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.
"OK, wise guys, so you think you know something about consulting. If you're so smart, how do you pick the right one?"
That was the gist of the responses we received to our two-part series on consulting and consultants last year (see "we're consultants, and we've come to help," May 2009, and "why consultants?" June 2009). To answer, it is tempting to say that you could just call us. But as much as it pains us to admit it, that very well might not be the right fit for you, your company, or the problem you're trying to solve.
Actually, finding a consultant isn't all that difficult (see our June 2009 column for suggestions on how to locate names). If you sit still long enough—say, seven minutes—a consultant is likely to find you. (A word to the wise—don't say "yes" over the telephone.) It's finding the right consultant that sometimes proves tricky.
Let the dancing commence ...
Let's assume that you've done the reconnaissance work and have come up with a list of names. Now, it's time to start talking with the candidates so you can assess the initial match.
In that regard, it helps if you've given some thought to the size and shape of what you're after. For instance, if you're looking for a study and report, you'll need to think about depth of detail, level of effort, and how much you're willing to pay for that. Bear in mind that when you're hiring someone to do a study, implementation experience may not be as critical as the ability to get at facts and conclusions with some dispatch, and the gift of writing concise and clear evaluations.
If you're looking for a preliminary design rather than a study, you'll have a whole different set of questions to weigh. For example, you'll want to consider whether you're after high concept or actionable recommendations and priorities. In the former case, an implementation track record might not be so important; in the latter, it is vital.
If you think you are an "A" player and are after best practice, best in class, world class—whatever industry-leading solution may be involved—say so, and don't get led down the path of tried-and-true safe solutions. If what you really need is a safe and reliable solution, save the search for innovation and pioneering until you've mastered the basics.
In any event, you will have to get comfortable talking openly with consulting candidates about these kinds of issues. It'll help weed out some of the mismatches, and it will help the consultant craft a better targeted proposal for your evaluation. Any consultant worth anything should be able to talk coherently with you about time, cost, and risk factors in alternative approaches.
Sorting things out
Now, you're down to a short list of finalists. What's next? In general, this step resembles the RFP preparation process for selecting a system, a third-party service provider, or whatever. You've got to decide what factors are important to you and what their relative weight in the final decision ought to be.
Is an expansive geographic footprint a plus? Is local presence highly desirable? How important is relevant experience—functional, industry, operational? Is there bench strength—or a contingency plan to cover key consulting roles? How much will your internal resources be committed, and how much should they be? You get the drift.
For most companies, functional experience will rank high on the list. Why waste time with a candidate who's good overall but has never worked in the segments of your business that need fixing? (Fair warning: Functional system implementation experience is not the same as hands-on functional working experience. There are people putting in warehouse management systems who have never seen an order being picked.)
And if a candidate has industry experience on top of the functional core, so much the better. Without that, you could be creating more problems than you are solving. For example, order fulfillment for service parts is radically different from the same function in apparel. Retail distribution is 180 degrees different from what's required in consumer-direct. Sometimes superficially related industries demand specific experience. Footwear (shoes to us civilians) is not the same as apparel.
Going deeper into the relationship
Once you've got beyond the qualifiers outlined above, quality of relationship enters the picture. The procurement gurus may be disappointed to learn this, but consulting is not a commodity to be put out for bid on the Internet, like peanuts or pig iron.
Here's where it's important to engage the consultant(s) in dialogue. You need to figure out whether he/she/they are more interested in solving your problem or in promoting their solution. Beware of methodologies looking for places to be applied; beware of predetermined approaches to your situation; and beware of solutions trying to force-fit the problem into their biases and limitations (aka square peg/round hole fixes).
Keep in mind that along with the business cHemiätry, there's personal cHemiätry to consider. Believe us, the quality of relationship is neither window dressing nor trivial.
Your consultant needs to be, as Spanish-speakers sometimes say, simpático. He or she should be a listener, more interested in you and your problem than in telling you all about past triumphs, global insights, and bleeding-edge concepts. He or she must also possess the leadership skills to manage and direct other resources on the team—including yours—to successfully meet your objectives. Or to find new resources if it becomes apparent that things aren't working out according to plan.
Find a consultant with that business and personal cHemiätry and you've got a fighting chance of success, and—maybe—a relationship that will allow you to regroup and move forward when the inevitable snags arise. And the benefits might extend beyond the short term. You could even be building the foundation for a relationship that will continue to deliver value to your organization for years to come.
“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” NRF Chief Economist Jack Kleinhenz said in a release. “September sales come amid the recent trend of payroll gains and other positive economic signs. Clearly, consumers continue to carry the economy, and conditions for the retail sector remain favorable as we move into the holiday season.”
The Census Bureau said overall retail sales in September were up 0.4% seasonally adjusted month over month and up 1.7% unadjusted year over year. That compared with increases of 0.1% month over month and 2.2% year over year in August.
Likewise, September’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.7% seasonally adjusted month over month and up 2.4% unadjusted year over year. NRF is now forecasting that 2024 holiday sales will increase between 2.5% and 3.5% over the same time last year.
Despite those upward trends, consumer resilience isn’t a free pass for retailers to underinvest in their stores by overlooking labor, customer experience tech, or digital transformation, several analysts warned.
"The 2024 holiday season offers more ‘normalcy’ for retailers with inflation cooling. Still, there is no doubt that consumers continue to seek value. Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals,” Matt Pavich, senior director of strategy & innovation at pricing optimization solutions provider Revionics, said in an email.
Nikki Baird, VP of strategy & product at retail technology company Aptos, likewise said that retailers need to keep their focus on improving their value proposition and customer experience. “Retailers aren’t just competing with other retailers when it comes to consumers’ discretionary spending. If consumers feel like the shopping experience isn’t worth their time and effort, they are going to spend their money elsewhere. A trip to Italy, a dinner out, catching the latest Blake Lively and Ryan Reynolds films — there is no shortage of ways that consumers can spend their discretionary dollars,” she said.
