Wishing you, your family and friends a warm and Happy Thanksgiving!
Wishing you, your family and friends a warm and Happy Thanksgiving!
We hear all about the recent declines in unemployment here in the US. According to the Bureau of Labor Statistics the current US unemployment rate is 5% as of October.
Many economists argue that 5% represents "Full Employment". We're fully aware of how competitive the labor market is today and that's true in distribution, retail, IT and more. Having a 'people strategy' is critically important and Rainer Strack has done a fantastic job of illustrating the pending global Labor Crisis as we head toward 2030 in his TED Talk. That may seem like a long way away, but the trend has started and it's frightening in many ways. Having a people strategy today is essential for the long-term health of any business or organization. Finding ways to become more efficient as well has having carefully orchestrated HR programs aimed at attracting, hiring, training and retaining a good skilled workforce will become an even bigger challenge over time as the workforce demographics shift. Does your organization have a healthy People Strategy? If not, the time to start working on it is now.
Tell us what some of your key People Strategies include, we'd love to hear your ideas.
Amazon recently announced Amazon Flex and if you have not checked it out - you should! Think of it as an Uber-like experience for those people that want to work when and where they want as a delivery person for Amazon. I saw a demo of the Amazon Flex at CSCMP's Annual Conference last week - it was mind-blowing. With unemployment at 5.1% (some say this is 'full employment') it's getting harder and harder to recruit, hire and retain good skilled workers. Well, Amazon is attacking this problem very effectively by offering an extremely flexible work option, with good pay (they say $18-25/hour) and backed by exceptional mobile technology.
It will be interesting to see how this develops, but is there any reason in the world that DC, retailers and others should not be attacking the labor shortage in a similar manner? Amazon has set the bar very, very high. How are you addressing the difficulty of hiring good, skilled workers for your organization?
Seems many small/medium businesses are falling behind in terms of complying with new chip cards according to a story in the Wall Street Journal
It seems we may be in for a longer journey than anticipated as the new chip cards are helping to reduce fraud at the point of sale, but on-line fraud is on the rise and as e-commerce continues to explode it looks like 'tokenization' will be the buzzword of the future...stay tuned.
An excerpt from the story by the Wall Street Journal:
Many of you have probably started to see these tiny chips appearing on new versions of your debit and credit cards...so what's the big deal?
The big deal is that according to a recent story in the Wall Street Journal www.wsj.com - "Some 575 million of the new cards--representing about three-quarters of U.S. credit cards and about 40% of debit cards--are expected to be in the wallets of American consumers by year-end, making it the biggest rollout of new cards in decades." While the chip cards have been in use in Europe, Asia and Canada for years, the program is now hitting the US and has an October deadline that has many smaller banks and retailers scrambling to be in compliance. Retailers must upgrade or replace their payment terminals to accept the new cards. Come October, under certain circumstances, the liability for fraudulent transactions will shift to the retailer from the issuing banks. With the new payment terminals, the chip cards are dipped into the reader vs being swiped like a traditional mag stripe reader.
One card manufacturer - Oberthur Technologies claims on their website that "The 2013 Federal Reserve Payments Study reported that in 2012, $2.1 billion – or 57 percent – of total credit card fraud was committed through card-present transactions like counterfeiting, lost or stolen cards, mail fraud and identity theft. In 2013, the U.S. alone accounted for 51% of worldwide payment card fraud costs." That's a big deal!
Oberthur is a French company but their plant in Exton, PA is working like crazy to keep up with the demand for new cards - to the tune of a capacity of 20million cards/month being produced! Employment at the plant is up 68% since 2013 and they are now running round the clock to keep up.
According to the Oberthur website - 95% of payment terminals in Western Europe support the new EMV cards (Europay, MasterCard, Visa - EMV is the global standard for integrated circuit cards or "chip cards") while only 14%, yes 14%, are EMV compliant in the US. That's 14% of 11.8 million terminals! That's a big deal! The exposure for continued fraudulent activity is huge.
