How would you like to reduce your company’s electric bill by 30 percent, 40 percent or even 60 percent? Especially now in the middle of winter, I know that these huge bills are never a welcome sight.

But there are companies who are able to realize such savings -- taking tens of thousands of dollars off of their bills – by implementing sustainable practices. Not only do they save money, but they're helping the environment. In some cases, the federal or state government will qualify these companies for grants due to their sustainability efforts, which is a big incentive.

Sustainability within facilities and buildings is the topic of this fourth installment of a six-part series on sustainable business. Steve Simonson, a partner at Tompkins Associates, and I discuss a lot of great ideas, from what to do when building a totally new facility to what equipment can give you the biggest energy efficiency.

For example, lighting typically takes up more than half of a commercial property’s electric bill. There are proven ways to cut these costs through the use of more natural light and certain lighting products and scenarios. Installing energy efficient systems can also go a long way in reducing costs and promoting sustainability.

Even planting trees on the roof of the warehouse is an idea some have implemented to good use! What kinds of things are you doing to help "green" facilities and buildings and cut costs?

Be sure and listen to the podcast, Environmental Sustainability for Business: Facility and Building Sustainability, for many more details and some great ideas: http://www.tompkinsinc.com/podcast/transcripts/1-19-10_podcast34-facility-building-sustainability.asp

 

See more on greening supply chain resources and best practices.

 

Go!Go!Go!

Jim

Photo credit: Faith Goble

You know the three Rs: Reduce, reuse, recycle.

But do you know the five Rs? These five should have a major impact on your business!

I explain the five Rs in the latest Global Supply Chain Podcast, which kicks off a five-part series talking about sustainability issues in business and what top companies are doing to green their operations.

I'm really excited about this series, because not only can it help companies with supply chain cost reduction and with other costs, it can have an amazingly positive effect on the world. In the podcast, I talk about how one company set out to reduce their carbon usage, and they were able to hit their goals. In the process, the company ended up saving $1.5 billion dollars!

Listen to this introductory podcast here:

http://www.tompkinsinc.com/podcast/transcripts/11-17-09-podcast31-sustainability-series-1.asp

The next parts of this series will be on:

1. Packaging

2. Transportation

3. Facilities and Buildings

4. Recycling and Reuse

 

This is a great topic, so be sure to subscribe to get updates when the next parts in the series are released every two weeks:

http://www.tompkinsinc.com/podcast/

Speaking of green and sustainability, congratulations to Tompkins Associates’ clients for these recognitions:

Williams-Sonoma for being named a "2009 Green Supply Chain Award" winner by Supply & Demand Chain Executive magazine. The award recognizes companies that incorporate sustainability into their supply chains.

Go!Go!Go!

Photo credit: Pylon757

Guest blogger Dan Avila, a partner in Global Supply Chain Services for Tompkins Associates, wrote this post on the pulse of retail at this critical time between the economic situation, retail recovery, and the upcoming holiday buying season. Dan's experience includes a focus on retail, with over 20 years in supply chain and 10 years in consulting. Here are his thoughts on the matter.

-Jim

There’s a special "glow" around the retail industry as we move into the holiday season, and it has nothing to do with Rudolph the Reindeer’s nose.

Almost daily, I read a news article predicting what will happen with retail sales this holiday season. In a recession, it makes sense that a brighter light shines on retail and sales predictions. I have seen some predict a 2% decline and others predict as much as a 4% increase over 2008. Either way you slice it, retail is still in the middle of a downturn with some retail sectors performing better than others.

Discounters continue to perform well and luxury item retailers continue to suffer, with all other sectors somewhere in between. While many sources believe the worst of the downturn is over, consumers are still going to be cautious this holiday season. According to a recent survey from the National Retail Federation, Americans are not ready to declare an end to the recession until unemployment levels subside. So the return of retail is not looking good for this holiday season, but many believe that retail will begin to recover in 2010.

It has been vital for retailers to adapt their operations during the downturn in order to keep their doors open. Two significant changes were necessary. First, they reduced their overhead by eliminating unnecessary positions and costs, and secondly, they reduced their inventories by ordering less and by limiting their selection of products to their customers. Because of these two approaches to reducing retail supply chain costs, retailers are in a much better place from an operations and profitability perspective once customers return to their stores.

