Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
Of all the elements of supply chain management, leading people is perhaps the most challenging. Nowhere is that more true than in transportation and warehousing, the costliest operational links in the chain, which are relatively people-heavy. But logistics workers often fail to get respect, or even attention, from senior management.
Yet those logistics workers so often ignored by management may be some of the company's most valuable assets. Supply chain jobs—particularly those in warehousing and trucking—may not be glamorous, but they demand much more from workers than the typical manufacturing job. For one thing, they require constant learning, as the worker adapts to new tasks and changing processes. And because close supervision of warehouse workers or truck drivers is impractical, these jobs require people who are self-starters.
Those same logistics workers may also be some of the company's future leaders. Upward mobility is common in supply chain operations. A significant number of supervisors and managers began their careers as order pickers or forklift drivers. Yet the transition from worker to supervisor is difficult. Relatively few companies provide adequate training and support for the individual who is in transition from follower to leader.
All supply chain functions have unique characteristics, but all have in common the need for good human resources practices, from the earliest stages of employment. The legendary football coach Woody Hayes emphasized the importance of finding, motivating and keeping the right people in building a football team. The same principles apply in managing warehousing and distribution.
Start at the beginning
Recruiting is just as important in building a logistics team as it is in developing a football team. Most companies go about the task of finding entry-level people in one of three ways: advertising, "temp-to-perm" and referrals. Of these, advertising creates the largest pool of candidates, but it's an unfiltered pool. Many of those candidates will turn out to be unqualified for the job, and it will require some time to sort through the crowd.
"Temp-to-perm" represents a somewhat quicker route. Many employers bring in entrylevel people through a temporary employment agency. They then offer permanent positions to those who do outstanding work. A third source of people is referrals from the existing staff. Good workers will very seldom refer a bad person, so this method is likely to produce an above-average pool of labor.
The next step in the recruiting process is conducting the interviews. It's generally advisable to delegate the job of interviewing to human resources (HR) specialists, rather than line managers or supervisors. HR specialists are trained to ask questions that probe for potential attitude problems that make a candidate an employment risk as well as to avoid questions that are illegal. That said, when recruiting for expected growth or expansion, some companies opt for a combination of HR and management interviews, in order to get both the capabilities and culture "fits" right.
Getting started
Many managers fail to realize the importance of the first day on the job. But as anyone who has experienced a disastrous first day will attest, there's no substitute for getting a new worker off on the right foot. Every newcomer will "learn the ropes" from somebody in the workforce. If management doesn't control who that "somebody" is, your workers may receive their all-important orientation from someone whose attitude is less than positive, if not downright toxic.
The last phase of the recruiting process is the probationary period.
In nearly every company, all workers remain on probation for 60 to 90 days. During this time, management has the right to terminate the worker if performance doesn't meet expectations. In other words, it's management's last chance to confirm that it's made the right hiring decision.
No matter how carefully designed your company's recruiting and interviewing process may be, the inevitable hiring mistake will occur. If it becomes apparent during the probationary period that you've made a mistake, act swiftly before the worker reaches permanent status. This is especially important in a union operation, where the termination process may involve numerous and complex protocols.
Cross the Ts
Once you've built a good team, your next task is to keep the team members motivated. For managers and supervisors alike, that means following the "seven Ts: " Take time to talk to the troops. The distribution center is also an ideal place to practice what Hewlett- Packard co-founder David Packard described as "management by wandering around."
The point of wandering around is not to catch people doing something wrong so you can correct it. Twenty-first century management is based on the practice of catching people doing something right and reinforcing good behavior. It's better to ask than to order, just as it's better to lead than to drive. Make it a point to praise in public and correct in private. In a supply chain operating environment, it's better to emphasize team effort than individual effort, simply because teamwork is usually a requirement for success.
Building a good team also means evaluating employee performance so that you can promote high-performing workers (and provide constructive feedback for those who aren't meeting expectations). Good companies promote from within wherever possible, and supply chain organizations have an unusually strong record of doing this.
A policy of promoting from within is a
great morale builder, but there are risks involved. For example, it's all too easy to run afoul of the Peter Principle ("In a hierarchy, every employee tends to rise to his level of incompetence."). In warehousing, we still see supervisors or managers spending too much of their time handling routine, repetitive tasks. Sometimes this is a training problem; other times it's a clear manifestation of the Peter Principle. Either way, it needs to be corrected.
Hold onto the best
Retention is the process of keeping "A" players on the team. That's not always as easy as it sounds. If they're unhappy, your best people may jump ship. And even if they're happy, they may be tempted by lucrative offers from other companies.
Ironically, one of your best retention tools is the exit interview. When you lose a valuable team member, you want to find out why. The exit interview may reveal internal problems, such as a poor supervisor or some other management weakness. If you can identify the problem, you can move to correct it (and maybe avoid losing more valuable players).
Finding leaders
There's a difference between an administrator and a leader. The administrator organizes, plans, controls and handles staffing matters. The leader inspires others to work toward a common goal and a well articulated vision. Strong leadership is particularly critical in a DC operating environment, where close supervision is impractical. In the absence of close control, motivation is a necessity, and only a leader can provide that.
Where do you find people with leadership potential? They may be right there in front of you. In supply chain operations, the line supervisor position is usually the incubator for future leaders. It's not always easy to predict which associates have what it takes to become a leader, but here are a few things to look for: superior communication skills, vision, empathy, coaching skills, a common touch, a positive attitude and self control. You can add to the list what retired General Electric CEO Jack Welch calls the four "E" characteristics of great leaders: energy, ability to energize others, edge—the courage to make tough decisions, and execution—the ability to get things done.
Not long ago, relatively few business schools recognized the distinction between administration and leadership (note that the top business degree is still called a Masters in Business Administration). Today nearly everyone recognizes that leadership is the essential ingredient for business success.
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.