So with only a fraction of the payment terminals able to support chip cards, tens of thousands of retailers falling behind and many smaller banks already admitting that they can't issue the new cards until next year there are clearly some potential impacts to the supply chain.
As I like to talk about all things related to people, process and technology, this EMV mandate certainly has lots of complexity to it, but at the end of the day, let's not forget about one of the apparently simpler tasks - think of all of the retail associates that have to be trained to help customers with the new terminals and cards and politely remind them to "Dip please, do not swipe".
The Home Depot recently announced that they are looking to fill 80,000 jobs to meet the needs of their customers during peak, seasonal business. These jobs will fill needs in the stores as well as the distribution centers. They have very masterfully crafted a hiring message that involves technology (FIRST phone), people (benefits, teamwork) and process (customer service enablement) in order to attract the best possible candidates and they have done so in a very proactive and prominent manner on their website and in the press.
Photo courtesy of - http://builtfromscratch.homedepot.com/first-phone/
With recent job growth across many sectors, it is becoming increasingly difficult to find good, qualified candidates. Companies are battling to find quality candidates and are fighting to position their company as an 'employer of choice'. This is one of the first examples where I have seen a major employer promote the need to hire people as well as blend in how technology will be made available to the associates to help them in their jobs. Home Depot has done a very effective job of positioning these jobs. In particular, in their press release, they refer to:
So it seems that Home Depot has raised the bar when it comes to hiring. It will be interesting to see how other organizations shape their hiring strategies and tactics in this increasingly competitive job market. If you have seen other innovative approaches please let us know. New hires want to work for great companies and expect to have great technology available to help them succeed - the game is indeed changing.
As I prepared to board my flight the other day with my new Surface Pro 3 in anticipation of using the WiFi onboard the plane, it struck me that I had some pretty amazing technology at my disposal. I also saw baggage handlers on the ground feeding bags into the cargo area of the plane using handheld RF devices busily scanning bar codes as they worked. Pretty impressive technology surrounding me. But, as the traffic in the jetway backed up, I stood waiting to get on the plane and I noticed some very interesting technology being used by the airline.
It wasn't tablet-based, it wasn't wireless, it wasn't touchscreen, didn't use Bluetooth, wasn't Cloud-based and didn't even use Windows! Imagine that!! But it worked and it seemed like perfectly good technology for the job at hand. Could a new system be installed with state-of-the-art technology? Probably so, but as the old saying goes, "if it ain't broken...." What really struck me was not the dust shields on the monitor and keyboard, but I was drawn to the printer sitting on the shelf below. You may not be able to see it in the photo, but the printer is a Microline dot matrix printer.
I did a little research on the history of Microline printers and found out that OKI made the first model in 1978 in a deal with Radio Shack. It turns out that Radio Shack needed a source for low cost printers for their personal computers, thus the Microline 80 was born and has enjoyed a very successful evolution as a workhorse dot matrix printer still being sold today! It's funny that the Microline line of printers has stood the test of time, while we see Radio Shack on verge of collapse. According to this history of the Microline printer, it truly is a workhorse with an MTBF of 20,000 hours - that's nearly 10 working man-years! The printhead has a 200 MILLION character life and the ribbon has a 3 million character life - pretty impressive, no wonder they are market leaders in low cost, high quality dot matrix printers around the globe. So while it may not be sexy looking technology supporting the flight operation, it sure looks like it's delivering the functionality needed to do the job. Now I realize that this workhorse will likely be replaced with some tablet-based, wireless printing solution at some point in time, but I find it hard to imagine that when this system was first installed that anyone on the development or implementation team would have believed it would last this long.
Send us some examples of workhorse technology that has stood the test of time at your place of work. And if you happen to include an example using a Microline 186 we might just feature that in our next blog! Delivering a solution to address a business need does not always imply that it has be the sexiest technology available - just remember that the next time you board a plane.
