After an early flurry of posts I've realised blogging isn't for me (at least not on this topic).
I've learnt a lot about blogging, posting and generating readership - but I get much more enjoyment from using forums, where there is more ongoing interaction and sense of community.
Anyway, each to their own - if you love to blog, then stay happy and be bloggy!!!
I may be back to blog in another guise, but if I do it will be something that inspires me more and that has a greater community aspect.
Cheers!
25-Apr-2007
04-Apr-2007
Happy Easter! - Chocolate Offsetting
As a more light-hearted follow-up to my rant on Carbon Offsetting, why not try this link to determine what you need to do in order to offset all that chocolate you'll be eating over Easter.
02-Apr-2007
Carbon Offsetting - The Emperor's New Clothes?
Is it just me, or does it seem like any public figure who dismisses global warming is branded a 'nutcase'?
Don't get me wrong, I'm all for energy efficiency, reducing waste and looking for a better way to do things, but the whole global warming debate and carbon footprints and offsetting seems like a Tsunami - hell bent on a need to raise taxes and for us all to embrace 'greenness' with no-one able to escape it's path.
A lot of consultancies will be making a lot of money in in helping customers calculate their carbon and how to offset it and alarm bells in my head shriek 'Millennium Bug' all over again.
If you're someone engaged in this work, then by all means continue to deliver it to the best of your abilities, but don't shy away from forming your own opinion (as long as it's expressed in the appropriate forum).
A huge drive to add wind turbines and solar panels to new build distribution centres is afoot - *Newsflash* - these have a 50 year payback (not directly related to the asset cost).
Studies suggest that most distribution centres could reduce their power, heat & light costs by circa 25% just by managing the basics - and not by buying a forest in Brazil.
Hopefully we're all still here in 20 years (and not under the oceans) so that I can say 'I told you so', but until that time form your own views, look at what you are and aren't being told and add value to customers by ensuring you deliver value that can be realised now!
Don't get me wrong, I'm all for energy efficiency, reducing waste and looking for a better way to do things, but the whole global warming debate and carbon footprints and offsetting seems like a Tsunami - hell bent on a need to raise taxes and for us all to embrace 'greenness' with no-one able to escape it's path.
A lot of consultancies will be making a lot of money in in helping customers calculate their carbon and how to offset it and alarm bells in my head shriek 'Millennium Bug' all over again.
If you're someone engaged in this work, then by all means continue to deliver it to the best of your abilities, but don't shy away from forming your own opinion (as long as it's expressed in the appropriate forum).
A huge drive to add wind turbines and solar panels to new build distribution centres is afoot - *Newsflash* - these have a 50 year payback (not directly related to the asset cost).
Studies suggest that most distribution centres could reduce their power, heat & light costs by circa 25% just by managing the basics - and not by buying a forest in Brazil.
Hopefully we're all still here in 20 years (and not under the oceans) so that I can say 'I told you so', but until that time form your own views, look at what you are and aren't being told and add value to customers by ensuring you deliver value that can be realised now!
30-Mar-2007
How To Drive The Agenda for Performance Reviews & Appraisals
In some companies a lack of open communication, time pressures or poor management can lead to performance reviews being a one-sided affair, with the line manager making all the decisions whilst being unreceptive to input.
It’s all too easy to lay the blame for this at your manager’s feet, but don’t forget everyone’s manager is always busy (although this should not be an excuse for mis-managing employee appraisal and development).
To make sure you drive the process and ensure you have a stake in the review process you need to take the lead and learn not to rely on your manager.
1) Scheduling
Make sure you have arranged a suitable time and location for your review with your manager.
If it’s an interim review with no meaty issues to cover, you might want to encourage a more informal session by doing it over coffee. If it’s a more important meeting and you or your manager may be raising sensitive points, you’ll want to make sure you’re in a room that ensures confidentiality from prying ears, that allows you both to fully discuss everything.
2) Feedback
Around 2 weeks before your appraisal is due make sure you have provided your manager with a list of names of people they should speak to in order to garner feedback on your performance over the last period. To help your manager focus on the feedback, list the project(s) that you have worked with these individuals on.
Also important is to get qualitative feedback. Don’t only provide names of work you excelled in; if there were projects that went awry or you know certain people may have less positive feedback make sure you add these to the list. If you ant to develop you need to know what you’re doing well and what you need to do better. Plus if you skip these names and your manager is either aware of certain issues or finds out later, that’s not going to help matters.
3) Keep an Ongoing Log
If you have appraisals at anything like quarterly periods then a lot will have happened; will you be able to remember this come review time?
