I am a CEO with major constraints on every moment of my time, and I am sure that this is the way most CEOs probably feel. Along with the stack of duties I must take care of, I also blog, I podcast, I am active on LinkedIn and Plaxo, and I Twitter a few times a day.

Should I be, though?

Social media tools are easy to use, but it's not always so easy to get value from them. In fact, it seems that other CEOs are weighing the pros and cons. Surprisingly, I just read that not many CEOs are participating in social media, according to this Reuters news article:

http://in.reuters.com/article/internetNews/idINTRE55O0FA20090625

But it makes sense for CEOs to stay off Twitter, stay off the blogs, and keep quiet on LinkedIn unless they are ready to commit and provide value through these tools. Would you pay fees and travel costs to go to a trade show in another city and show up without anything to give people? No, because you’d be hard pressed to get much attention or interest. Many social media tools are free, so there’s no fees to pay, but if you show up without anything to say, the same principle applies – people won’t pay any attention to you.

How companies represent themselves on social media is a hot topic right now. But there are a lot of distracting bells and whistles that make it easy to forget that the social media universe is made up of tools that let you facilitate conversation.

These tools have a purpose other than being fun or cool, or a place to see and be seen. Just having a profile setup somewhere online doesn't mean you are doing something right. You have to be aware of the applications of the tool.

It is hard work to create good content to put in your blog, or your podcast, or whatever you use. Fortunately, I have been writing books and articles for a long, long time now, and Tompkins Associates is constantly focused on helping to educate others and share our expertise as global supply chain consultants. We have a wealth of knowledge that is an easy fit into social media tools that help us reach bigger and better audiences. We’ve been doing this for a while, and now we have some new tools that make it easier than ever for people to connect with our content. Even better, these same tools allow the audience to respond back to us.

These tools are fun, but more importantly, they fill a niche for me. I can share my expertise with others, teach, and pick up on new trends. I can also learn from listening to others I'm connected with on those same tools.

My advice to the CEO who is considering a leap into social media: Think about what you want to accomplish first, then decide which tools you should use. Here’s a couple of examples.

Do you want to talk to your clients or customers about what it is you do in your industry each day and how you are working to make your business even better? A blog may be right to document your ideas, news and thoughts in chronological order and provide people with a place to comment back and forth with you.

Do you have a new set of products coming out every few months, and you want to share the announcement and your thoughts on it when they are ready for market? To reach your audience, you could showcase the new line using photographs or video, and include your own comments, then set it up so people who like your company can link to it all and comment. Maybe a YouTube channel or Flickr photo set would be best.

Think of the tools last; think of your audience first. This is really not much of a different mindset one would use with traditional marketing tools. Have fun out there!

Go!Go!Go!

Jim

Back in January, Bruce Nussbaum of Business Week published a really great list on his blog of the "10 Worst Innovation Mistakes in a Recession." You may be thinking that this is old news, right? Nope. In fact, it would be very worthwhile to go back and review the list to see how your organization is faring. I am doing this today, now, even as the economy slowly gains momentum with The Great Comeback.

Have you or your company committed any of these glaring mistakes, and if so, how can they now be addressed? It's critical not to stifle innovation during a recession, as Nussbaum correctly notes, and the same applies in the economic recovery phase. It's also very important to avoid that bunker mentality of hunkering down and waiting for the storm to blow over -- no one ever gained a competitive edge by reacting in this way. He calls this "retreating into walled castles" and nails it when he says "...one of the key ways of introducing change into business culture is to bring in outside innovation and design."

And six more months from now, it would not be a bad idea to review the list again. Your organization will only be stronger for it!

Jim

I just recorded a podcast with Mike Moore, the co-founder, President and CEO of American Energy, about cost reduction for business operations in their energy usage. It’s a major issue that affects us all, around the world, because of concerns for the environment. Businesses can make a big impact on the environment and save money through energy use reduction, and Mike and I talk about some of the ways to achieve this.

Mike answers some tough questions in this podcast, and we talk about the current state of energy management and the future possibilities that may come from energy legislation. An important take-away that Mike points out is a really important first step his clients take when reducing their energy usage and carbon footprint. He explains that it’s essential to understand your business operation’s current emissions inventory, especially in terms of greenhouse gasses. This first step creates a baseline for future improvement.

