Monthly Archives: December 2009

Twas the Night Before Auction

Twas the night before Auction, when all through the plant,

Not a creature was stirring, not even an ant.

The bid sheets were placed by the display with care,

In hopes that a new award soon would be theirs.

The workers were waiting for news from afar,

While visions of bonuses danced in the stars.

The boss with his black tie, and I with my Dior,

Had just readied our guns for a long bidding war

When out on the lawn there arose such a clatter,

I sprang from the desk to see what was the matter.

Away to the window I flew like a flash,

Tore open the shutters and threw up the sash.

The moon on the breast of the new-fallen snow

Gave the lustre of mid-day to objects below.

When, what to my wondering eyes should appear,

But a miniature sleigh, and eight tinny reindeer.

With a little old driver, so lively and quick,

I knew in a moment it must be St. Nick.

More rapid than eagles his coursers they came,

And he whistled, and shouted, and called them by name!

“Now Dasher! now, Dancer! now, Prancer and Vixen!

On, Comet! On, Cupid! on, on Donner and Blitzen!

To the top of the roof! to the top of the wall!

Now dash away! Dash away! Dash away all!

As dry leaves that before the wild hurricane fly,

When they meet with an obstacle, mount to the sky.

So up to the house-top the coursers they flew,

With the sleigh full of Goods, and St. Nicholas too.

And then, in a twinkling, I heard on the roof

The prancing and pawing of each little hoof.

As I drew in my head, and was turning around,

Down the smoke-stack St. Nicholas came with a bound.

He was dressed all in fur, from his head to his foot,

And his clothes were all tarnished with ashes and soot.

A bundle of Goods he had flung on his back,

And he looked like a peddler, just opening his pack.

His eyes-how they twinkled! his dimples how merry!

His cheeks were like roses, his nose like a cherry!

His droll little mouth was drawn up like a bow,

And the beard of his chin was as white as the snow.

The stump of a pipe he held tight in his teeth,

And the smoke it encircled his head like a wreath.

He had a broad face and a little round belly,

That shook when he laughed, like a bowlful of jelly!

He was chubby and plump, a right jolly old elf,

And I laughed when I saw him, in spite of myself!

A wink of his eye and a twist of his head,

Soon gave me to know I had nothing to dread.

He spoke not a word, but went straight to his work,

Restocking the warehouse, then turned with a jerk.

And laying his finger aside of his nose,

And giving a nod, up the chimney he rose!

He sprang to his sleigh, to his team gave a whistle,

And away they all flew like the down of a thistle.

But I heard him exclaim, ‘ere he drove out of sight,

Happy Auction to all, and to all a good-night!”

There’s Something to Be Said for Private Equity

And the ability to tell Wall Street to take a hike. I was absolutely disgusted when I read this piece on the intersection of Wall Street and Private Equity with the Supply Chain and saw the following:

one large retailer had the opportunity recently to save an expected $50 million from a supply chain network redesign project, included shifting from a number of smaller distribution centers to larger ones. The project had a great ROI and the capital was available — but the company delayed the project just because of the potential for Wall Street to view the project as too risky operationally and financially.

There’s wanting a good Return On Assets and then there’s pure stupidity. What do you think this is an example of?

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Opportunities for Transportation and Logistics Operators Part II

In addition to the presentation of 18 theses around the continued scarcity of energy resources, Volume 1 of the Transportation & Logistics 2030 report on how supply chains will evolve in an energy-constrained, low-carbon world by PriceWaterhouseCoopers and the Supply Chain Management Institute also identified some (emerging) opportunities for transportation and logistics operations that are worth close scrutiny by any provider looking to differentiate themselves in the marketplace.

The report provided opportunities in four areas:

  • Products & Services
  • Finance & Accounting
  • Processes & Organization
  • Strategy & Policy

Today, we’re going to overview the process, organization, strategy, and policy opportunities.

Processes & Organization

  • Innovation Management
    Innovation management has not yet been systematically implemented by the majority of logistics companies and offers a significant opportunity for substantial benefits for operations of all sizes.
  • Scenario Culture
    Companies that “think in scenarios” and plan for “alternate” futures can make decisions that maximize their likelihood of success.
  • Research Cooperation along the Supply Chain
    Research efficiency can be significantly enhanced by the participating in research initiatives.
  • CO2 Driven Supply Chains
    Companies may be able to realize competitive advantages over the long-term by reducing CO2 emissions in their processes, documenting such reductions, and actively promoting them to the marketplace.
  • Total Emissions Management
    Leading companies that have already implemented total emissions monitoring systems can take actions to reduce their total emissions and gain additional customers by way of their reduced environmental footprint.

