Joe’s Corner Blog

Imagine a transportation management tool that measured carrier performance, provided operating information to carriers and distribution centers, reduced manual intervention, improved customer service, improved carrier profitability, and reduced operating expense and customer returns due to shipping errors.

Just think of the manual effort and time that goes into shipment planning and execution on the part of the shipper, the carrier, and the receiver.  Wouldn’t it be great if there were supply chain systems that eliminated the unnecessary manual effort that is involved in shipping an order on time, meeting delivery requirements, and actually making a profit while doing so.   Freight claims are a pain for everyone, but do they really have to be managed as they are and have been for years?  Think of the impact on the customer’s logistics operations and accounts payable, the carrier’s claims department, the shipper’s logistics operations and accounts receivable.  Not one aspect of the above adds value to anything.

Imagine if there was automatic reporting of deliveries and reports that included reason codes for orders that didn’t meet the customer’s requested delivery date.  Imagine if reports included enough information so that both the shipper and the carrier could determine ordering patterns and conduct advanced planning for labor and equipment.

Benefits would include speed of delivery, elimination of errors and multiple phone calls, customer returns tied to shipping errors, and a host of other issues that dramatically add to the cost of doing business.

What a wonderful world it would be if we could use technology to provide all the players in the supply chain with the information everyone needs to flawlessly execute.    What’s that?  These systems already exist?    Hmmm.   So the companies who invested in these systems must have maximized their productivity and eliminated all unnecessary manual effort?   What’s that?   They haven’t?    I know the tools are out there.  Cross-enterprise data integration, alerts, messaging, real-time visibility, RFID – you name it.

What’s the point?  The point is that this way of doing business was done in 1989!!!  Yep, the Nabisco Distribution Operations Control System, affectionately known back then as DOCS,   was an inexpensive piece of technology (very low-tech by today’s standards) that moved information and created operating reports that were used to measure service and handle problems before they became critical.   

DOCS started out as a way to combat rising claims costs resulting from OS&Ds (Overages, Shortages, and Damages).     Nabisco then expanded DOCS to measure carrier performance.  Under this program, the carriers and pool distributors entered their actual customer delivery dates into the PCs.  This critical service information was transmitted to the Nabisco Foods mainframe.   Using this delivery data, the distribution department developed an “On-Time Delivery Performance Audit.”  This computerized report allowed Nabisco to identify actual and potential trouble spots quickly  —without time-consuming phone calls and cumbersome manual reporting. The report measured delivery dates entered by the carriers  against the customer’s requested dates to automatically calculate delivery performance. The carriers and pool distributors also used reason codes to explain any issues they experienced. 

The smaller carriers perhaps made the biggest leap.   Nabisco required that they obtain PCs with modem capability.  In many cases,  these were the first PCs to enter their building and many didn’t know how to turn them on.     Nabisco helped them get up and running and in time, they were provided automated load plans that enabled them to efficiently schedule their day.   The system even provided them a means to compile their activity for freight bill submission.

DOCS was designed and built by a great Nabisco Logistics Team who truly understood what partnership meant and the importance of serving the customer.  Carriers and DC operators were treated as partners, and they were expected to make a profit on every shipment they handled. Nabisco had award programs that recognized above-average service.  There were over 135 carriers in the contracted fleet that were on the DOCS system. It was truly amazing as we had close working relationships with all the carriers, who were managed by five regional customer service centers.    Thanks to the diligent efforts of Steve Kingsbury, Marilyn Brown, Tom Rice, Charlie Ryan, Al Yasalonis, Joe Wisdo, Demi Lappas and so many others,   DOCS allowed us to thrive in an era when “rightsizing” and doing more with less was the mandate.       

If all of this was capable on PCs with 20 megabyte hard drives and 1200-baud rate modems – (essentially the computer stone-age) –  why is it still so difficult to achieve the perfect order using the latest technology?      It surely begs the question:   maybe it’s not as much about the technology as it is about establishing operating partnerships between shippers and carriers that result in bonds of trust and substantially reduce the cost of quality.     Maybe it’s about a world where everyone wins – the supplier, the carrier and the customer.    

