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Why Hire
a Consultant? The
"if it ain't broke, don't fix it" approach to logistics management is
a dangerous strategy when competitors are continually tweaking their costs and
improving their service.
Every
company tries to get a leg up on its competition. Hiring a consultant for
professional help is one way to get there sooner rather than later.
The
word "consultant" conjures up different visions in the corporate
world. There is the standard understanding that a consultant is "someone
who provides professional or technical advice". There is also, however,
the old cliché that a consultant is someone who "borrows your watch to
tell you the time." As
consultants in the field, we view our role more as one of
"facilitator"; one who helps identify opportunities and then champions
these opportunities into real life solutions improving costs and/or processes
along the way. It is the consultant's ability to offer or create these
improvements that, when implemented, will ultimately provide a cost-effective,
tangible return on the company's investment in associated consulting fees.
It is not that a companies’ logistics employees aren’t good
at what they do. Generally though, to
some extent, they lack three things… knowledge, resources and time. A consultant is not there to replace a
company’s logistical resources… but simply to be an extension of them.
- Knowledge- You may not be taking advantage (or
even be aware) of the tools and tips already available to you to help them
reduce costs and improve processes.
- Resources- You may know what needs to be
worked on, but aren’t quite sure how to get there. A consultant often has hundreds of contacts
and resources to draw upon. This network
is built from working with thousands of companies and being able to draw from
industry “best practices”.
- Time- You may have some good ideas on how
to improve your logistics processes, but in a time where we are seeing more
people wearing several hats, those ideas are often sidelined due to associated
time constraints.
So Now What? (And Why)
A
determination of your "logistics" strengths and weaknesses should be
conducted to see if there are gains that can be made. For this you might wish
to have someone from the outside come in and evaluate your logistics processes.
This should be viewed as complementary to your current logistics support and
not as a threat to your existence. Consulting
requires "buy-in" to the process of continuous improvement. Having
another set of "eyes and ears" with industry experience and a finger
on trends and best practices will help you evaluate your strengths and
weaknesses objectively. This in turn, will help you develop a plan of action;
improve operations, costs, and customer service; all of which can create
enhanced stakeholder value.
Employees are so busy being everything
that is necessary for their customers that they forget to evaluate the costs
and contributions they could be making toward more efficient operations. Can some enhancements in software development
in the logistics field help with the processing of customer orders, creation of
bills of lading, carrier selection? Do you have the right materials handling
equipment, warehouse layout, and trained/skilled management and support staff?
Do you understand and capture private fleet costs, know how to evaluate those
costs and manage to contain or reduce them?
Controlling Complacency
Another
factor to consider is complacency in our logistics processes "If it ain't
broke, don't fix it." Most organizations feel they are doing a good job as
long as they recover the (apparent) costs of their logistics processes. After
that, "what's the difference?"
Well, it does make a difference, especially if your competitors
are continuously tweaking their costs and improving their services. Doing
well today is no promise for tomorrow, and in fact, it's an invitation for
complacency to set in, resulting in being "left behind" tomorrow.
We
have heard comments like "the company will just pass along the cost of
freight, adding some percentage to it." If this is your yardstick for
evaluating your transportation expenses, then you will eventually lose ground
to those who see it as a cost to be managed. You and your transport provider
must continually be working together to reduce costs. The more you both work
together to reduce costs, the better chance that both partners will be rewarded
with increased business opportunities.
Consultants
can help you with your projects and/or provide an evaluation and determination
of "best practices". They likely have had exposure to a multitude of
companies and circumstances, including perhaps some of your competitors. Leading companies should welcome fresh ideas
and embrace change. Recognizing it and getting a corporate senior level buy in
is most important. You may have tremendously dedicated people but even they
need some assistance along the way in evaluating alternatives. Facilitate them.
You'd be surprised what you might learn and the competitive gains you might
enjoy.
Wavechange Logistics LLC N29 W27476 Peninsula
Drive, Pewaukee, WI 53072 USA Phone: 888-864-3913 ~ Fax:
262-691-0226 e-mail: office@wavechange.com
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