by Fronetics | Feb 4, 2016 | Blog, Leadership, Strategy, Supply Chain
When it comes to leading during difficult times in the supply chain, planning is critical. So is flexibility.
Winter storm Jonas is estimated to have cost $1 billion USD, although some believe the cost could go as high as $3 billion USD, as it paralyzed a large swath of the mid-Atlantic and Northeast. Some 30 inches of snow touched down on several East Coast cities, which cancelled over 12,000 flights and kept people out of work for days.
When difficult times strike, having a plan is critical. For example, with electricity still working, business doesn’t need to come to a close for days on end. Researchers who did a study at Chinese company C-trip encourage people to work from home during storms: “We encourage companies to do a trial the next time an opportunity presents itself — like bad weather, traffic congestion from major construction, or a disruptive event (such as a city hosting the Olympics or the World Cup) — to experiment for a week or two. We think working from home can be a positive experience, both for the company and its employees, as our research with C-trip showed. More firms ought to try it.”
The supply chain can be disrupted in many ways: natural disaster, terrorism, fluctuation in materials. When the problem hits, it’s good to have a plan, but one can’t always be prepared for every scenario. According to the president of global public affairs for UPS, Laura Lane, who had her share of difficult times when she was a young foreign officer in Rwanda during the genocide in 1994, “You have to make decisions that will result in the greatest good — and from that perspective, every decision becomes crystal clear.”
Lane shared her thoughts about how to handle difficult situations in the supply chain with The Wall Street Journal recently.
Look for leaders everywhere
Lane believes that it’s not only C-suite managers who can handle disaster. Being open to ideas and letting specialists rise from the ranks could be a game-changer in critical situations. “Don’t judge people based on their years of experience. Greatness can emerge from anyone on your team — people with decades of experience, or those just starting out.”
Don’t let fear stop you
When you are ultimately responsible for a huge decision involving lots of people and money, fear can infiltrate the mind and body quickly. Remember that you’re in the position you hold for a reason. Don’t let self-doubt or uncertainty about how things will play out delay your decision making. See boundaries and obstacles are new opportunities to find alternatives. Lane says, “Challenge how things are done, and rewrite the rules, if needed,” she says.
Think of the larger vision
Remember what the goals of the company are, and that people have been put in specific roles for reasons. Remember that your situation most likely involves teamwork, and that you can rely on the support, ideas, and voices of others, especially when the vision of the company becomes foggy in the stress of the moment. “Delivering on your promises and grounding your actions in your values is what is needed to be a great leader. You have to believe in the greater good of what you’re doing and then bring others along with you in realizing the bigger vision.”
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by Fronetics | Feb 2, 2016 | Blog, Logistics, Strategy, Supply Chain
Amazon’s ever-expanding foray into the logistics space could turn the industry on its head.
You can have bánh mì delivered in Chicago, toilet paper in Bangalore, and, pretty soon, packages under 5 pounds via drone in Tel Aviv. Students at the University of Pennsylvania don’t even have to leave campus to return an order.
Amazon’s continued expansion into the logistics market seems to be seeping into all corners of the world, making more and more products available with a single click. Inversely, the time frame for delivery keeps dwindling, from two days to the forthcoming 30-minutes-or-less drone-delivery service Prime Air. And more options in less time happy customers make.
Amazon’s commitment to getting packages into the hands of customers as quickly as possible could be the driving force behind its recent foray into the logistics space.
Planes, freights, and automobiles
The retailer still relies on trucking partners and a longstanding partnership with UPS. But the 2014 debut of the first sortation center in Kent and purchase of thousands of truck trailers in December 2015 suggested an effort to take more control of shipping. This is particularly true for the last mile of delivery — presumably to circumvent issues like the 2013 holiday fiasco.
But then came the news that Amazon China had registered to operate as an ocean freight forwarder in the United States. That means the company can deliver products from China on its own ships. Is this a first step toward entering the $350 billion ocean freight market?
Additionally, reports surfaced in early 2016 that Amazon is in talks with several cargo-aircraft lessors regarding a number of Boeing 767 jets, which can accommodate up to nineteen 88-by-125-inch pallets a piece. The Seattle Times speculates this move is an expansion of an existing trial operation out of Wilmington, Ohio, to determine whether Amazon should pursue a larger air-cargo operation.
Ocean freight and air cargo suggest an interest in controlling operations well beyond the last mile. Could this be the development of a full-scale, in-house logistics department that could independently manage Amazon’s fulfillment process? Or, perhaps, are these steps to manage something beyond the company’s own shipping and delivery?
