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PODCAST EPISODE: Supply Chain is Boring Episode 24
Supply Chain is Boring
Episode 24

“The other thing I found was there are three rules of good financial management. One is you get the cash two, is you get the cash, and three, is you get the cash, right? So the book value of inventory isn’t the important number. It’s the cash value of the inventory.”

-Dr. Doug Lambert

 

Why do companies so aggressively manage inventories? Cost! And a big cost component is carrying or holding cost- a percentage of the total inventory value that impacts the bottom line. So what are the subcomponents of carrying cost and how were they developed? Listen as host Chris Barnes interviews Dr. Doug Lambert, and learn more.

Supply Chain is Boring Episode 24

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Chris Barnes (00:06):

Hey, it’s Chris. The supply chain doctor and host of supply chain is boring. Bringing insight into the history of supply chain management and exposing you to some of the industry’s thought leaders and driving forces. In this episode, we sat down with Dr. Doug Lambert, the Raymond E. Mason chaired professor Ameritas at Fisher college of business and Academy professor at the Ohio state university and former director of the global supply chain forum. In part one of this two-part series, we discussed the original writing and development of the carrying cost concept currently in practice today. It all sounds pretty boring. Let’s see if Dr. Lambert can prove me wrong, Dr. Lambert. Thanks again for investing time with me to hear about your career and learn more about your perspective on supply chain management in general.

Dr. Doug Lambert (00:52):

Okay. Well, initially you, when we talked, you wanted to, uh, talk about inventory carrying costs and how I decided to write the papers on inventory carrying class. I grew up in Canada. I was born in Toronto and I went to, um, the Ivy business school at Western university for undergrad and MBA. And so, uh, that meant that I either had to get all three degrees from the same place, which isn’t good for them or go to a school that wasn’t as good in Canada. And so I looked at three schools in the us Harvard, cause it was kind of head office for the Canadian school, about half the faculty at Harvard degrees. I put in Texas for warm weather. I was even then thinking about a nice warm place and Ohio state. And I picked Ohio state because of Butler lawn, who was, was really one of the giants in this business.

Dr. Doug Lambert (01:45):

He passed away a year or so ago. Um, and, and the other thing I wanted to do was, so I taught for a couple of years with an MBA to see if I was going to like it before I invested in this PhD. And, uh, I picked Ohio state because of bloodline. I worked with him as a research assistant and I had a plan to get a PhD as quickly as I wanted to get a two-year PhD and get back to Canada and where people lose time. And the PhD is not on the coursework because of course work disciplines, people, but you know, you’ve got papers due. You got classes you have to go to where people lose time and is that the dissertation, they might waste a whole year trying to figure out what the dissertation topic is. And so my idea was whatever idea I had Christmas of my first year in the PhD program, I was going to spend the time I had free over Christmas, getting going on a dissertation proposal, starting to write it.

Dr. Doug Lambert (02:43):

And the only idea I had by Christmas was inventory carrying costs and Leilani had another PhD student working with them that fall. And he had two projects. He had one on customer service, which I really wanted to do because I’d done some work like that in Canada, before coming for the PhD. Uh, but the other PhD student didn’t know the difference between a debit and a credit. And I’d taught accounting for a couple of years, uh, to see if I was going to like teaching before I went for the PhD. So guess who got the carrying cost topic? So it was the only topic I had at Christmas. So I talked to Leilani and Robinson and grabbing her who were going to be my dissertation committee and said, would this make a dissertation? And they agreed it would. And so if I was going to stick to plan, this had to be it.

Dr. Doug Lambert (03:30):

And I did complete my PhD actually, uh, a week. I was a week over the two years and graduated in the fall that year. So I was actually two years plus a quarter til I actually walked away with a degree in hand. But the more I got into the topic, working with companies, the more excited I got about right. And because they thought it was useful. And I actually received the doctoral dissertation award from, um, what was then called the national council of physical distribution management for my dissertation. And it was one of them, two in the whole history of the organization. Now, after NC PDM was called CLM and now the council of supply chain management professionals. So in the history of this organization, they published two PhD dissertations as books. And mine was the first one, cause it was useful and business people could, could read it and, um, and actually use what was there.

Dr. Doug Lambert (04:28):

So that’s how I got into the topic. What I ended up finding out about it was in most books for an EOQ for formula or any other use of the carrying costs. People just throw in 25 present. Right? And in fact why Alon was interested in the topic, was he at another PhD student, Jeff, Karen Bauer working on a logistics model, right? A network model for Ross labs, division of Abbott in Columbus, and they needed a carrying cost. And so that’s how I got the topic. So ended up a lot of luck, right? Because I had really no interest in the topic to start with. And then it turned out I want to competitive national award for the dissertation. And they published it as a book, which got me a lot of visibility as a young guy, starting a career. The thing I found out about it was two things.

Dr. Doug Lambert (05:21):

One is the biggest component of the carrying cost is the opportunity cost of money. It’s what would I do with the cash cash? If it wasn’t an inventory, right? And if you’re a cash rich company, you’ve got, you know, a hundred million in treasury bills yeah. Or something. Then if you reduce inventory, you’re likely to just buy more treasury bills with, with the cash generated. So opportunity cost of money in that case is whatever you’re earning. Right? T-bills on the other hand, if you would add a new production in your factory that you’re not adding now because you’re short of working capital, then the rate of return you’re losing by having that inventory is the rate of return. You’d earn on that equipment if you had it. Or if I was a retailer and I had less inventory in my warehouses, I can’t get less inventory in my stores because the stores have to look like they’re stocked.

