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Archives for July 2017

Saved By The Dung Beetle

By Art van Bodegraven | 07/30/2017 | 11:55 AM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

Anyone who's seen It's A Bug's Life at Disney's Animal Kingdom in Orlando knows that a variety of beetle consumes the waste of omnivores, which keeps us from being perpetually shoulder-deep in ecxcrement.

History has been kind to the scarab. He figures in Aesop and Aristophanes.  Also Hans Christian Andersen.  Not to mention the Roman gods - and Egyptian funerary practices.   And, lest we forget, Franz Kafka, who many consider to be a sub-species of the order.

I raise the flag of dungdom to recognize how much of our universe is covered with dung, which must be rolled away each evening.  Sometimes, we are rolling purest dung; sometimes adulterated waste.  Whichever, it always must needs be rolled up under cover of night.

What makes up today's dung?  Hot new concepts that have little to no substance, and will melt away under our withering gaze.  New names for old concepts, disguised as bold new initiatives.  Premature technology and too-soon processes that clog the aisles of movement.  It must all be gone by morning.  Formed into little balls, rolled or pushed down zero-clearance tunnels.  

They liberate the fertile ground of genuine new thinking; they open up pathways for authentic breakthrough thinking; they create possibilities for positive supply chain disruption.

The dung beetle is on our side, and thank goodness for that.  Where would we be without the dung beetle?

Close Shave; Close Call; Close, But No Cigar

By Art van Bodegraven | 07/28/2017 | 1:25 PM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

The Kid looked askance at the supermarket mini-bag of faux baby carrots, and exclaimed, "When I want a carrot, I want to grab a whole, real, carrot!'"   He cut off uber-Mom, who was on the cusp of reasoning with him: "I know I've got to shave them first; I'll handle it!"

The subtle differences between "shave" and "peel" are not trivial, even though the motions and mechanics appear to be similar, a fine point often lost on more than the pre-teen population.

Shave, of course, is more precise and involves greater attention to detail than peel.  And requires both more time and a steadier hand.

I once  worked with a client who made the finest emergency vehicle known to mobile medicine.  Foretelling the future, local agencies were cutting back funding, and my guy's metaphorical Cadillacs were not selling to Chevy-level buyers.  My advice?  Make a Chevy or Caddy-lite version for the changing market. His solution?  Sell his Cadillacs for Chevy prices.  Bankruptcy ensued, to the surprise of few.

He know only how to shave; peeling was less than perfect and beneath his reputation.

In SCM, we constantly face the dilemma of how good you have to be, and where and when.  Sometimes the shave is imperative; other times a good peel - every time out - is what delights customers.

We have the choice to make: when to be perfect and when to be reliable - and when to be both.  Wrong choices, and we're toast.  Right choices, and we're heroes - and prosperous.

The dollar shave club ain't the answer; having a peeler in the tool kit makes the flexibility equation work.  Be ready - and able - to use either.

Trends Versus Events

By Art van Bodegraven | 07/26/2017 | 2:05 PM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

OK, I'm struggling a bit.  DiCentral recently composed a list of six trends that are altering supply chain management - then promptly added another six or seven factors that are transforming our working world.  So, what is it, guys?  The game-changers, or a laundry list of stuff that is happening now, making our work lives either tougher, or easier.  It's hard to tell which.

The major factors include: supply chain software as a service; playing out competition and strategies between CVS and Walgreens (news flash - supply chains have been competing with other supply chains for a couple of generations); a logistics explosion driven by ecommerce,and mobile technology; the seductive allure of technology start-ups; the coming proliferation of infrastructure development; and, the lingering and pervasive effects of the Hanjin collapse.

The "by the way" developments include: the capacity of the enlarged Panama Canal; the risk and uncertainty - and complexity of adopting vertical supply chains; the rise of collaborative alliances in SCM; a Trumpian dilution of the current flood of business regulation; investment in technology and tech companies; and stronger international trade positions, buttressed by a powerful US dollar.

Whew!  That's a lot for leaders and managers to deal with.  But, if DiCentral thinks about it, we've also got to consider blockchain technology, asset redeployment, predictive analytics, robotics, supply chain operating networks (SCON), and a shape-shifting geophysical trade profile.

Good luck - both in articulating and prioitizing the change factors, and in planning and executing practical versions of all these possibilities.

School of Rock, or Supply Chain Rollin' With Hip Faculty

By Art van Bodegraven | 07/23/2017 | 2:45 PM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

One can only hope for counter-cultural observations when great thinkers from academia gather with revolution on their minds. Alas, the company is somewaht less enervating when august personages are more interested in revolving than in revolution.

