Ever Consider an Assessment?

by Mike Starling

Ask Yourself:  Why should I work to improve my transportation operations? What’s In It For Me (WIIFM)?

Transportation typically represents the largest operating expense in a company. Hence it is highly visible, closely watched, and quickly blamed for inefficiency and poor service performance vs. budgeted operating expense.

So, rather than suiting up to do battle every day with your functional counterparts in the organization, and hunkering down to deal with constant customer and vendor complaints, wouldn’t it be nice if you TRULY had everything under control?

Ever consider an end-to-end review of your current transportation operations? NO? WHY NOT?

If you are tired of living in fantasy land, and asking “WIIFM if I do this?” here is a list of outcomes and benefits you can expect to achieve:

⦁    Optimized Operating Expense Consistent with Service Level requirements

⦁    Predictable, Reliable, and Efficient Transportation Service Performance

⦁    Direct Contribution to Achieving Company Strategic Objective(s), both Operational and Financial

⦁    Recognition as a Proficient Professional

⦁    Personal and Professional Growth and Development

The primary thrust of a Transportation Strategy & Tactics (TS&T) review approach is to start with a top-down assessment of the what and why of your current transportation and/or distribution operations strategy in order to determine whether you even have a strategy. DO YOU? REALLY?

Then, understand the cost drivers of the current transportation actual expense incurred, related to the WHAT and WHY of the tactics currently employed (bottom up) to identify a cost baseline for your business. How does this compare to last year? Or vs. Budget?

Next, it is necessary to review the company’s strategic plan for the current year to understand which strategic objective your transportation and/or distribution strategy and tactics directly contribute to. Executive management shared a copy of the plan with you, right? Why not? Did you ask?

Got any misalignment issues here? Are Executive Management Expectations in sync with your daily operational marching orders? Is there something you are required to do that doesn’t make sense, given where the company wants to go? Does anyone out there have unrealistic expectations causing you to bleed cash? Are you being asked to handle things you don’t have control over? Are you performing tasks that should be done by one of your functional counterparts? Is some change in the marketplace having a major negative impact on your operations or your budget?

Maybe it might not be such a bad idea to have a fresh pair of eyes from outside the organization perform that No Risk TS&T Assessment to give you the ammunition you need to draw Executive Management’s attention to the chaotic world you live in — AND would like to improve. Not only for your sake, but for the betterment of the company as well. THINK ABOUT IT!

REMEMBER, a TS&T Assessment not only identifies misalignment, but also provides you with suggestions for possible solutions. Couldn’t you use a couple? What have you got to lose?

• Flatbed Demand Outstrips Capacity
• Basic Cost Reduction Strategy: Using Walmart's Inbound Freight Control Initiative to Illustrate Strategy
• Sustainability Is a Strategy: Walmart's Pledge to Reduce Fuel Consumption
• Terms Conversion Is Not Special to Walmart
• Basic Logic of Freight Terms: Understanding the Emotion Behind Resistance to Change
• Continuous Moves: Another Two-Bag Tactic
• Don't Be Confused!
• As Rates Go Up, What Are Shippers Doing?
• The Seven Factors Behind Rising Truck Freight Rates
• Tactic: Mode Change and Consolidation Network
• Reliability Breeds Inventory Reduction: BIG Tactic Delivers BIG Strategy
• Size Does and Doesn't Matter: More Freight Does Not Translate to Lower Rates
• The Best Performers Focus on Inventory Reduction to Improve Cash Creation
• Thinking About Trackable Pallets
• Fleet Efficiency Is a "Double Bagger" Tactic, Lower Cost AND Sustainability
• The CFO Needs to Understand Transportation Operations Volatility and Anticipate Impact on Financial Performance
• Can Transportation Contribute to Operating Cash Flow Generation?
• Where Does It Start?
• Focus on Transportation Operations: Defining What We Are Doing Well
• OPERATIONS – How Much Can We Improve?
• WHAT SHOULD IT LOOK LIKE?
• HOW SHOULD IT WORK?
• Ever Consider an Assessment?
• OUTSOURCE? A Strategic Decision!
• Designing the Plan (You Do Have a Plan, Don't You, Sweetcheeks?)
• Tune Up? Alignment? Or, Both?
• Cutting Transportation Cost – Today’s Greatest Challenge?
• Freight Invoice Audit and Payment – Old-School or New-School?
• Freight Invoice Audit and Payment – What Are the Alternatives?
• CENTRALIZE FOR CONTROL – DECENTRALIZE FOR EXECUTION
• WHAT FREIGHT TERMS? AND WHY?
• WHICH MODE SHOULD WE USE?
• For-Hire Carrier or Private Fleet?
• TRANSPORTATION SPEND MANAGEMENT – STRATEGY or TACTIC?
• Transportation Software Systems - Can You Afford Not To?
• CARRIER SELECTION - Who You Gonna Call?
• MODE
• Re-Bidding Truckload Contracts for Service and Savings
• Freight Cost Reduction? Consider Standardization of Assessorials
• Transportation Strategy and Tactics - The Value of Aligning With an EX: Shipper
• Focusing on Industry Trends for Freight Expense Reduction Opportunities
• Freight Expense as a Percentage of Cost of Goods Sold
• Domestic vs. International?
• A Simple Tactic for Controlling Budgeted Freight Expense
• Freight Cost Reduction – Regional Cross-Dock Consolidation
• NEARSHORING TREND
• Thoughts on Selecting 3PL Transportation Spend Management Service Providers
• Transportation Spend Management – It’s MORE than LOW HANGING FRUIT!
• INBOUND TRANSPORTATION – HIDDEN CASH
• TRANSPORTATION STRATEGY and TACTICS: Wholesale Distributor Supply Chain Assessments