Dr. Doug Lambert (06:18):

Right? I mean, I think the retailers call it product dominance. When you walk into that store, you have to feel like if these guys don’t have it, nobody’s got it. Right. So you can’t see empty shelves. So it’s gotta be warehouse inventory. But, but if I could reduce my warehouse inventory then, and that allowed me to open a, another new store, then it’s the rate of return. I own it earned on the new stores. So it’s not just an average number. It’s whatever it’s going to be for your company. Then the other thing I found was there are three rules of good financial management. One is you get the cash two, as you get the cash three, as you get the cash, right? So the book value of inventory, isn’t the important number. It’s the cash value of the inventory. And if you’re a retailer and you sell it something and don’t replace it, which would be how you’d get an inventory reduction.

Dr. Doug Lambert (07:11):

You saved the current replacement cost, which is probably close to what you paid for it and what you’re carrying inventory for on your books. And if it’s a raw material in a manufacturing environment or a company in part, and you reduce component party inventories, you buy less this month and you’re going to need to get those inventories down. Then at the end of the month or 60 days from now, whenever you pay the bill, the bill would be less than cash would go up by the bill. You didn’t pay. Right? But where this gets more complicated is that every manufacturer overstates the value of inventory from a cash standpoint, because they full costs. They put all these overhead costs in that have got nothing to do with making a unit of product right now. Again, think about this. If you’re somebody who wants to either increase or decrease inventory, and you’re a manufacturer and you’re not general motors.

Dr. Doug Lambert (08:06):

I mean, if you’re a general motors and you want reduce inventory, you have a fire sale, right? You’ll offer $5,000 discounts, free financing, right? And the, the classic was that summer. It was a number of years ago. Now when Wagner was still running GM, where they made everybody in this great land, the GM employee for the summer, anybody in the U S goodbye, a new GM car for employee costs because they had so many inventory cars in inventory, right? They built these cars, nobody was buying it. And so they sold the cars. They lost something North of a billion dollars that quarter. And then it was a shock to him. The next quarter that sales were up 25% on the new models. Like people who just got up and bought a new car during the summer, we’re going to line up and buy another one because they’d made a model will change.

Dr. Doug Lambert (08:53):

Right? I mean, he does wonder there was no institutional learning in that industry. The sad thing was the board didn’t fire Wagner. It was the government when they bailed them out. Right. Right. So if you’re not general motors and you’re not going to have a fire sale to get an inventory reduction, what do you do? You make less this month, then you’re going to sell. I mean, most likely every month you’ll make what you’re going to sell. Right? You try to do that. Yeah. You might make more, you might make less. But the point is, you’re trying to make what you’re going to sell. And so this month, if we’re trying to get our inventory down by $10 million, we’ll make $10 million less product. Now those product costs are made up with costs like security guards on the factory gate, security guards, you know, the fence you’ve got around the factory, the chain link fence with the barbed wire on the top and the security guards in there have got nothing to do with how much product you make in that factory.

Dr. Doug Lambert (09:48):

They’ve got everything to do with how important yeah. You think it is to protect what was, what is going on in that factory, right? So you tend to see more offenses around factories in South America than you do in the U S but those security guards get paid every month, regardless of what you make in a factory. And yet those costs along with the plant manager’s salary and a whole lot of other fixed costs get spread across units. Like they’re variable, right? If you’re on a standard cross system, you estimate ahead of time, how many units you’re going to sell. And then you spread all these fixed costs across units, treat them like they’re variable costs, but they’re not there period costs. And so if you make less units this month, you’re, you’re going to, you’ve paid the security guards, what they always get paid per month, right?

Dr. Doug Lambert (10:32):

The full amount. But you’ve only got inventoried a portion of that inventory during cost of goods sold because you made fewer units this month. So what happens to the money you paid that isn’t accounted for an inventory or cost of goods sold? It’s a journal entry adjustment. The cost of goods sold you, Jack it up by the overhead that’s under absorbed, right? They call it under absorbed plan overhead. So be fixed costs related to machinery. It would be the plant manager’s salary. It would be the security guards. So then if I’m a high fixed cost operation, maybe only 15, the percent of my product costs are variable, which means if I reduce inventory by 10, for $10 million, I’m only going to free up 5 million. And it’s important to understand that because presumably you’d work harder to get a $10 million reduction than you would a $5 million reduction.

Dr. Doug Lambert (11:25):

Right? Right. And it gets even worse than that because labor might be a variable costs when I’m figuring out how profitable my customers are or how profitable my products are. And the idea there is that I might have a, a thousand people working in my plants, but they’re not a variable cost. There is step fixed costs, except the steps are small. And so if I stopped selling and to Walmart, or if I stopped selling certain SKU shoes, I can let some employees leave for better jobs. My labor force will come down and I may actually save those, those costs. So training them is variable costs in that sense is not a mistake, but in the case of the one-time inventory reduction, it’s a big mistake because the labor costs didn’t save. I mean, I was in Izmir Turkey a dozen years ago and visited a Hugo boss plant.

Dr. Doug Lambert (12:17):

And they had this fleet of vehicles to bring people in, to work in that operation. That was a cutting so hard, high labor content operation, very low turnover. Those because these were good jobs. And the Turkish government said, you can work more than 40 hours a week. If you like, of course, you’re paying them for it, but you can’t work on less than 40 hours. They get paid for it, whether they work it or not. Right. So even in Turkey, labor, wasn’t a variable cost. So if, if we make less product this month, then we send the plant home at noon on Friday. We don’t slate say that labor cost at all. And so now we’re down to variable cost of material, variable packaging costs, electricity to run the machinery. And maybe we save some maintenance costs if we’re not running it Friday afternoon. But the point is inventory from a cash standpoint in every manufacturing company in America is overvalued. And I think people work too hard for inventory reductions for the cash. And they’re actually freeing up

Chris Barnes (13:21):

Inventory is a big part of supply chains as that’s why people tend to focus on it.

