Attention, supply chain professionals: The world's problems cannot be solved without your help

Supply chain organizations should work with governments and nonprofit groups to feed the world, heal the sick, save the planet, and make money too, says a new report from the research group SCM World and the Bill & Melinda Gates Foundation.With their recent report "Mobilising the Supply Chain Community to Solve Global Challenges: Engaging the Private Sector," the research group SCM World and the Bill & Melinda Gates Foundation have issued a call to action to members of the supply chain community.

The report suggests that the largest problems facing the world today—how to provide food and health care to all and how to make the world more environmentally sustainable—cannot be solved without help from supply chain experts. As David Sarley, senior program officer, Bill & Melinda Gates Foundation writes in the foreword to the report, "While we are increasingly seeing the emergence of the technology, tools, and products needed to make a difference, we need a community of partners to implement and ensure these products are available at the last mile."Report author Barry Blake, vice president of research for SCM World, argues that the foundation to solving these systemic problems is forming "shared value" collaborative partnerships among the private sector, the public sector (for example, development groups and nongovernmental organizations), and government. Blake borrows the term "Golden Triangle" from Coca-Cola Co., which uses it to describe these kinds of partnerships. These partnerships are necessary, according to Blake, because "no standalone organization has the resource capacity, the full suite of capabilities, or the means and motivation to independently tackle these challenges."The private sector supply chain community does not have to be involved in these types of partnerships just out of the goodness of its heart, says Blake; there are also commercial reasons to be involved. These shared-value engagements can open up new markets, provide innovative research and development opportunities, and serve to develop the next-generation of supply chain leaders, he explains.The report provides several case studies of shared-value partnerships. For example, Coca-Cola has set up 100 portable retail kiosks in rural villages across Africa. Made out of converted shipping containers, these stores also act as distribution centers as well as village centers, providing power, Internet connectivity, access to clean water, and refrigerated storage for vaccines and other medicines. Coca-Cola relied on government and nongovernmental organizations to provide information about local communities and how to tap into local manufacturing resources for the kiosks.The report acknowledges that creating a shared-value collaborative partnership is not easy. To help organizations that are interested in organizing and participating in this type of initiative, it details the roles that each of the three parts of the Golden Triangle plays and identifies potential barriers to success, such as a lack of trust between the various groups. It also suggests next steps and outlines motivating factors.The report can be downloaded from SCM World's website. The paper joins a pool of publications that emphasize the importance of public-private partnerships, including "Delivering in a Moving World" from the World Food Programme and "The Economic Development Role of Regional Logistics Hubs: A Cross-Country Study of Interorganizational Governance Models," by Yemisi A. Bolumole, David J. Closs, and Frederick A. Rodammer of Michigan State University, which won the Bernard J. La Londe Best Paper Award at CSCMP's 2016 Annual Conference.

New York Has Opportunities for Tech Investors

Investors are finding their way to profits through funds, crowdfunding and direct investments.By Christine Giordano

Investors are taking note: New York City is in an unofficial race to become the new Silicon Valley of tech startups.

The state's tax policies allow new businesses to operate tax-free for 10 years. Investors who want to give seed money to New York businesses are able to observe start-ups through the city's many incubators, which foster business growth. Larger tech companies are creating strong pools of tech talent, while the city's wonderland of activities lend themselves toward enticing the younger workforce.

"While New York may have started out being very media and ad-tech oriented, it has diversified and become very accommodating to VC investment generically," says Brian Rich, managing partner of New York-based growth equity firm Catalyst Investors. "The community has been built up substantially. Major tech companies like Google (ticker: GOOGL, GOOG) are fostering a base of talented workers for start-ups in the New York area."

Rich says New York is poised for market share growth in venture capital investment. "New York is at about 12 percent of total VC investing nationwide right now." He has his eyes on "three technologies that are going to change the shape of business as we know it within the next five years or so" – companies that offer technologies in artificial intelligence/machine learning, robotics and virtual and augmented reality.

The best way to invest in startups is to choose promising companies early on when they need seed money, because the second rounds of fund raising tend to be priced much higher and offer less reward, says Charlie O'Donnell, partner and founder of the venture capital firm Brooklyn Bridge Ventures. He researches promising tech funds, and creates a basket of 30 or more companies that need seed money.

