Disaster in Japan - Worldwide effect

We have all watched in disbelief at the images coming from Japan. I've heard people say that it looked less believable than the latest disaster movies. As Japan and the rest of the world are struggling to help the victims of the earthquakes and tsunami, we need to also recognize the challenges that we all will face in the coming months. Some of the most important products, both components and finished goods, that we all rely on for everyday life have been disrupted. It calls into question how we manage our supply chain in the event of disasters, both man-made and natural. Check out our upcoming article on this issue in April.

Customer Service Moments of Truth

We recently published an article (click here to read the entire article) on the topic of Customer Service. We would be happy to hear your thoughts. Feel free to post your comments below.

Don't Fall Into the New Year Resolution Abyss

I love the turn of the calendar into the new year. It is symbolic to many of us of new beginnings. If you are like most then you have probably either given some thought to or already committed to your 2011 resolutions. STOP...Don't do it!!

Resolutions are broken within the first 30 days at a rate of 82% (I made that up, but I think I'm probably close in that estimate). What makes more sense when it comes to the new year is to review where you are and where you want to go. Setting goals is the best way to get there. It is often said that a life without goals is like planning a 1,000 mile trip without a plan on how to get there. I don't know anyone that just heads to the airport and then decides which flight to take. Your life, both business and personal should be managed in the same way as your travel plans.

We help both organizations and individuals with creating SMART goals that focus on what they want to achieve. Here are some thoughts related to SMART goals. The acronym SMART stands for Specific, Measurable, Action-oriented, Realistic, and Time-based.

  Specific

Goals should be straightforward and emphasize what you want to happen. Specifics help us to focus our efforts and clearly define what we are going to do. 

         Specific is the What, Why, and How of the SMART model.
         WHAT are you going to do? Use action words such as direct, organize, coordinate, lead, develop, plan, build etc.
         WHY is this important to do at this time? What do you want to ultimately accomplish?
         HOW are you going to do it? (By...)

          Ensure the goals you set are very specific, clear and easy. Instead of setting a goal to improve quality, set a specific goal to reduce returns by 5%

    Measurable

         If you can't measure it, you can't manage it. In the broadest sense, the whole goal statement is a measure for the project; if the goal is accomplished, then it is a success. However, there are usually several short-term or small measurements that can be built into the goal.

         Choose a goal with measurable progress, so you can see the change occur. How will you see when you reach your goal? Be specific! "We will track the next 3 months of returns as compared with the average returns per month last year" shows the specific target to be measure. "I want to improve our returns" is not as measurable.

          Establish concrete criteria for measuring progress toward the attainment of each goal you set. When you measure your progress, you stay on track, reach your target dates, and experience the exhilaration of achievement that spurs you on to continued effort required to reach your goals.

Action-oriented

          When you identify goals that are most important to you, you begin to figure out ways you can make them come true. You develop that attitudes, abilities, skills, and financial capacity to reach them. Your begin seeing previously overlooked opportunities to bring yourself closer to the achievement of your goals.

          Goals you set which are too far out of your reach, you probably won't commit to doing. Although you may start with the best of intentions, the knowledge that it's too much for you means your subconscious will keep reminding you of this fact and will stop you from even giving it your best. If they are action-oriented and the actions are doled out in reasonable doses, you will have a great chance to achieve them.

          A goal needs to stretch you slightly so you feel you can do it and it will need a real commitment from you. For instance, if you aim to lose 20lbs in one week, that may be unreasonable. It might also include so many actions that you will not be able to fulfill all of them. But setting a goal to loose 1lb and when you've achieved that, aiming to lose an additional 1lb, will keep it achievable and action-oriented for you.

          The feeling of success which this brings helps you to stay motivated.

     Realistic

          This is not a synonym for "easy." Realistic, in this case, means "do-able." It means that the learning curve is not a vertical slope; that the skills needed to do the work are available; that the project fits with the overall strategy and goals of the organization. A realistic project may push the skills and knowledge of the people working on it but it shouldn't break them.