Dr. Doug Lambert (13:26):

We don’t run real lean. And then you see empty shelves like we did with the paper gals and COVID right. You know, it would seem to me that that paper towel operation, and I mean, it’s probably not a high labor cost operation. It’s probably high fixed costs to start with. So maybe having a little extra inventory, even though your books look like you’re carrying more money. If you look at the actual cash value of that inventory, that may not be so bad, maybe having a little extra, isn’t a bad idea. So those are the two things, you know, what’s the opportunity cost of money. So again, if you’re a cash rich company, you got all kinds of money in the bank getting a little more cash from an inventory reduction, isn’t going to bring you much income. And so if you’re using 25% as a carrying cost, man, you’re really overstatement. And if you’re applying it to the full cost of the inventory value, well, then you’re really,

Chris Barnes (14:18):

So your objective with, with your, what do you call it a thesis? Or what was it that

Dr. Doug Lambert (14:23):

First of all, understand what inventory, what were the components of inventory carrying cost? And the big part of it is getting the cash value of the inventory, right? And determining the opportunity cost of money. Now, the other things like insurance taxes, obsolescence damage, you know, relocation costs because you, uh, uh, you got inventory in the wrong place, right? So you got bathing suits in Ohio and it’s now the fall. So you ship them to Florida. So you can sell them at full price. That kind of relocation costs. Typically those costs are one, two, three, maybe 4%. And the, the, the big one was when, when capital was in short supply was the opportunity cost of money because you might have a hurdle rate in the company of 15 or 20% on new investments. Well, that’s an after tax hurdle rate, all the trade offs you’re making with inventory are before tax.

Dr. Doug Lambert (15:16):

So you have to take that after tax cost, the capital hurdle rate and divide it by one minus the marginal tax rate. And so if your marginal tax rate was 50%, then that 15% hurdle rate becomes 30 cost them money for inventory or 40. If it’s a 20% cost of capital, you’re looking for in a company. But those were in the days when money was in short supply. Right? And I saw more of that in the seventies and eighties than today, where a lot of these big companies that are sitting on a fair bit of cash, right? So it depends on your situation. You’ve got that you’d pay off. Then it’s the interest on the debt. The debt interest is already before taxes. The interest you get on money in the bank, your T-bills is before tax number. You have to pay tax on that, but the minimum acceptable rate of return on new investment that that is asking you to want to get, if you want to make an investment, that’s an after-tax rate because what they have to do is, is look at cash flows over a period of time and discount them back to a net present value, including the tax implications of depreciation.

Dr. Doug Lambert (16:26):

So, so that’s another mistake. Oftentimes people make is they don’t convert that cost of money, uh, to a before tax cost of money, because everything you’re trading off with it set up in the plant, set ups in the plant, transportation costs. Those are all pre-tax numbers. You don’t get your freight rates quoted to you after taxes.

Chris Barnes (16:48):

Doug, you, you did this in 1975, 76. You started, this is that

Dr. Doug Lambert (16:54):

I actually started it in the fall of 73 as a PhD student. And then up in, in, uh, in 75, that was my PhD dissertation. And we worked with half of that. Well, actually seven come on, um, helping them develop a carrying cost Drackett products division of Bristol-Myers in Cincinnati Ross labs, a division of Abbott in Columbus, a Heinz in Pittsburgh, Ralston, Purina in St. Louis I O and then chemical had one process there.

Chris Barnes (17:29):

It’s interesting. This was over 40 years ago and you’re talking about it like it was yesterday.

Dr. Doug Lambert (17:34):

You know, the interesting thing about it is my mentor always used to say, you know, work on a research project, you can put a presentation together and present to executives, right? Because college professors don’t pay you to present business people will, or if you do presentation in their company, or they invite you for one of their meetings as a keynote, then you get paid well in. And so I was lucky. This was not a topic I’d have picked, right. But if I was going to stick to my plan to graduate in two years, it was the only idea I had at Christmas. And I was going to lose time if I didn’t move forward on it. I wasn’t stupid about it though. I asked my mentor and the two other committee members, if they thought it would make a dissertation topic, they said it would, but, but over the years, as I’ve taught logistic programs for companies, there’s always the session on inventory carrying costs. It’s still something people care about.

Chris Barnes (18:27):

It’s a key part of the apex body of knowledge, which you’re familiar with in all programs. CSEP CLTV. And CPIM, I talk about it in every class. We have examples of how, you know, you look at transportation costs and timing, and we always give the example of cost. I’ll make up the numbers. Doug, it cost a thousand dollars to ship it via air from Asia, or you can put it on a ship and, and, and, you know, coming air, it’ll take a week, put it on a ship. It’ll cost you a hundred dollars spend, it’ll take a month. And most people look at the numbers and they say, okay, we’ll put it on the ship. It’ll be cheaper. What they fail to realize is that carrying cost component. That’s a, that’s a big factor, I guess you’d call that the transport, the transportation.

