Tax The Poor!

No, this is not about balancing the federal budget on the backs of the 99%, so please call off the Czar of Fair Shots. Adam Smith, in his seminal work describing intelligent and enlightened capitalism (popularly referred to as The Wealth of Nations), insisted that all citizens should pay some tax, however small, into the national coffers.

His ultimate point was that an engaged citizenry could feel good about contributing to the country's economic well-being, if only at a token level - that their voices had legitimacy. It's a little like the parable of the widow's mite, in which a trivial sum, given with some sacrifice, might have more value than a large amount , which might not be missed by someone wealthy.

Today, we see vast numbers of our citizenry who pay no Federal income taxes whatsoever, and armies of folks who receive so-called entitlements and transfer payments from various governmental entities.

Translating the notion to our world of supply chain management, I wondered how many working practitioners simply do their jobs and collect regular paychecks (admittedly paying taxes) without thinking much about what they might contribute to continuous improvement in their companies, or how they could help to advance the profession.

We need, in a healthy and vibrant profession, people who are putting in, as well as taking out. Let's not slide into an environment in which half of us are not contributing to growth and excellence, but are merely taking home their wages.

 

 

 

 

 

The Pause That Rededicates

The soft drink formerly known as Coca-Cola used to promote itself as the pause that refreshes. It might have been even more refreshing in the original formulation, but that's a story for another day.

We all have an opportunity to pause for reflection and redirection at the commencement of each New Year. Disclosure: My mind was elsewhere at the time (as usual) come 1 January. To my great relief, we got another shot at it with the Chinese New Year.

Given that event, which is ultimately about more than lots of food and firecrackers, and the sad passing of Don Schneider, I began to reflect on the state of leadership in the supply chain universe. I suppose that similar observations might be made at almost any juncture, but it does seem that we, in the collective, are witnessing the passing of our "greatest generation" (to borrow from Tom Brokaw).

The innovators, visionaries, rule-breakers, pioneers, and rebels who departed from the conventional wisdom and time-tested practices to create a strategic profession out of a collection of tactical jobs are leaving us.

As this generation of leaders and mentors fades, what will we do to recognize and honor its superstars? How can we best build from the foundation that they have laid? For openers, we can refuse to accept the supply chain world as it is today as the finally evolved state of the profession. We can - and should - continue building and innovating. And, when it comes our time to leave, challenge the next generation to keep on re-inventing our world.

What we can't afford to become is a collection of functional managers and doers (not to be confused with Dewar's) who seek ways to cope with and manage the continuous change that defines our business lives. We owe it to those who came before, and those yet to come, to be seekers of change, embracers of change, creators of change, and leaders of change.

It is not possible to see the direction to the future when the chosen survival tactic is keeping one's head down.

Hello, 911 - I've Just Shot Myself In The Brain

So, I was in a zone with Adele, draining my brain of all but the purity of the instrument of her voice, which has been cleverly disguised as a human being. Used to be that "brain drain" referred to the exodus of the best and brightest from (fill in name of country here) to work and make fortunes in the US.

The situation has been somewhat reversed these days. Students from around the globe come to our universally recognized world-class universities to study, often in the prized STEM (science, technlogy, engineering, mathematics) specialties. Then, they go home to apply what they've learned against us in global economic competition.

Some research suggests that they'd go home at some point, anyway. But, other reports cite a definite desire to stay here and work. My admittedly limited and anecdotal experience, especially in working with students in a world-leading MBLE (Master in Business Logistics Engineering) program overwhelmingly supports the idea that these international students want to stay in the US, nearly desperately.

Make no mistake, these students make up the current generation of the best and brightest, and they could add amazing intellectual candlepower to the beacon of our light on the world. Would they be displacing American workers? All mindless nativist rhetoric aside, not a chance. These classes are made up of - overwhelmingly - young scholars from other lands, often comprising 100% of a given class. Native-born participants are such a tiny minority that they amount to a curiosity.

We might speculate endlessly about why this is, but the ultimate reality is that the talent we ought to prize, and fight to keep, is the latest version of the stream of immigrants that have been powering our ascendance for our entire history as a nation. And, we are pushing them away, diluting our talent pool and strengthening our international competitors.

There appear to be two villains in the story, one frightened and cautious, and the other watchfully paranoid. This is not my area of expertise, so I am speculating a bit, but the appearance is this. On paper, a progression from student visa status, through the optional OPT program, into H1B temporary working visa status, and then to a full-fledged green card (resident) classification is straightforward.

