Tag Archive: delivery

Future-Proofing Your Customers

February 13th, 2020

Have you thought about future-proofing your customers? In thinking about future-proofing your people, it makes sense to start with your customers.

The statistics are staggering. According to Outbound Engine, acquiring a new customer can cost five times more than retaining an existing customer. We wouldn’t be surprised if the actual cost is far greater if direct and indirect costs are combined. It certainly should give us pause. How do we future-proof our customers?

One way is to focus on the Amazon Effect and providing lighting speed delivery and tirelessly differentiated service. There is no doubt customers expect more. The bar gets higher with each passing day. Thus, we must be ahead of our customers to take a proactive approach to providing a superior customer experience while being cognizant of profitability and working capital.

How will you know what your customers see as differentiated service? Start by listening. Observe your customers and see what might provide value. Ask questions and tailor your solutions to be special for key customers. Find ways to provide these differentiated services while proactively managing the process efficiently and effectively from the internal point-of-view.

To accomplish this feat, it is wise to keep in mind that you are only as good as your #1 asset, your people. We have yet to meet a client with unhappy employees and happy customers. Start by getting your house in order. What do your employees need to be successful? It is more than a training course or occasional pat on the back. Do they know they are making a difference? Are they empowered within reasonable guidelines? Do they know leaders value performance and are willing to address the tough topics?

Investing in employees is the best way to future-proof your manufacturing and supply chain. Expand your thinking on people to your trusted advisors, customers, suppliers and other business partners.

Are you taking the time to ensure a prepared yet agile end-to-end supply chain? Remember, the people within the end-to-end supply chain count in providing an exceptional customer experience!

If you’d like an assessment of where you should invest (time, resources, money) to deliver lightning speed delivery and tirelessly differentiated service, contact us. There are also plenty of free articles and resources on our website. Let us know your thoughts and questions.

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LA Metro & Innovative Transportation

May 4th, 2018

 

L.A. Metro & Innovative Transportation

I was able to hear Joshua Schank, Director of Innovation of L.A. Metro talk at a ProVisors meeting last week.  So, it seemed appropriate to share the complexity of L.A.’s transportation network and some of the innovations starting to gain momentum.

The single largest innovation he discussed is the ability for L.A. Metro to receive unsolicited proposals for ideas. Since they implemented this idea in 2016, they’ve received over 100. Many of these are gaining momentum – and getting implemented in a private/ public partnership QUICKER than ever before and under budget.  

 

 

 

 

 

 

They also have submitted a strategic plan for approval that goes beyond on-time arrival to improving mobility.  He told us an interesting statistic – in the recent past, 2.3 million people were added to the L.A. area and 2.1 million cars were added during the same time period.  It will require innovation to bring L.A. Metro from last resort transportation to attractive to its potential customer base!

One tip to implement this week:
Interesting that even with one of the areas not typically seen as modern (a governmental agency related to transportation), innovation is seen as a priority – so much so that they have a position dedicated to it.

The Amazonian marketplace has even made its way to transportation as I heard him say customer focus and quicker delivery of projects multiple times. He said projects used to typically finish far later than the delivery date and significantly over budget.  Now, many are delivered early and under budget. If an governmental agency can increase speed, why can’t you?

Of course, it isn’t as simple as dictating quicker delivery.  Put some thought into what it would take to come up with innovative ideas.  In their case, they allowed for unsolicited proposals. That was probably seen as radical.  

Are you merely content with continuous improvement or are you taking the stance of L.A. Metro to look at dramatic change?  What would you need to do to encourage your employees, customers, suppliers and others to tell you about their ideas for positive innovations?  

Put thought into how you could encourage that – there’s no time to delay if you plan on  remaining competitive!

 



Time or Money – Which Gets the Priority?

July 11th, 2017
delivery

Customers have come to expect instantaneous delivery. Here are 7 questions to consider when weighing time vs. money.

In today’s Amazon-impacted world, we believe in instantaneous delivery. It has become an expectation. Even my mom who orders on Amazon by calling me believes a two-day delivery is a bit long. After all, she might not realize she needs something until the last minute. Thus, which is more important – time or money?

Here are a few questions to ponder when thinking about time vs. money:

1. Do you expect rapid deliveries across the board?

2. Are you willing to spend extra money for speed? Are your customers? Do you know this answer or are you guessing?

3. How important is cash flow to your business? How long is your supply chain? Regardless of how well inventory is managed, how much will be tied up by virtue of your supply chain design? How does that compare with delivery expectations?

4. Have you thought about investing in your demand plan instead of into inventory to be better prepared to deliver quickly without sinking cash into what is likely to become slow moving inventory?

5. Have you thought about investing money into strategically placed inventory? Having what your customer needs when they need it might be the difference between success and failure.

6. In your business, can you have time AND money?

7. What other types of time and money are you overlooking?  Get the full picture before jumping in.

 

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