Mike Glodziak is President & CEO of LEGACY Supply Chain.He joined LEGACY in 2013, after serving as President of Vitran Supply Chain Operations beginning in 2004. Prior to that, Glodziak served as a principal with Tompkins Associates, where he managed large supply chain re-engineering projects in Mexico, the United States, and Canada.
Glodziak has over 30 years of leadership experience in North American supply chain management and design, primarily serving Fortune 1000 companies sourcing from off-shore. His ability to identify and seamlessly implement flexible, dynamic solutions crafted from sound engineering principles has improved supply chain flows and significantly reduced operating costs for customers. Glodziak received his degree from Mohawk College in Hamilton in Industrial Engineering Technology
To the outside world, every truck driving job may appear to be the same, with nothing particularly unique about them. It is a profession that can be learned by most anyone with few barriers to entry. With today’s market, job seekers have a vast array of options in front of them. With training, certifications, and a little experience (or maybe not these days) there are many opportunities to create a career path as a driver with a great income. But, it’s more than just the notion of drive and deliver, on time, every time; today employees are seeking the complete package including the company, benefits, and culture. Benefits can include a range of options such as retirement plans, health and dental plans, vacation and sick time, paid holidays, and culture. Culture refers to the intangible assets like employee morale, and the working atmosphere that drives overall attitude. Culture is a strong buzzword in the supply chain and logistics industry lately, especially with the high level of burnout, extreme working hours, and unrealistic shipping expectations. The extreme pressure of the delivery industry has galvanized public opinions this year, pushing workplace culture and safety to the forefront of conversations.
Retaining good drivers in this highly competitive market can be challenging, but creating a desirable work environment will help. Having a healthy and positive work culture is imperative, especially during challenging times. Trusting your team and being able to lean on others will create a safe and successful environment. Strong teams in supportive companies can withstand the evolving pressures of the supply chain. Additionally, fostering a sense of good culture creates long-term relationships with employees and reduces turnover and cost.
The term culture often conjures up images of an office setting and a close-knit community of workers. In the context of truck drivers, who primarily work outside of an office, culture must be approached differently. A level of strategy and creativity will ensure external workers feel included. There is a balancing act between allowing drivers the freedom that they desire, ensuring that all job requirements are met, while still keeping them engaged and motivated. This is not an easy feat, especially with minimal facetime. While creating culture outside of the office is challenging, it is certainly not impossible.
We have compiled 5 critical tips to retain employees and maintain a safe, successful, and enjoyable work culture for drivers.
1. The soft benefits carry a lot of weight. Companies put a great deal of thought into benefit packages for drivers, but the current economy forces us to think outside of the box. While traditional benefits still stand the test of time, the extra, or soft, benefits convey the additional value that companies place on their team. Employees who work outside of the office miss perks like free coffee and company lunches, in addition to organic relationships that develop within the working community. Without offering special incentives, employees outside of the office may feel disconnected from the team and devalued. Over time, this disconnect can make it much easier for an employee to seek alternative employment. Examples of soft benefits include free streaming services, coffee vouchers, discount programs for different goods and services, and more. A flexible pay schedule is a great perk which is simple to implement and can set you apart from the competition. Allowing drivers to take their dogs with them on the road is also a fun and stress-reducing benefit. Who doesn’t want a four-legged furry copilot that can’t talk back? When you have staff that works independently and outside of the office, going the extra mile to foster relationships and keep morale high is crucial to retention. If there is one thing more important than hiring good help in this current economy, it is retaining them!
2. Communication is key in any position. Regardless of title or rank, lack of communication or bad communication can devastate a company. This poses a challenge for truck drivers who are not working in a team setting, or under direct supervision, most of the time. Communication needs to be approached differently for external employees. Consider implementing regular, quick standup meetings and include casual conversation during this time. Another great option is using third party communication applications which allow groups of people to engage in ongoing conversations through text (although not while on the road of course). Having a place, or a set time, to chat with fellow employees and management nurtures relationships and builds both trust and loyalty. Communication is an ongoing exercise beginning on day one – be clear about your expectations, the assigned driving routes, and make sure to continually ask about any concerns. Also, make sure you keep a pulse on your driver groups and learn what they are saying and understand any potential concerns so that you can mitigate them early. While management may be physically distanced, creating open lines of communication and listening intently to your external teams will foster respect and value which often equate to appreciation and retention.