The technology is important but it’s secondary to trusted relationships between supply chain partners.    DOCS was great,  and probably ahead of its time, but the collaborative environment that it created was the real magic.    If the best supply chain tracking and execution systems aren’t delivering on their promises,  then it’s time to consider,  maybe it’s not about the bike.

May 21, 2009
Having the great opportunity of being involved in the retail industry for the majority of my working career, I’ve had the pleasure of working with great individuals and organizations. The Nabisco team was truly extraordinary, always one step ahead in business practices and technology. It’s been so rewarding to be able to make a difference, as part of a team of dedicated and hard working individuals.
I was reminded that we worked as a family! Members of a family don’t always agree, don’t always get along, but they always are family and pull together when the going gets tough. I was also reminded about “pressure up”. This meant that we didn’t put pressure on those who were doing the work when we had problems, but management took responsibility to take the appropriate action to fix the problem!
What I learned was that it is especially important to be external, i.e. staying involved with industry associations, academia and other organizations. Having the opportunity to establish relationships with other companies, including competitors provides a venue to exchange ideas that foster an environment of learning and mind expansion.
What I have experienced over the almost 15 years I have been involved with the Voluntary Industry Commerce Solutions (VICS) Association is that it is a most unique organization that deals with creating business practices that result in improved effectiveness and efficiency. It’s a model that brings experienced and extremely competent individuals together in a focused team, that establishes goals, objectives, strategies and metrics that apply to a particular business challenge.
The committee is sponsored by the VICS Board of Directors and the product that is developed must be vetted and approved by the board and then voted upon by the membership. Just think of the wealth of talent that is reviewing the work of the committee before it becomes a VICS guideline.
When asked about the value of VICS, it is clearly the work of the committees, but it is also the ancillary benefits of getting to know and work with a variety of individuals who provide new and different perspectives. When corporate or departmental silos are the subject of discussion it usually deals with how business practices or customer service can be improved by collaborating, sharing information and taking down barriers.
However, there is another problem with silos and that is most companies and individuals cannot be successful, i.e. working on a remote an island, void of new ideas and concepts. Now that may be considered trite, however it is so true. Usually ideas are spawned from a number of sources; academia, trade journals, trade books, noted authors. Etc. But there is nothing more stimulating than engaging in a focused discussion and having ideas shared among peers. One idea builds on another and in time break through concepts are realized and the results codified. It’s interesting, exciting and liberating.
A recent example was a recent CPFR® meeting, where a newly established CPFR – S&OP subcommittee began to lay out a plan for bringing together these well established and valuable business practices. Led by Lowes and Wal-Mart, the group engaged in depth dialogue, sharing experiences, verbalizing a future model and expected results. It was the beginning of what will prove to add great and measureable value. Everyone that participated gave the session high marks in their evaluations. This subcommittee will deliver a VICS guideline that will deliver value, to each of the companies in the total supply chain, culminating in exceeding consumer satisfaction. Sharing information is critically important as evidenced by the recent article that appeared in the WSJ on May 18, “Clarity is the missing link in supply chain management” which is the subject of my last blog.
There is so much to learn about the retail industry, first realizing that it is dynamic and forever changing. New business practices such as cross channel merchandising bring new challenges. Globalization is, and will always be with us and constantly expanding to different parts of the globe. However benefits will be sub optimized unless all the players in the global supply chain are interconnected and the existing technology is used to its fullest extent, while at the same time smart technology is being developed. This is all happening under the auspices of VICS. Check out the previous blog which speaks to the serious issues when companies operate in an information vacuum.
VICS is supporting item level EPC RFID research with the U of Arkansas. The pilots conducted with large retailers are leading the way for the implementation of item level rfid that will result in significant benefits, and as a major retailer said, “providing answers to questions that we have yet to ask”.

