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Knowledge by Association


As supply chain management continues to evolve, so, too, must logistics organizations. Here's how CSCMP, NASSTRAC, and others are reinventing themselves to better serve their members, and keep careers moving forward.

Sometimes it's not what you know, but who you know.
 
Surrounding yourself with peers who share similar interests and a drive to succeed can yield considerable dividends; they can help you discover and embrace new ideas and grow your professional resume. But where can you find these peers? Industry trade organizations are a great place to start.

Given the rapid pace of change in today's global world, networking among logistics and supply chain practitioners is critical. New technologies and tactics manifest themselves seemingly overnight as businesses and their supply chains grow longer and more complex. Keeping up with tomorrow's trends often means keeping in touch with yesterday's friends.

"It is important for logistics professionals to continue their education and hone their skills," says Greg Chalkley, manager of logistics and business services for Dallas-based Texas Instruments.
 
"If they don't keep up to date on new strategies and technologies, their skills can become stale. Membership in logistics associations can be beneficial to both educational and professional development."
 
 

Terri Ferraro, director of supply chain and transportation for Sun Prairie, Wisc., retailer Famous Footwear, echoes similar sentiments.
 
"The tangible benefits of belonging to an industry trade organization are obvious: career development, education, knowledge by association," she says. "A formal education in supply chain management or logistics will get you closer to meeting your career goals, but I can't emphasize enough the real-world, face-to-face value of getting involved in an industry organization."

The importance of "knowledge by association" has hastened many logistics and supply chain professionals to align themselves with consortia specifically attuned to transportation and trade's changing dynamics.
 
For some, industry associations are a sounding board for global trends; for others, they are a vehicle to expand knowledge and create a network of industry contacts. For many, industry associations perform all these functions, and more.
 
Get Under the Umbrella 
Organizations such as the Council of Supply Chain Management Professionals (CSCMP) and NASSTRAC bring their memberships together under a unique academic umbrella, driven by annual conferences, regional meetings, and industry research  --  all of which emphasize networking and collaboration.

"As an organization, it's our job to understand what members need to solve the issues all supply chain professionals face  --  constantly changing customer dynamics, globalization, the current transportation marketplace, and supply chain constraints," says Rick Blasgen, president of CSCMP. "We develop products and services that members can use in the everyday management of their supply chains."

CSCMP works in cooperation with private industry and various organizations to provide organized activities, research, and meetings designed to develop the theory and understanding of integrated supply chain management. These activities also foster professional dialogue and development for its global membership of more than 14,000 supply chain professionals.

In July 2004, CSCMP's executive committee voted to change its name from the Council of Logistics Management (CLM), a decision then-president Elijah Ray attributed to "meeting the changing needs of our members and our profession."
 
Breaking Down Barriers, Enhancing Collaboration
It wasn't the first change. Since its start in 1963, the organization has frequently morphed  --  from the National Council of Physical Distribution Management, to CLM, and now CSCMP  --  to reflect the changing dynamics of transportation, distribution, and trade.

"As our industry has evolved, so has CSCMP," says Blasgen.

A great impetus for CSCMP's change in direction was the realization it needed to more accurately reflect new rules of engagement in the supply chain as well as provide a superior model for enterprising businesses. Key to this shift has been emphasizing the importance of collaboration.

"We are collaborating with other organizations to drive mutually beneficial research and education, and bring value to our collective constituencies," says Blasgen. "No one organization can do it all. Just like a successful supply chain, all participants must work together to ensure seamless execution."
 
NOT Business as Usual 
For CSCMP members and supply chain professionals in general, globalization is another key change agent. Increasing globalization demands a strategic approach to efficiently integrate silo functions, not only within corporations but within the extended value chain as well.

For Texas Instruments, evolving sourcing strategies have a significant impact on how it collaborates with global supply chain partners. "Our customers are located all over the world and they all have stringent demands. Our ability to collaborate with them is critical, especially as our supply chain becomes longer," says Chalkley.

Chalkley's participation as an active member of CSCMP and its regional Dallas, Texas, roundtable has been a valuable resource in expanding his perspective on global business.

"Through CSCMP and other organizations, I can tap peers from various industries and disciplines to see what they are doing, and marry their experiences with how Texas Instruments operates. The more you talk to people, the more you learn," he explains.

CSCMP's new direction and name now mirror the reality that members such as Chalkley find themselves operating in.

"We have to drive research and education in new areas  --  never losing sight of our logistics core, yet broadening our perspective," Blasgen says. "The boundaries are constantly shifting and expanding, and our evolution will likewise force change as we strive to deliver increased value."

Though CSCMP has proved adept at keeping up with the fast-paced global environment of supply chain management, not all logistics trade organizations have evolved as fluidly  --  nor do they serve as large a constituency. Some instead support specific groups or modes rooted by fundamental interests.

Waconia, Minn.-based NASSTRAC, for example, has always been a visible advocate of small-shipper interests on Capitol Hill. Its legacy has been creating a unified voice among LTL, small package, and parcel shippers to ensure legislative activity and policies mesh with their interests.
 
A Rock in the Stream 
Increasing discourse among industry pundits about the importance of driving greater collaboration among shippers, carriers, and third-party intermediaries, however, has placed a premium on diversity.
 
