by Jennifer Hart Yim | Jan 30, 2018 | Blog, Current Events, Logistics, Supply Chain
Looking at Tesla’s suppy chain issues, here are the biggest takeaways so you don’t have to repeat their mistakes.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Back in 2016, we posted about Tesla’s ambitious plan to ramp up production of its consumer-grade Model 3 electric car to 500,000 vehicles a year by 2020. At the time, pretty much every analyst agreed that was an ambitious target for a manufacturer without solid experience mass-producing vehicles at that scale. In the two years since, Tesla’s CEO Elon Musk has issued a number of other bold predictions. He’s championed a whole host of emerging technologies. He’s made the world feel like the future could resemble a sci-fi novel – were he to deliver on the herculean tasks of sending humans to mars, shifting the world to solar power production, and figuring out how to directly connect computers to human brains.
But in the meantime, there’s also been the pesky matter of the more mundane – but seemingly no less difficult – task of delivering on the very high demand in the marketplace for Tesla Model 3s. In 2016, the company faced scrutiny for allegedly hiring 140 workers from Eastern Europe for $5 an hour. Then, in 2017, various press outlets reported on a number of issueswith the Model 3’s Supply Chain, specifically issues related to the vehicle’s battery design, as well as issues with manufacturing automation. The result?
Only 220 Model 3s were delivered as of October 2017. We’re sure the company has delivered more cars since then, but that’s a brutal statistic almost two years after over 400,000 consumers paid $1000 each to preorder the car. Investors are growing restive, with the company’s share price down 6.8%, and the company reporting a $671.1 million loss for the 3rd quarter of 2017. Musk has compared the Model 3’s current production state to the “8th circle of hell,” and acknowledged that Tesla won’t hit the goal of 5,000 units produced a month until “sometime in March 2017.”
A great article last month from CIPS’ industry magazine Supply Management dove into some of Tesla’s Supply Chain woes, discussing how the company, still considered a visionary in the industry, has got to this place, as well as some optimistic scenarios for how it can get out of it. Written by Paul Simpson, it’s an interesting account of how Supply Chain issues can stymie a company, even if that company and product have huge positive brand association. Similarly to what we did with analysis of Target’s Canadian misadventure, we wanted to see what lessons we can draw from Tesla’s Supply Chain issues that might be useful in industries other than automotive manufacturing.
Here are our biggest takeaways for what can be learned from Tesla’s Supply Chain woes:
- If you’re not confident that your production and Supply Chain are up to snuff, don’t overpromise to the consumer. Elon Musk has made a cottage industry out of bold pronouncements about the future, and he’s delivered on some of them before. It’s why he’s gained a reputation as a visionary. Musk had to know that promising to quickly scale up production to 500,000 cars a year was an unrealistic goal. He’s also someone who believes in setting big goals as a way of achieving the impossible. But even with that in mind, it’s possible he also underestimated the inevitable difficulties in mass-producing a product with 10,000 individual parts, and that’s led to way too many 2 a.m. nights tinkering with robotics on factory floors.For his part, Musk acknowledged that he’s now trying not to make pronouncements about production timelines.
- Take ownership for Supply Chain failures rather than blaming suppliers. Even if suppliers are failing to deliver, consumers (and, relevant to Tesla, shareholders) will almost always blame the company itself rather than those suppliers – and rightly so. They’re the ones who selected those suppliers, after all. In Tesla’s case, Musk took personal ownership over the decision to select the system integration subcontractor that’s behind the latest delays – instead of blaming his Supply Chain staff. Depending on your perspective, you can either look at this as a visionary CEO being transparent about Supply Chain difficulties, or a manufacturer throwing a supplier under the bus.
- Great companies need a Supply Chain guru. Simpson quotes an argument by American journalist Travis Hoium, who said that “Elon Musk Needs his Own Tim Cook to Take Over Operations.” Drawing a parallel to Steve Jobs, Hoium argues that Musk needs an operations genius who can match his vision for the future and product development excellence with Supply Chain execution. Sometimes business leaders – especially those with the vision of someone like Elon Musk – overrate their own ability to understand the intricacies of managing complex Supply Chains, to their detriment. Tesla’s issues underscore the importance of having the right talent in place to avoid the murky waters of Supply Chain failure – and figure out how to right the ship if things go awry.
