Category Archives: Uncategorized

Stay competitive my friends

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As a logistics manager one always needs to be a breast of the economic news of the day.  One interesting article that I was able to examine (Logisticsmgmt.com)speaks to the fact that there are mixed results with regards to a survey taken on the subject of warehouse expansion.

In essence the article states that there is a mix bag with regards to expansion, the numbers indicate that there is a slow and conservative approach to warehouse expansion, and that most of the logistical world is still cautious to really spend any money’s for expansion.

Equipment will always need to be maintained in order for the warehouse to perform at the expected rate.  However, there is a fine line between regular maintenance and expansion, or adding value to the warehouse with regards to innovation.  So in today’s economy where is the line found?  I know that  I prefer to be a “prospector” with regards to warehouse improvement.  What I mean to say is that I think that the pretenders have been falling by the way side in this economy, and I am not a pretender.

I want to ensure the future as well as protect the present, a warehouse cannot be behind  in technology, equipment, or engineering.   In this Über competitive economic climate, a modern warehouse must embrace not just the latest’s tech, but also shrewdly control costs. Ironically I have found that costs control is a direct result of innovation.  We as logistical managers must become more acquainted with the economics of the day, and realize that there is no time to be stagnate with regard to balancing warehouse improvement, against economic pressures.

Stay competitive,

Terry Hatchett

Looking for any signs of recovery

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Today I was able to follow a report on the port tracker system and found that there has been  a spike in volume with regards to product being sent by boat to the US.  However, like most of the news that one gets that is half way good, there comes a catch to this optimistic first glance.  In the case of tracking shipments it is that although there has been a spike or serge in shipping, there are still allot of shipping containers that are left empty. So many that there is a negative gain yet again for this year.

The reason I bring this up, is that in my world of management and logistics, one could get lost in the numbers, especially if those numbers pander to one’s desperate need to hear good news.  In this economy we as managers must be ever vigilant with regards to understanding the numbers we study.  We should not get caught up in the extremes, yes however positive those extremes may be.  It is in the average numbers that managers should base their decisions on.  With any statistical data, a manager must rule out the extremities and again focus on the consistent averages.

This concept of focus on the real data given, could be applied to the political climate that we all have to currently endure   If one looks at the amazing unemployment number of 7.8 one would think that we have come along way, and that the economy must be picking up.  This would be the first reaction due to the fact that for years now we in the Untied States have had to cope with 10 percent to 9 percent unemployment numbers.  Although I am pleased that the trend of unemployment has fluxed to a lower number, I am not going to buy in to the fact that we have seen recovery.

Far to many people have given up on finding work and have turned to the government for their sustainability; to take the 7.8 number at face value is the wrong approach to understanding whether or not the US is climbing out of the employment hole that has been dug. Now understand I for one am glad that there are such options for our citizens, but these “options” should be just that, an options not the norm or made as an entitlement.  Back to my point that I want to make today,  it is that the data and  agendas that can ,and will be deceptive.  We as a business community must be cautious in our understanding of the data given to us, and with a critical eye make informed decisions.

The caution here is LOOKING for the good news , this could lead us down wrong paths , whereas going out and MAKING good news we are able to truly effect the issues.

Rotten Apple….

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Why in the world would Apple decide to partner up with a maps developer that have had the reputation of not being the best in the industry?  Well only Apple executives could answer this, I do know one thing however, Mr. Jobs is, with all due respect rolling in his grave.  Steve Jobs would have never compromised the Apple mystique for a better price, or let pride get in the way of a business relationship (i.e. Google maps).

If Apple hopes to hold on to the top spot, they will need to make sure that they stick to the business model that Steve Jobs had put forward.  I know that Apple is a giant in the industry, however, there will always be a very capable David waiting in the wings to throw the proverbial stone at Apples forehead. Rest is not an option for businesses or business executives, especially in the in world that is technology.

I was pleased to see that Samsung had pounced on the Apple miss hap, I for one look for challenges from competitors, this only makes good companies great, and brings the level of product quality up.  We as consumers want we want, I know that this next statement is a bit cliche however it still holds true, in business it is what have you done for me lately.  The past is exactly that ,the past.

Mr. Jobs unfortunately is no longer with us, however, Apple should protect his legacy. I found this commercial to be on point with regards to the current issues that Apple has had with the i-phone 5.

Man vs Women in business managment.. This should not be

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Why are we still having the debate over whom is better with regard to business management men or women.  This issue is not only redundant, it has not gone away, and I say shame on us.

Women are and will always be equal to men with regards to intellectual ability, and soon physical abilities. So why is there still a debate over which gender is better at a management position over the other?  Until the business community decides that the only competition is between ability and managerial attributes, we as a county will never recover the edge that we once had in the global business arena.

There are unfortunately still some whom are bigoted against women in business management , and I do not know if this will go away anytime soon.  But every elephant that needs to be eaten should be eaten one piece at a time,(ever try to swallow a whole elephant not so good) and these gender issues that are as big as an elephant are no different in how we address them, one piece at a time.

I enjoy that fact that there are distinct differences between men and women.  I celebrate that our Heavenly Father has defined each gender, and that they are different and distinct.  We do not have to be at odds as to each others gender,on the contrary we need to work together as equals, only then will we as a business society reach our full potential.