VICS is providing educational programs, designed to assist manufacturers around the world to understand their customers’ requirements. The primary objective is to speed product to market, to provide visibility and to ensure that the product is always available at the point of purchase. All combined this has a major impact on the cost of quality, i.e. reducing the cost of quality which benefits the entire supply chain.
The day of vertically integrated organizations that are totally self sufficient are gone. Most companies find value in outsourcing and participating in associations of their choice, with each association having their sweet spot. However, having had the great pleasure of to participate in a number of great associations, I have concluded that VICS is truly unique, but then I am admittedly I’m more than a little biased.
I’ve been in the retail business a for most of my career and find that there isn’t a day that goes by that I don’t learn something new and worthwhile, and learning is growing and growing in mind and spirit is what life is all about. As someone once said, “If you enjoy what you do, you’ll never work a day in your life”. VICS isn’t the ultimate, but it certainly can make a contribution to the growth of individuals, companies and the retail industry.
We owe a debt of gratitude to the founders of VICS, who had the vision of a supply chain that used guidelines and basic technology, e.g. bar codes and EDI to flow product to retail from manufacturing. Not only did they have the vision, but the tenacity and energy to organize working committees and publishing guidelines that placed their companies at the leading edge of supply chain management. This was the beginning, followed by a host of guidelines that continued to contribute to improved efficiency, effectiveness and customer service.
It’s been a great ride and there is much more to come, so stay tuned!!!
Cheers, Joe

WSJ May 18, 2009
“Clarity Is Missing Link in Supply Chain”
Mr. Gerzberg, CEO of chip designer Zoran Corp. talks about the speed of the collapse of his chip business. “I think of it today and ask “why did it happen so fast?”
“The reason is starting to come clear. The world’s complex, Just in Time” manufacturing supply chains are making it increasingly difficult for any company that is a single link in the supply chain”
The article goes on to say that industry rewards suppliers with the leanest inventories and fastest reaction times. However, suppliers are forced to guess and make substantial investments in what they believe will be the demand for their products.
So it was contraction up and down the supply chain. While the US gross domestic product fell 6.1%, on an annual basis, in the first quarter, nearly half of that was due to inventory reductions.
“Just a decade ago the supply chain had far fewer links” today there are multiple links and products, particularly electronic components, which have multiple uses.”
A number of actions were taken by retailers, suppliers, and upstream suppliers. It was far easier to shut down then to get geared back up again. I recall an Israeli professor who spoke at a conference in January who said US retail sales are down 50%, while unit sales are down 3%. He concluded that when the economy turned around in late 09, early 2010, that there would be pipeline shortages as the supply side tried to catch up.

So here’s my take away. VICS has trumpeted collaboration for over 15 years. We have encouraged companies to take down internal and external silos, to share information with all players in the supply chain. We clearly understand the challenges of sharing sales and marketing plans with obscure suppliers somewhere up stream, but it is possible to provide them with some insight into where the business is going.
The economic downturn that we have experienced has highlighted, in a big way that it’s impossible to go it alone and be successful, even if the entire company is vertically integrated. There is a need for information that is critical to planning, that in fact may ensure that some companies actually survive
Imagine the scenario where a small, but critically important supplier of parts, guesses that business is going to be good, produces product for inventory, incurs the manufacturing costs, the inventory carrying costs, administrative overhead and the bottom falls out. No more orders. He hangs on as long as possible and then goes out of business. A major hole in the supply chain that take time to fill and in the meantime the retailer has demand, but not finished product.

So the message is clear, get collaborative and look at your supply chain holistically. VICS is strongly pursuing the marriage of CPFR and Sales and Operations Planning. During recent committee meetings it was clear that some companies were planning for the economic turndown some 2 years ago and have a robust planning process. We didn’t ask the question as to whether or not their stream of parts and material suppliers were included in the planning.
Don’t like to use the term, wake up call, but this is in fact what we have received. Let’s learn from the experience and further enhance the gains we have made in supply chain management, which has become a critical component in every company’s strategic plan. Collaboration, sharing and taking down silos, leads to visibility, speed to market, improved profits and great balance sheets.
Please honor me with your comments. Cheers, Joe