However, Mike notes that this kind of project is more time-consuming than it sounds. It is still more than worthwhile to accomplish. Mike points out that with the possibility of a mandatory greenhouse gas reduction and conservation laws for certain industries that will have to be in compliance with any future legislation, some business sectors can’t afford to ignore taking that first step.

Not only does energy use reduction help the environment, it reduces operations costs. Listen to more ideas and real-life strategies about this very big topic in this installment of the Global Supply Chain Podcast:

http://www.tompkinsinc.com/podcast/transcripts/6-16-09_podcast21_energy.asp

Yes, putting all of your eggs in one basket is a bad idea, but putting all your eggs in 60 baskets isn’t exactly a good idea. Seems to me if you have 60 baskets you need to consolidate your baskets and streamline your processes.

Ok, before you think I have gone Easter Bunny with my egg and basket discussion, let me get to the supply chain application. To be blunt, the question many companies need to answer today is: “What is the correct number of Logistics Service Provider (LSP) contracts for your company?”

I know of many large companies that, on a global basis, have well over a hundred LSP contracts. In fact, I know of a few that have more than 1,000 LSP contracts. And, most unfortunately, there are many, many companies that do not know how many LSP contracts they hold globally. Times are a-changing, and with the globalization of LSPs and the existence of several high-quality Lead Logistics Providers (LLP), many companies need to substantially streamline their operations by reducing the number of LSP/LLP contracts they hold.

Since their inception many years ago when they were public warehouses, and through the 3PL evolution, the globe has become speckled with LSPs and LLPs. We all know the size of the logistics outsourcing market has grown tremendously, but what has also grown is the number of global LSPs that can handle a significant amount of your requirements around the world and the capabilities of LLPs to handle any remaining requirements.

Now, it has become clear that many companies, especially those that are global, can – and should – begin consolidating, simplifying and streamlining their LSP relationships. It is not feasible for one or two LSPs to handle your business globally, but rarely have I seen supply chains where the number of LSPs cannot at least be reduced by 50%. Also, it may be feasible for a handful of LSPs to meet 80% of your global requirements and then have the other 20% met by a handful of LLPs. So, it is feasible and advisable to put all of your logistics outsourcing requirements into less than 10 LSPs and LLPs.

For example, think of a large corporation with many different divisions in many different countries. Many times the right hand doesn’t know what the left hand is doing. Separate divisions and/or separate regions of the same company may be independently selecting and managing LSP relationships without any knowledge of what other divisions or regions are doing.

By bridging this gap so that these separate divisions/regions are now selecting-negotiating-contracting-administrating-improving their combined LSP requirements, it is clear that both the provider and the customer will net a stronger relationship and better improved operations. Streamlining and focusing your LSPs will also net reduced cost, reduced overhead and enhanced performance. Then the remainder of the “special” requirements may be handed over to a LLP to address. In this way you significantly reduce your complexity and cost while improving your customer service.

From an LSP perspective, some are concerned that the consolidation of services may hurt their profits. However, this is not the case. The reality is that both the LSP and their clients will see a win-win by having a dedicated, fluent, globally integrated relationship. There is a challenge however for the LSP whose scope is too narrow to play on the bigger global supply chain stage. These LSPs need to either foster positive relationships with LLPs or step up so that they become one of the significant few remaining when their customers consolidate.

The defining characteristics of top global LSPs include:

Broad geographic coverage

IT systems capabilities

Industry-specific experience

Country-specific experience

Top-tier customer service

Truly consistent / integrated global network (not locations) 

With the global economy, it’s time for companies to rethink their logistics outsourcing and consolidate service providers as much as possible across their divisions/regions (reducing the number of baskets among which they spread their eggs). This process is not easy, but it will pay huge dividends over time.

Below are more resources on outsourcing: 

Outsourcing Logistics Cost Reduction Podcast 

 

2008 Third Party Logistics: Results and Finding of the 13th Annual Study (PDF), Georgia Tech Supply Chain & Logistics Institute

 

Executive Summary and Regional Comparisons; 2008 3PL CEO Surveys, by Dr. Robert C. Lieb, Professor of Supply Chain Management at Northeastern University (PDF) 

 

Logistics and Manufacturing Outsourcing: Harness Your Core Competencies, by Tompkins, J.A., Simonson, S.W., Tompkins, B.W. and Upchurch, B.E. 

Go!Go!Go!  Jim

Your challenge: Sit down for 60 seconds and write out a list of the tasks that you are working on and categorize them as high priority, medium priority and low priority. I further challenge you to be able to keep that list unchanged for half a day.

