OPERATIONS – How Much Can We Improve?

by Mike Starling

Gut-check time.

OK, here is where the rubber meets the road. In the Transportation Plan Design phase you have identified your Transportation Operational and Financial weaknesses and evaluated how addressing these weaknesses will pay true dividends if you stick to the plan. You have an overarching Transportation Strategy in place, and you understand why you need to align your transportation goals and objectives with the company’s strategic goals and objectives. You know what Transportation must accomplish in order to achieve success. So how much can you actually improve?

How much you actually improve is totally dependent upon your commitment to making it happen within the time frame allotted.

If your objective is only TACTICAL improvement, then our focus should be 110% on making the change or implementing the new program or process. Whether it is conducting a mode-focused competitive bid to reduce freight expense while improving service performance capability or upgrading from spreadsheet tracking and analysis by installing that new transportation software system, you must understand that FAILURE IS NOT AN OPTION!

If your objective is more STRATEGIC in nature, then you must delegate to subordinates while focusing on oversight, assessment, measurement, direction, and guidance. Micro-management is not an option. Proactive Management is better than Reactive Management. Coaching motivates subordinates better than blunt direction without explanations. Quantitative measurement and open, effective communication drive motivation toward clearly identified and prominently posted goals.

Caution:  do not underestimate the importance of accomplishing improvement within a targeted timeframe!

Be brutally honest with yourself! Do you have the right resources, assets, education, and experience to accomplish the improvements you are setting out to achieve?

If you are even a little unsure, then take action to bring in outside help.

Using a force multiplier is a viable option that can help you improve to whatever level of service performance you wish to achieve.

• Flatbed Demand Outstrips Capacity
• Basic Cost Reduction Strategy: Using Walmart's Inbound Freight Control Initiative to Illustrate Strategy
• Sustainability Is a Strategy: Walmart's Pledge to Reduce Fuel Consumption
• Terms Conversion Is Not Special to Walmart
• Basic Logic of Freight Terms: Understanding the Emotion Behind Resistance to Change
• Continuous Moves: Another Two-Bag Tactic
• Don't Be Confused!
• As Rates Go Up, What Are Shippers Doing?
• The Seven Factors Behind Rising Truck Freight Rates
• Tactic: Mode Change and Consolidation Network
• Reliability Breeds Inventory Reduction: BIG Tactic Delivers BIG Strategy
• Size Does and Doesn't Matter: More Freight Does Not Translate to Lower Rates
• The Best Performers Focus on Inventory Reduction to Improve Cash Creation
• Thinking About Trackable Pallets
• Fleet Efficiency Is a "Double Bagger" Tactic, Lower Cost AND Sustainability
• The CFO Needs to Understand Transportation Operations Volatility and Anticipate Impact on Financial Performance
• Can Transportation Contribute to Operating Cash Flow Generation?
• Where Does It Start?
• Focus on Transportation Operations: Defining What We Are Doing Well
• OPERATIONS – How Much Can We Improve?
• WHAT SHOULD IT LOOK LIKE?
• HOW SHOULD IT WORK?
• Ever Consider an Assessment?
• OUTSOURCE? A Strategic Decision!
• Designing the Plan (You Do Have a Plan, Don't You, Sweetcheeks?)
• Tune Up? Alignment? Or, Both?
• Cutting Transportation Cost – Today’s Greatest Challenge?
• Freight Invoice Audit and Payment – Old-School or New-School?
• Freight Invoice Audit and Payment – What Are the Alternatives?
• CENTRALIZE FOR CONTROL – DECENTRALIZE FOR EXECUTION
• WHAT FREIGHT TERMS? AND WHY?
• WHICH MODE SHOULD WE USE?
• For-Hire Carrier or Private Fleet?
• TRANSPORTATION SPEND MANAGEMENT – STRATEGY or TACTIC?
• Transportation Software Systems - Can You Afford Not To?
• CARRIER SELECTION - Who You Gonna Call?
• MODE
• Re-Bidding Truckload Contracts for Service and Savings
• Freight Cost Reduction? Consider Standardization of Assessorials
• Transportation Strategy and Tactics - The Value of Aligning With an EX: Shipper
• Focusing on Industry Trends for Freight Expense Reduction Opportunities
• Freight Expense as a Percentage of Cost of Goods Sold
• Domestic vs. International?
• A Simple Tactic for Controlling Budgeted Freight Expense
• Freight Cost Reduction – Regional Cross-Dock Consolidation
• NEARSHORING TREND
• Thoughts on Selecting 3PL Transportation Spend Management Service Providers
• Transportation Spend Management – It’s MORE than LOW HANGING FRUIT!
• INBOUND TRANSPORTATION – HIDDEN CASH
• TRANSPORTATION STRATEGY and TACTICS: Wholesale Distributor Supply Chain Assessments