We've all struggled with some of the complexities of technology in our daily lives - thank you early VCRs (not that anyone has one today, but did anyone really ever figure out how to program a VCR?). Sometimes it just takes a little creativity and simplified thinking to make big improvements in processes. I toured a DC recently that was absolutely immaculate thanks to a very simple but thorough implementation of 5S techniques. No technology was deployed, no extensive training, just simple visual cues throughout the facility to help with organization, cleanliness and preparedness to complete the various jobs in the building. Simple, clean and highly, highly effective not to mention the benefits of safety and improved employee morale.
So as you look to implement process changes, don't overcomplicate things, step back, look at the bigger picture and don't overlook the obvious small, simple changes that could dramatically improve the process and results.
A friend of mine shared this video with me recently and I was struck by the sheer engineering simplicty applied to a very labor intensive process - chopping wood. The solution did not involve lots of people, did not involve sophisticated technology or machines, but rather some simple laws of physics applied to a tough job. Compare this solution to the people that have engineered, built, sold and purchased gas-powered engines (and the on-going maintenance) that supposedly made chopping wood easier!
A simple car spring, some weight and a lever sure made this guy's day a lot better. No gas powered log splitter, no engine maintenance, no gasoline to purchase...you get the picture.
Let the DC Velocity readers hear about your process improvements! If you have a good example, let us know we'd appreciate your feedback!
Today was a sad day for many of us in the supply chain software marketplace. Steve LaVoie, CEO of Arrowstream was gravely injured in a shooting incident at the Arrowstream offices in Chicago. A disgruntled employee was allegedly involved in the incident and subsequently killed himself. I ask that all of you please take a moment to pray for Steve, the victim, their families and all of our colleagues and friends at Arrowstream. Workplace violence is often tragic and it is a sad day when it strikes so close to home.
I had the opportunity to attend the Grand Prix race in St. Petersburg, FL this weekend. You talk about the intersection of people, processes and technology - I'm not sure there is a better example out there.
The qualifying races to determine the pole position resulted in Takuma Sato winning the pole by a mere .7049 seconds!
The final race was ultimately won by Will Power (no pun intended) with a margin of victory of 1.9 seconds over a race that covered 198 miles (110 laps with 14 very difficult turns).
It struck me how these racing teams are a reflection of many of the teams I have seen in the world of supply chain. With supply chain becoming an increasingly competitive world (like Grand Prix racing), it is imperative that our technology, processes and people are completely aligned and prepared to execute flawlessly. The race is on, are your teams prepared to win?
As presented in earlier blog entries, technology, process and people are all critical components of any strategic initiative in today's competitive supply chain world. This was made painfully apparent to many of us today with the story that broke about Apple and the hiring spree they are on in Asia. Apple is looking to dramatically improve their new product release by hiring hundreds of engineers and supply chain managers based on a story in the Wall Street Journal. As also reported by WIRED, the move underscores how important the global supply chain is to Apple and how critical it is to improve coordination and flow from design to manufacturing to distribution. According to the stories, it's all about adding efficiency for Apple. With over 600 engineers and supply chain people now in China, and even more in Taiwan, the story points out that many of those people in Taiwan are "poached" from smartphone competitor HTC.
So while many of us look at 'cool' technology that companies like Apple provide, and we dream about how we can apply this technology to improve our processes, in fact, it is now a 'cool' technology provider (Apple) that is looking at PEOPLE to improve their processes.
Competition for qualified, skilled engineers and supply chain practitioners is reaching a fever pitch and with moves like this, it appears the battle has only just begun. How will you compete with Apple in order to recruit and retain skilled resources when it comes to improving your supply chain efficiency? Apple clearly is addressing one of the weaker links in the people, process and technology triad - how about you? Is your talent pool being poached?
The opinions expressed herein are those solely of the participants, and do not necessarily represent the views of Agile Business Media, LLC., its properties or its employees.
About Steve Simmerman
Steve Simmerman is a Senior Director with JDA. Simmerman has more than 25 years of experience in the supply chain industry including software, consulting and material handling. He has focused his efforts on working with clients to achieve high performance supply chain results through partnerships and creative solutions. He is a member of CSCMP, WERC, and MHIA and is a regular contributor to several industry publications and events. Simmerman holds his undergraduate and MBA degrees from The University of Notre Dame.
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