RFID Tags (Radio Frequency Identification) Very Important Indeed..

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One would not think that there would be so much effort with regards to tagging a product.  Yet in the Logistics world it is vital that the correct Radio Frequency Tag is used, not only in shipping, but in production, manufacturing, and P.O.S (point of sale) applications.

Without these most valuable tracking tools logistics is greatly hampered. In today’s world of electronics, logistics has kept up for the most part with regard to tracking product or shipments.  These trackers or tags need to come in every size shape, and most of all be reliable.

There have been much written on these tags, and there are varied opinions on the importance of the having the latest and greatest tags. My contention is this, as a logistics professional, one has to keep up on the latest technology regarding shipment and product tracking, in order to be called a professional. This sounds simple enough, yet many logistical professionals do not pay enough attention to this potential problem/opportunity. See Video below:

ROI and Chic-Fil-A

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So what is really ROI, (return on investment)? There are obviously two factors to a ROI and that is Return, and investment.  As all in business understand and acknowledge these two words are not always synonymous with one another, in fact more often than not they are worlds apart. So how does a Business professional bring them together on a regular basis?  If I could answer that on a consistent basis I immediately farm myself out to the highest bidder, alas, I think this question is a rhetorical one.

The text book definition of ROI is at least by the web site invwetopedia.com (2012), “A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.”  ( http://www.investopedia.com/terms/r/returnoninvestment.asp/#ixzz22QEa98Th)  I think that this definition is satisfactory for a short answer to a very long question.    One must first define what for their business, or even for them personally a return is.  Take for instance a non-profit, what would a non-profit view as a return on their investment?  Perhaps it is the fact that if they are performing their function properly, they are still relevant in making a difference to their supporters.  Therefore they have created a ROI for their contributors, and by doing so remain open as a non-profit.

I know that some businesses and business people either disregard what a return for their company or for themselves really is, or do not understand what a return actually is.  Let us look at the resent Chick-Fil-A issue, the president made a statement that he believed to be true, “We are very much supportive of the family — the biblical definition of the family unit,” he told the Biblical Recorder. On the radio, he observed: “I think we are inviting God’s judgment on our nation when we shake our fist at him and say we know better than you as to what constitutes a marriage.” (http://www.latimes.com/business/la-fi-hiltzik-20120801,0,1556559.column)  So was this statement a good ROI, well you would have to ask Mr. Cathy after all he is not only the President of the company he is also an owner, and by todays support that has shown up at the restaurant one could make the argument that his words were a great ROI.

As for me a “return of investment” could be anything that the investor deems worthy to invest in, if I were Mr. Cathy I would stand by what I said, and remember that the greatest return on personal investment, and business investment is being honest and true to ones beliefs and principals.

Natural Gas for over the road trucks, is it a good idea?

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There have been many proposals to aid in the fuel crisis that we are in currently.  The most applicable for the transportation industry has been whether or not to change over to natural gas, to fuel over the road tractor trailers.  This concept is good from the outside looking in, we in the United States have an abundant source of natural gas,  with this proposal the United States would be able to put a dent in the dependence on foreign fuel.  So why has this not been implemented?  Perhaps it is politics, perhaps greed, or as with everything, underneath the surface of the this question may lie problematic and costly issues.

Incentives in the form of tax breaks for those companies that run their fleet on natural gas was defeated on the Senate floor on Tuesday the 13th. You can read the article by clicking this link (Reuters). To look at the issue closer as to why a bill that surly would help the trucking industry cut costs, did not pass, would be prudent for all that are involved.  Here are some pro and cons to moving to natural gas:

Advantages

  • Nearly 87% of U.S. natural gas used is domestically produced
  • 60-90% less smog-producing pollutants
  • 30-40% less greenhouse gas emissions
  • Less expensive than gasoline
Disadvantages
  • Limited vehicle availability
  • Less readily available than gasoline & diesel
  • Fewer miles on a tank of fuel

So if one looks carefully at the disadvantages, all three are felt heavily by the fleet operators and owner operators of tractor trailers.  Vehicle retrofitting will be costly, slow and cumbersome for the trucking industry; mainly due to the fact that tractors in general are built to last a long time, so why would you replace or retrofit a working vehicle.  Also the overall attitude of the trucking industry  has been in the past resistant to such sweeping change.

Retrofitting, and or moving to new trucks will also be costly for the manufacturers of fossil fuels.   Not to say these companies have a huge presence in the political world, these manufactures will not give up easily on their hold in the market, one is talking about at least billions of dollars.  Lastly fewer miles on a tank of fuel will be an issue for the trucking industry, routes have to be calculated with regard to fueling trucks, if the distance is shorter for the tank of gas, a larger tank will have to be built, and or more fueling stations will have to be built.

Conclusion; there is as I have stated before no easy fix with regard to fuel consumption.  It will have to take all involved to be on board with any changes.  Patience is the key to any change, at least we are now recognizing that there needs to  change an industry that is quiet frankly far behind the fuel conservation curve. I suppose that the gas prices have served a good purpose, rather than the obvious, just to show how greedy we have become.