So What Were Three DC Velocity Bloggers Doing in Scranton Pennsylvania?

 

Imagine how interesting it must have been to have representatives from both retailers and marketing companies sitting together for a whole day discussing the state of the economy and how it is impacting supply chains in the consumer goods area.

 

Kane is Able, a Scranton headquartered third party logistics company invited about dozen people to participate in a Supply Chain Think Tank with its executives.  Chris Kane, DC Velocity blogger on Distribution, Jack Ampuja on Supply Chain Optimization, and me on Consumer Goods all participated.  (Full disclosure, this was a Kane sponsored event intended to provide some useful input for Kane’s strategic planning.)

 

We covered topics from the projected growth in the global economy to what is happening on the store shelves of your local grocery.

 

The consensus view on the economy is clearly recovery, but slower than many would like to see.  John Metzger of Penn State’s Center for Supply Chain Research showed us some information that confirmed the impressive growth in market share for warehouse clubs and concerning trends for traditional department store and grocery chains.  Another related topic was the amount of debt that is now affecting the ability of the federal and state governments to deliver basic services.  Average base salaries and benefits are now higher for the average government employee versus the average worker in the private sector.  Whatever your political views, this is a challenge as we move forward.

 

Lee Stucky, retired Senior VP and Chief Administrative Officer of Wal-Mart International spoke eloquently about the three C’s that drive Wal Mart’s supply chain focus -  Communication, Collaboration, and the Customer. 

 

Sustainability is a high priority for all of the marketers who were represented.  Issues such as reducing the amount of water used in products and to make products as well as continuing efforts to reduce packaging, energy use, etc. need to remain on your radar.  Most publications including DC Velocity address sustainability in almost every issue.

 

Another energy-related subject that impacts everyone’s supply chain is the cost of oil, our discussions centered around the possibility of $100 a barrel oil sometime during 2010.  Efforts to reduce the amount of empty trailers on the road, fuel consumption, etc. need to stay high on everyone’s list to avoid the price breaking the current record $147 high.

 

Lastly, something for everyone in consumer goods to think about:  Kevin Smith, retired CVS Supply Chain VP, reported on research that shows that 86% of CPG consumer purchase decisions are made by the customer at home.  This is probably driven at least in part by the recessionary impact on impulse buying versus what is “on the list”.  However shoppers are likely to go on line in the search for low prices, deals, and coupons before they leave to shop.