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America: The Tiger King

America: The Tiger King

Naseem Malik
June 29, 2023

Hello dear readers!

Welcome to the 40th edition of The Supply Times!

Writing this newsletter has become such an ingrained part of my routine, it’s hard to believe I’ve been publishing it for nearly two years. I feel very fortunate to have such a great group of loyal readers who make the time and effort totally worth it.

If you ever have thoughts or questions about TST content—or suggestions about topics I should explore in future issues—don’t hesitate to reach out!

Some great stuff on tap for you this week: some signs of a budding romance between the US and India, a meta dive into the world of supply chain talent, and as always, a roundup of the things I’ve been reading, listening to, watching, and thinking about.

Shall we press on?

Industry Highlights: Mumbai is for Lovers

I’ve written lots about how US companies are on the hunt for new dance partners in the interest of reducing their reliance on Chinese goods, and more than a few suitors have offered their hand.

The current belle of the ball is India, which the US has been making googly eyes at all year. Last week, India Prime Minister Narenda Modi was treated to a state dinner at the White House—only the third President Biden has hosted since he was inaugurated.

The guest list was a star-studded one: Rupert Murdoch’s son, James; Alphabet CEO Sundar Pichai; Microsoft CEO Satya Nadella; OpenAI CEO Sam Altman; Ralph Lauren; and Cargill heiress Gwendolyn Sontheim to name a few.

Apple CEO Tim Cook was also in attendance, which came as no surprise given Apple’s plan to shift the majority of its iPhone production to India in the coming years.

Though not at the dinner (perhaps for obvious reasons), Modi also met with Tesla CEO Elon Musk last week to discuss shifting the company’s manufacturing to his country. Tesla had previously held on plans to build a factory there due to the country’s high import taxes, but Musk has recently been intrigued not only by its potential for efficiently producing stationary battery packs and EVs, but also their recent decision to allow private space launches.

At this point, the divestment from China is imperative for the US—not only because of national security concerns and as a way to curb influence, but also as a way to de-risk its supply chain.

India is a natural choice, to be sure. Its government has recently established policies that are beneficial to global trade partners, and it’s pledged nearly $25 billion toward upgrades for its shipping and port infrastructure. Plus, its labor force has nearly doubled in the last five years.

But say what you will about India, they ain’t no China.

The country still has miles to go before it matches China’s supportive infrastructure, and Modi’s record on human rights is a significant concern.

“The accusations of backsliding, religious bigotry, attacks on the press, attacks on civil society make this a particularly awkward moment in which to celebrate the two democratic countries coming together to contest China,” Georgetown professor Irfan Nooruddin told NPR.

There’s also the fact that India has purposefully stayed neutral in the Russia-Ukraine conflict—and benefitted handsomely from looking the other way in the form of cheap oil. Though there have been some rumblings of India turning off the spigot, the country currently accounts for nearly half of Russia’s oil exports. Essentially, they’re playing both sides and reaping the rewards.

Not exactly the dance partner you want to give a promise ring to.

The Future of Work: Supply Chain Gang

It’s about to get meta.

We all know that talent is a critical component of the supply chain—in some ways no different than materials or shipping logistics—but what about supply chain talent itself?

Earlier this year, Korn Ferry released a report on just that, examining the current and projected supply chain talent agenda.

The report notes that more than any other time in our history, today’s supply chains must meet the growing demand while also navigating world-altering disruptions. In order to do that, supply chain experts must be very good at their jobs.

“The industry has shifted so much that there isn’t a lineage of people with the skillsets to fill these new supply chain roles,” Korn Ferry senior client partner Melissa Hadhazy said. “We keep having conversations with executives and board members on what comes next and how to prepare the workforce of the future.”

Included in the study are six key areas outlining the future of supply chain talent: talent momentum; culture drivers; innovation and mobility; integration; visibility and relationships; ESG in supply chain; and consumerization.

While the entire report provides some fascinating insights, the section that particularly interested me was on the topic of talent momentum.

The report points out that while supply chains and logistics have always been a critical component to a company’s success, the pandemic threw the entire industry into the spotlight.

“People want to work for the hot area,” True Value senior Vice President of supply chain Dario Skocir said. “It creates a lot of vigor around supply chain, so people are attracted to it.”

Case in point, a 2021 Penske Logistics survey found 58 percent of young supply chain professionals said they were interested in the field because it presents the opportunity to make a difference. Compare that with just 13 percent of professionals who responded that way in 2019.

