There are a host of issues and risks you need to consider and mitigate when implementing an international reverse logistics process. Here are six things to consider when taking your reverse logistics process international:
1. Laws, rules, and regulations
One of the first issues that you need to understand are the laws within the involved country (or countries) as well as any rules and regulations, such as taxes and tariffs, that focus specifically on border crossing of defective or non-working electronics. Not taking the time to understand the legal system could result in fines and/or costly delays.
2. Costs
Costs are another issue. Labor, transport, and disposal costs, for example, vary vastly from country to country. Accounting for even minor cost fluctuations is essential, and not only for budgeting and cost containment. Shifting cost can upend even the tightest client relationships.
3. Product classifications
Product classifications can vary from country to country. Research how the client country classifies product types. When it comes to defective or nonworking electronics, one country’s commodity can be another country’s contraband. Furthermore, misunderstandings can be expensive. For example, understanding product classifications such as tested-defected or non-tested-defective can mean the difference in being able to resell or recycle in one country to another.
4. Service levels
You must also consider service levels. What are the labor norms? Are they drastically different than those in the United States? How will the labor norms impact the service level agreements you have in place? More than likely you will find that what works well here in the United States will need to be amended elsewhere.
5. Culture
Another important thing to consider is culture. One cannot begin working in another country without taking the time to learn about and understand the culture. Although it may be tempting, don’t try and change the culture. Real success comes when you work with/within the culture.
6. How things work
Finally, take the time to fully understand what it means to work in the specific country. For example, does the country shut down around the Christmas holiday? What impact will that have on meeting deadlines? How far will you need to plan ahead?
Red Sox fans are known for their loyalty, optimism, spirit, and patience. The Curse of the Bambino caused an 86 year championship drought. During these 86 years, and the equally long seeming gaps between the 2004, 2007 World Series wins and the upcoming 2013 victory (remember, Red Sox fans are ever optimistic) – Red Sox Nation aimed high. Yes we accepted each game won with fanfare, but we never too our eyes off the big win – the World Series.
In business the big win is achieving a specific goal or vision – typically large-scale change or a disruptive innovation. It takes time to win big. It also takes hard-work, motivation, and buy-in by your team. Here is where Red Sox Nation comes in. Here is what Red Sox Nation can teach business:
Within the logistics and supply chain industries, the key to providing your client with an end to end valuable offering is providing the core value yourself and outsourcing the rest. Finding the right outsource partner is critical to success. Here are seven things you need to consider when choosing a new outsource partner.
1. Culture and values
Choosing the right partner goes beyond capabilities. You have to consider the corporate culture as well. In addition to being able to do the work, the ideal partner should be able do it seamlessly by fitting with your team and with your client’s needs.
When evaluating a new outsourcing partner, it is important to look at their mission or value statements. How do these hold up to your own company’s mission and value statements? Are they well aligned? If they are, move on and explore the company further. If not, walk away. Mission and value statements speak to the core culture of the company, so if you can’t find common ground here, it is unlikely you will be able to build a positive working relationship.
2. Standards and metrics
What standards of quality and delivery does the potential partner employ? Here it is important to look at their metrics and processes. How do these compare with the ones within your company? If they are similar, it is not only likely your systems will be able to work well together, but also likely that the two companies have a similar approach to standards of quality and delivery.
3. Investments
Next, take a look at where the potential partner has made investments. Has the company spent in similar areas to your company? Similar investments show business culture or strategy alignment. If the investments are different, find out why.
4. Financial stability
What is the financial health of the potential partner? You don’t want to enter into a partnership only to find out in a few months that the company is not financial stable. Entering into a partnership with a company that does not have its financial house in order is a costly mistake. Take the time to do your due diligence.
5. Where will you stand?
What will your relationship be? That is, will you be a small fish in a big pond or a big fish in a small pond? When times are good this doesn’t matter, but when there is a customer satisfaction issue, it can mean the difference between client retention or client attrition. It is essential to know where you stand inside your partner’s organizational priorities. If you are comfortable with where you will stand, that’s great. If not, find another partner.
6. Long-term strategy
It is also important to look at the long-term strategy of your company and your potential partner’s company. Does the service they will be providing on your behalf align with their continuing plans? And with your ongoing plans? Continuity and service development is important to your company and to your customers. The potential partner needs to be able to provide the specified service for the foreseeable future and also needs to be able to grow with your company’s strategic needs.