          Devise a plan or a way of getting there which makes the goal realistic. The goal needs to be realistic for you and where you are at the moment. A goal of never again packing the wrong item in a box may be admirable, but probably impossible to achieve due to the time frame (never again). For instance, it may be more realistic to set a goal of accurately packing one complete order and then focusing on the next complete order. Building upon your successes will make more sense.

          Be sure to set goals that you can attain with some effort! Too difficult and you set the stage for failure, but too low sends the message that you aren't very capable. Set the bar high enough for a satisfying achievement!

     Time-based

          Set a timeframe for the goal: for next week, in three months, etc. Putting an end point on your goal gives you a clear target to work towards. If you don't set a time, the commitment is too vague. It tends not to happen because you feel you can start at any time. Without a time limit, there's no urgency to start taking action now.

          Time must be measurable, attainable and realistic.

If you need help with goal creation within your organization, just let us know.

The Distribution of Turkeys

OK, I know that everyone is thinking "Where is he going with this topic?" It is really quite simple. It has become a bit more mainstream to consider how far our food supply in the United States travels before we consume it. Some of this is born out of the cost of transportation and also the reduced carbon footprint for products that travel a shorter distance. So where di your turkey come from? Was Tom frozen or fresh? How many stops did your turkey make along the way to reaching your beautiful dinner table?

Most of us are not asking these questions, but I'll give you two examples:

My "young" turkey came from Garner, North Carolina a stones throw from Raleigh. Based on my visit there through Google Earth, it doesn't appear to have been a "free range" turkey. I hope that it didn't just grow up in a USDA approved factory. That would be even sadder than the fact that he wound up in the Northern suburbs of Chicago, a long way from home. 844 miles to be more precise.

Another turkey that I heard about was bought from a local Illinois farmer, a turkey farmer. Located in beautiful Waterman, Illinois. A mere 53 miles away. I have to be honest here...my turkey was frozen solid, while this other turkey had just been dressed (killed and prepared) the day before. I know that I have no real connection to my turkey, it is just a fabulous dinner entree. My friends who bought the other turkey, though are in a completely different place. The farmer said, "Take good care of my baby!" as they placed the bird in the car. Not sure they're going to enjoy their turkey as much as I will.

OK, now back to the distribution aspect of my rantings. Here is where the distribution industry gets turned on its head, sort of. The turkey that traveled hundreds of miles in a frozen carrier truck cost me a whopping .69 cents a pound while the local farmer's bird cost $1.99, almost 3 times the cost! My friends also had to drive the 53 miles each way to pick it up. My trip was 3 miles round-trip. So it is clearly NOT just about the transportation costs that drives the cost of products to market. It is the level of quality, perceived or otherwise that is a significant driver, too. There is also the measurement of our carbon footprint. Still don't know how to measure mine!

So my quick assessment regarding the buy local phenomenon in the food industry appears to be much more about the perceived quality than it is the cost of transportation. If you are in the distribution business then you should be emphasizing your distinction in the market and not always focus on how close you are to your customer. In the end, your proximity to their location may not be the reason they decide to do business with you.

The Future of Distribution

We recently led an event at Pinstripes in Northbrook. The title was "Can Your Distribution Company Survive the Speed of Change". The crowd of distributors was very engaged in the presentation and discussion. This was clearly a roomful of progressive thinkers, too bad the ones that really need to figure out what's going to happen in distribution over the next 5-10 years were not there.

The world of distribution is changing and it is changing fast. Distributors need to do their best to figure out where the industry is heading and how they are going to fit into the new economy. This is a scary thought for many businesses these days, but it is reality. Distributors have survived for decades without being on the cutting edge of innovation and technology. These days are over. We discussed a number of changes that we believe will happen over the next 10 years. Among them was the idea of seamless information throughout the supply chain. This is currently being implemented in some of the most profitable distributors in the world. Soon it will be considered the minimum cost of entry.

There are other changes that we feel a distributor needs to embrace to flourish, well actually survive, in the years to come. Contact us or check out our future articles written on these important topics.