Amazon hinted at such in a securities filing last Friday, referring to itself as a “transportation service provider” and “companies that provide fulfillment and transportation services for themselves or for third parties” as competition for the first time ever.
Amazon as a 3PL
For some time now, the media has been speculating about Amazon‘s intentions to enter the transportation and logistics market as a third-party provider. That would certainly fit the existing pattern: 1) begin operations to better support core retail business, 2) grow and leverage that infrastructure to sell to other businesses.
A prescient October 2015 analysis by Baird Equity Research Analyst Colin Sebastian notes the “powerhouse potential” that Amazon has in the market should it “extend its increasingly complex and technology-centric logistics and delivery platform as a third-party offering.” The report cites the growth of Amazon Web Services (AWS) and Marketplace as templates for the expansion of logistics services to external clients.
Sebastian says the highly competitive global logistics market has yet to fully capitalize on web-based technologies to address supply chain inefficiencies — and Amazon’s wildly successful cloud computing platform, paired with its complex delivery network, may be the answer. The result would be a disruption of incumbent businesses, such as UPS and DHL. “We believe Amazon may be the only company with the fulfillment/distribution density and scale to compete effectively with global providers,” the report says.
Amazon is already moonlighting as a 3PL through its Fulfillment by Amazon (FBA) business, which debuted in 2006. The company recently revealed that FBA delivered more than 1 billion packages to customers in 2015. And Friday’s fourth quarter earnings report revealed Amazon’s sales, as a whole, were up 22% to $35.7 billion. You could say they’re doing something right.
The Baird report estimates the global fulfillment market as a $400-450 billion incremental market opportunity. Is this where Amazon has set its sights next?
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by Fronetics | Feb 1, 2016 | Blog, Strategy, Supply Chain
Reverse logistics presents unique challenges and opportunities. To meet these challenges and take advantage of these opportunities, companies need to be both prepared and flexible.
Ikea, a company known for innovation, is facing the enigma of reverse logistics head on. As part of the company’s sustainability strategy, Ikea is challenging the perception that its products are disposable by creating opportunities to recycle and reuse products.
In a recent interview with Fast Company, Chief Sustainability Officer Steve Howard outlined several of the company’s initiatives. They include programs that allow consumers to return plastics, batteries, furniture, compact fluorescent light bulbs, mattress, and textiles to the store. These items are then sold “as-is” or recycled.
These programs have proven successful. For example, in just a few months, over 6 tons of batteries were collected in Moscow, and 25 tons of used textiles were collected in Norwegian stores last year.
Ikea is looking at other ways it can provide end-to-end supply chain solutions. One idea is to take returned products and recycle them into other products. In his interview with Fast Company, Howard shares: “We would basically be taking old bookshelves, old furniture, or an old door that’s finished its first life and sending it into new products. You’ll have a kitchen that used to be a bookshelf, without seeing any visible difference in them. It’s not a revolution, but you have to actually fundamentally change your supply chain to do that.”
Ikea has recognized that old, broken, and unwanted products are an opportunity. Through these innovative reverse logistics initiatives, Ikea is not only acting in a more sustainable manner and reducing the company’s environmental footprint, it is also increasing engagement with consumers and creating positive economic opportunities for the company.
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by Fronetics | Jan 27, 2016 | Blog, Leadership, Marketing, Social Media, Strategy
Should employers be monitoring or censoring employees’ social media?
Censorship is always a hot-button issue, and, when combined with social media, things can heat up even more. The topic is debated in law school classrooms, at dinner parties, and in courtrooms. What should be shared and written on social media? Should companies censor what their employees post?
The waters still seem murky. Many companies don’t have policies around social media, but, with over 70% of online adults using Facebook, and the Internet-crazed Millennial generation now outnumbering Baby Boomers, they should look into putting some guidelines and policies into place.
Who’s Digging?
Many companies, up to 60%, now research candidates according to Career Builder. Up to 48% of companies who have researched candidates have found reasons not to hire them. According to the site, reasons range from provocative photos, references to drug or alcohol use, badmouthing a former employer or colleague, poor communication skills, and discriminatory comments.
Source: Career Builder
A New Generation
Although the retiring workforce does use the Internet (46% of those 65+, and 65% of those between ages 50-64), their numbers cannot compare to users in the younger, upcoming workforce (90% of those between 18-29).
The Millennial generation was born and raised in the digital age. Many of them have never heard of the Dewey Decimal System or know a life before cell phones. Their digital devices, and the Internet, have been their best way to research and connect. They are accustomed to throwing political views, photos, and personal experiences — good or bad — out into the cyber world. Many have already had the experience of poster’s regret, which might have taught them a lesson, but may also have blunted the idea of permanent mistakes. If one can delete a post and apologize, why not post away and worry later?