Would-be investors can find such funds on the Quora website and First Round Capital and Gotham Ventures are two of many firms that specialize in seed funding. When choosing a fund, it's always best to see data on the fund's past performance and the firm's track record with other similar funds.

If investors don't invest through funds, they should surround themselves with other experienced investors, and consider joining an angel group of investors, he says. "You want to be in rounds where you know there are some professionals who know what they're doing," he says.

The Built in NYC website has listings of angel investor groups. Before you invest, ask around by talking to reputable bankers, lawyers or accountants. Like investing through a venture capital fund, angel investors generally make money only after several years – if at all – after a business they've invested in is sold or has a public stock offering.

Another method is through crowdfunding, although, O'Donnell says many of the hotter new startups don't want to work with everyday investors. Still, whereas you once needed to be an accredited investor with an annual income of $200,000 or a net worth of $1 million, crowdfunding now allows less affluent investors to get in on the game through many sites such as Flashfunders or Seedinvest with varying amounts.

If you go the crowdfunding route, invest only 5 percent of your portfolio, experts say, and diversify into 10 or more companies to hedge your risk exposure. Continue to research the companies you invest in, and make sure they have industry experience and backing from venture capitalists.

If you're actively seeking startups, consider business incubator accelerator programs. "It doesn't guarantee success, but at least you know that someone who has experience in the startup world has looked at it," O'Donnell says

One such incubator in New York is The Health Lab, where startups are connected with mentorship, research and testing. Currently attracting interest is RecoverMe, an injury recovery business focusing on the part-time workers compensation market; and Angulus, with a medical device using accelerator technology.

Unity Stoakes, co-founder and president of StartUp Health, says he's noticing a "wave of niche startups." Bigger investment firms are taking notice, he says, including GE Ventures, which is invested in 20 startups including Ornim Medical, Digisight, SilverVue and Apervita.

Here are some notable New York-based tech startups, some of which are seeking funding.

TheSquareFoot. This startup makes the search for office space as easy as renting an apartment. They combine a Zillow-like online listings platform with an in-house brokerage team to help businesses through the entire leasing process. "They're essentially the Compass of commercial real estate, a $30-billion-a-year industry," says Mark Lee, partner at Hokku public relations. TheSquareFoot is currently seeking investors for its Series A round of financing. Prospective investors can contact the company directly; the minimum investment requirement is $25,000.

Elemental Path. This smart-toy company is recognized for their award-winning line of CongiToys, which features internet-connected dinosaurs that are powered by International Business Machine's Watson (IBM) technology. The toy creates an interactive experience for kids similar to Apple's Siri (AAPL) or Amazon.com's Alexa (AMZN), with Elemental Path's patent-pending Friendgine technology that ensures kid-safe responses.

Two years ago, the company competed to win the licensing of the Watson technology. "CogniToys saw an incredibly successful Kickstarter campaign in 2015, raising over $275,000 in 30 days," says company spokeswoman Nicole Brief. "It's now on shelf at Toys R Us stores nationwide, as well as Amazon and its own e-commerce site."

Elemental Path recently closed a $3 million investment round and is currently raising a $4 million investment round to support their new product development and expansion into foreign languages and countries, including China. The minimum investment is $100,000.

DojoMojo. The company executes sweepstakes, contests and giveaways with multiple brands to acquire e-mails, social followers and phone numbers of potential clients. It centralizes everything on a single platform "where creating, executing and analyzing the efficacy of your partnership marketing efforts takes a fraction of the time it previously did," says DojoMojo founder Colin M. Darretta, who says more than 1,000 companies are already using service.The company is not actively raising investment money right now because it is seeking to build relationships with investors before taking capital from them.

Mobile Phone Masts Support Vaccine Supply Chain

Innovative partnerships between private sector companies, voluntary organisations and governments can help solve global challenges and provide access to healthcare and food.