But, post-9/11 and thanks to some fraud and other chicanery, our government has made it more difficult to go beyond the student visa status. Not impossible, but difficult and with quotas. Imagine! Quotas when the skills involved are 1) critical to the economic future of the nation, and 2) in short supply.

Employers - or prospective employers - play a role in this mystery. H1B and green card status both require employer sponsorship. And, getting an employer commitment has been, for the brilliant student that I've been working with, very difficuly. Not impossible, but a discouraging prospect for a significant number.

Why employers don't/won't make the commitment may be debated. Are they reluctant to roll the dice on a (possibly) short-term employee? Is it a matter of investment versus payback? Do governmental constraints discourage them from even trying? I don't honestly know. But, it is painful to hear about shortages of high-tech skills at the same time that we are driving high-tech talent away.

Seems to me that we need a concentrated national effort to encourage and stimulate easier visa acquisition for highly desirable individuals. That means less red tape and higher (or no) quotas. It might also mean incentives for employers who invest in sponsorship.

Bt somehow we need to find a way to keep a much greater number of these fine minds we are educating here in this country, and use those resources in our national interest. The current course of (in)action is fostering a brain drain that we will pay dearly for in the future if it is not reversed.

 

 

 

 

 

 

 

 

 

 

 

Business Relationships And Customer Service And . . .Oh, Fudge!

As is my sometimes habit, I ordered holiday gifts a few weeks ago from the very fine chocolatiers at Chicago's own Vosges Haut-Chocolat for some colleagues, collaborators, and unindicted co-conspirators. That I received no "thank yous" when the orders should have arrived was not suprising, given the sketchy backgrounds of a few of the recipients. But, when no acknowledgments at all showed up, I began to suspect that somehting was amiss.

Amiss hardly begins to describe the impossible series of events that concluded with both no gift shipments and no record whatsoever of the transaction, but I'll spare you the gory details. The net status was that: I had egg, or worse, on my face; some of the customary recipients surmised that I might have died; and I was seen to not reciprocate the generosity of those who had already sent me gifts.

In short, some key business relationships were made a shambles overnight. And, I felt compelled to break my brand-new resolution to be more tolerant, understanding, and forgiving in 2012.

When we talk or write about superlative and definitive customer service, we usuall pick on the usual suspects: Nordstrom, Infiniti, Ritz-Carlton, and the like. But, there are smaller companies who are as good as, or perhaps even better than, the household names - and it just might be more important to the smaller business to excel at customer service.

In Vosges' case, the Manager of their Concierge Service jumped on the issue with both feet. And, the founder and CEO was openly pushing for a positive resolution - ASAP. In short, my requests were met, and my expectations were exceeded - also ASAP. The calls and collaboration in finding a solution were one thing. But, a hand-written note when the dust had settled? Seldom heard of. So, I was brought back from the brink to a customer-for-life state of mind.

There are a few lessons for anyone remotely interested in customer service (and the maintenance of strong business relationships) to take away from this homely example.

One is that positive attitudes cannnot be taught. Oh, you can smooth out the rough edges a little, but a great attitude is hard-wired into some people's brains. It should be part of evaluations in the hiring process; technique and process can be taught, but a person who is pre-wired in the right way is a pearl of great price.

Another is that strong business relationship bonds are not made permanent by never, ever making a mistake. But, an amazing correction of an error is treasured by customers more than uninterrupted smooth sailing, and strengthens the relationship.

Yet another is the recognition by customer-service mentalities that fixing a problem is not an annoying cost of doing business, but is a high-payback investment in a longer-term revenue stream and, by the way, a source of referrals.

So, a potential catastrophe can turn into a love feast when it is managed the right way. Before I forget (another by-the-way), don't go looking for Grandma's fudge at Vosges; save that craving for the neighborhood candy store. Do bring your taste buds, though; they'll thank you.

The Great Equalizer

Over the past couple of years I've had a good time talking with supply chain and logistics colleagues about one blog or another, with some lively face-to-face exchanges. More recently, some of my writing has appeared in other venues, and I have been amazed at the vitriolic ad hominem attacks that seem to pop up almost immediately.

One borderline illiterate took me to task for gently pointing out that a public forum question relating to the importance of spelling and grammar in electronic communications contained an obvious grammatical error (in the context of a thoughtful response to the question, itself). He felt compelled to make the point - several times - that he talked American, not spoke English, and that anything that sounded right to his ear was by definition correct American.