To Monitor or Not Monitor, That is the Question
Thinking carefully about what your expectations are of employees, and addressing those expectations in writing, is an important step to consider.
We assume that most employees know they shouldn’t post anything that damages the reputation of the company, its products, and employees, but it may be best not to assume. A case study in a recent Harvard Business Review provides a perfect example of what can happen if policies aren’t put into place.
In his Time piece, “Why Monitoring Employees’ Social Media is a Bad Idea,” author S. Kumar argues that while monitoring candidates might make sense, monitoring current employees breeds a suffocating and intrusive atmosphere:
“By allowing workers to live their personal lives without intrusion, smart businesses can make a powerful statement; namely, that they accept them for who they are, treasure their professional contributions to the company, and want them to be happy and fulfilled outside as well as inside the office. This, in turn, would inspire loyalty and boost productivity in the workforce, and make those companies more profitable.”
However you feel about the topic of monitoring, and even censoring, it’s important to be clear with employees about expectations. A general statement about employee behavior and representation of the company might be enough to instill deeper forethought when employees post, comment, and like.
Do you monitor your employees’ social media accounts? Do you have a policy in place that covers personal social media activity?
by Fronetics | Jan 25, 2016 | Blog, Manufacturing & Distribution, Strategy, Supply Chain, Talent
We know that diversity in the workplace has value beyond enriching company culture. A McKinsey & Company report found that diverse companies financially outperform companies that are not diverse by 15%. And in terms of gender diversity, specifically, research shows that when women are in positions of leadership, companies perform better — much better.
Data shows that gender equality has improved in recent decades, such as the 15% increase of women working full time in the workforce since 1979. But there is still much progress to be made. As a recent UN Working Group mission to the US to explore discrimination against women found: “In the US, women fall behind international standards as regards [to] their public and political representation, their economic and social rights, and their health and safety protections.”
Women in manufacturing and the supply chain
We see that women in manufacturing and the supply chain haven’t been faring as well as their counterparts in other sectors. The number of women working in manufacturing is the lowest it has been since 1971. In the supply chain, men hold between 70-80% of the jobs, and we see even more disparity at the higher levels — only 5% of women hold Fortune 500 supply chain top-level positions.
Beth Ford, executive vice president and chief supply chain and operations officer at Land O’Lakes, sees the positive in these numbers: “The representation of women in this area is not where it needs to be. At the same time, it could be viewed as tremendously exciting. The opportunities are there for women.”
Where opportunity lies
So what can be done to make changes that will benefit everyone, and the bottom line?
According to a Fronetics Strategic Advisors report on women in the supply chain, “it has been put forth that women are better suited for roles in supply chain management than men. Research conducted by SCM World found that the majority of men (63%) and women (75%) believe that the natural skill sets of women differ from those of men and that these differences are advantageous for supply chain management.”
One of the biggest ways is diversify entry into the profession and a pathway to leadership. The typical trajectory to the top roles in the supply chain starts on the shop floor. These jobs tend to be more male-dominated trade work. For the supply chain to seek new talent, especially women, they must look beyond their four walls.
Since there is a lack of talent being funneled into the supply chain, companies should look more closely at universities that offer supply chain management programs. Many of these programs recruit and attract women.
There are several women (and men) working in the supply chain who are cheering for other women to join. According to an interview with Bravo Solution VP Mickey North Rizza, “While business has traditionally been a man’s world, more and more women are now in businesses. Most women by nature have been relationship-builders. They encourage, collaborate and innovate with others for the best outcome. It is only natural that these tendencies gravitate to the business world, and most importantly into supply chain.”
by Fronetics | Jan 20, 2016 | Blog, Content Marketing, Marketing, Strategy
Grow your business with this 12-step guide to creating a content marketing strategy.
So, you’ve decided to give content marketing a go, but you’re not sure where to start. Or, maybe you have tried implementing some of the basic principles but haven’t had much success with your piecemeal approach.
Either way, without a documented strategy in place, you’re much less likely to reap the potentially enormous benefits inbound marketing can offer.
In fact, only 11% of companies without a documented content marketing strategy find their efforts to be successful, compared to 60% of companies with a strategy in place. And that number rises to 86% when the company designates someone to lead the strategy. The numbers speak for themselves.
Fronetics Strategic Advisors has developed a 12-step guide to developing a content marketing strategy specifically tailored to your business. This eBook provides insight into what makes good content, as well as tried-and-true measures your company can take to get the most out of your marketing efforts. By following these recommendations, you’ll be well on your way to developing a strategy that drives profitable customer action and helps you meet your business goals.
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