A report by SCM World and the Bill and Melinda Gates Foundation’s, Mobilising the supply chain community to solve global challenges: Engaging with the private sector, highlighted the benefits of cross sector partnerships.The report cited how vaccine distribution in Ghana, Zimbabwe and India proved to be a perfect example of how such partnerships could work.In this case not-for-profit organisation Energize the Chain worked to build links between telecommunications providers, public sector ministries of health and bridging organisations such as the Global Alliance for Vaccines and Immunisation (GAVI).The partnership made use of assets and infrastructure not normally related to healthcare such mobile phone masts to provide vaccines for rural communities.Excess electricity from masts powered the refrigeration units needed to store vaccines that require temperatures between 2°C and 8°C.And vaccines were even stored within the towers themselves.“The towers typically have strong security, which makes them effective distribution nodes along the last-mile vaccine supply chain,” said the report.Seventy per cent of respondents to a survey believed supply chains could play a meaningful role in tackling global challenges, including universal access to healthcare, worldwide distribution of food and environmental sustainability.SCM World vice president of research and joint author of the report Barry Blake said: “No single group holds all the answers. Tackling such global challenges requires cross-sector partnerships, where each groups’ key capabilities are used to create shared value. By doing this, initiatives can become self-sustaining and provide real economic and societal benefit for all involved.”

Supply Chain—The Next Big Winner from the Sharing Economy

By Patrick Van Hull

The idea of the sharing economy has gained momentum in recent years, thanks to the success of brands like Uber and Airbnb. Both have generated impressive profits by adopting a collaborative approach to business; collectively, the companies are worth more than $75 billion. But while this mainstream success made the sharing economy a go-to business innovation tool, it can be said that supply chain is the original champion of collaborative working. Supply chain professionals are well-versed in managing an extensive network of partners in which each company works independently to deliver a final product. But the next step in the supply chain sharing economy is within co-managed collaboration, which will see partners share resources and strengths more broadly rather than in a linear fashion.

Sharing Economy of Scale

The latest report from SCM World shows that the supply chain industry is already seeing the benefits of this. A survey of 155 senior supply chain executives found that 10 percent of people are already participating in co-managed collaboration to manage, for example, people assets, physical assets, planning technology, data/reporting and business processes.The rise of the sharing economy means that finding the connections between individual companies becomes easier, as simplistic economics give way to dynamic networks through the merging of digital, physical and human resources. These connections, or networks of networks, help to fuel growth, both instantly and in the longer term, resulting in far more collaborative success.

The Customer Is King

The real motivation for companies adopting this sharing economy-style way of working lies in the need to cater more effectively to customer demand. Essentially, a single decision can influence a series of networks that make up the entire web of partners and suppliers, extending beyond just one organization to affect the resulting interaction with consumers.By implementing a more opportunistic supply chain—one which addresses customers’ needs as soon as they’re created rather than trying to predict upcoming demand—a company is able to go beyond delivering the right product to the right place at the right time to connect supply and demand more efficiently.

Big Data Means Big Value

The real driver of the sharing economy within the supply chain is data. More than 70 percent of survey respondents said they receive valuable reporting data direct from customers and suppliers that is less than a week old or even in real time. Further to this, sharing data and reporting was one of the most popular areas for co-management of resources for companies that are already making the most of the sharing economy.By placing timely and valuable data at the center of supply chain operations, it’s possible to create more valuable platforms between partners. For example, a collaborative web portal can give visibility to everyone involved, from suppliers and contract manufacturers to third-party logistics providers and even customers. This level of visibility provides efficiencies that go beyond those platforms that simply connect internal operations to individual suppliers and customers.

The Time to Act Is Now

Most within the supply chain community have been slow to act, but the majority still acknowledge the potential for monetization within a sharing economy supply chain. Almost a third of respondents to the survey consider themselves a first mover or a fast follower in monetizing the opportunities with the sharing economy.What does this mean in the real world?The impact of a decision within a supply chain extends beyond just one organization. It influences a series of networks that make up the entire web of partners and suppliers.For example, UPS, SAP and Fast Radius, a 3D printing company, work together to create an on-demand 3D printing manufacturing network. The working partnership sees SAP coordinate the real-time purchase and supply order data, while Fast Radius uses the data to print a product and UPS delivers the product to the customer.

