Supply Chain Roundtable: Winter Sports (and a Storm), Among Other Topics
During the 16 days of competition in the Winter Olympics, supply chain professionals might have seen a little of their jobs in the timing and precision of figure skating, the speed and risk of downhill skiing, or the feverish sweeping of curlers to get the objective on target.
While the Games concluded on Sunday, the flame remains lit for the roundtable of experts from Institute for Supply Management® (ISM®), who pondered which procurement tasks most resembled the events on the snow and ice of Italy.
That topic serves as the closing ceremony for this month’s discussion; questions along the way address AI acceleration, Winter Storm Fern and Lunar New Year planning.
On the Q&A relay is our panel — Stacey Taylor, MBA, vice president of procurement at Ocean Spray Cranberries, Inc. and Chair of the ISM Board of Directors; Jim Fleming, CPSM, CPSD, Manager, Product Development and Innovation; and Michelle Rohlwing, MBA, Manager, Product Development, Innovation and Learning.
Q: As investment in AI accelerates, where are supply chains most struggling to keep up? Memory supply (advanced versus legacy)? Fiber availability? Skilled labor to build and connect infrastructure?
Rohlwing: These are all definitely constraints, but the biggest challenge right now is advanced memory, not chips overall. AI needs special high-speed memory and there isn’t enough of it, which slows everything down. Behind that is skilled labor. There are not enough electricians, fiber techs and construction workers to hook up data centers.
Taylor: The investment is only half the challenge. Companies are still figuring out what AI they actually need, how to deploy it, how it fits with current operations, and how to manage risks like intellectual property loss or data integrity. With so many new options, it can be overwhelming — and procurement talent is still developing the skills to source and negotiate AI services effectively.
Fleming: I agree with Stacey and Michelle. One other major factor will be the energy required to run such AI facilities. In the U.S. alone, data centers are consuming approximately 5 percent of the nation’s electricity, and that figure is expected to double by 2028. Units of measure are in terawatt-hours; annual household energy consumption is measured in kilowatt-hours, which is 1 billion times smaller than a terawatt-hour. Major community power grids are being stretched to their limits. Such requirements for electrical power are bringing about a renewed look at nuclear power options.
All of these factors will continue to challenge supply chain organizations. But regardless of the situation, our profession and its employees continue to rise to the occasion with innovative approaches and laser focus.
Q: ISM’s Manufacturing and Services Business Survey Committee Chairs expect Winter Storm Fern to have an impact on the February PMI® data due to the widespread freight transportation issues. What were the biggest supply chain headaches from this storm, which covered many more square miles than the Texas Freeze of 2021?
Taylor: An event like this drives up costs because teams are forced into spot buys and constant re-planning to match shifting shipment timelines. The disruption creates a ripple effect across sourcing and transportation.
Fleming: I have observed grocery stores warning consumers of potential delays, hoping to prevent panic buying. Amazon has posted similar delay notices on its site. During the coronavirus pandemic, public awareness of supply chains grew exponentially and our profession rose to the challenges. Proactive measures continue to emerge, such as supplier sourcing strategies that create alternatives; logistics strategies that create flexibility; and technology solutions that create visibility. Supply chain professionals continue to acknowledge the expanding variables and strive for excellence.
Rohlwing: Because Winter Storm Fern disrupted transportation and suppliers across a much wider geographic area, companies had fewer viable alternatives, making rerouting, sourcing and recovery more challenging.
Q: Has Lunar New Year planning — especially around capacity commitments, transparency and restart timelines — changed in the post-COVID-19 era? Has it become a more complex risk management challenge?
Fleming: While Lunar New Year consumer spending increases tremendously and factory output decreases for weeks, it can be factored into supply chain plans. Sales and operations planning (S&OP) processes have to ability to accommodate such events. The most proactive supply management organizations are expanding their focus on the S&OP competency. Market supply and demand signals can be structured for upstream communication to suppliers and their suppliers. One more reason that strategic supply management continues to get a seat at the executive table.
Taylor: It’s not more complex; it just requires starting earlier and keeping communication open with suppliers. A simple shipment commitment tracking sheet still does the job.
Rohlwing: I am hearing that in some industries, Lunar New Year planning has evolved from a predictable seasonal slowdown into a more complex risk management exercise. Greater uncertainty is around labor return rates, capacity recovery, logistics availability and supplier commitments.
Q: In the Winter Olympics, which event feels most like managing a supply chain today? Why?
Taylor: Mixed curling — my favorite! It’s all about teamwork, strategy and placing the stone on the button to outperform the competition.
Rohlwing: I agree with Stacey. I’ll add that in curling, you are managing the friction, not eliminating it. In today’s supply chain, you don't avoid disruption, you actively manage it.
Fleming: Downhill skiing is a good comparison. The stakes are high, the speed and terrain are intense, and mistakes can mean the difference between winning or being carted away. Supply chain factors are similar because (1) performance impacts corporate cost and revenue as measured in the profit-and-loss statement and balance sheet, (2) risk factors such as tariffs, inclement weather, geopolitical tension and supplier financial weakness are constantly emerging or changing, and (3) strategic thinking and resilience planning are proactive measures to create a winning outcome.
(Photo credit: Getty Images/Marcin Wiklik)