Supply Chain Roundtable: Turning the Tassels and Facing the Hassles
Hello, graduates, family and friends: This month, we celebrate not only your academic achievements, but also the beginning of your journey as professionals in one of the most vital and dynamic fields in the world — supply management.
As part of the pomp and circumstance, our virtual commencement speakers are the monthly roundtable of experts from Institute for Supply Management® (ISM®), who will conclude this edition with their best advice as you prepare to apply what you’ve learned into helping companies navigate their supply chain challenges.
And those challenges numerous and unprecedented: tariffs that disrupt trade flows, rapid technological change that redefines how business is done, and risks ranging from cyber threats to natural disasters — and our experts have plenty to say about those issues as well.
The panel, in their doctoral regalia and ready to approach the podium:
- Thomas W. Derry, ISM CEO
- Jim Fleming, CPSM, CPSD, Manager, Product Development and Innovation
- Paul Archiopoli, C.P.M., CPSD, CPIM, CMFGE, Subject Matter Expert
- Michelle Rohlwing, MBA, Manager, Product Development, Innovation and Learning.
Congratulations, Class of 2025! You’re ready to keep the world connected and moving — stronger, smarter and better than ever before.
Q: Is tariff chatter drowning out other challenges facing supply management organizations? Is there another issue that should be getting more attention?
Rohlwing: Tariff chatter is dominating news articles concerning the supply chain, but I think AI (artificial intelligence) and digital transformation should also be getting some attention, as addressing these topics can help companies manage the tariff situation and other supply chain risks. Another important challenge that will be coming up sooner than later is staffing. By 2030, all baby boomers will be retirement age. We are also seeing significant challenges with technology outpacing the availability of qualified professionals. Add changing immigration laws, and staffing could quickly become top of mind for many companies.
Fleming: Technology transformation should remain a key focus area. Suppliers both large and small are developing technological solutions that will provide benefits, regardless of the chatter. Year over year, the chatter fluctuates: tariffs, pandemics, earthquakes, global warming, wars and geopolitical strife. What remains constant is change. Organizations need to embrace and thrive in change. Technology will provide tools and capabilities that will enable organizations to succeed, no matter what the chatter.
Derry: I’ve talked about the new global compliance responsibilities the profession faces in this space before. But the theme of resilience remains critically important. Yes, tariffs are topic No. 1, but that’s essentially a cost driver. Resilience, on the other hand, is the ability to adapt to supply disruptions — changing political environments, technological advances, you name it — to make sure your company can not only survive, but also thrive, no matter what challenges you confront. Call it the antifragile supply chain, if you will. When it comes to your competitors, how do you turn adversity into advantage. It’s a totally new mindset for the profession.
Archiopoli: I don’t believe that tariffs are drowning out any other challenges. Most supply chain jobs are a steady stream of activity that requires parallel activity, just normal business. Of course, some businesses are more seriously impacted than others (and some, like defense, that tariffs won’t affect at all), but in general, the press and markets have overreacted to the situation, in my opinion. The tariff situation is just another “iron in the fire.” The big issues like AI and the talent pipeline are not going away — or losing the attention of the industry.
Q: The recent deal between the U.S. and China to cut tariffs, at least temporarily, has generated discussion on a “generalized” versus a “strategic” decoupling from China. Every company and industry are different, but in general, what is the best sourcing or supply chain approach with China? And how is that blueprint challenged by constantly shifting trade policy?
Derry: This is such a complex dynamic. As a company, you first have to realize that you’re a pawn in a game of three-dimensional chess. It’s clear that China has ambitions to be a global superpower. They already are, by many measures. It’s not clear to me that the U.S. has a defined strategic objective in response. Are we looking to thwart China’s advance — militarily, economically, politically? Are we focusing on out-competing and out-innovating? In the meantime, however, there are immediate steps that make sense simply to reduce our national- and economic-security reliance on our primary geopolitical rival. We’re already beginning to see investment, for example, in mining, refining and smelting capabilities for rare earths and critical minerals outside of China. Strengthening bilateral trade ties with our friends and neighbors makes strategic sense in this context. I don’t think decoupling is feasible or even desirable in the long run. But managing our reliance on a single country more intelligently only makes sense.