Seize the Supply Chain for Success

The optimization of point-to-point supply chains is old news. Savvy supply chain executives now have the perfect opportunity to re-evaluate the way in which they work and interact with their partners. Considering that companies no longer have to contend with the lack of consistent platforms to connect with other businesses, it will be those that can adapt to a more collaborative style of working that will see the most opportunities for success.Patrick Van Hull is the vice president of research at SCM World.

Climate change: Why supply chain executives must lead by example

While world leaders debate whether climate change is real, it's time for supply chain professionals to take the lead.By Kevin O’Marah, SCM World

Unless there’s an ice cap melting right in front of you, it can be easy to ignore that climate change is happening. But the reality is that each month seems to be ‘the warmest on record’ and 2016 is set to be the hottest year ever.Numerous A-listers have championed the cause. Leonardo DiCaprio has just spent three years making a documentary on the subject, titled Before the Flood, while Emma Thompson experienced eight days on a boat in the Arctic with Greenpeace. Even Barack Obama took part in a TV show with Bear Grylls last year as part of his efforts to shine a light on the issue.Yet political leaders are slow to make headway. This is attributed to a range of factors from the complexity of the problem to a lack of political will: President-elect Trump was, for example, accused of treating climate change as an afterthought on the campaign trail.But while world leaders seem to simply ponder and debate the situation, there is still a great deal that can be done, and it’s clear to me that it’s the responsibility of supply chain professionals to take the lead.Problem or solution?The supply chain sector is on the frontline when it comes to the environment. It is us who are cutting down the forests, cooking the chemicals and dispatching the fleets of trucks that emit much of the carbon causing global warming. It’s logical to conclude therefore that we are responsible – but we’re also the ones who are in a position to change things.I’m not alone in thinking this. In the SCM World annual Future of Supply Chain survey last year, 54% of 1,018 supply chain professionals said they believed their supply chains played a “substantial role in ensuring long-term environmental sustainability”. The other 46% agreed that their supply chains played a “limited but meaningful role” in tackling it.Take the consumer packaged goods industry as one example where this is significant: 98% of respondents cited their supply chain impact as “substantial”, while 60% said their impact was “limited but meaningful”. Only three ticked the “none” box.Walking the walkIt’s very easy to talk the talk, but putting it into action is a different matter. But it’s plain to see that supply chain executives are showing a real readiness to attack sustainability challenges. The industry is now doing more than just raising awareness (as important as that is) and is setting clear and accountable goals. In February 2016, for example, Unilever promised 100% elimination of non-hazardous waste to landfill, while IKEA’s Better Cotton Initiative saw it become the first major retailer to use 100% cotton from more sustainable sources.These are prime examples of companies doing the right thing, and pledging a better, more ecological supply chain now and for the future. It’s also a demonstration of transparency and trust.The power of the consumerShoppers believe their buying decisions make a difference and are increasingly willing to drop brands that fail to deliver on sustainability and climate change promises. Most brands understand the impact of consumer purchasing decisions, but not all of them are capitalizing on it. Brands need to enter a genuine dialogue with consumers where they can build trust and credibility; one where they can authentically say to shoppers, “we’re on the same side, we have a shared goal.”People aren’t just steering away from unethical products; they’re also willing to pay more for those that meet ethical standards. A 2015 survey from GT Nexus revealed that 52% of US consumers would pay more for food and beverage products that were sourced ethically and sustainably, with 28% saying they would pay up to 20% more.However, part of the challenge has to be in negating any perception of “greenwashing”. It’s important to strike the right balance between communicating a “green” message that benefits the business commercially, and delivering environmental good. When it tips the wrong way, it can be disastrous. Just look at Volkswagen. The company looked to design a way to circumvent emissions control, with the aim of making it the world’s biggest carmaker of environmentally friendly cars. When allegations emerged that it was in fact rigging its vehicles with software that “cheated” during emissions testing, the reputational damage was huge. People can sniff out the marketing spin and the end result is often a perception of disingenuousness, and even greed.The bottom line is that buying better is one of the consumer’s most powerful forms of protest – and brands that don’t listen will lose out.Taking a standWhile the Volkswagen issue was clearly a disaster, it did help to highlight the importance of measuring carbon emissions accurately – and ethically! So in the interest of transparency, why don’t we call out carbon as we see it and encourage companies to declare how much they’re contributing to global carbon emissions? Calculating precise carbon levels per item is a near impossible task but surely even estimates would go some distance? We needn’t offer figures down to the third decimal point but committing to ongoing improvement is a start when it comes to creating a greener planet.The first step in a long journeyWhile our research indicates the food and beverage industry is leading the charge when it comes to the issue of environmental sustainability, largely because of its close relationship with consumers who are showing a willingness to spend more on eco-friendly products, the sector’s proactive initiatives will surely cause a trickle-down effect that encourages other industries to follow. And this is how supply chain can start to make a real difference in creating an environmentally sustainable world. Yes, tackling climate change and carbon emissions may only be one aspect of a bigger conversation. But we need to take a stand, and this is a pretty good place to start.Kevin O’Marah is the chief content officer for SCM World. He can be reached at hello@scmworld.com.

