mercredi 28 octobre 2009

The 7 possible differentiators of a 4PL Solution

Converting a traffic control tower concept into a warroom solution in essence means 7 new differentiators can be offered to the customer on top of the already provided operational excellence:

1. Ontime tracking for all flows with delay and root cause analysis
2. e2e Logistics Cost reporting with drilldown
3. e2e Leadtime Variance Analysis
4. e2e Inventory Visibility
5. e2e Load Unit and flow efficiency Simulations
6. e2e trace-ability of products
7. e2e Mileage and CO2 calculation models

A simple dashboard can standardize this service offering across your customer-base and providing a plug-and play architecture to install one of these 7 services with high ROI but low entry cost make this offering a decisive advantage in the competition for logistics services.

According to an article published in Harvard Busines Review, by Frederick F. Reichheld, The One Number you Need to Grow your company in difficult times is the Net Promoter score. It is the ratio of promotors to detractors. Companies with a loyal customer base have net-promotor scores from 70 to 80 percent.

An offer like the one above would definitely contribute to the score for a logistics service provider...

mardi 27 octobre 2009

Value-Based Management

One key take-away for me is that successful business change is about one of 5 following elements or a combination of these:

1. Plans based on understanding of the external environment
Without a thorough understanding of the customer needs and drivers to buy the goods or services and how change will impact the market an initiative cannot be sustainable

2. People and organization
Objectives and relations need to be alligned based on shared values

3. Optimized Processes
Processes often need to be redesigned to meet needs of the customers or suppliers or changes to inputs or outputs

4. Systems and tools
Without the right tools and systems optimized processes cannot be reproduced easily and efficiently

5. KPI tracking
Reports to check actuals against plan allow the organization to stay disciplined and keep the learning going