7. Credibility
Finally, look to social media. What are others saying about your potential partner in an unfiltered environment? Are people pleased with the service the company provides? Are there any red flags with respect to the company or the service they provide? Social media can help call attention to potential issues.
Also talk with others within the industry – especially people who have worked with the potential partner before. What was their experience? Again, look for red flags.
By following these steps, you’ll be able to better evaluate potential partners and identify partners that are a good fit from both a business and cultural perspective.
Here are five things the supply chain industry can learn from Top Gear.
1. Speed is essential
Jeremy Clarkson advises: “Speed has never killed anyone, suddenly becoming stationary… That’s what gets you.”
For the supply chain industry speed and stagnation can be deadly. PwC’s Global Supply Chain Survey found that industry leaders (financially and operationally) have “supply chains that are efficient, fast and tailored – a model that lets companies serve their customers reliably in turbulent market conditions and that differentiates between the needs of different sets of customers.”
2. Innovate
At the heart of every Top Gear episode is innovation. Whether it be turning a combine harvester into a snow plow, a car into a motorhome, or designing a mobility scooter to that will “tackle the wilds of the British countryside,” the boys on Top Gear know how to get creative.
Innovation is critical to growth and to gaining (and maintaining) a competitive advantage. Innovation can also save you money. In Colin White’s book Strategic Management, he provides the example of Ikea. Ikea redesigned their Bang mug with the pallet in mind. By doing so they were able to significantly increase the number of mugs they could fit on each pallet (from 864 mugs to 2,024 mugs). The product redesign enabled Ikea to reduce shipping costs by 60 percent.
3. There is such thing as too much power
Fast cars are the lifeblood of Jeremy Clarkson. However, after driving the Ferrari F12 Clarkson surprised everyone by pronouncing that the car had too much power.
As Lao Tzu said: “A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: We did it ourselves.”
In a Supply Chain 24/7 article Adrian Gonzalez notes that 30 percent of supply chain professionals currently block access to social media sites. The reason being that “many supply chain executives and companies are stuck on the starting line because they can’t get past the word ‘social’ and the perception it creates.” This needs to change. As Clara Shih and Lisa Shalett point out in an HBR Blog post – it can be perilous to be a social media holdout. That is, being a social media holdout means that you let others define your company’s reputation, your company is invisible and less credible, and your company is perceived by potential customers as being behind the curve.
5. Never underestimate The Stig
“Some say he never blinks and that he roams local woodlands foraging for mouse meat. All we know is, he’s called The Stig.”
The Stig sets lap times and instructs celebrity drivers on Top Gear; we know nothing else about him. That being said he is an integral member of the team, effective at what he does, and is respected (he has a cult following inclusive of 6 million Facebook “likes”).
Within your company you most likely have a Stig – a silent performer who excels at their job. Unfortunately, the silent performer often does not receive the accolades the more outgoing employee receives. This is to the detriment of the company – your silent performer might be your star intrapreneur.
You hate your job. The hours aren’t right, the work isn’t stimulating, and you feel there are no growth opportunities. Your new hero is Marina Shifrin and you play her epic resignation video over and over again in the hopes that you: 1) can get up the courage to quit, and 2) you can acquire some of those dance moves.
While going out Shifrin-style may seem like a good idea – it isn’t. Yes Shifrin’s video has gone viral and has gotten more than 15 million views in 10 days, but can you execute those dance moves? Let’s face it – you can’t. And even if you could, you’d be seen as a follower – not an innovator.
So what are you to do?
If you are truly miserable in your job start by determining why you feel this way. Is it the position itself? The company? The industry? The hours? The work-life balance? Depending upon the answers to these questions it is possible that you could schedule a meeting with you boss or with HR to discuss your concerns. Perhaps there are changes that could be made within your current position, or maybe you could be transferred to another division.
If, when you get right down to it, you feel it is time to say good-bye, say good-bye tactfully. So how to quit your job? While going out in a blaze of glory may seem like a good idea, the fire that blaze creates – it burns bridges.
So, when it is time to quit – be prepared to give at least two-weeks notice and leave on a positive note. The world is small. Plus, you don’t want to leave the door open for your boss to one-up you.
