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?

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