and Commercial SpeechReading FedEx Ground the RICO ActIs there a supply chain mafia?

With all the recent buzz about electric vehicles (EVs), not to mention the push towards sustainability and emissions reduction, it was only going to be a matter of time before electric Class 8 trucks entered the scene. Class 8s are classic semis or tractor trailers, so they are not just part of the supply chain, they have supply chains themselves. There are a number of companies in the space, some with familiar names and some that are startups. Commercial electric trucking has been in the news recently, and not for entirely good reasons. In this episode of Dial P for Procurement, Kelly Barner covers two recent news stories and an emerging business model: Links: Kelly Barner on LinkedInDial P for Procurement on AOP Subscribe to This Week in Procurement