Monthly Archives: March 2016

Journeys: Seeing the world as customers do

Again McKinsey says something relevant to ocean carriers. Do you see the world from the customer’s viewpoint? You deal in journeys, why not look at the customer’s?  Or are you stuck trying to make touchpoints successful without seeing the big picture?

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To maximize customer satisfaction, companies have long emphasized touchpoints. But doing so can divert attention from the more important issue: the customer’s end-to-end journey.

Source: From touchpoints to journeys: Seeing the world as customers do | McKinsey & Company

Container shipping: untapped value of customer engagement

McKinsey is talking more about the ailments of the container shipping industry.  It’s about customer service.  But will customers pay for it? Shipping on its own is a business with very low margins.  And there is tremendous price pressure.  But as the authors point out, improving service quality also can save money.  That is standard operations and service management doctrine, and has been shown many times in real businesses.  So it is time for ocean carriers to pay attention to how they provide service, and to learn how to manage or cooperate with the rest of folks’ supply chains. while the voyage is the longest stage, the balance of a journey is very complex in movements and information flows, and it cannot be ignored any longer.

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Despite challenging market dynamics and rising operational complexity, container lines can both increase profitability and improve their customers’ experience.

Source: Container shipping: The untapped value of customer engagement | McKinsey & Company

Disruption — a Bite Out of Logistics Jobs?

This article republished from UPS makes a case that logistics jobs will actually increase as new disruptive, labor saving technologies enter the supply chain.  Another important point is that it is 3PLs where the growth will be, not in the traditional material movement and storage fields, though those may grow.

I agree with the premise in general.  but it is important to note that different skills will be needed, so there may be some anxieties unless people decide to retrain themselves to be in a position to benefit from the changes.  In general that means learn about information systems and the technologies involved.  Most of the jobs will be in implementing and keeping running the new technologies, and in coaching users and customers to make the best of them.

A 3PL is often just an information hub at root, that consolidates and makes available the information required for shippers, carriers and customers to interact.  Most of the jobs there look like pure service jobs. Often they involve a knowledge of technology and excellent customer service or sales skills.

 

Rather than eliminating jobs, it’s far more likely that technologies and trends like 3D printing and crowdsourcing will have a positive impact on logistics and supply chain jobs.

Source: Will Disruption Take a Bite Out of Logistics Jobs? – Supply Chain 24/7