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Cash Implosion!

By Art van Bodegraven | 03/04/2015 | 1:14 PM

Cash Explosion is a sorta phony local TV production that doles out money to minor lottery winners.  Imagine Cash Implosion, which punishes losers by taking money from them - and not just chump change.

I've railed incomprehensibly in the past about marketplace factors that are going to make achieving low-cost supply chain solutions more difficult in the future.  We may be hurtling there at something approaching warp speed.

The in-your-face between-the-eyes news was Wal-Mart's announced plan to raise its internal minimum wage to $9/hour.  That was followed in a mere two days by the TJX bombshell of going to $9 in year One, then moving to $10/hour in Year Two.

What do you suppose this means for competitive wages in logistics operations?  Right!  More cost, unhappy customers, frustrated bosses.  Inevitably, some loose executive cannon will decide that layoffs are the only sane way to cut costs.  How insane is that?

Plus, fuel is a wild card.  Effective risk management will require significant investment, especially in an era of global terror.  technology solutions to reduce labor will get really popular, really fast - but their business cases will be challenges and the CapEx demands could cause hernias in the C-suites.

In the bigger picture, it is one thing to face workers who will  move to another role in another industry vertical for a buck or two (small, you think, but a huge percentage of the base starting point.  But, are we going to risk further diminishing the attractiveness of our profession, reducing the talent and skills pipeline to a smaller diameter than even today's insufficient capacity?

Hang on; things are getting interesting.

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About Art van Bodegraven

Art van Bodegraven

Art van Bodegraven (1939 - 2017) was Managing Principal of the van Bodegraven Associates consultancy and Founding Principal of Discovery Executive Services, which develops and delivers supply chain educational programs. He was formerly Chair of the Supply Chain Group AG, Partner at The Progress Group LLC, Development Executive at CSCMP, Practice Leader with S4 Consulting, and a Managing Director in Coopers & Lybrand's consulting practice. Concentrating in supply chain management and logistics for over 20 years in his 50+ year business career, he has led ground-breaking strategic, operational, and educational projects for leading US and global clients. Art was principal co-author of DC Velocity's Basic Training monthly column for a decade, and was the principal co-author, with Ken Ackerman, of Fundamentals of Supply Chain Management, the definitive primer in the field. His popular blog, The Art of Art, has been a staple of DC Velocity's web site since its inception.



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