Feature Article
Logistics Processing – Don’t go it alone
Is your company developing and managing Logistics processes internally? If you are the Logistics Manager, are you getting the funding and support you need to invest in the right people, processes and technologies to keep your company’s logistics programs running efficiently and effectively? Are your programs improving Customer satisfaction and continuously reducing cost as a percent of sales or returns? If not, then perhaps you should consider a new investment strategy of partnering with a third-party logistics (3PL) provider.
If you’re constantly lagging the investment curve for your Logistics processes then quite simply Logistics is not one of your company’s core competencies. Core competencies are those skills considered essential and unique and are invested in to set you apart from your competitors. If you’re not getting the internal funding you need then seek a partnership with those who are.
So let’s say you’ve decided Logistics is not a core competency and you’re willing to engage a qualified 3PL partner but your Executive Management team is not convinced. Here are a few points you could use to help everyone understand and rationalize the benefits.
1. Improved Metrics and accountabilities: 3PLs are adept at defining critical to customer measures and developing the data required to effectively measure performance to contractual requirements. Most 3PLs have invested heavily in packaged or customized warehouse management, order management, transportation management and workforce management systems that ensure data is available to manage and measure the customer experience.
2. Improved performance: 3PLs are heavily invested in logistics processes. Most seek out and leverage industry best practices to ensure sustained performance is on par, or exceeding, industry norms. Whether it’s the latest in lean process design or specialized conveyor and technology design, the leading 3PLs are always looking for new ways to reduce cost, improve performance, and differentiate themselves in their marketplace.
3. Sustainability and environmental advantages: Consider that most well established 3PLs have invested in supply chain analysis functions, or capabilities, to ensure the most efficient movement of a customer’s goods. The efficient transport of goods reduces wasted time and energy, both of which translate to positive environmental impact and assuring a more sustainable approach.
4. Expanded Market capabilities: Perhaps you’ve been trying to create an expanded domestic footprint or one of a more global nature. If global reach is important you’ll find many 3PLs able to meet this requirement either directly or indirectly through a partnered network provider.
If you are employed in a business that requires products to flow effectively and efficiently then you owe it to yourself, and your customers, to investigate the deployment of a 3PL solution. Now, no two customers are exactly alike and no two 3PLs are exactly alike. To get the process started begin by bringing a variety of well known 3PLs into your facility and share with them your vision of the future, the capabilities that are critical, essential and nice-to-have and begin the process of identifying those who can best serve your customers now and in the future.
If you find yourself unclear on how best to proceed with developing the business case, and seeking qualified candidates, then perhaps you might consider engaging the Supply Chain professionals at ASIL, Inc.. ASIL consultants are Logistics and Supply Chain professionals with over 100 years experience in various Supply Chain roles. ASIL’s partnerships with Logistics providers can provide you a program design offering the best balance of time, touches and recovery. We’ve built specialized capabilities into our Max Partnering® application that can help you manage the sourcing of qualified providers. We have a proven track record of pragmatic solutions and welcome the opportunity to serve you and your clients. Contact ASIL today and let us help you achieve new areas of profitability and success in this ever changing economic climate.
Contributed by Warren White
Spotlight
Living a Lean Warehouse Culture
There is much buzz about Lean Warehouse management. It seems that every few years a rally cry emerges, whether it is TQC (total quality commitment), JIT (just in time), six sigma, sustainability, green, and even lean. The intention is to get people focused on using a set of tools or methodologies to drive business performance. At times these tools and methodologies are turned into organizations in order to drive acceptance and adoption. The results of which can be debated. Many outlive their usefulness.
The beauty of the Lean approach is that it is about a cultural shift in how you conduct business. The focus shifts from the tools to a new way of conducting business. While there is no shortage of tools to employ on your Lean journey, the greatest challenge company’s face is how their employees will embrace Lean.
A few ideas to consider when nurturing a Lean culture:
* Managers and employees both need to be engaged. Visible leadership in applying the principles is critical to success. Everyone needs to be trained as problem solvers.
* Taking risk without fear of retribution. It is important that employees feel secure in driving the changes. Once fear becomes the norm for making mistakes the entire foundation for Lean will begin to crumble.
* Communicate the vision, the logic, and the benefits to all. The more that everyone knows and understands the better the chance of Lean becoming a cultural movement. Involve employees in shaping the future and keep them informed of the advances and progress.
* Measure the few versus the many. Avoid trying to measure everything. Take the time to define the few critical measures and focus on driving improvement and removing barriers to success.
* Celebrate success and learn from failures. Small wins build upon each other versus going for the big bang. The organization builds more confidence through a series of wins over time. Share the victories in visible places so that all employees can celebrate the company’s achievements.
It does take time to build a Lean culture. Depending upon the energy, excitement, and focus it could take a couple of years to happen. The journey never really ends, because once you develop problem solving skills, you will always look for ways to simplify and improve.
If you are beginning your Lean journey and need help to develop the strategy and execution, give the professionals at ASIL, Inc. a call.
Best wishes to all for good health and continued prosperity.
Contributed by Peter Pazmany
Industry Trends
Sustainability Index
Companies today are striving to set and meet environmental goals and objectives in order to meet their customer’s demands for reducing their Green Footprint. Green Footprint reduction can be accomplished as an initiative but in order to maintain the reduction over time, the company must remain profitable in pursuit of the effort. Creating a sustainability index is a way for both customers and corporations to monitor progress against goals.
As part of Walmart’s ongoing mission to be a more sustainable company, they recently announced a worldwide sustainability index initiative. Increasingly, its customers want products that are more efficient, last longer and perform better. They want to know the product’s entire lifecycle. They want to know the materials in the product are safe, that it is made well and is produced in a responsible way.
These desires inspired Walmart to help develop the sustainability index. With this initiative, they are helping create a more transparent supply chain, driving product innovation and ultimately providing their customers with information they need to assess products’ sustainability.
The index is being introducing in three phases:
Phase 1: Supplier Assessment -
Walmart is planning to provide more than 100,000 global suppliers with a brief survey to evaluate their own companies’ sustainability. The questions will focus on four areas: energy and climate; material efficiency; natural resources; and people and community. The survey is a key step toward enhancing transparency in their supply chain.
Phase 2: Lifecycle Analysis Database -
Walmart is helping create a consortium of universities to collaborate with suppliers, retailers, non-governmental organizations and government officials. The consortium will help develop a global database of information on products’ lifecycles – from raw materials to disposal.
Step 3: A Simple Tool for Customers -
The final step of the index is to provide customers with product information in a simple, convenient, easy to understand manner so they can make choices and consume in a more sustainable way. This will provide customers with greater transparency into the quality and history of products than they have today.
While the Walmart effort is still a work in progress, it shows that major corporations are serious about sustainability in their supply chains and are activity working plans that will keep them ahead of their competition.
What is the status of your sustainability effort? Do you need help in getting aligned to your customer’s expectations? Give our ASIL, Inc. professionals a call and let us help you on your journey to sustainability.
Contributed by Michael Singleton
Our Software Products
Click on the links below to view ASIL, Inc.'s MAX Partnering® self paced software demonstrations:
Strategies and Execution - This demo depicts the tools that organizations can utilize to embrace change effectively and implement it successfully.
Self Assessment Sample Questionnaire
- This demo will enable you to respond to a small sample of self
assessment questions focused on change management and create a Heat Map
of your responses to see areas that may need attention. The Driving
Complex Change® methodology addresses the six areas of Direction,
Ability, Incentive, Resources, Structure, and Action that can impact
your effectiveness of change management.
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