3. Create opportunities for advancement. The first step of filling any position is hiring the right candidate. Unfortunately, many companies consider that the end of the road – and for successful growth, it isn’t! Jobs can become stagnant over time if advancement is not available. Employees naturally gravitate towards growth opportunities and if none are available where they are, you risk losing them to a competitor. Offering skill development, continued education, advanced training & licensing, and more to your drivers will empower them to grow within your company. Driver ride-along training programs are a great way for candidates to learn and gain experience on the job. Referencing communication from the prior tip, talk to your drivers – ask them what they like and dislike about their job. Have conversations about short and long-term goals and plans, and offer them the opportunity to contribute ideas and suggestions. You might be surprised how much you can learn from the employees who are in the field. Something as simple as offering incentives or rewards for accomplishments is a fantastic way to show appreciation to your team. Create milestones to strive towards when there is potential for growth, both personal and professional, retention follows.
4. Work-life balance is crucial to any job. With burnout being such a popular topic this year, it is important to address this problem before it begins. Many people think of driving as a job that takes them away from home for long stretches of time. Some people are excited about the prospect of the open road with no return, but others are looking for a more structured schedule with dedicated driving time and dedicated time off the clock. It is important to become part of your drivers' schedules, not the other way around. Consider offering flexible schedules and routes that fit different lifestyles and give drivers the opportunity to return home at night if they want. Additional considerations for maintaining a work-life balance can include weekends (or set days) off, accrual of paid time off, and tracking of overtime hours to ensure fairness. Frustrated employees bring down morale, threaten your culture, and often don’t stay in their job. As mentioned, hiring the right candidate is only half of the battle, keeping your team happy and engaged is equally as important.
5. Value every single employee. Each person in your company, regardless of rank or title, imparts value and keeps the supply chain running smoothly. It is vital to show appreciation to every employee for their individual contribution to the overall process. Without drivers, your products don’t move, and the supply chain fails. Showing value reminds your team that they are all important and their job matters. As previously stated, a paycheck can be earned anywhere and when an employee doesn’t believe that their job matters, they may seek alternative employment. Loyalty is a two-way street and it must be earned. To further encourage this point, consider the fact that turnover is expensive! Training is an investment in both time and money and a new employee means resetting the loyalty bar at zero. It is much more strategic and cost-effective to invest in your staff rather than experience the negative effects of churn. Additionally, clients often appreciate a company with longevity in their staff, it speaks volumes about their brand. Show appreciation through raffles, companywide awards, employee shoutouts, and employee of the month programs. If you are happy with an employee, make sure to tell them and their team, this will create excitement and others will strive to achieve the same status and recognition.
Hiring drivers in the current competitive market is tough. Remember these 5 tips and implement them where you can within your organization for added success in the recruitment process. Create a plan now to strengthen your benefits and continue to build it as your team expands. This is an organic process that should grow with you!
It’s almost Halloween, and if your town is anything like mine, your neighbors’ yards are already littered with ghosts, witches and tombstones.
Clearly some of us enjoy giving other people a scare. Just as clearly, some of us enjoy getting a scare.
I’m not one of them. I hate haunted houses. I avoid scary movies like the plague. And I once jumped on top of several eight-year-old members of the Girl Scout troop that I was leading in order to escape a haunted hayride’s zombie.
However, that doesn’t mean I’m not capable of (wo)manning up and facing my fears, especially it’s for a good cause, which is why ALAN’s executive director, Kathy Fulton and I recently put our heads together to create this short list of some of the scariest perceptions that people have about disasters and disaster relief.
Scary Perception Number One: “A Disaster Will Never Happen To Me.”
When people live in certain areas (i.e. far away from a hurricane-prone coast or earthquake fault lines) it’s easy for them to assume that they’re protected from many types of catastrophes – and to become dangerously casual about making disaster preparations or heeding safety warnings.
Frankly, this attitude scares the heck out of us, because if the last few years have taught us anything, it’s that disasters can take a wide variety of forms and strike at almost any time. And the people who fail to plan – or to take shelter/evacuate as requested – are much more likely to find themselves in harm’s way.
Scary Perception Number Two: “It’s Okay. The Government’s Got It Covered.”
There are so many things wrong with this second perception that it’s not even funny. For one thing, not every disaster survivor qualifies for FEMA government assistance. For another, some survivors aren’t eligible for as much government assistance as others. Plus it can take some time for FEMA to process all of the requests for assistance that it receives and to conduct all of the necessary inspections that need to be made before it can provide funds. And even then, these funds are limited.
It’s a similar story for disaster survivors who are fortunate enough to have homeowners’ or renters’ insurance.