It’s Time to Put More Women at the Top of the Supply Chain

By Kevin O'Marah Chief Content Officer, SCM World

Increasing the number of women in leadership positions in public companies improves profitability. Men and women work in different ways, bringing different strengths to the table, so it makes sense that gender diversity means better business decisions. So, why is the supply chain profession still struggling to attract, retain and recognize female talent?To put things in perspective, according to SCM World’s poll of global universities, women accounted for 37% of students enrolled in university supply chain courses. Yet when you analyze Fortune 500 companies, only 5% of the top level supply chain positions are held by women.Things don’t improve as you look further down the managerial line either. A similar gender imbalance exists among those roles that serve as a stepping stone to the top, with 56% of businesses having fewer than one in five supply chain supervisor positions filled by females.Although these statistics are disheartening, it would seem that perception is not the problem. 71% of global supply chain professionals believe women have a different natural skillset than men, and of those, 91% consider these skillsets to be advantageous to working within supply chain management. So how is it that so few females are in the top jobs?

Look Behind the Numbers

Supply chain is often seen as a numbers game. And it can be all too easy to boil down female representation in the industry into a list of percentages and statistics. While this is helpful to start a conversation about just how important the issue is, change will only happen once there is a real-world impact and action is taken as a result.Ultimately, for companies to build more equality there needs to be a bigger commitment from those in leadership positions to find and develop a strong and diverse talent pipeline. Beth Ford, group executive vice president and chief operating officer at Land O’Lakes, accurately summed up the issue when she wrote that “senior leaders have a critical role to play: they must sponsor high potential women, which means actively working to position them effectively; understanding the challenge presented; and being direct in counseling about the importance of mobility and flexibility on their career trajectory.”

Collaboration is Key

What’s interesting to note, however, is that skills and traits that are typically defined as “female” are often the ones that are most beneficial when it comes to working in supply chain. Collaborative skills are especially important. The ability to effectively negotiate and work with multiple stakeholders—whether this is internally among marketing, engineering and supply chain, or externally between trading partners—is key to smooth and efficient supply chain management.Essentially, supply chain is about balance, not dominance. And the true leaders in the field are able to find this balance consistently. In my experience, women are far better at collaboratively working to achieve a common goal, and often will take the role of bringing about collective success even if it comes at their own expense in terms of recognition and advancement.Working in a way that leverages the skills of everyone involved in the supply chain process means people are better informed and equipped with everything they need to ensure a high-functioning supply chain. Supply chain leaders should reward those employees who can see the bigger picture and are able to find a way for the team to win as a whole, instead of just individually.

The Building Blocks

From my years working with supply chain professionals and many hours spent discussing how to best promote gender equality in the industry, a few key points have stood out.QuotasIf you say the word “quota” in terms of employing women, it can spark a lot of debate and draw quite strong opinions from both sides of the argument. Yes, some may say it goes against the traditional approach to merit-based career advancement, but it has been pointed out time and time again that a specific numerical target is most likely needed to really make change happen.Mars, Cisco and Deutsche Telekom are just some of the companies that have set targets (40% is typical) for women in leadership positions. While just blindly filling these spots won’t benefit anyone, it is essential to have this kind of benchmark to spur action within the industry.Promoting work/life balanceIt goes without saying that balancing work commitments with everyday life is key to ensuring better gender representation in supply chain. Countries like Finland legally require companies to offer parents of either gender up to three years’ leave. And men are also increasingly likely to take on the stay-at-home parent role. Both these things are likely to assist women in progressing further in their careers.Support career progressionThere is a critical junction in many women’s careers where they are often left to choose between family and full-time employment. It’s important that businesses provide ongoing assistance with career planning, advocacy and general job support. A number of companies have programs in place that help keep women on track during the critical transition from a director position to VP. For example, Cisco has iWise, Mars has Women Leading Powerfully and Lenovo has WILL.Looking at the future of supply chain and considering the hugely beneficial skills women can bring to the table, it’s high time we knock down the barriers currently faced by the majority of females. To truly succeed and make a difference to the world’s biggest issues, the industry will require a new generation of skills, and that will create an equal and diverse leadership.