“We Work Together”
Regina and I visited Uncle Gabe and Aunt Jean the day before Easter. I’ve had the good fortune of being part of the family for almost half a century and they have been role models for years.
You see Gabe and Jeanne Panaccio have been married for almost 61 years and a number of years ago Gabe began to show symptoms of MS, which gradually became worse. We watched him fight to avoid having to use a wheel chair, to be as normal as possible. He and Jeanne have lived in a modest home in Philadelphia for most of their married lives, with Jeanne his basic care giver, taking one day at a time, but staying in tune with current events, their family and friends.
When I was responsible for Logistics Operations for Nabisco, we found our freight claims reaching staggering numbers shortly after the merger between Standard Brands and Nabisco. New carriers, new distribution centers, a new organization, new products, created an atmosphere of one challenge after another. At times it was overwhelming, just trying to meet customer demands on one hand of the spectrum while dealing with the politics of a major merger, on the other.
Being responsible for Operations included field transportation, managed by 5 regional customer service centers. We had a plethora of carriers, moving truckloads from plants to DC’s, plants to customers, DC’s to customers, etc. Frozen, refrigerated, temperatures controlled, and dry providers. A network of some 65 pool distributors delivered Less than Truckload orders to customers, making up a large base of customers. As I look back at it now, we were dealing with a very complex business, while in the middle of designing and implementing our logistics system. Much to do with limited resources, and stress evident, especially with those who cared.
That’s a bit of stage setting. Now to freight claims and the marching orders I received from management. Get it fixed and get it fixed fast, which meant that claims receivable had to be reduced ASAP!! It didn’t take me long to think about Uncle Gabe, who had extensive experience with Fowler and Williams a regional carrier before he retired with a medical disability, i.e. the dreaded MS.
Gabe and I talked about the challenge, get it fixed, which he accepted. We agreed that it would be on a month to month basis. It didn’t take long to orient Gabe as he understood the challenge, understood how freight claims can involve a lot more than a loss or damage of products. Administrative problems played a key role, which were significant given the number of hand offs of information and products that took place from origin to final destination. It also had a lot to do with “trust” a building block of true collaboration.
Gabe and his trusted mate Jeanne, immediately jumped head long into identifying the key issues, operating problems, and getting to know the carriers, Nabisco accounts receivable team, the Nabisco Regional transportation team, distribution centers, customers, etc. I observed in utter amazement as he almost immediately ingratiated himself with the individuals he was dealing with, starting each relationship with his by line, “We work together”. As I reflect on Gabe’s mantra, he was taking down silos and preaching the gospel of collaboration, a term not used in the 80’s. He intrinsically understood the value of team play.
Fast forwarding, Gabe and Jeanne worked on freight claims for Nabisco for 22 years. They made countless friends and admirers with their understanding of the business and practical approach to solving problems. The value they added was immeasurable, as when I think about the cost of quality, their efforts actually reduced the number of accountants focused on loss and damage claims, head count in operations and headquarters. The impact on the carriers was equally profound, especially as their trust in Gabe increased and the profitability of the Nabisco account grew.
Delinquent claims were reduced from in excess of $3m to $270k, which can be attributed to Gabe and Jeanne, taking down silos, establishing trust and entering into collaborative relationships across a broad spectrum of individuals and organizations. All done without coming face to face with those they were working with on a daily basis.
At a luncheon in Philadelphia, carriers and distribution centers from around the nation and the Nabisco team came together to honor Gabe and Jeanne. It was a one of the most sincere expressions of appreciation and gratitude that could have been bestowed on such deserving individuals. Gabe and Jeanne taught us all so much and were so far ahead of their time in understanding that “working together” can have astounding results.
Uncle Gabe and Aunt Jean have taught us so much and continue to show us what can be done in the face of adversity. We owe them more than we can ever repay and love them dearly.
Joe and Regina Andraski
April 12, 2009

