These days there may be no such thing as “business as usual.” People no longer work for one company for decades and then retire with a pension. Most will work an average of 10 jobs before the age of 40, according to Bureau of Labor Statistics, and that number is predicted to increase over time. Given this fact, it makes sense that, even at the high levels, job consistency is not a given for any one person or any company.
Interim management is an opportunity for companies to handle transition in an optimal way. There are numerous benefits that are cost-effective and efficient.
Organizational continuity
A company can hire someone to come in and specify exactly how they would like to progress in the interim. Demanding status quo, in many ways, may be what the company needs until assessments and next steps are made. The interim manager’s experience can help stabilize public image and alleviate some employee fears.
Choose for specific needs
If continuity isn’t the desired route, the benefit of interim management is that a company can seek specific needs in interim management that fill the holes and address the challenges of outgoing management. If a change is needed, that is possible, too.
Independent thought & experience
Interim management companies work to benefit you and you alone. Of course they gain in some ways, but they are independent from allegiance to other companies and are hired to keep your best interests in mind. It benefits them, in the long run, to serve your specific needs. You can be assured that they aren’t in for a long-term position.
Flexible assignments
A company can hire interim management for however long is necessary. The flexibility of the engagement works well for everyone. Interim management are prepared to work themselves out of the job, genuinely equipped to find the best people for the support role positions and/or an executive replacement. An interim professional can also help navigate unique challenges, act as a board advisor, or offer expertise on special projects and initiatives. They provide effective and efficient talent for the necessary amount of time.
Time to search for candidate
Time, if nothing else, is to be gained here. If an executive becomes ill or leaves unexpectedly, interim management can come in swiftly and deftly take over, allowing for time and space to search for the best replacement candidate.
In a Forbes article about interim executive models in modern management, the author writes, “[G]iven all these benefits, I think companies should be a bit more creative about the way they move people into and out of executive roles.” Interim management is smart. It’s the way of the future in a fast-paced job market.
Fronetics offers management and leadership solutions to organizations within the supply chain and logistics industries during times of transition. Our Fronetics Interim Retained Management Service (FIRMS) is designed to provide specific executive, management, sales or operational expertise when and where you need it, for exactly as long as you need it. By using FIRMS for your interim management needs, you will be able to fill organizational knowledge gaps, minimize disruption, and create positive change for your organization during times of transition.
In 2013, Iceland’s oldest shipping company, Eimskip, moved the company’s North American port of call from Norfolk, Virginia, to Portland, Maine.
“Eimskip’s move to Portland was driven by the state’s commitment to investing in intermodal infrastructure and the cultural similarities between Maine and Iceland,” states Larus Isfeld, managing director at Eimskip USA Inc. and Eimskip Logistics Inc.
Culture is not rhetoric for Eimskip. This key player in worldwide reefer logistics has placed a high value on culture since it was founded in 1914. “When identifying where we operate,” says Isfeld, “we look to smaller communities where there are cultural similarities and where we can make connections and be involved.”
Eimskip makes great effort to integrate itself into all aspects of the communities in which it operates, and strives to foster connections across its operational reach. One of the ways the company has traditionally done this is through art.
For many years, Eimskip operated mixed passenger and cargo vessels and would allow artists to pay their way with their work. Over the years, Eimskip amassed a large collection of art.
When asked about this initiative, Isfeld describes the value the company places on artists and their work: “Artists make life more interesting. They also relay certain messages in a much better way than an ad.”
Interestingly, the move to Maine has reignited Eimskip’s investment in artists.
In September 2015, Maine artist Justin Levesque traveled from Portland to Reykjavik aboard Eimskip’s MV Selfoss. His multimedia project ICELANDX207 documented the nine-day journey and captured both stories and profiles of crew members.
Currently aboard the Selfoss are Jonathan Laurence and his business partner, Anneli Skaar. Laurence, a multi-artist and Maine native, is the creative director for the Center for Maine Contemporary Art (CMCA) in Rockland, Maine. Skaar is a Norwegian-American artist, graphic designer, and writer. Laurence and Skaar are also co-founders of TIMBER + ICE, which serves as a creative liaison for organizations that wish to create cultural content to enhance their involvement in the emerging, and quickly evolving, relationship between Maine and the North Atlantic countries.
