Collaboration not just between retailers and their respective transportation providers but also collectively as shippers is becoming increasingly essential, according to Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation. As supply chain challenges mount, working together becomes imperative in the eyes of Gold, who is in his eighth year at NRF, the world’s largest retail trade association, with more than 18,000 members representing a full spectrum of retailers and vendors from the United States and nearly 50 other countries. In an interview with the American Journal of Transportation, Gold offers his thoughts on how shippers can mitigate risks, the educational activities of NRF and the love for international trade policy that led him to a career in Washington.
Jonathan Gold, vice president of supply chain and customs policy at the NRF, believes shippers must work together to achieve supply chain success, including through legislative endeavors.
Jonathan Gold, vice president of supply chain and customs policy at the NRF, believes shippers must work together to achieve supply chain success, including through legislative endeavors.
With port congestion, equipment shortages and other issues even transcending West Coast labor concerns, what do you see as the biggest challenges facing top U.S. shippers, and how do you see things playing out? The challenges are not just limited to the top shippers. I think everybody’s going to be facing ongoing issues with port congestion in the future, not just related to what we’re seeing on the West Coast but systemic issues the industry is facing as we look at the bigger vessels coming in, the changes in the chassis system, canal expansion and building, infrastructure issues, issues with drivers and so on. All this is going to really impact how the supply chain operates in the future, and I think we all need to come together – all the stakeholders – and really try to find a path forward. We all need to step out of our little silos and really try to figure out how we make our ports and our supply chains the most efficient in the world, that really can deal with 21st century cargo flows. So cooperation is real important? Cooperation is critical. I think we’ve got to start benchmarking against each other. I think there needs to be more information sharing and understanding of how things move and how we operate. We can’t get through this without working together. What steps are retailers taking now to mitigate concerns, and how can they act in coming months to help cushion the blows? They’re continuing to partner with their transportation providers, looking at the future. Providing more forecasting to get a better understanding of what’s coming and when is key. But trying to find what those routes are to minimize your risk is critical, because retailers’ supply chains are always changing. They’re not staying with their suppliers forever. They’re always switching things around. So they’ve got to do their risk mitigation for a multitude of reasons, not just looking at where potential problems are with ports that could delay cargo, but looking overseas at their vendors on issues that are impacting them and trying to make sure they have their supply chains best aligned so they can avoid any kind of disruptions or delays in getting merchandise where it needs to be – whether that’s here in the U.S. or to the overseas markets they’re serving. How are your members reacting to President Obama’s Jan. 20 State of the Union address and the agenda set forth therein? I think our members believe there were a lot of positives that were in the address. The president opened up the door on some key issues for the retail sector, including trade, transportation, tax reform and cybersecurity issues. We think those are all issues where there should be strong bipartisan support in Congress. We really appreciate the push for trade promotion authority [TPA], which will open up foreign markets to retailers and others for the sale of goods overseas. Without TPA, we really can’t complete the ongoing TPP [Trans-Pacific Partnership] or TTIP [Trans-Atlantic Trade and Investment Partnership] negotiations. In order to move those goods either here or abroad, we really need that 21st century infrastructure that the president noted. We just hope there’s more of a push to really move that forward. The supply chain needs a 21st century national freight policy with appropriate long-term funding mechanisms in place so we have these systems moving forward. When NRF in mid-January held its latest edition of Retail’s BIG Show – its 104th annual convention and expo – what priorities were advanced by your group’s membership? The focus of the BIG Show is always about education and connecting people. It’s about the future of the industry and what’s on the horizon. We are happy to report that we had record attendance this year with close to 33,000 attendees. Our educational sessions focused on global strategies, digital innovation, mobile retailing, as well as technology trends and applications. These are all issues that are critical for retailers and what they need to consider as they compete for future consumers and markets. The BIG Show allows them the opportunity to see the latest and greatest out there, as well as find potential solutions for any challenges or issues that they face. How is your association, through the NRF Foundation, helping build the next generation of leaders, including those who will be working in the supply chain? The NRF Foundation has made great strides over the years, with a renewed focus on retail as a career. They’ve really shown that retail is about more than just what you see when you walk into a store. It’s more than just the clerk, the cashier and the greeter. The foundation runs a career center and a jobs board, which lists thousands of retail jobs and positions. They also provide scholarship programs for retail workers and high-performing students to support high-quality education for retail’s future leaders. Incidentally, the foundation just held a student program event during the BIG Show, where we had 400 students attend to mix and mingle with some of the senior-most folks within the retail community. It’s such a great experience for them to see what’s out there and what’s on the horizon and the opportunities that retail affords them. We’re excited about the next generation of retail leaders. The NRF Foundation’s activities complement other NRF programs, including our “This Is Retail” campaign and our Retail Across America initiative, which seeks out the powerful retail stories across the United States and explains how retailers, large and small, are creating jobs, driving innovation and giving back to the communities they serve. Indeed, the Retail’s Impact Across America study shows the retail industry supporting nearly 5 million jobs in transportation and logistics, so supply chain career opportunities should abound… Without a doubt. You look at some of the supply chain and logistics programs around the country that are in colleges now. Retail doesn’t move unless we have a working supply chain, so there are plenty of opportunities within the supply chain community As part of these programs, we’ve had supply chain experts participate on roundtables and panel discussions and talk about those opportunities within the supply chain – everything from trade and sourcing to transportation and distribution. Those really are the lifeblood of any retail company. How does your extensive pre-NRF Washington background – both in government relations roles with the Retail Industry Leaders Association and then as a policy analyst with U.S. Customs and Border Protection – facilitate your ability to best serve NRF members in your present position? It’s kind of funny. When I went to school down here [at American University, after growing up on Long Island], I had no dream or desire or thought that I would end up in this kind of a job, in politics. I studied international business [graduating in 1994 with a bachelor’s in international business with a concentration in finance] and did an internship with another trade association doing trade policy work. It was the summer of NAFTA [North American Free-Trade Agreement] and U.S.-Japan trade relations, and I really kind of fell in love with the policy aspect of international trade. Moving forward, working first with the International Mass Retail Association, which turned into RILA, and then Customs, it allowed me to get the background knowledge of knowing how the members work and operate and learning from them about the issues that impact them. Being able to translate that to members of Congress, staff and the administration, I think, has always been critical. It’s trying to really show those real-world experiences for that. And, for me, it’s always about learning. I learn something new every day from our members. I think that’s the most important thing, to be open and listening and understanding what everything means to your members and trying explain to them what Washington is doing and then taking that back to the folks here in Washington and explain to them real-world what legislation they’re considering means for a retailer in, say, Ohio. Working at Customs and Border Protection gave me visibility into how things work within the government. So not only working from the outside but seeing how things are done on the inside and what it takes to move legislation and regulations and being able to translate that back as well was pretty important. Do you ever want to get as far away as possible from the nation’s capital, and, if so, where do you dream of being? Every once in a while, you have that moment where you’d rather be on a beach somewhere, looking out on the horizon with clear blue water, with a nice cocktail in hand, just enjoying yourself. Every once in a while, that does enter my mind. Do you ever get to do that? Not as often as I would like, unfortunately. It’s more about taking short weekend trips here and there, going up to see family in New York or friends somewhere else, which I enjoy as well.