Archiopoli: Strategic decoupling is crucial for products of significant importance, such as pharmaceuticals, steel and aluminum, especially considering China's adversarial stance toward the West. However, labor-intensive manufacturing is likely to remain in low-cost areas like Mexico, Central America, India, Vietnam and the Philippines, which are poised to challenge China as their economies grow. Contrary to the belief that trade policy is “constantly shifting,” it is actually a deliberate public negotiation. This process can be uncomfortable, but as Finley Peter Dunne once said, “Comfort the disturbed, disturb the comfortable,” which aptly describes the current situation. From my personal experience, outsourcing American manufacturing has had devastating financial and social impacts on many regions of the country.
Fleming: This is a great example of how technology and scenario planning can become an asset. Organizations that are resilient, regardless of the challenge at hand, will succeed. We are a global economy and will continually have competing forces. Michael Porter was instrumental in helping executive staffs continually sense the environment for emerging forces. When organizations create strategies that embrace change and emerging forces, they will adapt at a much faster rate.
Rohlwing: The best sourcing strategy or approach with China is not having just one. Companies that are agile with creative solutions will succeed in managing their cost and risk. Tariffs, rising costs and related risks are not new and will always be there. Companies focused on supplier relationship management, leveraging technology and analytics and diversification will come out ahead.
Q: In recent years, have organizations generally become more proactive regarding supply chain issues, or are they still reactive?
Archiopoli: The short answer is yes to both. The longer answer: Recent history has highlighted how delicate global supply chains really are, forcing reaction in many industries. However, benefits of a proactive approach have always been recognized. A proactive supply chain can help mitigate risk, ensure continuity and prevent companies from being blindsided by surprises. Despite this reality, reactivity remains necessary to address issues as they arise (a daily occurrence in the profession). Another important element to consider is that technological advances have provided more visibility than ever, which supports decision-making. A great example is GPS and tracking of freight anywhere on the planet.
Rohlwing: Organizations are beginning to become more proactive, especially when it comes to risk. The challenges during the onset of the coronavirus pandemic helped to change this mindset. However, there is a culture of reactiveness that lingers and is inherent to the supply chain field. It’s difficult to change a culture, but it’s achievable by adopting new technologies and incorporating change management. ISM has a new course coming up, “Change Foundations for Global Procurement Teams,” that can help.
Fleming: Organizations are making significant progress in proactive and strategic solutions. While the profession may feel like drinking from a firehose (which gives a false sense of being reactive), corporations and customers realize their dependency on robust supply chains. ISM Research and other benchmark indicators continue to show improvement in many factors such as increased managed spend, profit margin preservation and revenue expansion. New technologies are being leveraged within spend management, cost reduction, risk mitigation, contract management and supplier performance. Supply chain employees should be proud of their impact. Remember, the best athletes are often the most tired at the end of a game.
Q: With college graduation season here, a new class of prospective supply managers will be transitioning from campuses to companies. What is most important for them to know as they start their careers?
Fleming: A long and fulfilling future awaits great talent. These new supply chain professionals will go into organizations with a fresh perspective and strong enthusiasm. They can add significant value by leveraging their data analytics and technology skills. Most organizations are overwhelmed with data and struggle to synthesize for results. Having new perspectives can help organizations overcome barriers — many they created themselves.
Derry: I’ve got a niece in this graduating class, so it’s not just an “academic” question for me. I would offer advice in two parts. First, as an employee, be reliable. Show up early, do excellent work, deliver on your commitments. Be a team-first person, not a me-first person. Good opportunities inevitably find people with those attributes. Second, as you consider where to work — now and in the future — try to find great leaders. Study them. Learn what makes them stand out, then emulate those behaviors and habits. If you do these things, then one day the next generation of graduates will be seeking you out as a leader to mentor them.
Rohlwing: My biggest advice for new graduates is to be open and flexible and to try positions that may not directly be related to your degree. My career was largely built by rarely saying no to an opportunity that was presented to me. Having a broad background in supply chain can help you see the big picture and also create a future of many opportunities.
Archiopoli: Work hard, bring value to the organization every day, pay attention, ask questions, voraciously learn and apply technology to build not only your qualifications, but also your own personal talent stack. It’s a simple formula that never fails.
(Photo credit: Getty Images/SDI Productions)