This shift in thinking poses an interesting quandary for smaller, special-interest organizations such as NASSTRAC: members look to them as a bastion of advocacy and leadership, as well as an arbiter of innovation and progress. Where, then, do they draw the line between sticking to their core mission, or embracing change, possibly diluting their fundamental role?

In 2003, for example, the National Industrial Transportation League (NITL), in an effort to drive greater collaboration, decided to amend its membership rules to afford carriers and 3PLs equal status as shippers. NASSTRAC, by contrast, continues to operate as a shipper organization first and foremost, and carriers and intermediaries are only allowed associate member status.

This advocacy will not change, but that doesn't mean the organization is "a rock in the stream," notes NASSTRAC President Denny Grim.

"NASSTRAC is moving forward progressively by educating our membership," Grim says. "We are meeting shippers' needs for an organization that no longer caters only to expedited, small shipments."
 
The organization now incorporates all modes, and is tackling globalization and other key issues. 

"The impact of globalism and intermodalism has compelled us to make this strategic move," Grim adds. "Our members have responsibilities that are wider than our previous niche."

In fact, the organization is now identified simply by its acronym and not its original name, the National Small Shipments Traffic Conference.

For members such as Terri Ferraro, NASSTRAC's changing direction offers the best of both old and new, in terms of legislative awareness and shipper advocacy, and information about broader global trends.
 
'Go-To' Information Source
"As a shipper, I'd be lost without the legislative information I get from NASSTRAC," she says. "It gives me the inside scoop as legislative proposals are being developed.

"NASSTRAC, for example, notified us in advance about the fuel surcharge in the recent Highway Bill," Ferraro adds. "Learning about the implications of the provision early enabled me to take action on behalf of my company to try to influence a favorable outcome."

But Ferraro also recognizes the fine balance NASSTRAC must navigate as it attempts to link its traditional core responsibility with this new vision.

"NASSTRAC is evolving to anticipate and structure services to meet the needs of the next generation of logistics and supply chain professionals," she says. "Yet, its leaders also work to weigh and support today's logisticians. It's a balancing act."

One way organizations have helped ease the transition for members is by placing more emphasis on educational initiatives. NASSTRAC and its board of directors, for example, recently endorsed more regional educational programs and activities, while additionally encouraging greater input from transportation professionals.
 
Fostering Professional Growth 
"We offer a network that allows for our members' professional growth," Grim says. "The level of educational focus has been paramount to the organization's success." 

The educational focus similarly provides members a resource as they move forward in their careers. Ferraro, for example, recently switched from a consumer product manufacturing company to her current position with Famous Footwear, a consumer product retailer.
 
Although the business models are different, and her transportation needs are equally varied, NASSTRAC remains her "go-to" source for industry and professional information.

"Through NASSTRAC's educational seminars, webinars, and annual membership meetings, I keep my industry skills up to date," Ferraro says. "The organization provides the information I need to anticipate industry developments, and actionable information to carry out my responsibilities at Famous Footwear.

"In addition, I've learned the real meaning of collaboration with partners, suppliers, and customers through my affiliation with NASSTRAC," she notes.

The role of trade organizations is to offer a network where professionals can fulfill three major objectives, says Grim.
 
"Supply chain professionals that want to stay at the top of their game need to first, continue their education; second, understand advocacy  --  the more they know, the better they are at resolving problems; and third, network and collaborate with non-competing professionals," he says.

The success industry trade organizations have achieved, and the level of communication and information sharing they have engendered, has not gone unnoticed. Enterprising corporations across all industries and modes are similarly recognizing the importance of creating knowledge "get-togethers" within their own four walls and among key business partners.

One such event is Transformation 06, an annual conference sponsored by Yellow Transportation and Meridian IQ for business partners and industry colleagues. The meeting and exhibition offers educational tracks, breakout sessions, and workshops, as well as networking and career advancement opportunities for attendees.

"The conference is designed around learning, with a mix of large general sessions and individual applied breakout seminars," explains James Welch, president and CEO of Yellow Transportation, Overland Park, Kansas.

At a pre-conference meeting of more than 1,000 Yellow employees this year, Yellow/Meridian unveiled a new educational approach called "root learning," a process Welch likens to learning by osmosis.

"It's a visual approach," he says. "The idea behind root learning is that people are more apt to retain information if it is presented in creative and stimulating ways."

This fresh and innovative approach to learning dovetails perfectly with the conference's mission. "We want to continually transform our company and keep it moving forward because industry is evolving," explains Welch.
 
Creating Cause and Effect 
This example of cause and effect  --  corporations taking a proactive approach to facilitate professional growth and development not only within their own enterprises but also among business and supply chain partners  --  is what trade organizations are aiming to create.

"We're ultimately trying to help our members be open to best practices across multiple disciplines," says NASSTRAC's  Grim. "Companies don't talk to companies; people talk to people. Therefore our network must have real depth that can reach out into the marketplace."

NASSTRAC, CSCMP, and other logistics organizations are helping pave the way for more cross-enterprise collaboration by educating their members and creating open forums for discourse and information sharing.

"Truth builds trust and trust sells product. But first you must find the truth about yourself, your company, and the marketplace," says Grim.

Industry trade organizations lay the foundation for this "truth seeking" as they create environments that provide industry professionals with the tools, skill sets, and information they need to make sound, intuitive supply chain decisions.


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