April 5, 2005
Joe’s Corner

Hungary is a nation of 10 million, with 3 million pensioners. The government writes checks for retirees, accident victims, disabled, military, police veterans, mayors, widow, farmers, miners and excellent and recognized artists. The average Hungarian retires at 58 and 14% of Hungarians between 60 and 64 are working, compared to more that 50% of Americans
Hungary has run fiscal deficits for years to pay for social programs and its annual tab for pensions now surpasses 10% of its gross domestic product. The government has sold bonds to finance thee outlays. In October investors stopped buying them.
Hungary poses the global financial crisis’s biggest challenge yet to the European Union, which is fiercely debating how or whether to attempt a rescue
This county of fertile plans has been conquered by Turks, forced into empire with Austria and occupied by Germans. Its widespread pension programs are a holdover from the country’s domination by the Soviet Union. In exchange for no more social disruptions, the leadership would provide modest freedoms and a comfortable state welfare net.
To pay for all of this, Hungary levies high taxes and has borrowed to make up the rest. The tax burden has driven the cost of labor up faster than in neighboring countries, hurting Hungary’s competitiveness.
This information was taken from a WSJ article that appeared in the March 25th edition. It does not take an economist to project the coming demise of the Hungarian economy. The political machine has purchased the vote of those dependent upon the government to stay in power, but is it a sustainable strategy.
Isn’t this similar to what is taking place in the USA, with a large percentage of the population who are not paying taxes, but receiving substantial benefits. While I have no problems with providing health care to those who need it, I can’t help but be concerned over the entitlement mentality that is becoming prevalent among the American population.
Coming from a family that never depended upon the government, which worked hard for everything they got, risking life and limb in the deep coal shafts of Pennsylvania, it goes against my grain to see politicians secure their offices for years to come by playing to the needs of a certain aspect of the population.
The future will be tax, tax and more taxes. This will drive companies to countries that are corporate friendly and those that remain will pay higher taxes. It’s impossible to imagine how the trillions of dollars will be repaid, or if this money will be repaid!! If not, why not just refuse to pay, like Russia!!
Think about” Hungary, in Crisis, Grapples With Too Many Pensions” Could the next head line be” USA Grapples with too many social and stimulus programs that have created debt that cannot be repaid, ever” Get prepared to work hard, be frugal and write checks to Uncle Sam. I don’t think I have written anything with my political view, but this just hit home…
Joe

With all of the jobs being eliminated and unemployment over 8 percent, it certainly brings back memories. I really haven’t worked for many companies throughout my career and for the most part I can say that I enjoyed the challenges and opportunities offered by each one.

However, (there’s always a however), as I look back I can easily see how companies change, depending upon who is at the helm. It doesn’t have to be the CEO or any particular C level executive. It can be a mid level manager who comes into a department with a different mid set than the person who has moved on, i.e. out of the company, or promoted to another division.

The company policy, or lack thereof, may dictate the manner in which individuals are terminated. The decision as to what position, or individual, that will be eliminated is often times left to the mid level manager.

I have been on both sides of the fence, having to reorganize and in the process eliminating positions held by long time friends. Those decisions hurt when they were made and bring back unhappy memories today. What I can say is that I fought to have everyone treated as fairly as possible from the standpoint of being informed as to the future plans and what could be expected in terms of out placement help as well as severance packages.

What was especially gratifying was the fact that we saw productivity increase in entire operations that were being closed. We saw great morale and camaraderie as there was an understanding of why particular action had to be taken and the effort that was needed to ensure a smooth transition. In other words we treated our people like family and in a fashion that didn’t insult their integrity or intelligence.
Flipping to the coin, I experienced how not to terminate a long term employee, and that was yours truly. While I read the tea leaves and new that my position was going to be eliminated, the formal word came from a maintenance manager, Miguel, who told my admin that there was no need to move a piece of furniture because I was on my way out the door. Shirley was in tears when she related the story and while I knew it was coming, it still struck a nerve.

