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 Elizabeth Hines | Jan 25, 2018 | Blog, Content Marketing, Marketing
Why is no one reading your blog? Chances are, you’re not doing it right. Here are some of the blog writing mistakes you may be making.
There is so much content out there. In fact, the U.S. alone generates 2,657,700 gigabytes of internet data every minute. Every minute! That’s a whole lot of videos, tweets, posts, and photos being shared online. No wonder no one is reading your blog.
There’s so much competition out there, it’s hard to stand out against those numbers. Even with the time and energy you’re putting into your blog, you’re not seeing the views and engagement you were hoping to achieve.
Most likely, you are making one of these mistakes. Here are some reasons why no one is reading your blog.
10 reasons why no one is reading your blog: an infographic
(Made with Canva)
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by Elizabeth Hines | Jan 23, 2018 | Blog, Content Marketing, Marketing
Measuring the success of your content is important in evaluating your writing for SEO strategy. Here’s how to do that.
This week, we’re wrapping up our series on writing for SEO. In this series, we’ve explored how search engines are changing, how people are changing the way they search, and how to make use of topic clusters and pillar content. Now, with a better understanding of the changing SEO landscape, it’s time to think about how to measure the success of your content.
As with any marketing effort, having a documented strategy for your content’s search engine performance — and a plan for measuring the success of your strategy — is key. You might be asking yourself, “How do I measure the success of a piece of content?”
Should I measure the success of one post at a time?
When it comes to SEO, the answer to this question can be complicated, largely because it’s not a great idea to evaluate the success of your campaign on a post-by-post basis. It’s too narrow a definition of success to account for the complex network of direct and indirect benefits of effective SEO writing.
Take brand-driven content, for example. Your focus isn’t about generating individual sales, but rather about elevating your brand, raising wider awareness, attracting new talent, or generating backlinks. If you based the success of brand-driven content on the number leads it generated alone, you’d think it was performing terribly. But your post may, in fact, have generated hundreds of backlinks and be getting lots of traffic.
Evaluating by cluster topic
So how do you evaluate success? Rather than looking at your content on a post-by-post basis, consider how all the content under each cluster topic performs as a whole.
According to HubSpot, “Measuring the entire topic cluster against all of your core business metrics will enable you to include residual benefits coming from content that doesn’t align with direct conversion goals.”
As you look at the performance of your topic clusters, consider the following four questions:
- Which topics perform best at driving traffic to your website or other web presence?
- Which topics earn you the most leads?
- Which topics drive the most revenue for your business?
- Which topics earn the most backlinks/coverage?
It’s important to remember that at the end of the day, what you’re working toward — and what will work best for your search visibility — is creating content that people want to see. Writing for SEO is ultimately about creating better content, increasing search engine visibility, and providing the best possible experience for your site visitors.
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by Elizabeth Hines | Jan 22, 2018 | Blog, Content Marketing, Marketing
Automation is an excellent tool for marketers, but keep these things in mind when incorporating automation in email marketing.
I recently wrote about a new marketing trend all supply chain marketers should be paying attention to: marketing automation. One area where marketing automation can be particularly helpful is in email marketing.
Marketing automation software can improve your lead-nurturing process and make you more efficient. It can help you provide more personalized experiences for your prospects through email. It can also save you a significant amount of time, as you won’t have to create individual emails each time a particular prospect takes a particular action.
But be wary. Not everything can, or should, be automated or scheduled in advance. As you begin to incorporate automation in email marketing, here are 5 tips to get you started.
5 tips for using automation in email marketing
1) Segment your email list.
Email list segmentation allows you to customize your subscribers’ experiences by only sending emails to certain people based on different criteria. There are millions of ways to segment your list: when someone joined the list, what emails they’ve opened, their demographics, etc. This way, you can provide the most relevant communication to your prospects, keeping them invested — and keeping you out of their spam folder.
2) Timing is everything.
What you might notice is that segments of your list respond more positively at different times. Automation software allows you to take advantage of that, automating email blasts to correspond with the preferences of your subscribers.
3) Text is your friend.
It’s a sad fact that all that time you spend creating beautifully designed images to accompany your email content is wasted. Most of your subscribers will be using email programs that block out additional images. Focus on providing the most relevant, quality content instead.
4) Narrow down your list.
It might seem great to have a large subscriber list. But it’s the number active subscribers, rather than the total number of subscribers, that matters. Refining your email list should, therefore, be an ongoing process. Good news: It’s a task you can automate.