Strategy & Policy

  • Local Patriot
    As consumers demand more locally produced products, those logistics companies that focus on efficient “local” transportation could be the the preferred partner for “local” companies.
  • Corporate Social Responsibility & Ethics
    Logistics companies that develop expertise in the design and implementation of sustainable supply chains will be able to differentiate themselves and win more customers through combined transportation and consulting services.
  • High Tech Logistics
    High-tech logistics providers that provide the latest technology for interaction will gain prominence among customers looking for more visibility into, and control over, their supply chains.
  • Home Delivery Specialist
    Logistics service providers who are able to develop a full,flexible palette of intelligent city solutions which fulfill any newtraffic restrictions could find a promising market as homedelivery specialists.

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Are You Ready for Your Talent Shortage?

Don’t be fooled by the current economic environment, there’s still a global talent shortage and we’re headed towards an impending crunch because the talent war is going to heat up again along with the recovery. And chances are that you’re going to be on the losing end according to some recent research from TopGrading Solutions. (Tip-of-the-hat to Kevin Cornish.)

According to the research, 67% of currently employed personnel surveyed will be looking for new opportunities once the economy picks up. That’s right, if you’re an average company, when the economy recovers, you can expect that two thirds of your workforce will be looking for work. If you thought you had turnover problems before, you ain’t seen nothing yet. Why? Well, if you’re an average company, you cut your staff by 10% to 20% and pushed those that remained to their limits with pay cuts and unpaid overtime. That’s why over 78% of employees do not feel that they were treated well (enough to stay in their current position).

All I can say is that you better get started on your succession plan. Given that there’s a 4 in 5 chance that you’re going to be hit by an internal talent shortage real soon, I don’t think you can afford to turn a blind eye to the issue any longer. Good luck!

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Opportunities for Transportation and Logistics Operators Part I

In addition to the presentation of 18 theses around the continued scarcity of energy resources, Volume 1 of the Transportation & Logistics 2030 report on how supply chains will evolve in an energy-constrained, low-carbon world by PriceWaterhouseCoopers and the Supply Chain Management Institute also identified some (emerging) opportunities for transportation and logistics operations that are worth close scrutiny by any provider looking to differentiate themselves in the marketplace.

The report provided opportunities in four areas:

  • Products & Services
  • Finance & Accounting
  • Processes & Organization
  • Strategy & Policy

Today, we’re going to overview the products, services, finance, and accounting opportunities.

Products & Services

  • Virtual Delivery
    e-Document providers capable of quickly and cost effectively digitizing any type of document (received by any traditional means of communication) and reproducing an exact copy at the destination will gain a short term advantage as companies begin the slow journey to true paperless operations.
  • Eco-Consultants
    Companies who recognize the market for green logistics and SCM early and develop an expertise will have the opportunity to provide eco-consultancy services to their customers.
  • Slow Transport
    Companies that provide slower, but much more energy and cost efficient, transport options might see a booming business as the eco-conscious consumer starts to dominate the market.
  • Co-opetition (Competitive Collaboration)
    Cooperation between competing businesses as a way to cut costs and achieve competitive advantages will gain increasing acceptance. For example, logistics providers have an opportunity to collaborate on “last mile” deliveries and significantly reduce associated costs with network and route planning optimization.
  • Low Cost Logistics
    Going beyond co-opetition and allowing a customer to assemble logistics services according to their needs, which could be limited to the actual transport of goods (where the customer takes over administrative processes and work steps) could be a booming business. (Of course, these providers will need to implement a sophisticated real-time infrastructure with cost transparency to enable this service.)
  • Fabbing Supply Chain
    Fabrication of products using a computer and a 3-D printer could be common by 2030. Providers who offered this service to consumers who bought “blueprints” over the internet could see a booming business.

Finance & Accounting

  • Mobility Account
    Environmentally aware companies may start introducing mobility accounts and monitor the carbon footprint caused by their employees business trips. Providers that offer (SaaS) solutions for mobility account tracking could see a booming business.
  • CO2 Ticker
    Companies tracking carbon emissions will start reporting all carbon emissions associated with product and transport with a CO2 Ticker. Companies who can reduce this number will see a competitive advantage.
  • Green Credits
    Green Credits, a positive incentive system to act in an environmentally friendly way that grants credits to employees who engage in activities to improve environmental conditions, might catch on. Providers who offer such credits to customers who select greener alternatives might gain a competitive advantage.
  • Total Emission Monitoring
    CO2 emission tracking is just the tip of the iceberg. In the future, sulphuric dioxide, nitrogen oxides, noise, and other pollutants will also be monitored. The first to market with Total Emission Monitoring solutions will have a clear advantage.
  • Sustainability Rating Agency
    Third party sustainability ratings will be as important as third party credit ratings in the future. Logistics companies with high sustainability ratings that could improve the ratings of their customers will be looked very favourably upon in the future.

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