I went to visit Tommy, our HR person who told me he had some news for me, i.e. job elimination. In mock surprise, I said, “Tommy I thought you were going to tell me that I was being promoted.” With a grim and dour face Tommy told me about my termination package and mentioned that the action had nothing to do with my age. I had decided that when the time came I would not take any age discrimination action as it would be demeaning and embarrassing. I did tell him what he could do with his offer of out placement…

The point being made here is that there are humane and caring ways of treating those that are being let go from a company that they know and love, i.e. a company that has become a part of their lives and that of their families over a number of years. There is no amount of compensation that can be paid for the extra effort, the weekends, the nights, the travel, the time taken from one’s family by a dedicated employee. Yet these people are being ushered out the door without the courtesy of cleaning out their desks.

So my message is a simple one, establish a caring culture and fight for those who have given so much. Don’t hide behind the corporate curtain, and push buttons that drop the guillotine on the necks of those who have no sponsor. It’s rather simple, treat people the way you want to be treated.

So it is with great pride that the Nabisco team still gets gathers for regular reunions. That our family has stayed together for a number of years and the ties that bind seem to get stronger and stronger. My question to you is, “will you have a relationship with those you have terminated?”

Do whatever you can for those who are seeking a job. Even if it’s a phone call, just stay in touch and let them know you care.

joe

TOUGH TIMES CAN MAKE YOU STRONGER
We have a lot of empathy for those who have lost their jobs and now face the prospect of a serious economic downturn. My family and I can speak from an experience we had in 1971 when we were involved in a head on collision. A two lane road, a driver coming in the opposite direction veered into our lane and we landed in the hospital with life threatening injuries
Flash back several months and I had left a great company and position to start a home construction business. I was full of energy and passion to be an entrapenauer, to be the master of my own destiny. We had bought property near our hometown and built a home that we were supposed to move into the day after our accident.
Fortunately we were able to move in with family, after a couple weeks in the hospital. There’s a period of time that is somewhat of a blur of doctor visits, one surgical procedure after another for my wife, daughters and myself. Dentists who replaced teeth, applied braces and tried to repair our serious dental injuries.
All of this was taking place while we had no income, no insurance and a very dark future before us. Suffice to say that companies weren’t interested in hiring someone that looked like I did, so I started selling LaSalle correspondence courses. It was a commission position, and any income was totally dependent upon the amount of time and effort a sales person was willing to contribute. I would drive my 4th hand car countless miles each evening following up on every lead, with very little success.
At the same time we were trying to settle into our new home, struggling to finance the investments that come with every new home. Digging into our savings to pay for daily living expenses and watching the balance dwindle down, down, down. I think you get what is not a pretty picture

Given our personal experience we can understand and feel great pain for those who have lost their jobs, their homes and hopes for the future. I strongly believe that tough times can bring families together and make individuals stronger. It’s a trite saying that the secret is to make lemonade out of lemons.
I would be remiss if I didn’t highlight the role that my wife and 2 daughters played in our recovery. They were nothing short of magnificent, picking me up, as I spent too much time lamenting our sad set of circumstances. As I look back on it now and as Regina recalls, I was in drifting into a serious state of depression. It was the cohesiveness of our family that got us through this difficult time and made us stronger for the experience. With Regina’s encouragement, I got up each morning and got at it, whatever it was that had to be done.
There’s another part of the story and that is the importance of staying visible and networking. After several months I landed a job as a result of having worked hard at making phones calls and touching base with everyone in my network of friends and associates… (No email back thenJ)
It was pure luck to find a company, near our home that was willing to give me a chance. I accepted a lower level position, which I was thrilled to get!! We had a source of income, hospitalization and the chance to get back to normal!!!
That was the beginning of a long road back to solvency and normalcy. We had a lot of bills that had to take care of, that included medical, dental, business exit expenses, replacement auto, etc.
This is why we have so much empathy for those who have lost their jobs. We also feel for those who have seen their lives impacted by natural disasters, losing their homes, loved ones and livelihood. We can really feel their pain and understand the anguish they have and are currently experiencing.
Since 1971 we have gone through several economic downturns, 9-11 and other difficult circumstances. This country has always recovered and it will once again, it’s in our DNA.
It will get better, pinky promise. Joe 3-8-09

Approximately 2 years ago VICS held a transportation summit which was attended by retailers, suppliers and transportation providers. All were VICS’s members and some had been intimately involved in the Collaborative Commerce Transportation and Global Logistics Management Committees. The purpose of the summit was to review the case for action that had been developed by these two committees and to discuss the creation of a strategic plan.