Last week, a public piece on a local logistics issue appeared to rouse the Occupy Anything brigade, and the on-line responses were personal, off-point, south of literate, and factually wrong.

Upon reflection, it is clear that, as with nuclear fission, there are both upsides and downsides to technology. Anyone with access to a PC, Mac, tablet, or smart phone can connect with pretty much anyone and anything, and say/write almost any banal, illiterate, or obscene thing that comes to mind - and believe that his (or her, but it's mostly guys) voice has equal weight, validity, and gravitas with anyone else's.

Too often, we are confusing connectivity with relationships. Don't get me wrong, the positive power of connectivity is fantastic. But, it can best only support a relationship, and not substitute for one.

So, we get this army, happily dispersed and disorganized, of conspiracy theorists, malcontents, and dysfunctional individuals weighing in on anything that catches the antennae in their tinfoil hats. I picture someone generally resembling Zach Galifianakis sitting at the keyboard in his underwear, living with a cot and a card table in his parents' basement, and with an aura of old food surrounding him.

The point of all this is really to thank the supply chain community for being short on dimwits, and long on collegial relationships that can engage in stimulating civil discourse. We are beyond fortunate in having thoughtful and forward-looking leaders among us, and in not having to bear the burden of a population that is short of both teeth and Stanford-Binet points.

 

Speaking In Tongues

The precariously precocious 7-year-old second-grader visited last week and announced that he was learning, and could speak, a foreign language. We expected nothing less from his very fine school, and were prepared for a pithy phrase in Mandarin, perhaps French, or even German.

Not Spanish. He's from Miami, and all Anglos there pick up, in some osmotic process, a pidgin Spanglish, which is sufficient for most commercial and personal relationships (even intimate ones). This is a good opportunity for the curious and/or those who missed out on the prosecution of WW II in the South Pacific, to Google pidgin. The impact on local linguistics occasioned by global trade in the 18th and 19th centuries, and by war, had an impact that lasts to this day.

Any event, the proud lad disclosed that the exotic language in question is Australian. I remained, not speaking Strine myself, impressed. He taught us that their word for friend is mate. Hello is g'day, and goodbye is ta. He can scarcely wait for his next lesson.

Meanwhile, I began to contemplate his (possibly deliberate) greater meaning. It is easy to misinterpret, or read in unintended meaning, in our supply chain communications when we think we are speaking the same language, and don't understand subtle differences in usage, meaning, and values content.

And, we don't have to be dealing with partners across the oceans for these mishaps to occur.

The key, it seems to me, is - for those business relationships that are critical to mutual success - to invest in understanding the subtleties of others' communications, values, expectations, and social behaviors. A two-way investment would be even better. And, the understanding process should begin at, or prior to, the establishment of integrated operations, rather than after the fact of the first failure to communicate.

Now, where did I lay down me didgeridoo? I must have gone troppo . . .

 

 

 

 

 

 

 

 

Mythbusters Are Comin' To Town . . .

It's that time of year when we begin to hear the pitter-patter of little feet around the house. Mein vrouw insists they belong to mice; I am holding out for elves.

It's also the time when the bah-humbuggers emerge from their dank caves and claim, often with charts, graphs, and linear equations, the impossibility of the older gent we call Santa Claus getting around the planet and distributing presents over the course of one night.

Father Christmas, Pere Noel, Sinter Klaas (and Schwarze Piet), Babbo Natale, Ded Maroz, Shengdan Laoren, Saint Nicholas, Kriss Kringle, Sion Corn, Gwiazdor, and a veritable host of other counterparts are laughing up their sleeves at these sad non-elievers. One, because they just don't get it;, two, because they are wrong; and three, because they don't even put out stockings in which to put the traditional lump of coal.

For openers, the naysayers haven't studied enough to know that visitations occur on different dates in different lands. Secondly, they fail to recognize the traditions that assign distribution to a number of those who make the spirit of the season come alive - the Three Kings, a band of schwarze pieten for example - in addition to the many names and forms of Santa Claus.

Finally, as to the the physical possibility or impossibility of this massive distribution - a logistics operation that dwarfs the scale of even the largest military applications, they have been limited by their understanding of what is physically possible in the "normal" world. In the days when snail mail and parcel post ruled, it was, indeed, dificult to conceive of the reality of Santa Claus and his Herculean task.

But, today, FedEx, UPS, Amazon, and an army of b2b and b2c fulfillment players routinely perform the impossible in distribution volumes to discrete locations - day after day, night after night - and ramp up to 10x volumes in the holiday season. When one company can pick, pack, and ship half a million pieces of women's intimate apparel every single day without breaking a sweat (three-quarters of a million on a busy day), we are no longer surprised at what a global network of distribution specialists with centuries of experience can accomplish.