BrightFarms raises $30.1 million to set up futuristic greenhouses across the U.S.

By Lora KolodnyAgriculture tech startup BrightFarms has raised $30.1 million in Series C funding to bring its high-tech greenhouses, and fresh produce, across the U.S.The company is on a mission to make all fresh fruit and vegetables locally, rather than require them to be hauled from long distances or imported from overseas before they are sold at groceries.Taking a page from the playbook of solar power providers in the U.S., BrightFarms offers customers a long-term, fixed rate on the salad greens and tomatoes it grows in its greenhouses to grocers.

BrightFarms-raised produce.

The startup’s CEO Paul Lightfoot explained that after BrightFarms locks in a “produce purchasing agreement,” it raises funds from various sources including economic development programs and different banks or equity firms to build a new greenhouse.In effect, a big chunk of the company’s cost of goods is already committed revenue before they open up a greenhouse’s doors and start growing.The new round of funding was led by Catalyst Investors, and joined by BrightFarms earlier backers WP Global Partners and NGEN.Catalyst’s Tyler Newton said his firm backed BrightFarms largely due to its business model innovation and ability to “out-execute” other food producers in the U.S.Consumers definitely want to buy groceries made by local businesses, and to help support jobs that pay a local living wage in their own back yard. According to research by the U.S. Department of Agriculture, local food sales totaled $12 billion in 2014 and are expected to grow to $20 billion by 2019.

A BrightFarms greenhouse that grows tomatoes and salad greens.

“Where the seasons don’t cooperate, we just didn’t have the option to buy local before. So that feels good. But when you taste a tomato or some arugula from BrightFarms, and compare it to something that’s been shipped from out West, there is an obvious taste advantage, too. That’s what grocers want,” Newton said.BrightFarms is going after a huge market that doesn’t have a lot of competition outside of the states of California and Arizona, today.America’s farms contribute $177.2 billion, or about 1 percent of the nation’s gross domestic product each year according to the most recent available calculations also from the U.S. Department of Agriculture.

And 90% of the salad greens consumed in the U.S. are produced in California and Arizona, then shipped across the country or exported out of it.Other agriculture tech startups like AeroFarms or FreightFarms are building out indoor and container-based farms, in urban areas to meet rising consumer demands for locally-produced, and delicious fresh foods.

BrightFarms CEO Paul Lightfoot

But Lightfoot believes that his company’s greenhouses – which take advantage of natural sunlight, obviously—can prove more environmentally sustainable and cost-efficient than indoor farms, and produce more supply than container-based and rooftop farms.He says that’s because BrightFarms controlled environment greenhouses don’t need to use as much electricity for grow lights and temperature controls than indoor farms. Both are significantly more water efficient than traditional farms, even those using precise irrigation systems.So far, BrightFarms operates three greenhouses, each employing 25 full-time workers, in the greater Philadelphia, Washington D.C. and Chicago metro areas.If drought conditions continue, Lightfoot said, the company could someday move into the “salad bowl” state of California, or other agricultural hubs, displacing traditional, and often water-intensive, farms.But for now it will focus on metro areas where demand for fresh produce is high but there isn’t a lot of arable land or weather to support traditional farms.BrightFarms’ customers and partners have so far included grocers like Kroger, Ahold USA, Wegmans and ShopRite.Besides using the new Series C capital to build out additional greenhouses, Lightfoot says the company will explore new crops and is likely to start growing peppers and strawberries in the near future.