Despite these numerous issues, it looks like – for now – Tesla is facing more heat from shareholders than consumers. Anticipation for the Model 3 is still high, showing that a strong product and brand can trump some Supply Chain issues. But these issues are starting to have a real impact on Tesla’s share price and bottom line, and the pressure is on. Let’s see how this story develops as 2018 proceeds.
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by Jennifer Hart Yim | Dec 21, 2017 | Blog, Strategy
Resumes are hard. Always have been, always will be. It’s hard to write and talk about yourself. It’s even harder to boil years – or even decades – of experience and accomplishments into a few short pages of text and visuals.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
You’re probably more focused on your job than keeping a resume updated, and if a few years pass in between the times when you need a resume, you often find that resume trends have changed, and it’s hard to know how to format it, what to include, and what to leave out. It’s easy to feel lost because, of course, resume writing is one of the toughest tasks of any professional.
Let’s revise that slightly: it’s easy enough to write any old resume, but it’s difficult to craft a document that actually boosts your credibility.
A recruitment firm like Argentus is something of a resume clearing house. We see them all: the good, the bad, and the ugly. We see resumes that have up-to-the-minute style, as well as resumes where we have to brush off the cobwebs as we double click on the attachment in our inbox. We’re frankly bored of the latter. That’s why we’re doing a new miniseries on the Argentus blog, called The Quest for a Better Resume. We’re going to dive into some key aspects of resume writing and give examples to help you craft a resume that wows hiring managers and, hopefully, us!
In the first installment of this series, we gave some tips for boosting your resume’s style, which is something that sadly doesn’t get enough attention in fields like Supply Chain and Procurement.
Today, we’re going to dive into the Content side of things and help answer: if you’re a professional in Procurement, Supply Chain, or any of their related fields, what exactly should go on a resume and what doesn’t belong there?
Read on to hear our advice!
Resume Content:
Supply Chain and Procurement professionals make their careers by extracting relevant insights from complex sets of data. So it makes sense that they’re often skilled at loading their resumes up with valuable content – even if their resumes lack visual panache. The resumes we see tend to be stronger from a content perspective than an optics perspective – but there are still common shortcomings in terms of what people choose to write on a resume.
So when it comes to content, what does a bad resume look like?
Obviously, the worst resume is one that doesn’t show that the candidate has any relevant experience, or one that misrepresents that experience. But let’s take it for a given that you’re a professional with a solid background, trying to communicate the breadth of skills and work experience that you’ve accumulated:
- A bad resume tends to be overly stuffed with buzzwords. It tends to talk a lot without actually saying anything, full of words like “self-motivated,” “detail-oriented,” “team-player” – qualities that you shouldn’t have to put on a resume. These kinds of qualities are “table stakes” for getting an interview. They should be self-evident when the hiring manager speaks to you in person – on a resume, they come across as empty.
- It might tend to contain irrelevant experience, or show a lack of focus. This flavor of resume tries to be all things to all people – the resume equivalent of the job seeker who applies to every job we have, without tailoring their resume to one particular niche. We get that often people do have a wide variety of experience – some professionals at the director or VP-level have touched on every aspect of the Supply Chain, from inventory management to procurement to distribution. But you should tailor your experience to the role for which you’re applying.
- It talks about “duties fulfilled” instead of accomplishments. We’ve blogged a lot about how important it is to create an accomplishment-based resume. Bad resumes tend to read like job descriptions instead of describing what the person has delivered to their employers.
- It has extra info that isn’t relevant. Trends are always changing in terms of what info your resume should (and shouldn’t) include, and it can be hard to keep up. But as of late 2017, headshots, marital status, personal info, and links to multiple social media profiles are distractions from what’s important.
With these common shortcomings in mind, what approach should Supply Chain and Procurement professionals take when trying to write a resume that impresses?
