Tag Archives: Logistics

Logistics is 90% Software – the Other Half is Labor

Posted on March 28, 2016 by | Leave a comment

Yogi Berra was right about a lot of things.

It’s taken us years to realize that logistics is all about software, and increasingly so.  We may not like it; we may regret that it’s happening; we may feel uncomfortable with it; but we’d better learn to live with it.  The next generation of logistics pros won’t be afraid at all!!  They’ll be ready to use it to leverage their firms’ ability to compete.

The decision to invest in software enhancements can be overwhelming when considering that many large companies spend as much as 30% of annual revenue on information technology systems.

Source: Logistics is 90% Software – the Other Half is Labor – Supply Chain 24/7

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Posted in Logistics, Production Operations, Strategy, Supply Chains

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Journeys: Seeing the world as customers do

Posted on March 21, 2016 by | Leave a comment

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

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Posted in Production Operations, Service Management, Shipping, Supply Chains, Uncategorized

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Container shipping: untapped value of customer engagement

Posted on March 16, 2016 by | Leave a comment

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

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Posted in Logistics, Shipping, Supply Chains

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