So, back to your caves, doubters. Your science is limited, misapplied - and wrong. And, that whooshing sound you hear late on 24 December is merely reindeer flying at the speed of the spirit of giving, so go back to bed.

 

When Relationships Go Sour

No, this isn't trespassing on Carolyn Hax' or Jeanne Phillips' territory. I often find myself in a low estate, but not that low.

But, I was struck this week by the news that a "supplier problem" was shutting down General Motors' Lordstown, Ohio plant. Not the first problem at Lordstown, for sure, but these days it produces the Chevrolet Cruze, GM's red-hot seller and a symbol of hoped-for trunaround. This is not what GM and Chevy needed, what with being busy buying back Volts (another hoped-for game-changer) that reportedly spontaneously combust.

The first thoughts centered on the kinds of business interruption that floods in Thailand have caused, but this was not a case of failing to plan for catastrophe. Turns out that the supplier is having "quality problems."

Oops! What kind of supply chain partner is that? How could GM get hooked up with someone who might be vulnerable, by process or by materials, to quality issues severe enough and deep enough to take the operaton off Cruze control?

Were they not thoroughly vetted? Did a small problem grow larger because of inattention? Had the supplier no back-up or contingency plans in case of problems? Did GM exert sufficient pricing pressure to force quality risk-taking?

Who knows? But a flawed relationship is having a profound effect on performance, which could engender further fall-out in diminished consumer confidence, reduced sales, stalled momentum in the marketplace, and eroded profits.

it gets worse. Talk is that another three plants could be temporarily shuttered because of the "supplier problem." I can't think of a stronger argument for investing whatever it takes to build the right kinds of relationships with the right partners - in all aspects of life, personal and business.

Bras Half Off

There's an old joke about a department store drawing a crowd with the above ad headline. The correspondence and communications component of the supply chain received a bit of a jolt this past week with the USPS' announcement of cutbacks that would virtually eliminate next day service to adjacent locales, cut out hundreds of sortation centers, and furlough tens of thousands of workers.

Businesses have largely gone electronic for invoicing and payments, for instance, but many smaller companies still rely on hard copy and so-called snail mail. There are generational shifts in personal communications, but a lot of folks who have continued to write checks to pay their bills are going to be rethinking electronic alternatives.

Where this short-sighted last-century approach to cutting costs (rather than inventing new processes) could lead is diminished performance in small parcel handling, which has been an occasionally useful product for businesses looking for FedEx/UPS altwernatives. It's as if Victoria's Secret decided to stop making bras because they are more complicated than tee shirts.

Meanwhile, the layoffs would seem to tip the unbalanced scales even further, with an even smaller USPS workforce supporting a proportionately greater number of retirees, which has been a major component of the cost crunch. So, let's summarize: cutbacks damaging or risking the signature product lines of First Class mail and small parcel handling; negative impacts on small business and personal communications, including the financial flow that completes supply chain transactions; and failure to repair the arguably most broken factor in the USPS business model, retirement benefits. Hmmm . . .

Tip to Victoria's Secret - don't stop making bras.

 

War And Peace

Not to continue a militaristic theme, and not to suggest that this will be a lengthy blog. I do hope that, unlike with Tolstoy's gigantic work, readers will actually finish reading this.

Recent developments have shown how some of the things we usually talk about easily and in the abstract can take on life and death import in specific applications. Take, for example, the consequences of restricting or shutting down border crossings into Afghanistan by Pakistan.

These actions underscore the importance of a robust infrastructure in effective supply chain operation; a fragile or limited infrastructure limits what can be accomplished with movement through supply chains. In Afghanistan, it sems to be all we can do to build and rebuild an extremely restricted highway infrastructure.

Of course, given infrastructure restrictions and pinch-points, the value of having readily at-hand alternatives for the delivery of materiel, supplies, and personnel exponentially increases. And, such alternatives were clearly not at hand at the nmoment of need.

Critically, the working relationships among supply chain partners needs to be positive and reliable for success in execution. When one partner, say Pakistan for instance, decides to punish another partner for perceived misbehavior, both partners suffer, and the supply chain destination point loses out, as well.

Developments and outcomes such as these are bad enough in commercial supply chain operations. They can have deadly consequences - and long-lasting impacts - when armed conflict and geopolitical issues are in the mix.