- Show, don’t tell. This old writer’s adage is also the best rule of thumb both for avoiding buzzwords and packing your resume full of impressive accomplishments instead of squandering the precious few seconds that a hiring manager will dedicate to your resume. Don’t just say that you’ve “increased cost savings,” show the amount of money that you’ve saved, and how you did it. Speak in terms of numbers: how many people did you oversee? What size of budget were you responsible for? Don’t just say you have “exceptional communications skills,” show it by presenting a resume that’s concise.
- Include the meat, not the fat. As recruiters in Procurement and Supply Chain, there are a few pieces of vital information we’re looking for when assessing a resume – beyond the accomplishments we mentioned above: if you’re in Supply Chain, what aspects have you touched on? (e.g. inventory management, logistics, warehousing, distribution, sourcing). What software do you have experience and skills with? (e.g. SAP, ARIBA). If you’re in Procurement, what categories have you purchased in? (e.g. raw materials, information technology, marketing, etc.) This is key information that sometimes gets lost within long bullet-pointed lists of “duties.”
- Less can be more. Similar to how white space is important from a visual perspective, concision is key when it comes to content. Try to write your resume with more action verbs and fewer adjectives.
If you’re like us, you’ve probably noticed that a lot of the resume advice floating around the internet is distressingly general – shouldn’t it be obvious that resumes need to avoid typos, grammatical mistakes, and incorrect contact information? So hopefully these tips give a bit more detail about how to approach a resume’s content in a blue-sky way.
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by Jennifer Hart Yim | Dec 7, 2017 | Blog, Logistics, Manufacturing & Distribution, Supply Chain
Within the month, the electronic logging device mandate will take effect. While shippers have known about the mandate for two years, truckers, shippers and carriers are still concerned about how it will impact capacity.
This post comes to us from Adam Robinson of Cerasis, a top freight logistics company and truckload freight broker.
Paired with soaring manufacturing and tightening capacity within the last month, the electronic logging device (ELD) mandate could cause the capacity crunch to worsen. In addition, other regulations, like changing attitudes and backlash at the environmental protection agency (EPA) and struggling infrastructure in Hurricane-affected areas, could cause further capacity problems. To help prevent the worsening of the capacity crunch, let’s take a closer look at how the ELD mandate and other regulations may affect capacity.
What Is the ELD Mandate?
The ELD mandate is a portion of the “Moving Ahead for Progress in the 21st Century” bill, which was passed by the United States Congress in 2012, explains ELDFacts.com. The bill outlines criteria for highway funding and the use of ELDs for use in a trucker’s Record of Duty Status. Today, the record of duty status is used to record compliance with an existing hours of service (HOS) requirements. Although the ELD mandate is a means to tracking HOS requirements, the two laws are completely different. As a result, but the ELD mandate and HOS regulations may have separate impacts on the capacity crunch.
When Does It Take Effect?
The ELD mandate is set to take effect December 18, 2017, and unfortunately, many owner-operator, truckers have not yet completed the installation of ELDs or found an appropriately authorized and licensed ELD vendor, says Jeff Berman of Supply Chain 24/7. However, the Federal Motor Carrier Safety Administration (FMCSA) will not begin requiring inspectors to place commercial motor vehicle drivers without and installed ELD out of service until April 1, 2018.
Even truckers with prior ELDs installed, which may have been installed before 2012, the upcoming ELD deadline has stringent requirements for what type of ELD may be used and who may install it. Truckers with existing ELDs from the pre-ELD mandate period will be automatically grandfathered into the existing list of ELDs at the end of 2019. Therefore, truckers looking to continue driving for the next two years need to have a new, approved ELD installed no later than the April deadline, if not the preferred December deadline. In the interim, politicians are still in debate about if the costs of installing new ELDs is justified under existing regulations, reports Supply Chain Dive. However, part of the reason the FMSCA has not yet rescinded or pushed back implementation revolves around HOS requirements.
What About HOS Regulations and the Capacity Crunch?
