The supply chain industry is an avenue full of career opportunities that can make a global impact. From supply chain to distribution and logistics, many young professionals are unaware of the career paths available in the industry

In the previous blog we examined in close detail the differences between material requirements planning (MRP) and distribution requirements planning (DRP). It was stated that at first glance, it appears that DRP is very much like MRP.

Shipping demand and prices for 2016 remain sluggish, experts say, leaving smaller third-party logistics (3PL) providers challenged and larger companies shopping for potential acquisitions. According to JOC.com, Echo Global Logistics is an example of a fast-growing logistics company that is expanding through acquisition.

Logistics professionals help keep the world running in ordered motion. Their vision and imagination continually solve daunting challenges of time and space, yet forecast trends for the years 2016–2030 reveal a wave of change, which will test those talents.

The oil and gas industry is readying itself for a comeback. According to The Wall Street Journal, after two years of oil slump, there is a slow recovery happening. However, this recovery might be encumbered by labor shortages, equipment that has sat idle too long, and cash availability.

APICS magazine has changed quite a bit in the 12 years that I have been an editor here. As the supply chain field has transformed and advanced, many subjects that once dominated our pages have evolved into different methodologies and solutions; others simply dwindled in popularity.

In the previous blog we introduced the DRP grid. It was stated that the advantage of DRP is that it not only generates planned DOs when demand exceeds supply, it also places these planned DOs in the requirements row of supplying facilities.

In Lagos, Nigeria, curbside salespeople used to offer anything from plantain chips to mobile phones. In fact, street trading and street hawkers are a cultural tradition in this largest city in Nigeria. In a June 30, 2016, New Yorker article, Jake Bright describes these merchants and Jumia, the company that might change commerce as Nigeria, and perhaps even Africa, knows it. Jumia is branding itself as the “largest e-commerce platform in Africa.”

Just about a week ago, the world received the news that citizens of the United Kingdom (UK) voted to withdraw from the European Union (EU) by a narrow margin of 4 percentage points. Now, after months of speculating whether or not Brexit could be a reality, the business world is forecasting how Brexit will affect global commerce. Shortly after the Brexit vote announcement, The Wall Street Journal published an article about how this political move will influence the European supply chain.

A daylong educational forum in Singapore in July will introduce the SCOR model to supply chain professionals representing some of the world’s largest and most recognized semiconductor and electronics companies. The event is the Singapore Semiconductor Industry Association 2016 Forum titled, “Supply Chain Metrics and Measures: Applying the SCOR Model to Modern Challenges.”

In the previous blog we introduced DRP by reviewing the definition from the APICS Dictionary. It was stated that because of the differences in replenishment lead times, DRP was the best choice when the supply source is a company plant.

Last week, UK citizens voted to leave the European Union (EU) with the passing of a referendum known as Brexit—British Exit. The tidal wave of reaction and speculation which followed the announcement signals far-reaching effects from this historic change, and many supply chain professionals are asking, “how does Brexit impact my supply chains?” While I can’t answer that directly, I can provide a framework for developing an answer.

The Seven Wonders of the Ancient World include The Great Pyramid of Giza in Egypt, the Temple of Artemis at Ephesus in Turkey, and the Hanging Gardens of Babylon in Iraq. The modern world has its own wonders. According to the American Society of Civil Engineers, the Panama Canal is one of those wonders. Its expansion will open June 26, and The Wall Street Journal reports that this improvement is critical to Western trade in the economic long run. The canal accommodates about one-third of Asia-to-Americas trade but required infrastructure upgrades to keep up with the latest shipping trends.

According to a Reuters report, Target is cracking down on suppliers to better compete with Amazon and Walmart. Target’s new policies, which took effect May 30, require suppliers to provide a single day arrival date for shipments to Target's warehouses and do away with delivery “grace periods.” Suppliers who fail to deliver on time will be charged late fees of 5 percent of the order cost, an increase from their previous 1 percent to 2 percent.

A highlight of the annual Gartner Supply Chain Executive Conference is the release of the top 25 supply chain list that ranks the best supply chains. (BTW, it was satisfying to see that 50% of the companies on the 2016 list work with APICS!) Winning an award presents a great opportunity to do some marketing, and that got me thinking that supply chain organizations should do more to market themselves.

I’ve had many conversations recently about the same theme: Supply chain and manufacturing offer great career opportunities. But how do we attract more people to these areas? We at APICS are not alone in this quest. I know this discussion is happening at many different employers, suppliers, and affiliated associations. Now, the topic has attracted the attention of mainstream media. Last week, The Wall Street Journal featured the article “How Manufacturers Are Recruiting Millennials.”

If we summarize the discussion in the previous blogs, inventory replenishment in a multiechelon supply channel occurs in three possible ways: product is allocated down the supply chain using some form of dispersion algorithm; a form of reorder point pulls product from supplying to satellite facilities; and distribution requirements planning (DRP). For distribution channels supplied from a production plant or have long-lead time items purchased from outside suppliers, planners would most likely choose DRP.

Water heater, car steering wheel, and frozen peas: These seemingly disparate things have recalls in common. And, according to The Seattle Times, they are just a few examples of the thousands of recalls manufacturers have issued in the past year. “The deluge shows no sign of slowing,” writes Stacy Cowley. “Across almost every product category, the scope and complexity of recalls are on the rise.”

The number of CMOs becoming more knowledgeable and enthusiastic about supply chain management is increasing as leading companies lean on supply chain attributes to position, promote and differentiate products, services and brands. If you’re a marketer looking for a great story to tell about your company—one that will capture the hearts and minds of a generation of customers—you may need to look no further than your supply chain.

3-D printing already has started shaking up the engineering, design, and manufacturing fields, and now it could reshape the distribution industry as well. Two major developments last month are changing the way products are produced and shipped to customers— potentially condensing the entire supply chain, according to Trucks.com.

In the previous blog we examined closely the mechanics of the reorder point (ROP) pull system. Although reorder points do provide an effective technique for multiechelon inventory replenishment, they have several important drawbacks.

The headline “How Coty Reinvigorated Its Supply Chain,” encouraged me to read with keen interest last week’s article in Harvard Business Review. Coty is a global beauty company, and its fragrance and color cosmetics portfolio includes such well-known brands as Balenciaga, Calvin Klein, Nautica, Sally Hansen, and others.

Trust and positive relationships with suppliers lead to more than general goodwill for automakers. According to Planning Perspectives President John W. Henke Jr., it can mean winning a supplier’s newest technology and most innovative designs, plus getting the best prices. This week, The Detroit News highlighted the results of the 2016 North America Automotive OEM Buyer-Supplier Study, conducted by Planning Perspectives.

In the previous blog a variety of pull system techniques were introduced: electronic techniques (EDI, CPFR, QR, and POS); a lean technique (kanban); and computer application-based (ROP and DRP). It was also stated that there are two essential criteria to consider when selecting a pull technique: 1) distribution lead time, and 2) the originating source of replenishment: either an outside supplier or an internal plant.

Company decision makers whom rely on railroads to ship their goods are finding that their prices are increasing even though freight volume is decreasing. Bloomberg reported last week that all major North American railroads increased prices in the earlier part of 2016, but freight is the lowest it has been since 2009.