So, when a late-2016 issue of Inbound Logistics hinted at incendiary insights from leading logistics educators, my juices began to flow. I anticipated the latest and greatest from Penn State, Ohio State, Michigan State, MIT, and Arizona State. Sadly, preparing tomorrow's professionals appears to be the province of a panel of half a dozen stalwarts, half of which come from an institution that has not been an industry force since it featured transportation, a branch of the University of Alaska, and a couple of others.

The usual suspects, embodying model supply chain planning and execution, do not show up. The Wisconsin cohort seems to be stuck in examining trade-offs in brick-and-mortar versus online traditions. And, the UA representative promoted imagination, thinking, and taking initiative, augmented with skills in numeracy—modeling, measuring, and analyzing.

Frankly, the access of the recognized industry leaders brings leading corporations from current verticals into contact with both faculty and students, and this happens in several centroids of performance excellence. So, research and projects are relevant for a variety of corporations. And, specific organizations have tight ties to the real top schools—Starbucks, Intel, L Brands, and the like. Meanwhile, the IL panel is apparently focused on current workforce needs and employer skills requirements.

Inbound Logistics has served up a platter of warmed-over platitudes, I'm sorry to report. And we've had plenty of that already.

Defy Convention: Face The Risks And Rewards

By Art van Bodegraven | 07/21/2017 | 8:47 AM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

The Kid in the kitchen has re-emerged.  Earlier, his explorations into the exotic led him to relish salmon (and its skin).  These days, the eclectic and intrepid eater has embraced calamari (not disguised as "shrimp"), bamboo shoots (('cause he'd never had them), and the staple of a good steak must come with a perfectly prepared bordelaise sauce.

Most recently, he decided that he needed the eperience of preparing his own vegetarian dinner, for reasons of health, control, and preferred flavors and textures.  Not bad for a pre-teen, who's not a candidate for Gordon Ramsay's  Master Chef Junior.

It was a minor triumph.  Well-prepared, attractive, and flavorful (with no help from uber-Mom).

The supply chain management point is that we ought to, must, venture into the unfamiliar.  Sure, the unknown is uncomfortable.  But, the treasure discovered just might make the slog through the swamp rewarding, even life-altering.  We won't know until and unless we give it a go.

Ww need to stay abreast and aware of current developments.  We owe it to ourselvs and to our enterprises to test what's new to look for good fits and enhanced enablement.  There'll be misses, so a Plan "B" is always essential.  And, there'll be hits - or near misses that would be phenomenal with a little tweaking.

Here's what it comes down to.  Will it be TV dinners, with over-salted potatoes, a shotgun marriage of peas and carrots, and the mystery meat of the week?  Or, will it be an uplifting and enlightening experience, featuring innovations in vegetable preparation and presentation, along with a prime cut of beef that might have been grass-fed and avoided feed lots and a forced march of hundrds of miles?

Trust me, the people you serve will treasure excitement and breakthroughs way above just another slog through the roast that over-cooked while the Sunday sermon ran long.

This approach is generally a win-win, with many wins looking like PowerBall jackpots, while a few tickets get torn up with no winners whatsoever.

Thanks, Kid, for the living example . . .

 

A Green Eyeshade Guy Transforms A Car Company

By Art van Bodegraven | 07/19/2017 | 8:59 AM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

Bob Eaton was the wrong man at the wrong time, paired with the wrong partner. He was spectacularly successful in his ill-conveived run for the roses.  

When Chrysler went on a hunt for a replacement for legendary Lee Iacocca, who had transplanted his cult of personality to Chrysler after being jilted by Ford, the company deliberately looked beyond consummate car guy, GM's Bob Lutz.

Not that Eaton wasn't a back-yard tinkerer, with a series of jobs at GM.  But, he saw that corporate success would be based on performance, enterprise financial accomplishment, not on sales or design or 0-60 times.

So, in a radical move, Eaton cobbled together a merger of Mercedes and Chrysler, which moved the needle of organizational culture, creating a regional powerhouse in a global market.

The Board, and the trade press, were equally gob-smacked by the bold and unanticipated moves.

Soon enough, Eaton left the industry.  The joint venture spawned no new product nor breakthrough automotive technology.  The deal came to rest in a pile of fragments, and is, today, a unit of Fiat/Alfa Romeo.  The future is uncertain.  But, Bob Eaton changed forever how car companies date and mate.

Translating to our universe, how are you changing the received wisdom of how things work, how they go together?  Are you changing the rules?  Can you alter how your leaders see your long-term impact on how business is done?

Baron Philippe de Rothschild Parties With Robert Mondavi - In Spirit

By Art van Bodegraven | 07/16/2017 | 3:43 PM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

In a bromance worthy of Vladimir Putin and Donald Trump, Philippe and Robert transcended their smashingly successful viticulture collaboration and turned the efforts of their organizations to the minutia of packging and transport - the nuts and bolts of the business.  With the departure of the Titans, a next generation is dealing with the mechanics of the trade.