The capacity crunch revolves around how much available capacity is being used at any given time in the trucking industry. As a result, capacity is directly tied to the number of drivers which may be operating at any given time simultaneously. According to the FMCSA, the HOS rules are quite specific for property-carrying drivers. These include the following:
- Truckers have an 11-hour driving limit, and truckers may only drive a maximum of 11 hours after 10 consecutive hours off duty. Considering the amount of time required to park a truck, take breaks and other activities, it is nearly impossible for drivers to get in a full, 11 hours of daily driving while still obtaining the 10 required, consecutive hours off duty.
- Drivers now also have a 14-hour absolute driving limit for driving after coming on duty, following 10 consecutive hours of off-duty.
- Drivers must also take breaks and may only drive if eight hours or less have passed since the end of the drivers last off-duty.
- Perhaps the biggest impact for the HOS regulation is its specification of how many hours a driver may work within an eight-day period. If the driver drives for seven consecutive days, a trucker may not drive more than 60 hours on duty in the same period. Similarly, driver may not drive more than 70 hours with it in eight consecutive days. This consecutive. Can only restart after a driver takes 34 or more hours off duty.
Considering the HOS requirements, think about what this means for driver completing a two-way trip that requires 10 hours each way. The driver may now be limited to only making 14 total roundtrips within a seven-day period. Prior to the HOS requirement implementation, the same driver could have successfully completed an extra two trips by adding 2.5 hours to the daily driving schedule. Under the new HOS guidelines, the number of trips drivers may make is severely limited.
The Big Picture
The HOS requirements directly revolve around the ELD implementation and vice versa. The ELD will be used to track and monitor drivers existing adherence to HOS regulations, so regulations may adversely affect existing trucking capacity. Shippers need to consider how the ELD mandate and HOS regulations will result in a tightening of the existing capacity upon implementation, and even if the impact is not immediate, it will come to fruition within the next year. Shippers forgoing implementation of the ELD mandate within their fleets could face stiff penalties and other setbacks due to enforcement actions taken by the FMSCA.
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by Jennifer Hart Yim | Nov 30, 2017 | Blog, Leadership, Strategy
More and more companies are leveraging digital technologies to keep extra tabs on their employees, both in the office and at home.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
As part of our efforts to chronicle the ways the workplace is changing, we recently wrote about how more companies are adopting formal work from home policies. More organizations realizing that these policies – and other alternative working arrangements – can help them attract and retain top talent in a thriving job market. Working arrangements are becoming more flexible, but today we wanted to write about another countervailing trend.
The rise of digital communications (and applications like Skype, Google Docs, and Slack) has enabled work from home policies that let workers collaborate in real time across big geographic distances. Now, an article in the Guardian by Olivia Solon details how more companies are leveraging other digital technologies to keep extra tabs on their employees, both those who work in the office and those who telecommute.
Companies have long monitored their employees’ email, and blocked certain websites from company networks (as well as, of course, monitoring their physical presence in the office). But Solon writes about how more and more high-tech pieces of software are encouraging companies to monitor their employees’ screens, keystrokes, social media posts, private messaging, and even face-to-face interactions. As Solon puts it, “today’s workplace surveillance software is a digital panopticon” that makes employees assume they’re being watched so that they’ll stay on task and avoid any kind of distractions.
(For those who don’t know the reference, the Panopticon was an architectural design for a prison made by philosopher Jeremy Bentham in the 18th century in which a central guard tower, shadowed under darkness, kept watch over a circle of inmates who weren’t able to see at any given moment whether they were being observed.)
These technologies include Crossover’s WorkSmart, which bills itself as a “Fitbit for how you work” and offers managers a numerical score after measuring employees’ keystrokes. It also uses remote employees’ webcams to take photos of them every ten minutes and make sure they stay on task. Another technology named “Wiretap” – charmingly enough, for employees who don’t see themselves as criminals – measures the number of emails an employee sends, the number of times they open documents, the programs they use, and their keystrokes, alerting supervisors about any deviations from their normal numbers. Teramind, another employee surveillance solution, measures the amount of switching between applications that employees are doing, supposing that a high amount of switching signals a distracted employee who needs to be reprimanded. Another service, Qumram, monitors employees’ personal devices, including messaging apps like WhatsApp, to make sure that they aren’t discussing anything untoward.