So what happens in 2010 when retail rebounds and becomes strong again? Will retailers be poised to take advantage when customers come back through their doors? Will the tough lessons learned in 2008 and 2009 help retailers in the future?

The Great Comeback has begun and each of the areas of our economy will slowly rebound, with retail typically lagging behind the other sectors. I see three key areas which will make or break retailers during the Comeback, two of which we have already discussed – reducing operating costs and reducing inventories. The third is evaluating logistics networks.

1) Cost Reduction: The Great Recession has taught surviving retailers many lessons, one of which is to become lean. By eliminating redundant positions, re-thinking the organization structure, and reducing unnecessary costs, retailers are stronger than they have been in a long time. This must continue when the customers return, or they may find themselves in the same situation when we have another downturn.

2) Reduced Inventories: The lessons learned during the Great Recession will be long lasting. Several retailers did not survive due to their high inventory levels and their inability to adapt with the changes in demand. Moving forward, successful retailers will be agile with their inventories and will be quick to pull the plug on low-selling items.

3) Logistics Networks: Many retail logistics networks have not been evaluated in well over five years, and therefore reflect a completely different economic situation. From the cost of fuel to the cost of labor to offshoring and logistics outsourcing, there have been many changes that can make logistics networks obsolete and ineffective.

While we may not be able to predict the exact end of the recession and the beginning of the recovery, one thing is for certain: For retailers to survive, they must take the lessons learned from the Great Recession and use them to fully recover and prosper during the Great Comeback.

Photo credit: timparkinson

That old saying "All bets are off" seems to apply in more than a few situations these days, especially when it comes to predicting anything with any certainty in business. Due to the recession's effects on most all industries, inventory management is like walking the razor's edge.

Demand is a concept that even the most seasoned supply chain managers must guess at in many circumstances. In part, this is due to consumers' unpredictable purchasing habits and the US government's economic stimulus getting placed into savings accounts instead of being used for purchases as intended.

Inventory costs money to have on hand. As a way of managing those inventory costs, some companies slashed inventory as the recession's impact grew deeper and deeper in the past two quarters of this year and late last year.

For suppliers during this recession, having enough raw material, works in progress, or finished products on hand to fill customer orders has been difficult and potentially costly, especially as demand was tougher than ever to predict. Buyers who purchase inventory from suppliers found that there wasn't enough available to stock their retail shelves.

Sectors that are starting to recover from the recession – such as necessities like pharmaceuticals, food and beverage, and inexpensive consumer electronics – are finding that although customers are coming in the door, their inventories and the inventories of the partners they buy from don't support the demand due to its unpredictability. And often, what consumers are finding is that the shelf is empty when they are ready to buy.

Now as signs are pointing to an economic recovery, I wonder if it's not time for a refresher on inventory management? Every once in a while in this blog, I choose a piece of jargon we use in our lives every day and look at its true meaning, which can get lost from over-use and misuse over time. "Inventory management" is my pick this month.

Examining the meaning of the phrase 'inventory management' might be revealing of the state this economic mess has left some companies' inventories in and what can be done to plan ahead for even more changes that are on the way. We know what the phrase means now, but how is the meaning going to change as the unpredictable markets affect demand planning?

In the immediate past, the recession created a situation where "inventory management" seemed to be spelled "cut, cut, cut." Cutting costs, through the reduction of inventory and other means, was being done across the board without enough forethought.

In the face of the economic downturn, the advice we gave our clients was to maintain talent, maintain business strategy, and cut all other costs. Doing so strengthens the company and helps with recovery, along with growth and prosperity once the recession ends. In terms of inventory cost reduction, we recommended that companies consider selling inventory sooner, holding less of it, owning less of what is being held, reducing inventory holding costs, planning demand more effectively, measuring all progress, and as a final effort, liquidating if needed.

Stocks are running low, and some companies are in a place to increase inventory now. As you plan inventory levels, consider that the question isn't, "When will the economy recover?" Instead, ask, "When will my industry recover?" Certain sectors are set to recover or are recovering now from the recession. Your inventory management techniques will be affected by the bottoming out of your industry. See the table below on when certain sectors will recover:

Inventory management will also be affected by the nature of the post-recession consumer. The consumer today is significantly changed and still uncertain. Reports show that people are putting more money into savings than they have since 1993.

Consumer confidence is still unsteady. Even the markets themselves are worried and distrustful of news of that the economy is rebounding, so you can imagine how the consumer feels. But this is not true of all sectors, as the table above shows, where the buying is already starting and where it’s set to start up in upcoming quarters.