That’s why the humanitarian response organizations that provide food, hydration, shelter and other supplies immediately after a disaster hits (and the non-profit organizations that help survivors fill in the short-term and long-term gaps that government assistance and insurance reimbursement don’t cover) are so essential. It’s also why the people who support them are an answer to prayer.
Scary Perception Three: “We’re Too Far Away To Be Of Help.”
One of the laments that we often hear from potential transportation, warehousing and material handling equipment donors is, “We’d have loved to help you with relief efforts for X community’s disaster. But we didn’t have any locations in the area.”
The sad thing is, we probably could have used their help – and so could many of the humanitarian organizations that we support.
When push comes to shove, these organizations can’t afford to split hairs about where their donated relief supplies come from, especially if those supplies extend or enable their relief efforts. They might even NEED those donations to come from another part of the country because many of their closer potential product donors may have already been tapped out.
In light of this, never underestimate the value of a long-distance contributed logistics offer. Relief supplies are often located much farther away from a disaster site than you might imagine. And the help that you’re offering might be just the ticket.
Scary Perception Four: “It’s Been A Few Months (Or Years). So Survivors Of That Particular Disaster Don’t Need Our Help Anymore.”
If individuals and communities recovered from disasters as quickly as their particular disasters stopped making headlines, life would be much easier for everyone. However as any disaster survivor can tell you, that’s rarely the case.
Disaster recovery is a super-long process that’s usually measured in months or years rather than days or weeks. And many of its costliest and most work-intensive stages like clean-up and rebuilding don’t start until long after the news and camera crews have left.
So don’t ever think that there’s no way you can help a community just because the disaster that affected it happened quite a while ago. Chances are, that’s when your compassion and assistance will be needed the most.
Scary Perception Five: “Helping With Disaster Relief Won’t Pay The Bills. As A Result, There’s Nothing To Be Gained From Our Business Making A Financial Or In-Kind Donation.”
While it may not initially seem like you have anything financial to gain from helping a community in need, nothing could be further from the truth, especially if that community is home to some of your employees, customers, suppliers or business operations.
The people who live in these communities can (and do) remember who showed up for them when times were tough – and so do many other members of the purchasing public. In fact, according to recent article in the MIT/Sloane Management Review, multiple studies have shown that corporate donations ultimately attract customers. And according to another recent article in the Harvard Business Review, consumers tend to favor companies that donate a larger share of their profits.
Is this why so many of our country’s most successful organizations are also some of the most philanthropic? Possibly. However, if that’s the case, it’s okay by us, because when generous businesses do what they can to help a community get back on its feet more quickly, everybody wins.
Fear Not
There’s far more I could add to this story. But time and Halloween-candy buying obligations don’t allow me to discuss them all. Besides, I want to end this story on a caring rather than a scaring note.
So I’ll leave you with this: Even though disasters seem to happen with frightening regularity, I’ve actually become a far braver person since joining the ALAN family several years ago. It’s taught me that when horrible things like hurricanes, tornadoes and pandemics happen, a lot of wonderful people show up to help – and reminded me that when things are at their most harrowing, there are always extraordinary people like you ready to come to the rescue.
Just don’t ask me to go on a spooky hayride anytime soon.
"Spot solutions are needed to help a company get through a sudden shock, but the only way to ensure agility and resilience going forward is by addressing systemic issues in a way that is intentional and focused on the long term and brings together clear priorities, well-designed repeatable processes, robust governance, and a skilled team." - Harvard Business Review
An article published by McKinsey & Co. in August observed, “over the past year, many companies have made structural changes to their supply networks by implementing dual or multiple sourcing strategies for critical materials and moving from global to regional networks.”
This structural change pivots on the difference between low cost and best cost. The shift extends through Tier 1 Suppliers through lower tiers. The intent of a low-cost supply chain strategy is to present a low price to customers. A best-cost strategy adds factors beyond cost to the equation, like risk, lead time, and responsiveness.
The McKinsey article continues, “Ninety-seven percent of respondents [to the survey] say they have applied some combination of inventory increases, dual sourcing, and regionalization to boost resilience.”
We offshored, losing sight of the associated risk, for decades. Time to learn what near-shore, re-shore, regionalization, and localization mean.
As global supply chains become increasingly complicated, there are now more digital connections and business collaborations in the global shipping industry than ever before. Holding freight data in opaque, disconnected silos and relying on outdated methods of communication is not just inefficient - it’s unsustainable.
The global supply chain is no longer a linear process. Whereas before it was simply about moving freight from point A to B, now there is now a multitude of options for transporting that freight, each with its own unique set of capabilities and constraints.