It’s a new level of penetration into employees’ activity and private lives, and it all raises some interesting privacy and employee management issues. On the ethics front, it kind of comes down to this: does the idea of your employer taking a picture of you through your webcam every ten minutes give you the creeps?
Everyone has different opinions about the privacy aspects of these technologies, and whether it’s good for employees’ mental health to have all their computer activity monitored. But we’re interested in discussing these technologies from an employee management perspective:
From our perspective, what’s dangerous about this isn’t necessarily the technology itself – and believe us, it’s truly disconcerting to see one of these app’s founders literally saying “big brother is watching you,” (seriously, read the article!). But from our perspective, the issue is really the larger ethos of extreme micromanagement that this technology serves.
It’s reasonable for companies to want to protect their data. It’s fair for them to want to keep an eye on what their employees are doing – they are the ones paying for the time, after all. But the idea that an aggressive focus on every keystroke is going to improve white-collar productivity? To us, that’s specious at best. From our perspective, companies thrive when they trust their employees. They succeed when they grant them the autonomy to go above their “assigned duties” to find new projects, new lines of business, and new efficiencies – not when they obsessively monitor them to ensure those duties are being carried out.
Micromanagement often leads to loss of trust, a dearth of creativity, burnout, and high employee turnover. Is all of that worth it for the opportunity to catch an employee “stealing” ten minutes of the day to check social media, or use the bathroom if they’re working from home?
In our opinion, it’s not.
It’s telling that a lot of these software solutions use language that treats employees like children or criminals. Solon quotes the CEO of Awareness Technologies, who says “if you are a parent and you have a teenage son or daughter coming home late and not doing their homework, you might wonder what they are doing. It’s the same as employees.” Is it? Employees are people that you’ve vested with your trust. They’re people you’ve specifically hired because of their skills and creativity. They’re the critical success factor to your organization. So why should the assumption be that they’re up to no good? Isn’t it better to hire with trust in mind, and measure results to see if each employee deserves that trust?
The evidence is pretty clear that companies innovate when they treat employees like adults. Is it a coincidence that some of the most innovative companies in the world, including Google, Uber and 3M offer employees enough freedom at the office to work on non-assigned projects, and even nap?
There are legitimate reasons for this kind of surveillance: in parts of the financial industry, these solutions can prevent insider trading. They can also help monitor sexual harassment and inappropriate behavior. When you’re talking about management style, a certain amount of micromanagement is inevitable, even warranted. But in our opinion, these kinds of total digital employee surveillance schemes will most likely result in an atmosphere of fear and distrust in the workplace, which is the opposite of a productive environment.
But what are your thoughts? Do these heightened employee surveillance systems encourage excessive micromanagement, or do you think they stand to make workers more productive? We’re open to all perspectives and experiences. Let us know what you think in the comments!
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by Jennifer Hart Yim | Nov 15, 2017 | Blog, Supply Chain, Warehousing & Materials Handling
Tracking these logistics metrics can help you identify and tackle issues in your warehouse before they become a problem.
This guest post comes to us from Demetra Mallios at Catch-Up Logistics, a full-service provider of ambient and temperature-controlled food-grade distribution and warehousing services.
The supply chain plays an integral part in maintaining a well-functioning organization. A well-structured and organized warehouse will help you achieve your distribution goals and adequately analyze metrics.
You can think of it like when you are trying to decide what to make for dinner, but cannot remember what food you have in your fridge. If your items are organized and you are aware of what is in your fridge (the warehouse), then you can properly make your dinner decision (packing and preparing for delivery distribution).
While you may be aware of some metrics to track, you might still be missing others. But, that’s where we come in with our list of the top 10 logistics metrics to measure supply chain efficiency in your warehouse.
10 logistics metrics to measure supply chain efficiency in your warehouse
1. On-Time Shipping
A distribution center’s primary objective is clear in its name: It must accurately and efficiently distribute goods that are coming in and out of the warehouse. In other words, the correct product must be placed on the correct transportation method at the appropriate time. In order to complete this task, you must monitor late shipping departures to the warehouse and early completion of freight loading time.