Apply a fresh perspective to inventory management best practices and consider the new forces that will affect it. After all, it’ll be the holidays soon, and the last thing anyone wants then, consumers included, is the dreaded stock-out.

How is your company managing inventory differently these days? What are your plans in the near future?

I asked Brian Hudock, a partner at Tompkins Associates, for his insight into what's really going on in today's healthcare supply chains. Brian is an expert on improving supply chain performance in healthcare, pharmaceuticals and medical products and has spent a fair amount of time in waiting rooms. Here are his thoughts.

-Jim

------ 

What do you think about when you're sitting, waiting, in the very appropriately named physician's "waiting room"? For me recently, it was first and foremost the health of my wife (who is fine) and secondly, it was the complexity of the healthcare market. Signs of complexity in the healthcare industry were swirling all around me.

My wife was having an outpatient procedure, and when we walked into the facility, I noticed multiple (dozens) of specialty offices -- all focused on the spinal issues, but each on specific specialties. As we filled out the paperwork along with the insurance forms and the the waivers, the amount of information collected and generated from a single patient was staggering (and this for a single visit). As my wife went into the prep room, I noted how the complexity of the bed, the supplies, the sanitation options, the additional questions asked (yes, more paperwork), all reinforced how healthcare has become so much more specialized and more extensive than the tongue depressors and cotton balls I remember as a child when I visited the all - purpose family physician. Although I think we just called him "the doctor" back them.

With this much specialization, it makes perfect sense that the pharmaceutical and medical products industries are becoming less specialized and more diverse. In order to service patients effectively, a broad range of solutions (including those that are customized to a single patient) must be part of a broad portfolio of solutions. To ensure that patients are well served and to keep pace with a rapidly evolving healthcare industry, the ability to manage, effectively distribute, and collaborate with industry partners is becoming increasingly critical.

The big reality of healthcare today is that the merger of non-traditional partners and industries -- including Pharmaceuticals, Generics, Vaccines, Biotechnology, Genetics, Medical Device, Medical Products, and OTC products using the same supply chain across the globe -- will challenge even the best logisticians and planners. If these acquisitions and mergers are not successfully integrated, the cost reductions being sought to support governmental healthcare goals will never be met.

These goals include up to a $1 trillion savings over the next 10 years -- not including the increased cost and challenges of new drug development and approvals, increased patent limitations globally, and an explosive healthcare supply chain security and counterfeiting problem. I knew it before, but realize now more than ever, that integrated systems, partnerships and control are and will continue to be critical in all sectors of healthcare.

My belief is the next decade will be fascinating as we truly create a seamless Healthcare Supply Chain. Now if we can do just something about these uncomfortable waiting room chairs and the long wait times!

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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

People believe that forecasting the weather is tough, especially when the report they hear turns out to be wrong and a sunny day is in reality a soggy one. But if you know anything about inventory, you understand that predicting demand to provide a high standard of customer service is difficult on the best of days, and expensive on the worst.

One of the most popular articles we have written for the Tompkins Associates monthly newsletter Supply Chain Edge is an informative list of 25 Ways to Lower Inventory Costs. Because it’s such a popular topic, I’m excited to announce the latest Global Supply Chain Podcast (published on the first and third Tuesday of every month) on the topic of Inventory Cost Reduction.

In it, I had a great talk with inventory expert Ralph Cox about how to reduce inventory for cost savings, which costs are inherent and why, and how to know if you’re reducing inventory too much.

Click here to listen to this podcast and see a text transcript.
http://www.tompkinsinc.com/podcast/transcripts/05-05-09_podcast18_inventory.asp

Also be sure to subscribe to get updates when a new podcast is available at
http://www.tompkinsinc.com/podcast

Retail has been one of the hardest hit industries in the economic downturn. To survive (and indeed thrive), retailers will need to have a successful strategy in place. To help give you more in-depth analysis on retail industry trends and proven strategies, I’ve invited our Senior Vice President of Global Supply Chain Services, Valerie Bonebrake, to share her expertise.  

Here’s what she had to say. 

Jim

____________________________

When Jim asked me to write something on retail for his blog, I thought to myself, how am I going to cover this topic in a relatively brief post? Well, I decided that I would start by continuing to stress that creating a good strategy for today’s economic climate is more than making rash decisions like, as Jim puts it, “cut, cut, cutting” your personnel. 