So what is my point? Quite simply, there are so many pressing, career altering, major impact, must-do supply chain tasks that most people can’t make a "to do" list, balance their priorities and keep the list intact for more than a few hours. The business environment, the state of supply chains, the wave of change in technology, the expectations set by others and many other issues will not allow you to work in an organized and productive way. What do we all do instead?

We work while eating, or more to the point, we eat while working. (I often don’t remember eating meals.)

 

We are moving as fast as we can, but it doesn’t feel like we are getting any of the important tasks done.

 

We spend as much time moving from one topic to another, from one crisis to another, from one meeting to another, and rarely accomplish the results we had hoped and others expect.

 

We feel like delegating assignments is the best answer, but then, many times we have to review it or make changes.

So aside from complaining about the way things are, as supply chain professionals, what can we do to ensure that we are doing professional supply chain work? I’m not sure I have the answer.

What I do know is that if you step back from the details of your supply chain for a few minutes, observe what is happening and use some well developed benchmarking information, you can pinpoint the rational few (6-10) highest priority areas of opportunity. Those rational few should make up the bulk of the items on your task list and should not bounce on and off the list based on your last phone call.

Obviously, there are things that occur each and every day which must be resolved and need your personal attention. But unless we become more focused and more selfish with the "to-dos" that occupy our time, we will all be disappointed at the end of the day. I’m convinced that the best way to make a difference is to make smart, big improvements to very significant, major impact processes.

Are the tasks on your list the right ones? Are they somewhat balanced and prioritized correctly? Do you know for sure that these are the supply chain issues that need your attention the most? Do those around you know your priorities, and will they let you have some degree of control over your time and actions? These are all good questions, but you may not yet have the best answers. If you have some thoughts about getting the right tasks on your list, prioritizing them and staying on track, let me know.

To Do:

1. Go!

2. Go!

3. Go!

Jim

Like bacteria on a warm petri dish, economic conditions have created a breeding ground for mergers and acquisitions. However, it’s not the usual private equity firms that are forking out the cash. It’s the corporations themselves that have been hoarding cash, waiting for the right moment to seize the opportunity.

For those who are planning an M&A, beware: Not having a comprehensive approach may be toxic to your supply chain.

I know, I know, I always preach "strategy." But, in many cases where M&As fail – and they fail a whopping 50-80% of the time, depending on where you get your information – a strategy was present. The piece they were lacking was knowledge – or, at least, knowledge of the full picture. So, it is imperative to have strategy as well as know-how.

Acquiring or merging with another company requires a robust practice. To come clean with you, this is what stimulated this blog. I saw an e-blast from a firm claiming to be your solution for M&A when what is really being offered is the consolidation of distribution operations. Wow, some folks need to check their medical insurance as they are certainly headed for a long hospital stay. The reality is there are many business-related processes that also need to be accounted for – marketing, finance and employee communication, for example.

Although there is a smorgasbord of different areas to address before and after a merger or acquisition, your Board expects a smooth flow of processes between the combined companies to be done quickly, leaving those in charge of making it happen, who may sometimes be one of the last to learn of the M&A, very little time.

To start your company off on the right foot with M&As, here are seven strategic issues for supply chain integrations that need to be addressed:

1. Supply chain strategy for the integrated business

2. Operations strategy (e.g., low-cost supplier or high-service provider, or both?)

3. Organization of the integrated supply chain processes

4. Functions or levels to outsource

5. Differentiation through supply chain performance

6. Supply chain technologies utilization

7. Employing change management

These seven are often at the core of success (if done well) or failure (if done poorly).

As I mentioned before, the private equity firms are not the ones leading this explosion of M&As. But, whether the M&A is driven by a private equity firm or a large corporation with money burning a hole in its pocket, the process is still the same. Click here for more information on M&A strategy and execution.

Go!Go!Go!

Jim

Update: Read Gene Tyndall's take on how supply chain executives can prepare for shifts in M&A in this article from CSCO Insights.

My niece Sandy Tompkins is one of the new graduates who is trying her hardest to find a great job in this difficult economic climate. I asked her to tell us about her experience with her job hunt and what she has learned from it. She recently graduated from North Carolina State University with a business degree and is seeking a position in supply chain operations. She has lots of helpful advice, and here is what she had to share.

--Jim

____________________________

My Career Search is Now a Job Hunt

Finding a job in today’s market is difficult. The sheer number of unemployed recent college graduates is proof of that. My frustration with the dismal job market is compounded by my lack of work experience and the difficulty of finding the right job in a sea of seemingly false leads.