Although it may seem that finishing shipment loads ahead of schedule is a good idea, in reality it could affect the departure and duties of other shipments. So, your business can be sure to monitor these shipment details via a 3PL system. You should also take into account the varying loading and transportation times needed to shift freights before out-bounding product. (Because delaying shipping can be just as bad as receiving the birthday present you ordered for your mom days later, timing matters.)
2. Warehouse Capacity
While there are measures out there to monitor inventory, it is essential that you complete manual observation as well. A distribution center needs to be aware of its ability to increase or decrease its loading times, create more storage space, and accurately track inventory. Currently, many distribution centers incorporate RFID measures to check inventory. However, you should not underestimate the need for manual observation in order to successfully analyze the listed criteria.
3. Accurate Order Fulfillment
Another highly important metric is, of course, the accuracy of the order picking processes. When your employee goes to retrieve a pallet of a specific product, you want to be able to measure how quickly and accurately that task is completed. However, realistically, human error will sometimes occur, which makes the tracking of the picking and moving process vital. A distribution center does not want to be in a situation in which it is unaware of lost, damaged, or misplaced product.
4. Properly Storing Incoming Product
This metric relates to the previous one about order fulfillment, in that it requires a similar tracking process. Accurate inbound storage is essential for accurate outbound deliveries. Without a well-organized inventory in the receiving end, the outbound end will have trouble accurately and efficiently fulfilling orders.
Additionally, the incoming product needs to be recorded correctly, so that inventory capacity can consistently be updated. Furthermore, incoming product and procedures can vary depending on the type of warehouse and storage facility you are operating. For instance, Catch-Up Logistics focuses on food storage. Therefore, it is essential that the product is placed in the correct freezer, cooler, or ambient temperature zone. If this is not done properly, not only will we ruin the product, but we will also lose credibility in our ability to provide high-quality warehousing services.
5. Peaks in Warehouse Capacity
Changes in product demand can, of course, influence the amount of inventory you are willing to hold in your warehouse distribution center. For instance, the holiday season will result in a peak in inventory, as companies need to store more seasonal product. With Catch-Up Logistics, Thanksgiving is a prime example, as our turkey inventory grows and distribution needs to be timely.
6. Total and Individual Cycle Times
In order to be sure that your warehouse is running efficiently, you should be tracking the cycle times. The total cycle time refers to the time needed to properly place the product in inventory from its time of arrival and then ship it from the distribution center. Individually, you can record the dock-to-load time, picking, packing, and preparing the freight for shipping times. This will enable you to see whether or not a certain process is underperforming and can be improved.
7. Damaged Products
You are bound to deal with damaged product at some point while either receiving inventory or moving it. Thus, it is important to record whether or not the product was already damaged upon arrival or if it was due to mishandling in the distribution center. Knowing this data and taking proper action to reduce such mishaps will help improve the efficiency of your warehouse.
8. Employee Turnover Rate
Because working in a distribution center can be exhausting, it is common for employees to search for other job opportunities. However, being able to minimize the turnover with incentives and an improved working environment can benefit the business. It is best to try and maintain employment, instead of consistently searching for new workers and spending the time and resources to train them, only to have them leave in a few months.
9. Accurate Tracking of Trailers
If your warehouse distribution center makes use of trailers for shipping product, it is essential that you are aware of their location at all times. (For instance, Catch-Up Logistics utilizes trailers for shipping.) A great method for tracking this information is through the use of a GPS tracking system.
10. Recording Temperatures
If you have a food storage warehouse facility, it is essential to install a temperature-monitoring system. At Catch-Up Logistics, we monitor the daily temperatures of all the freezers, coolers, and ambient temperature storage spaces to ensure the optimal temperature for proper food storage and health reasons. Additionally, such a system will notify you of any irregular changes in temperature so that you can immediately solve an arising problem before the food product becomes unusable.
There are many aspects to maintaining a well-functioning warehouse distribution system, as demonstrated from the list of metrics above. Although these tracking suggestions may at first appear excessive and time-consuming, they will help you improve the efficiency of your warehouse.
Being aware of potential issues will allow you to tackle the problem before it has a chance to further develop. So, what are you waiting for? If you have not already begun using these metrics, you should consider implementing them as soon as possible!
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