Conceived in Hawai'i, the collaboration sits across the highway from the splendid Mondavi winery.  Opus One is one of the priciest wines anywhere, and its second wine, Overture, is a worthy adventure for those who think its difficult to distinguish a $40 bottle from a $200 woo-and-win experience.  True confessions: I've done both and have absolutely no regrets.

But, a global wine marketplace changes functions and priorities.  Now that the wine itself has been mastered, what's next?

US wine exports are staggering, figuratively and literally.  We, of course, import wines from Australia, South America, South Africa, and elsewhere - in great quantities.  Our exports go, in descending order to the European Union, Canada, Hong Kong, Japan, China, Nigeria, Mexico, South Korea, Switzerland, and Singapore.

On The Continent, Germany leads the way.  The United Kingdom takes in 25% of all US wine exports.  All this is good news for the Port of Oakland.  But, handling and environments are becoming necessarily more complex and demanding, especially in premium sectors.

And, the transport loading of 30 years ago simply won't do today, to minimize breakage and other damage.  Corrugated has to improve; separation inserts must improve. Transport loading has to consider wall spacing and sidewall rigidity, as well as conditions specific to transport type.  And, it's time to pull out all stops in the use of blankets and ambient temperature capture to maintain optimal environments.

So much for throwing cases at capacity and pulling away from the gate.  The universe has been redefined - and a new generation knows that trhe process has only just begun with making the wine.

 

 

Bionic Men And Women

By Art van Bodegraven | 07/14/2017 | 8:29 AM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

Once upon a time, when one could still watch television in a black and white mode (two colors, just imagine), Lee Majors starred as The $6 Million Man.  He had as many man-made parts (and powers to match) as advanced humanoid robots today.

But, what constitutes a $6 million person is up for some debate, with the passage of time, and marketplace conditions (which could change overnight, one hopes).

To pick but two examples from a multitude of candidates, let's take a quick peek at Thad Matta and Rachel Maddow.  For those who've drifted left of center while dozing, Thad is men's basketball coach at The Ohio State University.  Rachel is a definitely left-of-center talking head at MSNBC, at least for now.

Ms. Maddow has been a shooting star, a wind that blows hot and cold, then hot again, a birthday candle that gets extinguished but later erupts in flame with little warning.  She began with strong academics, Stanford then a doctorate at Oxford (England, not Ohio).  She toiled in a series of work-up-the-ladder media positions beginning in 1999.

By 2008, with Keith Olberman's sponsorship, she took Dan Abrams MSNBC slot, and ratings went through the glass ceiling.  A gay, ultra-liberal woman - imagine that!

But some highly respected (and not alt-right outlets, btw) had tough things to say. Such as: "over-rated thinker", "intellectual limitations", and "smug cable partisan".

By 2013, her ratings had plummeted to new lows, and she, along with MSNBC, was adrift in the doldrums for a long time.  In late 2016 and early 2017, things rebounded, not so much on account of her supercilious, condescending diatribes, but mostly as anti-Trump sentiment went viral and energized the half of the electorate that was willing to settle for unscrupulous mediocrity rather than embrace rampant narcissism.  She is reported to earn some $6 million a year.

Can it last?  Time and circumstance will tell the tale, as the pendulum continues to swing.

Thad Matta was once a hot commodity in coillege basketball, a winner and a crack recruiter at  Butler, where he won over 20 games each year.  It was a no-brainer to snag him for OSU, which had pressing needs on and off the court.  

Success continued.  More 20-win seasons, off-again, on-again recruiting with just enough superstars to keep the Buckeyes in the thick of things, conference championships, NCAA appearances, two final four shots at glory.

But, the 20-win years are behind him, the team falling short, no matter how many cupcakes were on the schedule, with 2016-17 an emabarrassing 17-15.  This also marks the sixth straight year of declining wins.  Last year, the team did not receive an NCAA invitation, and lost shabbily to a much inferior team in Round 2 of the NIT (Not Important Tournament).  This year, in the ultimate huimiliation, OSU did not even receive an NIT invitation.  It had a few good wins, a few really close losses and several inexplicable drubbings.

Recruiting, continuing its downhill slide, would be much improved if it were somehow elevated to a shambles.  So, we have one - count them, one - player who plays with hustle and enthusiasm, and a van full of tall guys on the lookout for a Mickey D's.  The future prospects are not the second coming of Kareem Abdul Jabbar or Magic Johnson - or even  Muggsy Bogues.

Thad's annual contract is a measly $3.5 million, but he pushed the $6 million mark in 2015, based on a longevity formula.

So, I'll ask, " Is either one (or both) of these erratic (and declining) performers worth $6 million"?  Are we mad?  Neither is likely to marry into the Kardashian Klan.  And, in an asylum in which Honey Boo-Boo and Mama June are back, is the currency so devalued that $6 million is the right compensation for no-to-low performers?