Retailing has become increasingly competitive and supply chains more complex. With tight credit markets, slowing growth, and shrinking profits, retailers are operating in a world of great uncertainty, and they must have the right merchandise mix at the right time and the right price on their shelves. From a logistics viewpoint, this means competing on total supply chain performance in order to survive and thrive. Those who will come out on top are consistently re-thinking strategies and business models. Re-thinking is the best practice of retailers who will be successful in 2009 and beyond.  

Throughout global supply chains, there are considerable opportunities that retailers can re-think to help optimize costs and ensure profitable growth. Business leaders who understand the importance of competing on comprehensive global supply chain performance and who commit to operational excellence will be the winners of the future.  

One major area in which to look for cost savings and growth opportunities is sourcing. Companies with high performing global sourcing operations are characterized by the following attributes:

Automation to increase the effectiveness of the manual processes is still used by many global sourcing operations. This process impacts areas such as offshore vendor quoting and selection, purchase order management, logistics management and customer service. 

Accurate information is used to estimate true total delivered costs. This ensures that sourcing decisions consider all factors among different alternatives. 

Uncertainty is being reduced through improved flow across the long global supply chain. This results in reduced safety stock inventories without increasing expedited costs.  

Performance is being measured accurately and with great detail. Relevant metrics are necessary to look for additional cost savings opportunities, improve negotiating power with global vendors and service providers, and drive continuous improvement in global sourcing operations. 

As the companies with these attributes know, global sourcing is an effective strategy that normally reduces overall operating costs. However, as some costs are reduced, others will increase. Global sourcing can add weeks to the supply chain and can tie up as much as 30% of product price in working capital. But, improved performance and cost savings can still be achieved with better knowledge and control of accurate supply chain information on costs, time and events. 

As an example, a $2 billion retailer with a 68% cost of goods sold ($1.36 billion) realized a 0.5% improvement ($6.8 million) by applying an objective total landed cost calculation that resulted in reduced transportation and expediting costs. This same retailer realized additional improvements in inventory reduction as well as selling, general and administrative expense reduction. 

Knowing what to do with supply chains, and how to do it, should be on all retail executive agendas. As the Vice Chairman of Limited Brands Len Schlesinger once stated, “So, you do not understand the importance of supply chains to your business? I would love to compete with you!”  Schlesinger has a great point. Make sure you have a strategy that fits the current climate. Don’t try fitting a square peg into a round hole. It just won’t work. Take these few tips -- and you can learn more details by reading my recent position paper -- and as Jim says, Go!Go!Go!  

The China Law Blog recently put up this post about why you need to tour the plant in China before you place an order. This brought to mind something that happens in the new book I wrote, Caught Between the Tiger and the Dragon, that is due out in April.

In the book, the main character, Rich (CEO of a lingerie manufacturer) attempts to do his best to plan where to produce and buy products in China. But the people running the show at the private equity firm that his company's involved with won't even pay to let him travel there.

In fact, a lot of problems that Rich encounters relate back to this sight-unseen ordering from half a world away in a place that he has never even been. The private equity firm wants to save money by not sending Rich to China, but it ends up costing them a great deal more money in the long run. Speaking of cost reduction, I recently did a new podcast with Steve Ganster of Technomic Asia on smart and strategic Asian sourcing cost reduction, and you can hear it or read the transcript at http://www.tompkinsinc.com/podcast/transcripts/03-03-09-podcast14_asian_sourcing.asp  

Not being able to see the operation at work is a major problem that CEOs in real life face. In this post from the China Law Blog, they cover nine reasons why you need to see the plant for yourself. At the end the question is asked, "Can you think of a 10th reason?" I would like to add a 10th one: To find out how the people running things at the plant communicate within the manufacturing facility and with their customers.

Then in the future, for example, you will know to pick up the phone to clarify an order instead of relying on e-mail. I have heard horror stories from VPs and others in the business world who encountered avoidable problems simply because of miscommunication with China business partners. For example, a VP who just assumed that their suppliers used e-mail eventually found out the hard way that the suppliers hardly ever glanced at it, and the miscommunication really showed in the botched orders they eventually received. Add more reasons to the list in the comments below or see the post from the China Law Blog at: http://www.chinalawblog.com/2009/03/china_plant_tours_nine_reasons.html

I’ve always heard that "slow and steady wins the race," but when you’re facing tough economic times, sometimes the rules change. Slow and steady are still part of the plan, but sometimes you need to act swiftly, like removing a Band-Aid.