Dr. Doug Lambert (19:07):

Yeah. Well, and, and I guess if these are things you’re buying that are completed pro products, or they’re, they’re, uh, product components that are going into something you’re making, whatever you’re paying for them is the cash value of them. So it’s harder for companies when they’re looking at the carrying costs of what they’ve manufactured in are selling, because they look at the book value, which isn’t the cash value at all. You know, as we said before, it’s overstated because of all these fixed costs we’ve added on. And that if you have an inventory reduction, you don’t save those fixed costs. They simply show up is, uh, under absorbed plan overhead. And you Jack up cost of goods sold by the, uh, those costs that weren’t covered in inventory or units sold. So, so you don’t free it up in cash, and it’s important to recognize that, but, but you’re right. I mean, and I guess the other thing is you wonder how many times when people go off shore looking at lower labor costs, they’ve really considered all of the costs, right?

Chris Barnes (20:09):

Yeah. That’s a key theme for what we talk about in class, but for any, any AP students listening, we basically, there’s three components. You’ve talked about them and they’re in your paper for all three bodies of knowledge, storage, storage costs, capital costs, and the risk cost. Now you, in your paper, you talk about inventory service costs, which I think is taxes and insurance as well, but that, that’s a part of it

Dr. Doug Lambert (20:29):

In most of the world. Taxes is a non-issue, that’s an American phenomenon where you paid ad valorem property taxes on him. But I can remember there was a time when in California, this is when I was a PhD student, California would charge those taxes based on inventory, on a particular date. And what companies would do is they’d send their inventory on vacation. They put it in trailers and ship it in Nevada, or put it in a ship and send it out in the Pacific. So it wasn’t there during that date. And therefore there, they paid lower taxes, but I think the government finally figured it out and based it on average inventory.

Chris Barnes (21:06):

Well, I think it’s interesting just to have found you, as I said, you didn’t create the concept. I looked at your research and you said it’d been around for 10 years, probably back to the sixties, but what you did is kind of formalized it and created those categories. So that’s pretty impressive.

Dr. Doug Lambert (21:18):

Well, you know, the other thing about the warehousing classes, the distinction between public warehouses, where they charge you for storage and handling and a company owned warehouse, the majority of the costs are going to be fixed. So the only costs you’re interested in are the ones that are going to vary. If you have more inventory in that warehouse or less inventory, I suppose if the warehouse gets crowded, it might create complications for picking and require higher labor costs. But if you’re reducing inventory and you’re spending overtime in the warehouse, then, and you eliminate that warehouse, uh, or that, that overtime, because the warehouse isn’t a product and it’s easier to pick then, uh, then that labor costs would be saved. But the public warehouses make it easy for you because they charge it. And it’s only the storage component that goes into carrying costs. The handling you pay on every unit that moves through the place.

Chris Barnes (22:14):

This concludes the carrying cost discussion with Dr. Doug Lambert. Be sure to check out part two where Lambert covers his perspective on what supply chain management is. And the importance of true partnerships, supply chain is boring as part of the supply chain. Now network, we highlight historical events, companies and people in supply chain management and create a picture of where the industry is headed. Interested in learning more about supply chain, technology, startups, mergers, acquisitions, and how companies evolve. Take a listen to tequila, sunrise crafted by Greg white, or check out this weekend business history with supply chain now’s own Scott Luton to learn more about everyday things you may take for granted and pick up short stories you can use as general conversation starters. The logistics with the purpose series puts a spotlight on neat and interesting organizations who are working toward a greater cause. If you’re interested in logistics, freight and transportation, take a listen to the logistics and beyond series with the adapt and thrive mindset, Sherpa Jayman Alvidrez and check out the newest program. Tech-Talk hosted by industry veteran and Atlanta’s own Korean bursa bursa will discuss all things. Digital supply chain, if interested in sponsoring this show or others on supply chain. Now send a note to chris@supplychainnow.com and remember supply chain is boring.

 

Kristi Porter

Host, Logistics with Purpose

Kristi Porter is VP of Sales and Marketing at Vector Global Logistics, a company that is changing the world through supply chain. In her role, she oversees all marketing efforts and supports the sales team in doing what they do best. In addition to this role, she is the Chief Do-Gooder at Signify, which assists nonprofits and social impact companies through copywriting and marketing strategy consulting. She has almost 20 years of professional experience, and loves every opportunity to help people do more good.

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Tevon Taylor

Host

Tevon Taylor is a dynamic leader at Pegasus Logistics, where he has made significant contributions to the company’s growth and innovation in the logistics industry. With a background in supply chain management and operations, Tevon combines strategic thinking with hands-on experience to streamline processes and enhance efficiency.  Since joining Pegasus Logistics, Tevon has been instrumental in implementing cutting-edge technologies and sustainable practices, driving the company toward a more eco-friendly approach. His leadership style fosters collaboration and empowers teams to excel, making him a respected figure among colleagues and industry peers.  Outside of work, Tevon is passionate about mentorship and actively engages in community initiatives, sharing his expertise to inspire the next generation of logistics professionals. His commitment to excellence and continuous improvement has positioned him as a key player in shaping the future of logistics at Pegasus.

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Vin Vashishta

Host

Vin Vashishta is the author of ‘From Data To Profit’ (Wiley 2023). It’s the playbook for monetizing data and AI. Vin is the Founder of V-Squared and built the business from client 1 to one of the world’s oldest data and AI consulting firms. His background combines nearly 30 years in strategy, leadership, software engineering, and applied machine learning.