In keeping with tradition, both Laurence and Skaar will create a piece of art during their passage and donate it to the Eimskip collection. Going forward, TIMBER + ICE will continue to work with Eimskip as cultural liaisons. (You can follow their passage on the Selfoss via TIMBER + ICE’s Instagram and Facebook page.)
Further, TIMBER + ICE plans to create an art installation in Portland to coincide with the U.S. State Department’s Arctic Assembly being held October 4-6, 2016. About 250 delegates are expected to attend the meeting, including scientists, business leaders, and senior government officials from eight Arctic nations. U.S. Secretary of State John Kerry and the heads of state of Arctic nations may also attend.
The installation will utilize shipping containers as exhibition space, and will connect Icelandic and Maine artists in order to highlight, spotlight, and educate — through creative means — the opportunities and challenges related to Arctic issues.
In just three years, Eimskip’s relocation to Portland has fostered a meaningful connection between the two communities — and enriched both with its investment in local artists and their art. It’s exactly what Iceland’s oldest shipping company is all about.
“We believe that businesses can connect; people need to connect,” says Isfeld. “This building of trust and understanding of values is what enables successful relationships.”
Supply chain management is more than just a series of transactions; it is a valuable, strategic business process.
Change is inevitable, and, in healthcare supply chain, it is crucial. The most progressive healthcare organizations across the country now acknowledge that supply chain management is more than just a series of transactions; it is a valuable, strategic business process.
These organizations have researched this expanding avenue to improve their services and cut costs, leading to new supply chain strategies for the coming year. But many in this industry hesitate to accept the evolving role of healthcare’s supply chain and the value it holds. They fail to utilize the data or act upon it, and this carries a cost for both the organization and their patients.
And costs are a rising concern. It is estimated that healthcare costs nationwide will reach $4.8 trillion by 2021, according to the Centers for Medicare & Medicaid Services. Supply chain inefficiencies could be a contributing factor, but optimizing logistics provides a remedy.
The Force of Data Awakens
It is a pretty simple concept: The more you know, the better your decisions. As the healthcare industry continues to evolve, data has been crucial in helping organizations pinpoint ways to cut costs, improve patient care, and end wasteful methodology. And according to a Supply Chain Digital report, the vast majority of healthcare organizations have yet to tap into the full potential of the complex data available to them.
The power to improve efficiencies in a healthcare organization can be found through:
Recognizing the supply chain is a powerful force of change: Supply chain management and analytics are no longer after-thoughts. Once their value across an organization is realized, those focused on strategy and cost-effective measures will consider tomorrow’s supply chain of great importance.
Seeking more data with greater detail and complexity: As organizations gather more data — and that data becomes more granular, down to patients and their outcomes — in-depth analysis will achieve an unprecedented understanding of where real value is hidden throughout all departments.
Allowing the supply chain to guide consistency in care: Everyone benefits from standardization and consistent care, especially the patients. Tapping into the valuable data from the supply chain and using it to determine the best pricing and treatment strategies for the best outcomes for patients is a key component. All of this will encourage inefficient and wasteful processes be eliminated, saving time and money.
Implementation of product scanning, electronic ordering, order accuracy controls: Healthcare providers, distributors, and manufacturers have been challenged by an unacceptable amount of errors in the procurement of medical devices and treatment supplies, according to Inbound Logistics. Old systems requiring a manual ordering process can result in ordering errors, product shortages, or the delivery of products that are incorrect or even expired. Improving efficiency in the healthcare supply chain facilitates the elimination of costly errors and supports higher standards of patient care.
Aligning physicians with the value of supply chain data: A partnership must be formed between the supply chain and physicians to target more efficient processes for their patients and to seek supply chain guidance regarding product price points, alternatives, and outcomes.
Utilizing analytics to improve service and reliability: Healthcare supply chain data will be leveraged for predictive analytics. Essentially, supply chain professionals will use data to better predict and respond to products needed with greater speed and less instances of delays in service. Knowing these inventory challenges ahead of time also enables providers to seek alternatives if a product is discontinued or backordered.
There is an awakening in the healthcare industry as more organizations realize that their strategic business plans can be guided and improved by a myriad of complex supply chain data available. Across the healthcare continuum, there is a demand to look at business from a new perspective, seeking innovative methods to reduce costs and improve patient care.
This is achievable when healthcare organizations and their supply chain providers form an alliance, based on mutual goals and incentives, to leverage more analytical data to improve both patient care and operational efficiencies.
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.”
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.
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.
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?
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.
