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 Fronetics | Jan 29, 2018 | Blog, Content Marketing, Logistics, Marketing, Supply Chain
Use these 8 quick tips in your blog posts to improve SEO and help your target audience find your content.
Search engine optimization: It’s a phrase every blog writer looking to grow readership has wrestled with at one time or another. Part science, part art, SEO writing can evade even the most seasoned blogger. You want people searching the internet to find your blog, but you also want readers to enjoy your posts and not feel like they’re written for machines.
Search engines continue to evolve and improve their algorithms to make sure readers are finding exactly what they’re looking for. Never artificially stuff your posts with keywords, links or images. Search engines, like Google, penalize webpages that use sneaky techniques, like keyword stuffing, by demoting or even removing their pages from their indexes.
Ultimately, if you want to improve your SEO, your content needs to be value to your target audience. That should be your priority when planning and producing content like blog posts. But you can also keep these quick tricks in mind to optimize your posts, and thus increase the likelihood internet searchers will find them in the first place.
Infographic: 8 quick tips for blog posts to improve SEO
(Made with Canva)
Using these 8 quick tips will improve SEO and get your blog posts in front of your target audience. Remember, your best bet on moving up on search engine results pages is to create content that readers want to read. Sounds simple, I know, but it can be challenging. Let us know how these tips helped improve your SEO.
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by Fronetics | Jan 24, 2018 | Blog, Content Marketing, Current Events, Logistics, Marketing, Social Media, Strategy, Supply Chain
Companies in the supply chain and logistics industries should take note of these top social media trends in 2018.
While we don’t know what 2018 has in store for companies in the supply chain and logistics industries, we do know change is coming. That is true not only in terms of the economy and your business, but also for the marketing tools you use. Of course, ever-evolving social media platforms are an important part of that.
We already know that Facebook News Feed will be making some big changes this year. What other platforms or types of media will be hot? What will your industry peers and competitors be trying in 2018? As we dive into the new year, it’s important to be aware of the social media trends that will dominate the next 12 months so you can incorporate them where you are able.
As always, good content will be as important as ever. With over one million new-data-producing social media users each day, high-quality content is the only way to stand out from the masses. But we also think you should pay attention to a few social media trends that we have highlighted in the following video. We’re certainly planning to adjust our strategy and those of our clients to consider these things.
As you start to strategize for 2018, and beyond, be sure to consider these social media trends in your content marketing plans.
Top social media trends for 2018
Make sure to follow our blog for our monthly social media news posts to stay updated on the latest platform updates. And feel free to reach out to us with questions or if you would like to see a certain social media trend covered on our blog.
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by Fronetics | Jan 11, 2018 | Blog, Logistics, Supply Chain
Bookmark these must-follow supply chain and logistics blogs to keep up with the latest industry news and happenings.
What are your favorite supply chain and logistics blogs? Fronetics is currently conducting a survey to determine which blogs you think are the best going into 2018. Vote here!
But we also want to tell you about some of our favorite blogs that we follow.
These 10 blogs are all rich with industry news and the latest trends to keep you in the know. They cover a wide range of topics, from research to strategy, and feature some of the top thought leaders in the field.
10 must-follow supply chain and logistics blogs (in no particular order)
1. Supply Chain 24/7
The Supply Chain 24/7 blog is a top business resource for Transportation, Distribution, Logistics and Supply Chain professionals. Read this blog.
2. Women in Trucking
These two blogs focus on various issues facing women in the trucking industry. WIT President Ellen Voie writes about topics in employment, achievement, and driving change in the industry. The Women In Trucking blog features posts by truckers, mostly industry veteran Sandy Long, about everyday concerns and experiences facing female drivers and their families.
3. Supply Chain Brain
This portal for supply chain executives features original and aggregated content touching on multiple industries. Read this blog.
4. EBN Online
This blog features top industry leaders publishing on topics including electronics manufacturing, global supply chain, and management logistics. Read this blog. (P.S. Read our CEO Frank Cavallaro’s blog here.)
5. Supply Chain Matters
The blog of Bob Ferrari offers his expertise on all aspects of supply chain business processes and supporting information technology. Read this blog.
6. Supply Chain Management Review
This vast website includes trending articles on supply chain and logistics strategies developments, many written by university-level professors. Read this blog.
7. Supply Chain Digital
Supply Chain Digital is a forward-thinking digital community aimed at providing procurement & supply chain professionals with industry-leading news, analysis, features and reports about the world’s biggest supply chains. Read this blog.
8. Cerasis
The Cerasis blog covers industry trends, educates and explains rules and regulations, busts myths, and has awesome infographics. Our Creative Director, Elizabeth Hines, is a contributor here. Read this blog.
9. Logistics Viewpoint
This blog features think pieces from three leading supply chain and logistics analysts with the mission to provide clear and concise analyses of logistics trends, technologies and services. Read this blog.
10. Supply Chain Shaman
Lora Cecere’s blog focuses on “the use of enterprise applications to drive supply chain excellence.” Read this blog.
What supply chain and logistics blogs are you reading this year?
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by Fronetics | Jan 9, 2018 | Blog, Current Events, Logistics, Marketing, Social Media, Supply Chain
Facebook is making lots of changes that will affect businesses’ organic reach. Here’s what you need to know and how it may impact your company.
