Transportation industry fleet managers in emerging markets have the opportunity to avoid mistakes made by their equivalents in developed markets and to by-pass the use of expensive proprietary technologies that have prevented developed markets from operating efficiently.
In the UK, for example, 28% of all heavy goods vehicles run empty, the average lading factor is 60% with some vehicles remaining completely unused. In the UK we have seen total optimisation of dedicated fleets as an impossible task. Unless the Supply Chain Owner’s (SCO) business is in a particularly dense geography where backhauls are always available, there will always need to invest in surplus assets running empty miles at less than optimum utilization. Faced with these issues and highly variable demand, SCO’s fleet managers have reduced their own fleets and outsourced more work to independent subcontracted hauliers. However, using these subcontractors without proper controls often leads to poor customer service and negatively affects the SCO’s competitive position.
CONTROL ROOMS & COMMAND POSTS
Dodge the Tiger - “Eyes on, hands on”
• Same time and same place; On Scene Commander centric
• Point to point communications and adaptability to changing situations
A dollar saved in the supply chain process goes straight to the bottom line. It can be a measure of our failure or success. Our success in achieving Value for Money (VFM) will only be fully achieved when we have processes in place to consistently measure savings and efficiencies across multiple activities correlated to the cost elements of the supply chain cycle. This correlation raises some important questions, for example: Does how we spend money achieve VFM? Is there anything different we can do to improve VFM? Do we collaborate with other organizations sufficiently? Do we measure our VFM achievements to a standard and with challenging targets? The financial and commercial challenges facing us for the foreseeable future means we can no longer rely on the old ways of doing things. Every element where a cost arises in the Supply Chain Cycle must be challenged and managed for VFM. It means for some a radical shift in thinking, approach and culture. We do not have the luxury to be complacent when our futures are at stake.
I get the following questions from people all the time:
1) What is Key Account Management (KAM)?
2) Will this work for our business and our country?
3) What’s the difference between traditional selling and KAM?
4) Our sales team is not ready for the shift. How long can we wait before implementing these strategies?
1) DO – Treat Social media like going to a party
You’d never shout, sell to complete strangers or ignore people talking directly to you in polite conversation. Nor would you hand out business cards to people who never asked for them. Don’t do so here either.
In difficult economic times, some businesses cut costs by cutting corners on customer service. This is exactly the wrong thing to do. Right now, service matters more than ever. Here's why: