Global Logistics and Supply Chain Strategies for the 2020s: Vital Skills for the Next Generation

406 Pages·2022·7.844 MB·English

by  Rico Merkert, Kai Hoberg

Rico Merkert · Kai Hoberg Editors
Global Logistics
and Supply Chain
Strategies
for the 2020s
Vital Skills for the Next Generation
Global Logistics and Supply Chain Strategies
for the 2020s
(cid:129)
Rico Merkert Kai Hoberg
Editors
Global Logistics
and Supply Chain
Strategies for the 2020s
Vital Skills for the Next Generation
Editors
RicoMerkert KaiHoberg
InstituteofTransportandLogisticsStudies SupplyChainandOperationsStrategy
TheUniversityofSydneyBusinessSchool KühneLogisticsUniversity
Sydney,NSW,Australia Hamburg,Germany
ISBN978-3-030-95763-6 ISBN978-3-030-95764-3 (eBook)
https://doi.org/10.1007/978-3-030-95764-3
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We dedicate this book to
Prof. Dr. h.c. Klaus-Michael Kühne,
in celebration of his 85th birthday and in
recognition of his lifetime contribution to the
global logistics industry. With over 60 years
as a champion of his field, he is a role model
as an exceptional benefactor who has
furthered the cause of academia to enrich
practice in supply chain management and
logistics.
—Prof Rico Merkert and Prof Kai Hoberg
Foreword
Business schools around the world have long known the value of teaching global
logisticsandsupplychainmanagement(GL&SCM).Thisisbothasectorandafield
of study with an exciting and challenging international management dimension.
While it is true that freight moves the world, it is also the case that the GL&SCM
sectorhasevolveddramaticallyinrecentdecades.Ithasexperiencedbothdisruption
and groundbreaking innovation—the latter often arising from the sector’s partner-
ship with universities like ours. Logistics and supply chain management has tradi-
tionally focused primarily on transportation and warehousing, but today
encompasses many different activities that enable the seamless orchestration of
material,financial,andinformationflows.Companiescombinetheirownresources
withthoseofpartnersandthirdpartiesandleveragecomplexnetworkstoproduce,
ship, and distribute their goods across the globe in ways unimaginable just twenty
yearsago.
The past decade has seen continuous progress and dramatic improvements in
global supply chains and logistics that have benefited all stakeholders. End
customers can take advantage of new innovative products that are offered at high
service levels and low lead times. Companies can draw from a huge portfolio of
suppliersacrosstheglobetoleveragetheirspecificskillsandbenefitfromlowcosts.
Suppliers can better align their manufacturing schedules with the actual needs of
their direct customers based onjust-in-time and just-in-sequenceprinciples.Logis-
tics service providers can use their end-to-end visibility in shipping schedules and
capacitiestoselectthemostappropriatecarriers.
Effortstooptimizesupplychainprocessescontinuedtobearfruituntiltheearly
2020.TheemergenceoftheCOVID-19pandemic,however,changedallourlives:
personallyandprofessionally.Thepandemichaddramaticconsequencesforglobal
supplychains.Italsounderlinedthefactthatglobalsupplychainsarethebackbone
ofmanyindustriesandeconomies.Suddenly,supplychainswereinturmoil.Wesaw
unprecedented stockouts and delays everywhere—in Sydney, in Hamburg, and
across the globe. Consumers had to confront the reality of empty toilet paper or
pasta shelves in supermarkets. Automotive plants were shut down due to a lack of
parts. Ports were congested and overwhelmed due to the backlog of containers
arrivingatthesametime.
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viii Foreword
Whatisnowevidentisthatthereisstillmuchworktobedonebycompaniesto
optimizetheirlogistics and supply chain activities. It isalso clear that this will not
occur without the right logistics and supply chain skills. But that only begs the
question: what are the “right” skills? From a business school perspective, this
questioncanbereframedintheseterms:inaworldofincreasingautomation,rising
concern about sustainability, and rapidly changing ecosystems, what are the skills
andqualitiesthatbusinessschoolsshouldseektoinstillintheirgraduateswantingto
pursuecareersingloballogisticsandsupplymanagement?
Oneofthemanycontributionsofthisbookisthatithelpstoaddressthisquestion.
In addition, for those who are seeking to become the next generation of leaders in
globallogisticsandsupplychainmanagement,thisbookdrawsontheaccumulated
wisdomofthemostrenownedscholarsinthefieldtoprovideinsightsintothesorts
ofstrategiesthatfuturetalentmightemploy.
Thisbook,then,istimely.Itisamust-readforanyoneinterestedinacareerinthis
sector. We are very proud that Professors Rico Merkert and Kai Hoberg brought
together such a large and impressive international team of globally recognized
academics and leading senior managers to contribute to this book. What could be
betterforgraduatesandyoungprofessionalsthanhearingfromthehorse’smouthor,
inotherwords,expertsinallthedifferentdisciplinesthattodayareconsideredglobal
logisticsandsupplychainmanagement?
Ofcourse,itisnotjusttheacademicswhohavecontributedtothisbookbutalso
the ecosystems that business schools, such as KLU and the University of Sydney
BusinessSchool,provide.Wetraintalenttounlearnoldhabits,tothinkstrategically,
andtoturnchallengesonthehorizonintoopportunitiesthatwillresultinvaluefor
businessesandwidercommunitiesand,ofcourse,asuccessfulcareerforthosewho
arebraveenoughtosetoutononeofthemostexcitingindustriesofthisandfuture
decades.Thefirststepintothatsuccessfulfutureistoreadthisimportantbook.
Dean,TheUniversityofSydneyBusinessSchool ProfessorGregWhitwell
Sydney,Australia
President,KühneLogisticsUniversity ProfessorThomasStrothotte
Hamburg,Germany
Preface
Globallogisticsandsupplychainmanagementhaveevolvedinthepastfewdecades
from an unpopular and often neglected area to a field that is widely seen as a key
enabler of business success. Especially, during the COVID-19 pandemic but also
duetodisruptionsandrisingcostsinmanysupplychains,globallogisticsandsupply
chain management have not only been rediscovered as a vital sector for many
industries and entire economies but also as an industry that is fun and financially
worthwhiletostartacareerin.
Inthenextdecade,itwillbecomeevenmorecriticaltodesigntherightlogistics
and supply chain strategies given potential challenging and disruptive economic,
technological (i.e. automation), and sustainability developments. Economic
developmentssuchasthefurthergrowthofAsianmarketsincreasedpoliticalfriction
across the globe leading to a reversal of globalization (on- and sure-shoring) and
strong interest in omnichannel retailing will all require managers to re-shape,
refocus, and potentially re-invent their entire supply chains. New technologies
such as the Internet of Things, digital manufacturing, or blockchain are emerging
quicklyandcould providecompetitive advantagetothosecompanies thatleverage
the technologies smartly while managers that do not adopt and embrace change
could be left behind. Last but perhaps most important for mankind, sustainability
aspects such as low-carbon transportation, closed-loop supply chains, or socially
responsible supply chain set-ups will become essential to operate successful in the
future.
Alltheseaspectswillaffectgloballogisticsandsupplychainsasawholeandalso
in different functional areas, such as air cargo, maritime logistics, or sourcing/
procurement. This book aims to dive into several of these functional topics to
highlight the key developments in the next decade predicted by leading global
expertsinthefield.Supplychainswillbemanagedbyanewgenerationofleaders
thatwillneedtobeequippedwithdifferentskillsandaninnovativemindsetthatnot
only embraces but also works hand in hand with technology and algorithms. To
preparethisnextgenerationofsupplychainleadersinabusinessschool/university
environment(producefutureproofgraduates)aswellasinthecontextofcontinuing
professional development (enhance skill sets ofcurrent leaders), this book features
contributions and key insights of globally leading scholars and senior industry
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x Preface
experts. Their forward-looking perspectives on the anticipated trends are aimed at
informingthereaderabouthowgloballogisticsandsupplychainmanagementwill
evolveinthenextdecadeandwhichgraduatequalitiesandskillswillberequiredto
succeedinthe“newnormal”environmentthatwillbecharacterizedbyvolatileand
increasinglydisruptedbusinessecosystems.
For practitioners and managers, this book aims to offer key insights in terms of
what may be the next big thing in this fast-changing industry. For graduates, this
bookprovidestipsonwhattostudyandwhatskillsarelikelytobeneededtostarta
successful career in logistics and supply chain management. Future scenarios are
envisagedtoprovidebothpractitionersandstudentswithinsightsthatwillhelpthem
toadaptandsucceedinafast-changingworld.
Sydney,NSW,Australia RicoMerkert
Hamburg,Germany KaiHoberg
Acknowledgments
We would like to acknowledge the contribution of the 33 globally recognized
academics and 24 senior managers (including their legal departments), as without
theirsupportthisbookprojectwouldhavenotbeenpossible.Wearefurtherthankful
to the Springer team, in particular Barbara Bethke who has helped us to make this
innovativepublicationformathappenatSpringer.
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