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Karin Bursa

Host

Karin Bursa is the 2020 Supply Chain Pro to Know of the Year and the Host of the TEKTOK Digital Supply Chain Podcast powered by Supply Chain Now. With more than 25 years of supply chain and technology expertise (and the scars to prove it), Karin has the heart of a teacher and has helped nearly 1,000 customers transform their businesses and share their success stories. Today, she helps B2B technology companies introduce new products, capture customer success and grow global revenue, market share and profitability. In addition to her recognition as the 2020 Supply Chain Pro to Know of the Year, Karin has also been recognized as a 2019 and 2018 Supply Chain Pro to Know, 2009 Technology Marketing Executive of the Year and a 2008 Women in Technology Finalist. 

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Sofia Rivas

Host, Supply Chain Now en Espanol

Sofia self-identifies as Supply Chain Ambassador, her mission is to advocate for the field and inspire young generations from diverse backgrounds and cultures to join the industry so that thought diversity is increased and change accelerated. Recognized as Linkedin Top Voice and Linkedin Community Top Voice in Supply Chain Management, as well as Emerging Leader in Supply Chain by CSCMP 2024, Top Women in Supply Chain by Supply & Demand Executive 2023, and Coup de Coeur Global Women Leaders in Supply Chain by B2G Consulting in 2021

Public speaker at multiple international events from keynotes and panels, to webinars and guest lectures for bachelor's and master's degrees, discussing topics such as sustainability, women in the industry, technology and innovation. Writer at different online magazines on logistics, supply chain and technology. Podcast host and guest on different recognized programs in the industry. Sofia has more than 5 years of experience from academic research and field studies to warehouse operations, demand planning and network design. She has worked in manufacturing, airport operations, e-commerce retail, and technology hardware across Latin America, North America and Europe

Currently working as Supply Chain Network Design and Optimization Manager at HP within their Global Supply Chain and Logistics team

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Marcia Williams

Host

Marcia Williams, Managing Partner of USM Supply Chain, has 18 years of experience in Supply Chain, with expertise in optimizing Supply Chain-Finance Planning (S&OP/ IBP) at Large Fast-Growing CPGs for greater profitability and improved cash flows. Marcia has helped mid-sized and large companies including Lindt Chocolates, Hershey, and Coty. She holds an MBA from Michigan State University and a degree in Accounting from Universidad de la Republica, Uruguay (South America). Marcia is also a Forbes Council Contributor based out of New York, and author of the book series Supply Chains with Maria in storytelling style. A recent speaker’s engagement is Marcia TEDx Talk: TEDxMSU - How Supply Chain Impacts You: A Transformational Journey.

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Jake Barr

Host

An acknowledged industry leader, Jake Barr now serves as CEO for BlueWorld Supply Chain Consulting, providing support to a cross section of Fortune 500 companies such as Cargill, Caterpillar, Colgate, Dow/Dupont, Firmenich, 3M, Merck, Bayer/Monsanto, Newell Brands, Kimberly Clark, Nestle, PepsiCo, Pfizer, Sanofi, Estee Lauder and Coty among others. He's also devoted time to engagements in public health sector work with the Bill & Melinda Gates Foundation. At P&G, he managed the breakthrough delivery of an E2E (End to End) Planning Transformation effort, creating control towers which now manage the daily business globally. He is recognized as the architect for P&G’s demand driven supply chain strategy – referenced as a “Consumer Driven Supply Chain” transformation. Jake began his career with P&G in Finance in Risk Analysis and then moved into Operations. He has experience in building supply network capability globally through leadership assignments in Asia, Latin America, North America and the Middle East. He currently serves as a Research Associate for MIT; a member of Supply Chain Industry Advisory Council; Member of Gartner’s Supply Chain Think Tank; Consumer Goods “League of Leaders“; and a recipient of the 2015 - 2021 Supply Chain “Pro’s to Know” Award. He has been recognized as a University of Kentucky Fellow.

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Laura Lopez

Marketing Coordinator

Laura Lopez serves as our Supply Chain Now Marketing Coordinator. She graduated from Instituto Tecnológico y de Estudios Superiores de Occidente in Mexico with a degree in marketing. Laura loves everything digital because she sees the potential it holds for companies in the marketing industry. Her passion for creativity and thinking outside the box led her to pursue a career in marketing. With experience in fields like accounting, digital marketing, and restaurants, she clearly enjoys taking on challenges. Laura lives the best of both worlds - you'll either catch her hanging out with her friends soaking up the sun in Mexico or flying out to visit her family in California!

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Marty Parker

Host

Marty Parker serves as both the CEO & Founder of Adæpt Advising and an award-winning Senior Lecturer (Teaching Professor) in Supply Chain and Operations Management at the University of Georgia. He has 30 years of experience as a COO, CMO, CSO (Chief Strategy Officer), VP of Operations, VP of Marketing and Process Engineer. He founded and leads UGA’s Supply Chain Advisory Board, serves as the Academic Director of UGA’s Leaders Academy, and serves on multiple company advisory boards including the Trucking Profitability Strategies Conference, Zion Solutions Group and Carlton Creative Company.

Marty enjoys helping people and companies be successful. Through UGA, Marty is passionate about his students, helping them network and find internships and jobs. He does this through several hundred one-on-one zoom meetings each year with his students and former students. Through Adæpt Advising, Marty has organized an excellent team of affiliates that he works with to help companies grow and succeed. He does this by helping c-suite executives improve their skills, develop better leaders, engage their workforce, improve processes, and develop strategic plans with detailed action steps and financial targets. Marty believes that excellence in supply chain management comes from the understanding the intersection of leadership, culture, and technology, working across all parts of the organization to meet customer needs, maximize profit and minimize costs.