Consider that while contemplating your situation in the SCM Show.  Are you, right now, performing at a bionoic level?  Or, are you expecting, and getting, paid based on long-ago past performance?  Is there a time-in-grade bonus for hanging in there through thick and thin?  Do you need to move to a place where a fresh start would motivate winning ways?

If you are not genuinely bionic, the economics of corporate life in the 21st century dictate that you become so - or get ready for something less than $6 million, including displacement and some time in the purgatory we call "in transition".

The secret is to be good, all day, every day.  To deliver the goods even when the odds are stacked against, sometimes over-delivering against under-promises.  To be in continuous learning mode, and getting better and better and better.

Those are the keys to not having someone new and unknown take over your slot, and to earning that $6 million, or $60,000, or somewhere in-between.

Dr. Oz Takes On Wide-Bodies

By Art van Bodegraven | 07/12/2017 | 11:45 AM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

The Columbus Region, and its Rickenbacker International Airport, have won more than their fair share of positive press and internet visibility over the past year. The latest is a sponsored piece in Inbound Logistics that outlines the advantages of a cargo-focused airport in fast, efficient supply chain management.

While imports dominate, exports are planned for growth. Today, we have regularly scheduled inbound flights from FedEx, UPS, CargoLux, Cathay Pacific, and Emirates. Our experience begins with fashion from divisions of L Brands, but continues with auto parts and electronics. Uniquely, Rickenbacker can—and has—transported live animals, including rare species destined for far-off zoos and population-conservation breeding programs.

The Regional Airport Authority also manages the adjacent Foreign-Trade Zone (FTZ), which can expand to more than 600,000 square feet of terminal space.

The bonuses? Integration with a highway infrastructure that reaches half of U.S. and Canadian business in a day.  Plug 'n' play with rail connections to West and East coasts.

Even though Chicago and other airports have an advantage in proximity to destination markets, Columbus/Rickenbacker is extremely attractive in lack of congestion, ease of use, and user-friendliness.  That includes a trained workforce with a strong work ethic—and world-class sports operations.

O-H-I-O!

A Tale Of Two Customer Service Cities

By Art van Bodegraven | 07/09/2017 | 8:51 AM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

It was neither the best of times, nor the worst of times.  It was so-so times, with the inevitable stuff that clutters our lives in abundance.  Two incidents illustrated the variability of challenging everyday events and resolutions.

One was the repair of one of our cars, which had suffered minor injuries in a fire.  We knew what the repair shop would encounter, the process of gathering and assembling replacement items, the sundry small tasks that accompanied the main job.  Accordingly, we notified them early of the situation, to permit them the luxury of a running start and early marshalling of resources.

Days, weeks, and months passed.  The shop, despite my earnest pleas, would not conmmunicate status.  When I called, the responses varied, and were all untrue.  False promises, fabricated escuses, omissions of critical information, blatant lies - all from a top-tier, highly respected operation.  4 1/2 months later, after I'd sold the car back to the dealer, the job was done.  I have handled that gang of beauzeaux on Yelp, and directly with their owner.  But, the relationship did overcome my BP meds.

The other was the sudden and startling failure of our handsome new fitness equipment, which, given the investment involved, caused me to choke up a bit.  Snake-bit by prior faux warranties, and jaded by customer service in general, I trembled as I called the manufacturer's service number.

They answered on the first ring.  The rep gave his actul real name, listened to mjy description of the problem, asked a few probing questions, and sprang into action.  Based on the symptoms, the company immediately FedExed likely replacement parts, with a promise that a service tech would call to schedule a diagnostic/repair visit upon parts arrival.

All the details were summarized in emails.  Based on the company's assembly and installation performance, I'm confident that this'll get dine and done right.  And, I'll not hesitate to recommend Sole to anyone in the market for their products.

Here's the cautionary tale in capsule form.  When you encounter a performance challenge that affects customers, think about this sequence: respond quickly (or initiate contact if you find the problem first); listen (for facts, clues, and to demonstrate genuine empathy); take proactive steps to deal with problem correction and/or elimination; initiate as much parallel processing as you can, to shorten the solution timeline; make clear commitments (and keep them); and, as appropriate, offer alternatives, concessions, whatever.

That's the kind of behavior that cements customer loyalty, builds a "can-do" reputation, and strengthens an enterprise.  What do you suppose results from other kinds of behavior?  Vague promises, screening likely problem calls, making excuses and trying to deflect blame or fault, not meeting commitments, and winging it with promises, solutions, and resolution dates while hoping vainly that a miracle will occur and save your bacon.

There is a real risk that, over time, the good customers will drift away, and you'll be stuck with the dregs of the marketplace.  And, you'll have earned them.

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 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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