For example, send a “break up” email to members of your list that haven’t opened your emails in a while. If they don’t reply or open it, it’s safe to remove them from the list. It’s also important to make it easy for subscribers to opt out at any time.
5) Keep your finger on the pulse.
This is all about asking your subscribers what they want. It may seem obvious, but this all-important step is often overlooked. As soon as a new subscriber joins your list, they should be receiving an email asking them why they signed up for your email list. If you pay attention to the answer, you’ll now how to segment the new subscriber, which in turns ensures that they get the most individual experience, and cultivates a lasting relationship.
How do you use automation in email marketing?
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by Elizabeth Hines | Jan 17, 2018 | Blog, Content Marketing, Current Events, Marketing, Social Media
Users will see less content from businesses, brands, and media, so you need to adjust your strategy to appear on your followers’ Facebook News Feed.
Mark Zuckerberg once again rocked the world on January 11 — at least for businesses — when he announced that Facebook News Feed was evolving to include less public content, meaning content from Pages of businesses, brands, and media. The algorithm will now prioritize posts from friends and family (over public posts) and those that “spark conversations and meaningful interactions between people.”
Cue businesses around the world freaking out. They’re about to see their organic reach, video watch time, and referral traffic take a nose dive.
The fact is, this is really not a huge surprise. Facebook has been taking steps in this direction for a while, including the testing of Explore Feed last year. Even though you may have anticipated that some changes to Facebook for businesses were coming, you may be tempted to suddenly stop maintaining your Facebook Page. Is it worth posting content to Facebook if it is not going to reach your followers after these new changes?
Our stance at Fronetics is that Facebook is still worthwhile for businesses. But Zuck’s recent announcement does merit your close attention to — and perhaps a revisiting of — your Facebook strategy. We’ve compiled a list of things you need to know/do in light of the new changes to Facebook News Feed. Here they are.
4 steps to adjust your strategy for Facebook News Feed changes
1) Focus on news-worthy content that drives engagement.
Zuckerberg says, “I’m changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions.” That means that engagement will now mean more than ever before for content visibility.
In other words, posting your blog content to Facebook is no longer going to cut it. If your posts don’t garner comments or reactions, it’s time to go back to the drawing board. You’ll need to start thinking of Facebook as a place to post and discuss active news items, hot-button issues, and highly shareable content (content that is educational or entertaining, for example).
Scheduling multiple posts ahead of time, though convenient, will probably land your content further into the depths of oblivion. You’re going to have to pay attention, actively seek to generate conversation between users with your posts, and fight to win space on your followers’ feeds.
2) Tell your community to access the See First feature.
Users who still want to see posts from certain Pages they follow can choose “See First” in News Feed Preferences. So, quite simply, we suggest asking your followers to choose to see your content.
While some proactive followers may do this on their own, we want to encourage you to explicitly remind your community to do this. Remember that people are most likely to do what you want them to when you make it easy, exact, and clear. So send them an email with directions. Or put it in your newsletter or a blog post. Just tell them to do it.
One thing you don’t want to do: goad people into commenting on your posts as a means to increase your content visibility. Facebook has explicitly stated that it will demote “engagement bait,” or posts that ask for comments or reactions. So you’ll actually hurt your content by doing this.
3) Get your executives on social media.
I’ve written before about getting your executives on social media as themselves — they act as brand ambassadors for your business. Facebook’s latest announcement underscores the importance of this directive.
Your company’s executives are the most visible people in your business. For many of your industry peers and customers, they are the face of your brand. Get them active on Facebook to add meaningful thoughts to your company’s posted content, to engage in discussions, and to share newsworthy content of their own.
It’s important to note that I don’t mean that they should do this in a superficial way. They should actively seek to add value to your Facebook content and that which is relevant to happenings within your industry. By being engaging on Facebook, your executives emerge as thought leaders, which boosts your brand’s visibility and reputation.
4) Consider your Ad budget.
In the past, we have recommended adding some social media advertising to a traditional content marketing strategy as a way for clients to add gasoline to a fire, so to speak. It speeds things up. But those companies who are just starting out or who rely heavily on referral traffic might want to consider reallocating budget to sponsored ads.
Final thoughts on the new Facebook News Feed
This is a shift, yes. A challenge, for sure. But not one that’s insurmountable — or even contrary to the basic principles of good, data-driven content marketing.
Remember, Facebook is not eliminating Page content from News Feed altogether — just limiting it. The most relevant, engaging Page content will win that space. So seek to understand your target audience and produce high-quality, original content that engages those people, and you’ll come out on top of the new Facebook News Feed.
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