In our most recent social media news post, we mentioned that Facebook was experimenting with an Explore Feed feature. You may or may not have heard about how this might affect businesses’ ability to achieve organic reach on Facebook.
The social media network claims it is trying to create the best user experience possible. But it might come at a high cost to businesses trying to reach new audiences. Could this be the end of organic reach for businesses on Facebook? Let’s take a look.
What is Facebook’s Explore Feed?
Explore Feed is a new tab on your Facebook homepage that will include recommended content that it thinks you might find interesting. This will include posts, articles, photos and videos from users and other Pages you don’t currently follow.
This separate news feed will only appear when you click on the Explore tab, leaving users’ homepage news feed to content from friends and Pages you already follow.
“We’ve heard from people that they want an easy way to explore relevant content from Pages they haven’t connected with yet,” says Facebook in a statement. “Businesses should be optimistic about the potential for users interested in content like theirs to find their pages through the new Explore Feed.”
What does this mean for your business?
In October, Facebook launched Explore Feed as an experiment in six countries — Sri Lanka, Bolivia, Slovakia, Serbia, Guatemala, and Cambodia. The results showed a massive decline in businesses’ organic reach. Most countries reported a drop of two-thirds within the first 48 hours after Explore launched.
A user’s feed will now only show their friends’ posts and paid posts and advertisements. This is a huge disadvantage for small businesses with limited budgets that have traditionally relied on the organic reach of their Facebook posts to help attract new audiences.
As Mashable says: “That means Facebook’s main feed is no longer a free playing field for publishers. Instead, it’s a battlefield of ‘pay to play’, where publishers have to pony up the dough to get back into the News Feed.”
What now?
Facebook insists these changes are in direct response to requests from users for an easier way to discover new Pages they aren’t already following. But it means a lot of changes for businesses running a Facebook business page. Companies need to ensure their content is high quality, unique and highly relevant. And more and more companies will have to start dipping into their budgets to boost posts and buy ads.
Important to note
Facebook is also tightening the reigns on Pages and individuals that use engagement bait to attract new followers. What is engagement bait?
“Engagement bait is a tactic to create Facebook posts that goad people into interacting through likes, shares, comments, and other actions in order to artificially boost engagement and get greater reach on News Feed,” says Facebook’s Newsfeed Guidelines. The social network’s new algorithm will demote any posts by individuals or Pages that promote their content through engagement bait.
Fronetics’ takeaway
Despite all of these new changes and their accompanying challenges, we’re not ready to write off Facebook for businesses just yet. The key will be for companies to continue to provide the best content possible through the social media platform to organically engage followers.
What do you think of Facebook’s new Explore Feed?
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by Elizabeth Hines | Jan 4, 2018 | Blog, Current Events, Supply Chain, Transportation & Trucking
The FMCSA is not certifying ELD vendors’ products, which means carriers must ensure devices meet the organization’s technical specifications.
On December 18, new electronic logging device (ELD) regulations went into effect for commercial vehicle fleets across the U.S. The ELD mandate has caused major waves in the transportation industry. But it has the potential to rock supply chains and manufacturers around the globe — and not just because of anticipated transportation disruptions and increases in costs.
ELD manufacturers must comply with technical specifications outlined by the Federal Motor Carrier Safety Administration (FMCSA). They must also register their devices with the FMCSA. Motor carriers might assume that selecting a device that vendors are promoting as “FMCSA certified” would be a simple solution. Amazingly, however, that certification may not be worth the paper it’s printed on.
When does “certified” not mean “verified?”
Last year the FMCSA directed carriers to a site where they could find a list of registered ELDs. The problem with this is that the devices on this list are self-certified by the manufacturer. There’s no guarantee that they actually meet FMCSA guidelines.
To appear on the FMCSA’s list, ELD manufacturers must submit certain documents, including malfunction and diagnostics and product serial numbers. However, to gauge if their product is compliant, manufacturers must conduct their own tests. And the FMSCA is not vetting documentation of the testing.
The problem with this is fairly obvious. Without mandatory testing from a neutral, third-party source, devices are subject to only the rigor of their own manufacturer’s testing. They may not follow the FMCSA’s test specifications. And, of course, less-than-honorable manufacturers could use the lack of oversight to their advantage.
Consequences, however, will fall entirely on the shoulders of the operators and their carriers using non-compliant ELDs.
Compliant today, not tomorrow
Motor carriers purchase these systems under good faith that they will meet the FMCSA’s performance requirements once in use. But the possibility is looming that some ELDs may be noncompliant. Then what?
Carriers have eight days from the time an ELD is determined to be noncompliant to replace it with a compliant one. While drivers can temporarily use paper logs, this obviously isn’t a real solution, and will leave carriers scrambling to get their ducks in a row.
Due diligence
Before selecting an ELD vendor, carriers need to understand the details of compliance and hold vendors to those standards.
Carriers should push vendors for specific information about compliance with FMCSA test specifications. Or they should seek vendors who have opted to use third-party testing companies, such as PIT Group, to independently verify ELDs meet FMCSA standards. Either way, carriers should test and verify the ELDs they have chosen for their fleets on their own to ensure compliance as soon as possible.
The coming months are bound to see many headaches from the confusion caused by FMCSA-certified (but not regulated) ELD devices. Carriers need to be aware of this now, so they can properly prepare for any issues that may arise.
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