I started out my job hunt with high expectations despite the economy struggling around me, and I was confident that I would be able to find a great job. After all, I was graduating summa cum laude from NC State University with a degree in Business Management. How could I not have a great job waiting for me, one that would complement my education and represent the beginning of my career?

When I first started my job hunt I was very specific about what jobs I would apply for. I wanted a logistics, inventory management, or purchasing job. These were the topics that I had the most knowledge in and found the most interesting.

I searched the online job sites everyday. It soon became apparent that I wasn’t qualified for most of the available jobs. I had the education but not the experience in these areas.

Most of these positions required 3-5 years of experience in a DC or doing purchasing activities. I’ve never managed a company’s logistics network or done work in a DC on inventory management. All I have to offer is what I’ve learned in a textbook and case studies from class.

I knew that I needed to widen my search. I started to apply for other kinds of positions including office manager, administrative, and financial jobs. The main obstacle to my finding a career instead of a job is previous work experience.

Luckily I was able to find an internship in a related field that will help me build this part of my resume. It’s not a long-term solution, but it helps tremendously. I definitely recommend finding some kind of internship or other activities while you are searching for the right job. You could also try volunteering at non-profit organizations as you search for jobs. That way, you can help your community and make sure your resume isn’t empty during this time you spent searching. A good place to search for this kind of position is idealist.org.

See popular blogger Seth Godin’s suggestions for recent college grads too.

Sales, Sales, Sales

Another obstacle to my finding a great career is finding desirable positions. The online job websites like Monster and Career Builder have been flooded with insurance sales, online medical jobs, and other undesirable positions. Most jobs on these online job sites are for sales positions where pay is based on sales instead of a typical salary. Sales is something I have absolutely no interest in.

It is a definite challenge to find many appropriate jobs when a detailed search brings back hundreds of unattractive positions. Some mega online job websites are better than others for recent college graduates. I would recommend sites like collegegrad.com and specialized sites like supplychainjobs.com (there are specific websites like this one for most disciplines) to avoid the clutter found on many websites.

A Different Approach with Different Expectations

After months of scanning over the same undesirable jobs on mega websites I came up with a new approach. I created a list of companies in my regional area and started visiting their websites looking for job postings or other information that could point to a job. I also began to use social network sites to find job opportunities. This approach has been much more effective than using online job sites.

One drawback has been that my salary requirements have decreased, as the longer I look for a job, the less money I am willing to accept for a position. Because of this, health insurance and other benefits have become more of a factor in my job search. This new approach has helped me find more desirable jobs quicker. I’ve found several jobs that I am really interested in and have gotten several requests for interviews. I look forward to moving to the next step in the interview process with these companies.

Some Final Thoughts:

Check the right job websites such as the ones I recommended above.

 

Check individual company websites.

 

Use a salary calculator like the one found on Salary.com.

 

Networking is important! So use easily available networking tools like LinkedIn and personal contacts.

 

For almost all of the positions I applied to online I received an electronic thank you for applying and never heard from the company again. With most online application submissions there is no contact information for the HR personnel, so there is no way to interact with the individuals making the hiring decisions. I recommend going on the company’s website and looking through their directories or searching for their HR personnel on networking sites like LinkedIn. Once you have their contact information, you can send a polite e-mail with a copy of your resume to introduce yourself and help them remember your name when it’s time for interviews.

If you want to stay in one specific town or location, the job search gets much more difficult. You must exercise patience and persistence to get a job that meets your needs.

 

It’s a difficult job market out there, but I believe that patience and follow-through will lead to a great job, or if you’re really lucky, a career. I’ll let you know how I have progressed in my search in a future post. If you are in a similar position, leave a note in the comments below about your experience.

-- Sandy Tompkins

I have long believed that labeling rules and guidelines of manufacturers, retailers and consumer goods should encourage -- not discourage -- automation. Now, there is a potentially worrisome trend developing in labeling standards today that could affect automation, productivity and general sanity in warehouses and distribution centers.