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Tandreia Bellamy

Host

Tandreia Bellamy retired as the Vice President of Industrial Engineering for UPS Supply Chain Solutions which included the Global Logistics, Global Freight Forwarding and UPS Freight business units. She was responsible for operations strategy and planning, asset management, forecasting, and technology tool development to optimize sustainable efficiency while driving world class service.

Tandreia held similar positions at the business unit level for Global Logistics and Global Freight forwarding. As the leader of the Global Logistics engineering function, she directed all industrial engineering activies related to distribution, service parts logistics (post-sales support), and mail innovations (low cost, light weight shipping partnership with the USPS). Between these roles Tandreia helped to establish the Advanced Technology Group which was formed to research and develop cutting edge solutions focused on reducing reliance on manual labor.

Tandreia began her career in 1986 as a part-time hourly manual package handling employee. She spent the great majority of her career in the small package business unit which is responsible for the pick-up, sort, transport and delivery of packages domestically. She held various positions in Industrial Engineering, Marketing, Inside and On-road operations in Central Florida before transferring to Atlanta for a position in Corporate Product Development and Corporate Industrial Engineering. Tandreia later held IE leadership roles in Nebraska, Minnesota and Chicago. In her final role in small package she was an IE VP responsible for all aspects of IE, technology support and quality for the 25 states on the western half of the country.
Tandreia is currently a Director for the University of Central Florida (UCF) Foundation Board and also serves on their Dean’s Advisory Board for the College of Engineering and Computer Science. Previously Tandreia served on the Executive Advisory Board for Virginia Tech’s IE Department and the Association for Supply Chain Management. She served on the Board of Trustees for ChildServ (a Chicago child and family services non-profit) and also served on the Texas A&M and Tuskegee Engineering Advisory Boards. In 2006 she was named Business Advisor of the Year by INROADS, in 2009 she was recognized as a Technology All-Star at the Women of Color in STEM conference and in 2019 she honored as a UCF Distinguished Aluma by the Department of Industrial Engineering and Management Systems.

Tandreia holds a bachelor’s degree in Industrial Engineering from Stanford University and a master’s degree in Industrial Engineering and Management Systems from UCF. Her greatest accomplishment, however, is being the proud mother of two college students, Ruby (24) and Anthony (22).

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Billy Taylor

Host

Billy Taylor is a Proven Business Excellence Practitioner and Leadership Guru with over 25 years leading operations for a Fortune 500 company, Goodyear. He is also the CEO of LinkedXL (Excellence), a Business Operating Systems Architecting Firm dedicated to implementing sustainable operating systems that drive sustainable results. Taylor’s achievements in the industry have made him a Next Generational Lean pacesetter with significant contributions.

An American business executive, Taylor has made a name for himself as an innovative and energetic industry professional with an indispensable passion for his craft of operational excellence. His journey started many years ago and has worked with renowned corporations such as The Goodyear Tire & Rubber Co. (GT) leading multi-site operations. With over 3 decades of service leading North America operations, he is experienced in a deeply rooted process driven approach in customer service, process integrity for sustainability.

A disciple of continuous improvement, Taylor’s love for people inspires commitment to helping others achieve their full potential. He is a dynamic speaker and hosts "The Winning Link," a popular podcast centered on business and leadership excellence with the #1 rated Supply Chain Now Network. As a leadership guru, Taylor has earned several invitations to universities, international conferences, global publications, and the U.S. Army to demonstrate how to achieve and sustain effective results through cultural acceptance and employee ownership. Leveraging the wisdom of his business acumen, strong influence as a speaker and podcaster Taylor is set to release "The Winning Link" book under McGraw Hill publishing in 2022. The book is a how-to manual to help readers understand the management of business interactions while teaching them how to Deine, Align, and Execute Winning in Business.

A servant leader, Taylor, was named by The National Diversity Council as one of the Top 100 Diversity Officers in the country in 2021. He features among Oklahoma's Most Admired CEOs and maintains key leadership roles with the Executive Advisory Board for The Shingo Institute "The Nobel Prize of Operations" and The Association of Manufacturing Excellence (AME); two world-leading organizations for operational excellence, business development, and cultural learning.  He is also an Independent Director for the M-D Building Products Board, a proud American manufacturer of quality products since 1920.

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Allison Giddens

Host

Allison Krache Giddens has been with Win-Tech, a veteran-owned small business and aerospace precision machine shop, for 15 years, recently buying the company from her mentor and Win-Tech’s Founder, Dennis Winslow. She and her business partner, John Hudson now serve as Co-Presidents, leading the 33-year old company through the pandemic.

She holds undergraduate degrees in psychology and criminal justice from the University of Georgia, a Masters in Conflict Management from Kennesaw State University, a Masters in Manufacturing from Georgia Institute of Technology, and a Certificate of Finance from the University of Georgia. She also holds certificates in Google Analytics, event planning, and Cybersecurity Risk Management from Harvard online. Allison founded the Georgia Chapter of Women in Manufacturing and currently serves as Treasurer. She serves on the Chattahoochee Technical College Foundation Board as its Secretary, the liveSAFE Resources Board of Directors as Resource Development Co-Chair, and on the Leadership Cobb Alumni Association Board as Membership Chair and is also a member of Cobb Executive Women. She is on the Board for the Cobb Chamber of Commerce’s Northwest Area Councils. Allison runs The Dave Krache Foundation, a non-profit that helps pay sports fees for local kids in need.