But today’s supply chain woes won’t be solved with passion alone. As the report points out, many skills needed in the post-pandemic supply chain world are obsolete. Work has shifted from siloed, back-office execution to a need for more collaboration at all levels of a business.

Top-tier supply chain roles must focus on the future and think through the potential impact that their decisions will have on the entire supply chain—many of which are in never-before-seen situations. In other words, there’s a lot of pressure for these workers to throw a dart in the dark and hit the bullseye.

“You have to be able to work through ambiguity and pivot when things aren’t working well,” Skocir said. “You must move fast because your competition is.”

The problem? Those skills don’t grow on trees. Korn Ferry reports that many companies are having trouble finding talent that has the needed skills—specifically in the areas of end-to-end supply chain knowledge, supply chain transformation experience, data analysis and reporting capabilities, and digital transformation experience.

What I think the report lacks—perhaps given its age—is the fact that people ARE aware of these deficiencies, and the talent pool is starting to improve. I’ve talked to many students coming out of great supply chain programs like those at Michigan State University and Penn State are exactly the forward thinking types that we’ll need to keep businesses moving in the right direction.

The Supply Aside: What I’m Reading, Watching, Listening to, and Thinking About Re: Supply Chain, Work, and Beyond

📕 Read - Generations by Jean Twenge

Generational differences have been a hot-button issue in the business world lately, with many Boomers and older Gen X’ers struggling to understand and effectively manage their Millenial and Gen Z workforces. Jean Twenge’s new book, Generations: The Real Differences between Gen Z, Millennials, Gen X, Boomers, and Silents—and What They Mean for America’s Future could very well be the handbook on building important bridges between the generations. This book’s a great portrait of the six generations and how they connect, conflict, and compete with one another.

I loved Twenge’s other book, iGen, and I’m excited to see her build on those themes—especially the corrosive effect of social media on young people.

What I’m Also Reading:

“Door Dash launches hourly rates and location sharing for couriers”—The Verge—Third-party courier services have embedded themselves in our culture now, but one of the big complaints from workers about these companies is fair compensation. Door Dash is the first to dip its toe in that water and provide a guaranteed minimum wage for workers making deliveries.
“Nvidia Warns of Lost Opportunities if US Bans AI Chip Exports to China”—The Wall Street Journal—TL;DR—Potential new restrictions on the sale of AI semiconductors to China could come with a hefty long-term cost for the American chip industry—and another setback for U.S. relations with Beijing. Really?

📺 Watch - Blackberry

It seems so long ago, but there was once a time when the only way you’d be taken seriously in the business world was if you had a Blackberry in your hand at all times. The phone/email device took our culture by storm, and I loved this biopic on the mighty rise and spectacular fall of Research In Motion and the Blackberry device it gifted the world. A funny and interesting take on the early 21st Century business world from the two comedians Glenn Howerton and Jay Baruchel. I’m an iPhone convert, but I still contend that the phone quality of my Blackberry of yesteryear was still the best I’ve ever had.

👂 Listen - Supply Chain–Unfiltered

Speaking of supply chain talent and generational differences, guess who the best equipped generation is for tackling the supply chain’s future challenges? As I told Melanie Stern on this recent episode of Supply Chain—Unfiltered, Gen Z is more or less hard-wired to handle the need for supply chain agility. Listen to the episode to find out why!

💡 Think - Silicon Valley’s Little Helper

Silicon Valley is well known for its innovation, creativity, and out-of-the-box thinking. How do they keep hitting home runs again and again?

According to a Wall Street Journal article I read this week, the answer is no different than Mark McGuire or Barry Bonds: it’s drugs. Elon Musk and Sergey Brin are part of a club that thinks doses of mushrooms, LSD, and ketamine will help expand minds, enhance lives, and produce business breakthroughs.

They’re not completely out of their minds. Some researchers believe psilocybin, the compound in psychedelic mushrooms, changes the way the brain organizes itself and can help users overcome things like depression, alcoholism, and post-traumatic stress disorder. A drug that’s related to the anesthetic ketamine was cleared by the FDA to help people with hard-to-treat depression. This topic came up with a respected and especially sharp VC friend of mine that gave me examples of her life where psychedelics helped a family member process and recover from trauma, and another friend of her’s that has sought help for depression at a ketamine clinic. Turns out that Frank Biden, younger brother of POTUS, recently stated his brother was open-minded on this topic. It’s worth watching if this does make its way to treatments for mental ailments vs. business breakthroughs.