My friend Dan Gilmore over at Supply Chain Digest is taking hold of the issue and trying to get manufacturers, retailers and suppliers involved. His "First Thoughts" column frames the issue perfectly and brings up the details of the controversy: http://www.scdigest.com/assets/FirstThoughts/09-06-04.php?cid=2502&ctype=content

This is pretty serious stuff, since several large retailers are already moving away from standard labeling procedures. What could the results be? Consider being required to carry multiple SKUs, developing special handling processes, and (gasp) not being able to adequately track cartons at various points in the supply chain. And when it comes to automation, tampering with the labeling impacts companies’ abilities to automate their distribution centers and establish efficient picking systems. In turn, this affects operations costs, customer service, and the company’s bottom line.

Wow, this would be a step back in my opinion – A step that the world’s supply chains can ill afford in this time of economic recovery. Manufacturers, retailers, vendors and consultants should come together to ensure that these labeling changes and requirements do not present a barrier to existing and new technologies.

What do you think? This could get very interesting!

Jim

With the summertime now in full swing, I’ve been enjoying a lot of fresh food. The strawberries that I ate this past weekend were some of the largest that I’ve seen, and wow, were they tasty?! And, the marinated chicken that I threw on the grill this week could not have been better.

And while I am sitting here snacking on yogurt between e-mails and phone calls, I started thinking how lucky we are to be able to enjoy fresh food and what a journey it takes for it to get from the farm to my mouth. Of course, it came through the supply chain, but how did it arrive in such great shape?

As it just so happens, Steve Simonson, a partner here at Tompkins Associates, recently wrote an intriguing article on Transforming Your Fresh Food Supply Chain. The article doesn’t tell me exactly where my food came from, but it does provide keen insight into the challenges that are weaved throughout the fresh food supply chain. Steve also offers up a transformation process that folks involved with fresh food supply chains can implement to make sure their products stay fresh and safe as they travel along the supply chain.

He notes challenges such as:

Seasonal supply and demand: Floods, droughts, wars, etc., can create supply issues.

 

Food sanitation: Sanitary practices start with the growers and move through the supply chain to the consumer.

 

Food security: Better traceable and effective product recall is needed. Issues on international supply from other countries / country of origin labeling are of high concern.

 

Perishability: Once in the distribution system, some foods have shorter shelf lives and require special packaging and handling, while others stay fresh longer with minimal intervention.

 

Product quality: Although fresh food goes through complex processes such as respiration before it reaches the final consumer, it is still expected to be in good condition.

 

Organic or natural trends: Although a higher degree of standardization around the terms "organic" and "natural" is needed, these products typically by their nature have shorter shelf lives and require more careful handling to arrive with quality intact.

 

Water resources: Severe water shortages in different areas of the country are significantly limiting sourcing options throughout the fresh chain -- potentially requiring different handling and transportation practices as regional options disappear.

 

Immigration Customs Enforcement (ICE): The new U.S. administration may have an effect on the labor force, which is mainly immigrant.

 

Pursuit of alternative energy sources: With items such as corn, which is used to make ethanol, this can be a major cost driver.

In the article, the five-step transformation process begins with determining and understanding changing consumer preferences. Secondly, the article says to assess current company decision rules, practices, and controls. Next, assess current industry situations, trends, and initiatives. Then, evaluate practices against industry leaders. And finally, determine initiatives, value, and implementation program.

As Steve points out, fresh food producers can achieve profitable growth and overcome the special challenges they face by having a more efficient supply chain.

And this is a win-win for all: the folks in the supply chain are happy…the consumer is happy…and most importantly, I am happy...which, reminds me, I need to add strawberries to the grocery list this week since mine have all seem to have disappeared!

Go!Go!Go!

Jim

It’s the one question none of us wants to hear about our supply chain.

“Where is my stuff?”

Hearing this question is especially troubling when looking at IT solutions for supply chains. A lot of time and effort, from the selection process to implementation and testing to go-live and ongoing maintenance, is taken up by supply chain IT. If the “Where is my stuff?” question and its answers point to a shortcoming  in the IT system, it can be exceptionally costly for companies to overcome.  

While IT solutions are supposed to make answering that question easier, in this installment of the Global Supply Chain Podcast, Matt Wilkerson and I look at how you can make that question less costly. Matt’s the expert at Tompkins Associates on supply chain visibility, and in this podcast, we have a great discussion about how companies in today's environment can work with vendors to increase their competitive advantage, the latest trends in solution usage in today's market, and about cost reduction opportunities in the areas of demand planning, transportation planning and global trade management.

Click here for listening options and transcript. 

We produce a new one of these podcasts every first and third Tuesday of the month, so be sure to subscribe for future updates.

www.tompkinsinc.com/podcast