I’ve had lots to say about approaching cost reduction aggressively and intelligently. And that should be your #1 priority. However, to reach your more near-term supply chain goals, there are certain "cost buckets" that present significant cost reduction opportunities. So, I say, "You need to take advantage of the benefits of the tortoise as well the hare to win the race." And before I forget it, I’d like to thank my good friend and colleague Gene Tyndall for identifying these buckets.

Here are five of these cost buckets that companies need to pay close attention to today in order to improve bottom-line results in the near-term.

1) Inventories: Talk about "decisions, decisions," something I usually say comically when choosing between simple items like strawberry or chocolate ice cream, or which shirt to wear. However this is a little more serious.

Although you have forecasts to make decisions about the amount of inventory to purchase or have on hand, these forecasts are always subject to error. Always! With the right knowledge and tools, this number can be more exact, saving you money and headaches.

2) Total Delivered Cost: This measurement captures all the costs that go into the product to reach its purchase point at the end consumer. While many of you may be measuring total landed costs, which is based on costs of freight, duties, taxes, and logistics from the source to the company destination, the key measure for determining pricing and margins is total delivered cost.

3) The Supply Chain Network: Check out your locations of production and logistics facilities. Fixed capital, operations, taxes, leasing expense, selling general and administrative expense (SG&A), and others are driven by the network. By rationalizing your global network, you may find savings in the operations at each facility, the routing of product flows between facilities, and in the ownership and operational management of the facilities through outsourcing or contract manufacturing alternatives.

4) Logistics Outsourcing: If done effectively, logistics outsourcing can reduce costs dramatically and remove assets (as well as liabilities) from the balance sheet. You may also see continuous cost improvements, especially with service level agreements, which create close relationships between clients and service providers and are geared toward efficiency and productivity gains.

5) Supply Chain Technologies: Although it can be frustrating at times, technology is a wonderful thing. Companies usually find near-term savings in rapid implementations, better use of existing technologies, and greater alignment of the technology enablers to operations. I can’t tell you how many times I have seen existing technologies not being fully utilized. I don’t like to see companies throwing their money out the window like this. If you don’t know the advantages, find someone who can help.

When the economy is down, I don’t want to have to pick between being the tortoise or the hare. I’ll take both, and I hope you do too. It takes a long-term strategic plan and a short-term tactical plan. And it’s really about crossing the finish line and coming out on the other side – not about who wins the race.

Go!Go!Go! But make sure your set your pace with near-term goals to have mini-successes along the way.

With all of the talking I do, I didn't expect to lose my voice recently at the ProMat 2009 trade show, but I did. I haven't been sick lately, and I'm no stranger to being on the phone, or talking to people, or presenting speeches throughout the week.  

Yet looking back, I find that I had two conversations over and over and over. To the people who were attending ProMat, what I kept talking about, to the point of almost going hoarse, was "Why it's a bad idea to make across-the-board cost cuts in their organizations." 

To people exhibiting material handling equipment at ProMat, what I kept talking about, to the point of going totally hoarse was, "Smart companies today have no interest in an after-tax ROI of 30%. That used to be a great return, but in these economic times, companies really need to conserve capital and hold it back for the few really big, strategic efforts where the payback is measured in days."   

My voice has come back, but I still feel the urgency to reach out to people when I read and hear what's being talked about in the news, and in trade publications. The big topic is hunkering down to protect your core business. Much of what I read, I would call a knee-jerk reaction to the difficult economic situation currently affecting so many industries and countries. 

The important thing you should know is that it's possible to find significant cost improvements, even if you don't have much to invest or many resources to devote. But you must do so in the context of a strategy of cutting ongoing operating and capital costs while maintaining talent costs and strategic costs. So, great – cut, cut, cut ongoing costs, but leave talent and strategic costs alone, or 2009 will not be the end of your worries.  

Actual steps that top companies are taking throughout their supply chains are detailed in this article written by the Supply Chain Consortium. The consortium is a benchmarking and best practices forum, made up of 200 companies from various industries. The information in this article is culled from the surveys their members complete, so it represents real-world ideas and things you can start doing immediately if you need to reduce costs.  