Editor's note:This article was revised on October 18 to correct the attribution for a quote to Matt Pavich instead of Nikki Baird.
Chinese supply chain service provider JD Logistics today announced plans to double its overseas warehouse space by the end of 2025 as part of the company’s broader global supply chain strategy to meet the growing demand for cross-border logistics solutions.
As part of that effort, the company will also expand its network of bonded and direct-mail warehouses. That would mark a significant expansion since JD Logistics—which is the logistics arm of JD.com and is also known as “JingDong Logistics”—currently operates nearly 100 bonded, direct mail, and overseas warehouses. Those facilities total about 10 million square feet in markets such as the U.S., Germany, the Netherlands, France, the U.K., Vietnam, the UAE, Australia, and Malaysia.
Specifically, JD Logistics said it is focused on expanding its presence in Europe and the U.S., establishing collaborative supply chain networks capable of delivering fulfillment services within 24 hours in several regions. In support of that, the company plans to increase its international cargo flights from China to destinations such as Malaysia, South Korea, Vietnam, the U.S., and Europe to enhance cross-border transportation services. It will also explore the development of self-operated transportation and delivery capabilities overseas.
The market for environmentally friendly logistics services is expected to grow by nearly 8% between now and 2033, reaching a value of $2.8 billion, according to research from Custom Market Insights (CMI), released earlier this year.
The “green logistics services market” encompasses environmentally sustainable logistics practices aimed at reducing carbon emissions, minimizing waste, and improving energy efficiency throughout the supply chain, according to CMI. The market involves the use of eco-friendly transportation methods—such as electric and hybrid vehicles—as well as renewable energy-powered warehouses, and advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI) for optimizing logistics operations.
“Key components include transportation, warehousing, freight management, and supply chain solutions designed to meet regulatory standards and consumer demand for sustainability,” according to the report. “The market is driven by corporate social responsibility, technological advancements, and the increasing emphasis on achieving carbon neutrality in logistics operations.”
Major industry players include DHL Supply Chain, UPS, FedEx Corp., CEVA Logistics, XPO Logistics, Inc., and others focused on developing more sustainable logistics operations, according to the report.
The research measures the current market value of green logistics services at $1.4 billion, which is projected to rise at a compound annual growth rate (CAGR) of 7.8% through 2033.
The report highlights six underlying factors driving growth:
Regulatory Compliance: Governments worldwide are enforcing stricter environmental regulations, compelling companies to adopt green logistics practices to reduce carbon emissions and meet legal requirements.
Technological Advancements: Innovations in technology, such as IoT, AI, and blockchain, enhance the efficiency and sustainability of logistics operations. These technologies enable better tracking, optimization, and reduced energy consumption.
Consumer Demand for Sustainability: Increasing consumer awareness and preference for eco-friendly products drive companies to implement green logistics to align with market expectations and enhance their brand image.
Corporate Social Responsibility (CSR): Companies are prioritizing sustainability in their CSR strategies, leading to investments in green logistics solutions to reduce environmental impact and fulfill stakeholder expectations.
Expansion into Emerging Markets: There is significant potential for growth in emerging markets where the adoption of green logistics practices is still developing. Companies can capitalize on this by introducing sustainable solutions and technologies.
Development of Renewable Energy Solutions: Investing in renewable energy sources, such as solar-powered warehouses and electric vehicle fleets, presents an opportunity for companies to reduce operational costs and enhance sustainability, driving further market growth.
The clean energy transition continuing to sweep the globe will give companies in every sector the choice to either be disrupted or to capitalize on new opportunities, a sustainability expert from Deloitte said in a session today at a conference in Orlando held by the enterprise resource planning (ERP) firm IFS.
While corporate chief sustainability officers (CSOs) are likely already tracking those impacts, the truth is that they will actually affect every aspect of operations regardless of people’s role in a business, said John O’Brien, managing director of Deloitte’s sustainability and climate practice.
For example, regulatory requirements on carbon emissions are expanding in every region, which means that even if a specific company doesn’t have to change its own practices, it will almost definitely need to flex to accommodate its partners and suppliers as they track scope 3 emissions or supply chain practices.
Likewise, companies are starting to challenge the classic concept of “force majeure” events than can cancel service providers’ contractual duties due to unforeseeable weather events. As the new argument goes, extreme weather patterns increasingly occur in accordance with climate scientists’ forecasts, so those hurricanes and wildfires are in fact foreseeable after all.
But one strategy for coping with the cost of those changes is to mine the power of the data that most companies will soon need to collect as part of their evolution. Instead of simply tracking its trucks to trim their routes and emissions, a transportation company could use the same data to manage their maintenance and fuel consumption.
“The climate management transition is going to be a massive disruption, but with that comes massive opportunity,” O’Brien said from the keynote stage at the “IFS Unleashed” show. “Don’t waste compliance efforts just on compliance, use it to create new value. You’re collecting all that new data, so use it!”
A real-time business is one that uses trusted, real-time data to enable people and systems to make real-time decisions, Peter Weill, the chairman of MIT’s Center for Information Systems Research (CISR), said at the “IFS Unleashed” show in Orlando.
By adopting that strategy, they gain three major capabilities, he said in a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI.” They are:
business model agility without needing a change management program to implement it
seamless digital customer journeys via self-service, automated, or assisted multi-product, multichannel experiences
thoughtful employee experiences enabled by technology empowered teams
And according to Weill, MIT’s studies show that adopting that real-time data stance is not restricted just to digital or tech-native businesses. Rather, it can produce successful results for companies in any sector that are able to apply the approach better than their immediate competitors.