So, what do shippers really want from their logistics service providers? Two things: accurate information at their fingertips and the ability to conduct business and transact - without having to pick up a phone or wait for email replies. Digital customer-facing freight execution platforms are the answer, collecting the most relevant and up-to-date data from carriers on one side, and providing shippers with a simplified and accelerated process on the other.
Digital freight execution platforms also provide shippers with a unified view of their shipping options, giving them the data they need at a glance to make an informed decision for any particular shipment.
Plus, as we continue to navigate uncertain waters, shippers are increasingly seeking solutions to increase resilience. After all, if there’s anything the last few years have taught us, it’s to expect the unexpected. The organizations that were able to pivot fastest came out on top. The availability of accurate data and solutions to action that data are key building blocks to resiliency in the face of new and unexpected challenges. Supply chain optimization, especially today, hinges on accessible, up-to-the-minute data, shared and acted on to keep freight moving as successfully as possible.
Digital Freight Execution Puts Power in Shippers’ Hands
Increasingly, freight forwarders and logistics providers are giving their shipper customers access to online freight execution platforms for just this purpose.
Largely unheard of just a few short years ago, online freight execution tools for shippers have quickly emerged to become a must-have for established forwarders to compete with startup digital forwarders. Logistics providers can no longer afford to go without offering this critical customer tool which enables shippers to access crucial freight data online, including timely visibility of their freight on the move. Their shipper customers have come to expect it, and it’s what’s needed to compete in today’s market.
Traditional methods of communication between shippers and freight forwarders can be slow and inefficient. Email and phone tag are not conducive to fast decision-making, and sales representatives may not always have the most accurate information about fleets, equipment, and routes. Digital freight execution platforms enable shippers and carriers to communicate in real-time, facilitating fast decision-making while eliminating the potential for miscommunication.
As digital conveniences proliferate our day-to-day lives (think of ordering food online, tracking your latest purchase, viewing your favorite shows on-demand, and so much more), it only makes sense that we should expect similar experiences in our work lives. That means that the traditional way of working in the freight industry, fraught with manual processes, phone calls, and emails, simply doesn’t cut it in today’s digital-first world.
What’s more, with timely freight data, shippers are better equipped to quickly address exceptions by changing transportation plans. Supply chain disconnections are costly. Responding to exceptions is critical to a smooth-running supply chain where shipments arrive at their final destination as planned.
“An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage,” Jack Welch
One of the outstanding things about a digital freight platform is the ability to integrate various functional modules to enable shipment data to be used and shared. These may include tracking and visibility, warehouse inventory, ocean shipments, freight rates, and even finance information, enabling a shipper to pay invoices online. Customer-facing online portals are an important and effective way to facilitate a shippers’ access to key shipment information, improving visibility and productivity on all fronts.
Partnering for Sustainable Success
Partner programs are another important aspect of connected digital freight platforms. This openness to integrate with a broad range of shipping industry businesses, such as technology or service providers, offers shippers the ability to access their partners through their forwarders’ customer-facing freight execution portal. This enables the shipper to have a comprehensive and complete flow of key freight data based on their unique needs and partners.
For example, if a shipper is using a real-time transportation visibility (RTTV) system provider, they can work with their forwarder to integrate the RTTV solution with the forwarder’s digital platform. This is only possible when the forwarder has a partner program enabling integrations.
All parties involved with a shipment can boost productivity and enhance value for the customer when they’re digitally integrated with freight transaction operational areas and partner providers. Technology companies who try to wall off access to the data they manage for their customers and their functionality have it backwards: they might create an appearance of their own business interests being protected in the short term, but long term, they’re either going to hurt their customers, or, more likely, their own product development roadmap.
Recent supply chain challenges have pushed BCO shippers and their logistics partners to take a much closer look at cargo flows. Accessible, convenient, and transparent freight data is now the expectation and necessary to control costs and keep cargo in view for optimal supply chain management.
Digital freight execution is the wave of the future, and it's already making a big impact in the shipping industry. Streamlining data flows by building out connectivity helps to bring greater logistics harmony that allows shippers to optimize their overall freight ecosystem.
America’s posture in world trade, and the underlying supply chains, are more than robust. According to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the United States balance of trade in goods and services deficit dropped to $70.6 billion in July. Exports hit the highest level in real dollars since tracking began over 70 years ago. During the recovery from Covid,, with reshoring and shifting market demands, are holding imports flat..
This success is happening despite the global disruption caused by Ukraine. Expect our labor shortages to continue. Expect wage pressure to continue. Expect inflationary pressures across the supply chain to continue.