As we reviewed the case for action, it became readily apparent that the key drivers previously indentified were beginning to take hold. The pool of experienced drivers was beginning to shrink, the cost of fuel was beginning to escalate and administrative errors were on the rise, consistent with the increase in the number of shipments. Women’s Wear Daily had just published research that indicated that 20% of the charge backs that were taking place in the retail industry were a result of logistics errors and another 20% were due to EDI errors.

These errors not only resulted in penalties for the supplier, but they had an impact on getting products to market. Lost sales are a serious issue in retail and these errors certainly contributed. Furthermore, there is the cost of quality that had to be taken into consideration. In other words, companies had to use resources to identify and resolve the problems, which resulted in an increase in the cost of doing business. Head count varied depending upon the season and the problem was exasperated by the expansion of global outsourcing.

So there was clearly as case for action. And then a retailer asked what could be done to reduce the amount of empty miles that private fleets travel. In one particular case a retailer shared that their fleet was running some 20 million miles, empty. Wow, did that get our attention.

Needless to say, but the rest of the meeting was taken up with discussion about how to reduce empty miles in the most efficient and effective way. Having spent a good part of my career in the grocery industry with a supplier, I had a good idea of the challenges that retailers and suppliers were having with managing back haul programs. There was ongoing discussion about the rates paid to retailer’s fleets, operating agreements that were not followed, etc.

Of course the first thought was to reach out to transportation service providers with the intent of identifying the problem and seeking a solution. There are many companies that have developed great programs that delivered real value. We identified continuous moves as a means of getting better fleet utilization for the for hire truckers a long time ago. There were other techniques discussed, to include job posting, etc. It was decided to have the companies mull over what they believed was the most appropriate approach, from an operational as well as a cost and administrative standpoint. Whatever we came up with had to add value, it had to be simple to use and have a low entry fee.

Time went on and we explored several options, some that started with great promise and some that fizzled. Others which were immediately discounted because of the high cost of entry or because of the substantial monthly fees. The benefit of going through this process was that it helped us to define the features and functions that we wanted in whatever model we finally agreed upon.

Working in the background on technology that was to provide the tools for companies to use to reduce empty miles was GS1 Canada and GS1 US. As partners, they developed the portal that provided the technology which served as the back bone for the VICS Collaboration Zone. Our first offering in the Collaboration Zone was Empty Miles, which addressed not only the inefficiency of running trucks empty, but was so very timely as the cost of a barrel of oil shot up to $140. It has come down since that time, but the prices of gas and fuel oil are increasing as this piece is being written. Opportunities abound in reducing C02 emissions, using less fuel, fewer miles traveled on deteriorating highways, etc.

Empty miles have been tested by some of the leading retailers, suppliers and transportation companies. It has received high marks, and comments like, easy to use, compatible, delivers value, etc. We have structured the model to involve non vics members if they choose to join the Empty Miles program. We are positioned to expand the Collaboration Zone to product recall, yard and dock control, asset control and tracking. It’s our view that we have to offer our members tools that build on their expertise and provide them with solid evidence of adding value. Empty miles could not have come along at a better time as the retail industry is intently focused on sustainability, while at the same time reducing operating cost.

Timing is not everything, but being in the right place at the right time and having partners like GS1 Canada and GS1 US is a winning hand!! Check out www.emptymiles.org to learn more about empty miles.  If you have questions you can contact me or David.Clark@gs1ca.org

Cheers, Joe

We have lost our concern for others

January 24, 2009

I constantly get calls and notes from individuals who have lost positions and are in the market for a job. Reasons vary from mergers, acquisitions, down sizing, to companies going out of business. My heart goes out to each and everyone of them, knowing that they have families to support and other obligations.