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Sofia Rivas Herrera

Host, Supply Chain Now en Espanol

Sofia Rivas Herrera is a Mexican Industrial Engineer from Tecnologico de Monterrey class 2019. Upon graduation, she earned a scholarship to study MIT’s Graduate Certificate in Logistics and Supply Chain Management and graduated as one of the Top 3 performers of her class in 2020. She also has a multicultural background due to her international academic experiences at Singapore Management University and Kühne Logistics University in Hamburg. Sofia self-identifies as a Supply Chain enthusiast & ambassador sharing her passion for the field in her daily life.

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Kim Reuter

Host

From humble beginnings working the import docks, representing Fortune 500 giants, Ford, Michelin Tire, and Black & Decker; to Amazon technology patent holder and Nordstrom Change Leader, Kimberly Reuter has designed, implemented, and optimized best-in-class, highly scalable global logistics and retail operations all over the world. Kimberly’s ability to set strategic vision supported by bomb-proof processes, built on decades of hands-on experience, has elevated her to legendary status. Sought after by her peers and executives for her intellectual capital and keen insights, Kimberly is a thought leader in the retail logistics industry.

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Katherine Hintz

Creative Director, Producer, Host

Katherine Hintz, MBA is a marketing professional who strives to unite her love of people with a passion for positive experiences. Having a diverse background, which includes nonprofit work with digital marketing and start-ups, she serves as a leader who helps people live their most creative lives by cultivating community, order, collaboration, and respect. With equal parts creativity and analytics, she brings a unique skill set which fosters refining, problem solving, and connecting organizations with their true vision. In her free time, you can usually find her looking for her cup of coffee, playing with her puppy Charlie, and dreaming of her next road trip.

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Vicki White

Controller

Vicki has a long history of rising to challenges and keeping things up and running. First, she supported her family’s multi-million dollar business as controller for 12 years, beginning at the age of 17. Then, she worked as an office manager and controller for a wholesale food broker. But her biggest feat? Serving as the chief executive officer of her household, while her entrepreneur husband travelled the world extensively. She fed, nurtured, chaperoned, and chauffeured three daughters all while running a newsletter publishing business and remaining active in her community as a Stephen’s Minister, Sunday school teacher, school volunteer, licensed realtor and POA Board president (a title she holds to this day). A force to be reckoned with in the office, you might think twice before you meet Vicki on the tennis court! When she’s not keeping the books balanced at Supply Chain Now or playing tennis matches, you can find Vicki spending time with her husband Greg, her 4 fur babies, gardening, cleaning (yes, she loves to clean!) and learning new things.

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Donna Krache

Director of Communications and Executive Producer

Donna Krache is a former CNN executive producer who has won several awards in journalism and communication, including three Peabodys.  She has 30 years’ experience in broadcast and digital journalism. She led the first production team at CNN to convert its show to a digital platform. She has authored many articles for CNN and other media outlets. She taught digital journalism at Georgia State University and Arizona State University. Krache holds a bachelor’s degree in government from the College of William and Mary and a master’s degree in curriculum and instruction from the University of New Orleans. She is a serious sports fan who loves the Braves. She is president of the Dave Krache Foundation. Named in honor of her late husband, this non-profit pays fees for kids who want to play sports but whose parents are facing economic challenges.

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Joshua Miranda

Marketing Specialist

Joshua is a student from Institute of Technology and Higher Education of Monterrey Campus Guadalajara in Communication and Digital Media. His experience ranges from Plug and Play México, DearDoc, and Nissan México creating unique social media marketing campaigns and graphics design. Joshua helps to amplify the voice of supply chain here at Supply Chain Now by assisting in graphic design, content creation, asset logistics, and more.  In his free time he likes to read and write short stories as well as watch movies and television series.

Mary Kate Love

VP, Strategy & Operations & Host

Mary Kate Love is currently the VP of Strategy and Operations at Supply Chain Now focused on brand strategy and audience + revenue growth. Mary Kate’s career is a testament to her versatility and innovative spirit: she has experience in start-ups, venture capital, and building innovation initiatives from the ground up: she previously helped lead the build-out of the Supply Chain Innovation Center at Georgia-Pacific and before that, MxD (Manufacturing times Digital): the Department of Defense’s digital manufacturing innovation center. Mary Kate has a passion for taking complicated ideas and turning them into reality: she was one of the first team members at MxD and the first team member at the Supply Chain Innovation Center at Georgia-Pacific.

Mary Kate dedicates her extra time to education and mentorship: she was one of the founding Board Members for Women Influence Chicago and led an initiative for a city-wide job shadow day for young women across Chicago tech companies and was previously on the Board of Directors at St. Laurence High School in Chicago, Young Irish Fellowship Board and the UN Committee for Women. Mary Kate is the founder of National Supply Chain Day and enjoys co-hosting podcasts at Supply Chain Now. Mary Kate is from the south side of Chicago, a mom of two baby boys, and an avid 16-inch softball player. She holds a BS in Political Science from the University of Illinois at Urbana-Champaign.

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Katherine Hintz

Director, Customer Experience

Katherine is a marketing professional and MBA candidate who strives to unite her love of people with a passion for positive experiences. Having a diverse background, which includes nonprofit work with digital marketing and start-ups, she serves as a leader who helps people live their most creative lives by cultivating community, order, collaboration, and respect. With equal parts creativity and analytics, she brings a unique skill set which fosters refining, problem solving, and connecting organizations with their true vision. In her free time, you can usually find her looking for her cup of coffee, playing with her puppy Charlie, and dreaming of her next road trip.