Also, I hope you take some time to explore the rest of the cost reduction website this article appears within. http://www.tompkinsinc.com/costreduction/ 

On another note: We'll be starting a podcast series on cost reduction throughout the supply chain in mid-February, and I'll be sure to announce it here. We're putting the plans together now, and it's shaping up to be something else!  In the meantime, you can check out this installment in the Global Supply Chain Podcast, "Supply Chains in the Global Economic Downturn."

And if you have ideas or comments to share, please let me hear from you. What would you like to see me blog about going forward? Even if I lose my voice again talking about the evils of "cut, cut, cut," I can always write, right? 

Go!Go!Go!

It was 40 years ago that I attended my first Material Handling Show. Wow, other than being married, I can't think of anything else that I have done for 40 years. So it is with many memories and new thoughts that I write this blog from the floor of ProMat in Chicago.

In 1969, I was a student having completed my BSIE at Purdue University and having started my masters with an emphasis on material handling. So, attending the National Material Handling Show in Detroit was a great opportunity to learn. It was cold and snowy in Detroit, but my first show was a gala affair. Lots of excitement, models, booze and lift trucks. Remember, it was 1969.

I first started writing this post with a bunch of history about the things that have changed about the show. Then I realized that the only folks who would really be interested in that stuff do not read blogs. So I cut it. Well, most of it. A few goodies:  

* One thing I find especially interesting is that at the show in 1969, all the cocktail parties had was hard liquor and chips. No beer, no wine. Then in the 1990s, they added beer and pretzels. Then starting about 10 years ago, wine and cheese was the norm. I wonder what we will be drinking/munching in year 2019?

* Another goodie is the outfits the models wore. The shows used to be R-rated. In fact, I was an early advocate of cleaning up the show, and in 1977, I was actually given the job of writing the first guideline on appropriate outfits for the show. Today, no real outfits, except for that one group of folks with the ugly orange shirts.

* Another point on what folks wear. Back in the day, all the guys wore a suit and tie and the gals wore dresses and high heels. You still see some of that today at the show, but the attire is typically more relaxed -- I did see a guy in overalls today and a lady in an outfit that looked like she was ready for her yoga class.

I also find it interesting that you do not have to attend the MHI news conference to learn about the economy. Just walk the floor. Almost no give-aways, and I had to walk four aisles to find a Snickers bar. And then it was one of those mini-bars that tasted like it was left over from Halloween. Really makes me mad to go to a show and not even find good chocolate.

So, folks have cut expenses on the show, but they have not changed their messages. I was in several booths today where folks were trying to sell capital intensive solutions based on a 20 percent ROI. Wow! A very, very difficult sale. In my view, what makes much more sense today is to sell solutions that:

* Are strategic and will provide for a strong competitive advantage after the recession

* Are tactical and will result in immediate short-term cost reductions

It was really cool to see the number of folks at the event who were interested in a holistic supply chain approach to cost cutting. Lots of very worthwhile discussions going on about this topic. I will get more into my cost reduction thinking on later blog posts, but if you want more information now you can go to http://www.tompkinsinc.com/costreduction/

Another interesting evolution that I noted at ProMat is that the key to material handling is no longer material handling, but rather material control. Sure, it is cool to see the new bells and whistles on the handling of materials, but where the real action is today is in the control systems of material movement. Lots of innovation here! Not as exciting as a big piece of equipment moving stuff around, but clearly where creativity is making a huge difference. Very cool!

A topic also gaining lots of momentum is the global supply chain. The end-to-end global supply chain view is the strategy within which material handling solutions must respond. I was very pleased to see a material handling show audience who really "gets it" and grasps the potential for supply chain excellence facilitated by material handling and control excellence.

Lastly, the bottom line at today's show. On a 0 to 10 scale, here is how I would rate the the day (0 is bad, 10 is awesome):

Volume of traffic: 9

Quality of folks entering the booth: 10

Coffee in hotel lobby: 1

Folks prepared when they enter the booth: 8

University students in attendance: 10

Availability of free chocolate: 1

Executive interaction: 9

Grand opening ribbon cutting: 3

Optimism about handling the recession: 7

Understanding of how to win after the recession: 4

The ugly orange shirts: -4

Weather in Chicago: 0 (unless you really like snow)

All in all, a great day. ProMat is going strong, and I am looking forward to tomorrow. I think I will bring my own chocolate. Wow, isn't that snow pretty!

Jim