I know some of them personally and know what they are hard working, talented and dedicated. Other come recommended by people that I know and respect.

I do my best, but in some cases the most I can do is listen and provide encouragement. I’m honest and forthright, not trying to paint a picture that the world will be right in the next couple of months. Who knows when the economy will recover, but I’m sure that adding condoms to the products that need support will make a major contribution. ( part of the Obama bail out plan)

Here’s my gripe. It goes to companies, search firms and others who are in the business of “helping people find the right position”. The first call is encouraging with a lot of smoke blown, which leaves the applicant feeling good about potential prospects. In some cases there are several conversations and the one situation that gets me where it hurts is when the applicant is told he or she is on the short list and can expect a call.

Guess what, the call doesn’t come!!! The applicant waits and hopes and finally gives up. Despondent, absolutely and surely depressed. The person on the other end cares less, just another dude who they crossed off the list. How sad, how terribly sad.

I learned long ago to treat people the way I wanted to be treated. I never consciously not return a phone call or email. I always, regardless of the circumstance or individual do not respond. That equates to respect, not hoping that some day there will be some quid pro quo.

I hope that we can become more sensitive and respectful of each other. To be more caring, which is what our new President is espousing. But unfortunately, the seems to be some sense of power and control that takes over and those in need are relegated to being on the dole status and are treated like non entities.

I can only hope that these jerks find themselves in the position of needing help and I am anxious to have them call me. I’ll give them an example of what compassion and understanding is and what it can do to help them through difficult times.

Let’s get human and not depend on the government to solve our problems, let’s bond as never before and do what is right.

All the best of luck and success to all of those who are in the job market! I wish you well and stand by to help in anyway I can.

Sincerely joe

Defense Logistics Agency
CPFR ® Certification Program

The DLA recently contracted with VICS to conduct a 3 day CPFR® Certification Program for 25 members of their supply chain management team. They were interested in learning the basics of CPFR and how implementing this business process had delivered success to numerous companies, in various industries, throughout the world.

We went through the history of CPFR, the development of the original model and how it had evolved into the current model and how it has been successfully implemented. Each of the basics of effective collaboration were presented, followed by break out sessions, which were intended to have the attendees interact and apply the briefing they had just received to real life challenges. Teams of five discussed and developed team consensus around the particular subject and what it meant to each member of their team and the steps that could be taken to arrive at improving existing DLA processes.

Rotating team captains then presented their recommendations to the class and then entertained questions and in some cases engaged in lively debates. It’s an approach that VICS has found quite successful in engaging a class and making it a truly interactive educational program. When people have the opportunity to express themselves in an nonthreatening environment, great ideas, challenges and obstacles are identified and discussed. It’s invigorating and exciting.

It is not the intention of the class to solve completely sove problems, but to encourage possibility thinking!!

I was thoroughly impressed with the attentiveness, interest, participation and willingness to engage on the part of each member of the DLA class. For all the years I have been involved in CPFR Certification programs, and I can honestly say that this was one of, if not the best class in terms of interest and excitement that we have had the pleasure of instructing.

It was my distinct impression that every individual on the DLA team we trained was completely dedicated and committed to doing the very best job they can for their customers, i.e. military forces. They have to deal with many regulations and requirements that commercial enterprises are not encumbered with, yet work hard to meet and exceed the expectations of their customers. They have passion and a sincere commitment to excellence and they are to be admired and thanked for their service.

So when you pass by a military person and thank them for their service, think of the support they receive from the DLA. Think about the DLA being one of, if not the largest enterprise in the world in terms of the number of SKU’s managed and the number of customers they serve around the world and how well they manage this complexity.

We’re fortunate to have the DLA and the DLA leadership that is there to support the war fighter and the entire military establishment, wherever they may be around the globe. I have great admiration for the DLA and every branch of our military. They deserve our respect and complete support.

Sincerely, joe