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Trisha Cordes

Administrative Assistant

Trisha is new to the supply chain industry – but not to podcasting. She’s an experienced podcast manager and virtual assistant who also happens to have 20 years of experience as an elementary school teacher. It’s safe to say, she’s passionate about helping people, and she lives out that passion every day with the Supply Chain Now team, contributing to scheduling and podcast production.

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Amanda Luton

Vice President, Production

Amanda is a seasoned production and marketing professional with over 20 years of experience across diverse industries, including retail, healthcare, and digital marketing. Throughout her career, she has worked with notable organizations such as Von Maur, Anthropologie, AmericasMart Atlanta, and Children’s Healthcare of Atlanta. Currently, Amanda manages, produces, and develops digital content for Supply Chain Now and its clients, delivering modern, engaging solutions for a wide range of audiences.

A former Vice President of Information Systems and Webmaster on the Board of Directors for APICS Savannah, Amanda also founded and led Magnolia Marketing Group, a successful digital marketing firm. Outside of her professional life, she enjoys experimenting in the kitchen, reading, listening to podcasts, and spending time with her family.

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Mary Kate Soliva

Host, Veteran Voices

Mary Kate Soliva is a veteran of the US Army and cofounder of the Guam Human Rights Initiative. She is currently in the Doctor of Criminal Justice program at Saint Leo University. She is passionate about combating human trafficking and has spent the last decade conducting training for military personnel and the local community.

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Enrique Alvarez

Host of Logistics with Purpose and Supply Chain Now en Español

Enrique serves as Managing Director at Vector Global Logistics and believes we all have a personal responsibility to change the world. He is hard working, relationship minded and pro-active. Enrique trusts that the key to logistics is having a good and responsible team that truly partners with the clients and does whatever is necessary to see them succeed. He is a proud sponsor of Vector’s unique results-based work environment and before venturing into logistics he worked for the Boston Consulting Group (BCG). During his time at BCG, he worked in different industries such as Telecommunications, Energy, Industrial Goods, Building Materials, and Private Banking. His main focus was always on the operations, sales, and supply chain processes, with case focus on, logistics, growth strategy, and cost reduction. Prior to joining BCG, Enrique worked for Grupo Vitro, a Mexican glass manufacturer, for five years holding different positions from sales and logistics manager to supply chain project leader in charge of five warehouses in Colombia.

He has an MBA from The Wharton School of Business and a BS, in Mechanical Engineer from the Technologico de Monterrey in Mexico. Enrique’s passions are soccer and the ocean, and he also enjoys traveling, getting to know new people, and spending time with his wife and two kids, Emma and Enrique.

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Kevin L. Jackson

Host of Digital Transformers

Kevin L. Jackson is a globally recognized Thought Leader, Industry Influencer and Founder/Author of the award winning “Cloud Musings” blog.  He has also been recognized as a “Top 5G Influencer” (Onalytica 2019, Radar 2020), a “Top 50 Global Digital Transformation Thought Leader” (Thinkers 360 2019) and provides strategic consulting and integrated social media services to AT&T, Intel, Broadcom, Ericsson and other leading companies. Mr. Jackson’s commercial experience includes Vice President J.P. Morgan Chase, Worldwide Sales Executive for IBM and SAIC (Engility) Director Cloud Solutions. He has served on teams that have supported digital transformation projects for the North Atlantic Treaty Organization (NATO) and the US Intelligence Community.  Kevin’s formal education includes a MS Computer Engineering from Naval Postgraduate School; MA National Security & Strategic Studies from Naval War College; and a BS Aerospace Engineering from the United States Naval Academy. Internationally recognizable firms that have sponsored articles authored by him include CiscoMicrosoft, Citrix and IBM.  Books include “Click to Transform” (Leaders Press, 2020), “Architecting Cloud Computing Solutions” (Packt, 2018), and “Practical Cloud Security: A Cross Industry View” (Taylor & Francis, 2016). He also delivers online training through Tulane UniversityO’Reilly MediaLinkedIn Learning, and Pluralsight.  Mr. Jackson retired from the U.S. Navy in 1994, earning specialties in Space Systems EngineeringCarrier Onboard Delivery Logistics and carrier-based Airborne Early Warning and Control. While active, he also served with the National Reconnaissance Office, Operational Support Office, providing tactical support to Navy and Marine Corps forces worldwide.

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Scott W. Luton

Founder, CEO, & Host

Scott W. Luton is the Founder and CEO of Supply Chain Now, the #1 voice of Supply Chain. Supply Chain Now is an award-winning global digital content platform dedicated to the global supply chain industry and its robust community. At the heart of the platform, is the almost daily Supply Chain Now podcast, which has hit podcast leadership charts in over 60 countries. With over 20 years of extensive experience in the end-to-end supply chain, Scott has become a recognized global thought leader in the industry. His insights have been featured in major publications such as The Wall Street Journal, USA Today, the Atlanta Journal-Constitution, and CNN. In 2024, Thinkers360 named him the #1 Global Thought Leader and Supply Chain Influencer. Additionally, Supply & Demand Chain Executive recognized him as a Supply Chain Pro to Know in both 2019 and 2025, and he has also been recognized by RateLinx, ISCEA, and other organizations for his industry leadership. 

Scott is a proud United States Air Force veteran, having served on active duty from 1994 to 2002. Since transitioning to civilian life, he has been committed to supporting the veteran community through various initiatives.

Under Scott's leadership, Supply Chain Now has grown into the premier source of industry insights, offering a variety of content including podcasts, livestreams, webinars, and virtual events that engage a global audience. His passion for fostering collaboration and knowledge sharing continues to drive the platform's success.

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