All you need is a basic file that logs the noteworthy things you’ve accomplished and developed in over the period, but it needs to be filled in throughout the period. The person who knows what you’ve done well is you and if you can’t give tangible examples of why you deserve that great review or pay rise then don’t expect anyone else to. If appropriate, align this log to your company’s appraisal system; for example, if your appraisals are based on a competency model, align each of your log entries to specific competencies.
4) Adding Value
Where possible demonstrate some tangible benefits that you delivered in the review period. If you were able to demonstrate feasible savings to a customer, for example, keep notes of how much you saved and the appropriate percentage of budget etc (however, if the figure looks good, but the percentage looks insignificant you may want to be selective about what to include).
5) Development Plan
Where you and your manager identify your developmental needs, try to identify the most appropriate way of addressing these and how progress will be measured. Try not to be the employee who thinks every problem can be solved by a training course. Try to find opportunities to learn on the job and from others, but make sure yo manage any risks that might be associated with this.
6) You Own Reports
Think of all the crummy reviews you’ve had in the past and think of how your own reports perceive your reviews with them. For those of you without line reports, think how you’ll want them to go when this happens.
Hopefully putting some of the above points into action will ensure your performance reviews are a two way collaborative process. It should be in your manager’s interest to see you develop and obviously in yours. Making sure that you take steps to drive (and own) the agenda will make your reviews meaningful and should further demonstrate your proactive approach to your manager.
It’s all too easy to lay the blame for this at your manager’s feet, but don’t forget everyone’s manager is always busy (although this should not be an excuse for mis-managing employee appraisal and development).
To make sure you drive the process and ensure you have a stake in the review process you need to take the lead and learn not to rely on your manager.
1) Scheduling
Make sure you have arranged a suitable time and location for your review with your manager.
If it’s an interim review with no meaty issues to cover, you might want to encourage a more informal session by doing it over coffee. If it’s a more important meeting and you or your manager may be raising sensitive points, you’ll want to make sure you’re in a room that ensures confidentiality from prying ears, that allows you both to fully discuss everything.
2) Feedback
Around 2 weeks before your appraisal is due make sure you have provided your manager with a list of names of people they should speak to in order to garner feedback on your performance over the last period. To help your manager focus on the feedback, list the project(s) that you have worked with these individuals on.
Also important is to get qualitative feedback. Don’t only provide names of work you excelled in; if there were projects that went awry or you know certain people may have less positive feedback make sure you add these to the list. If you ant to develop you need to know what you’re doing well and what you need to do better. Plus if you skip these names and your manager is either aware of certain issues or finds out later, that’s not going to help matters.
3) Keep an Ongoing Log
If you have appraisals at anything like quarterly periods then a lot will have happened; will you be able to remember this come review time?
All you need is a basic file that logs the noteworthy things you’ve accomplished and developed in over the period, but it needs to be filled in throughout the period. The person who knows what you’ve done well is you and if you can’t give tangible examples of why you deserve that great review or pay rise then don’t expect anyone else to. If appropriate, align this log to your company’s appraisal system; for example, if your appraisals are based on a competency model, align each of your log entries to specific competencies.
4) Adding Value
Where possible demonstrate some tangible benefits that you delivered in the review period. If you were able to demonstrate feasible savings to a customer, for example, keep notes of how much you saved and the appropriate percentage of budget etc (however, if the figure looks good, but the percentage looks insignificant you may want to be selective about what to include).
5) Development Plan
Where you and your manager identify your developmental needs, try to identify the most appropriate way of addressing these and how progress will be measured. Try not to be the employee who thinks every problem can be solved by a training course. Try to find opportunities to learn on the job and from others, but make sure yo manage any risks that might be associated with this.
6) You Own Reports
Think of all the crummy reviews you’ve had in the past and think of how your own reports perceive your reviews with them. For those of you without line reports, think how you’ll want them to go when this happens.
Hopefully putting some of the above points into action will ensure your performance reviews are a two way collaborative process. It should be in your manager’s interest to see you develop and obviously in yours. Making sure that you take steps to drive (and own) the agenda will make your reviews meaningful and should further demonstrate your proactive approach to your manager.
27-Mar-2007
Transport Management: Above & Below The Line
The concept of 'Above and Below The Line' is used across varying industries, marketing being one of note.
It's also been used as a way to explain key principles of transport management for a number of years (and I like to think that's where the whole thing originated).
Here's the concept:
The approach to transport management looks at above and below the line variances.
The middle line of the diagram represents the cost of the planned schedule.
The top line represents the actual cost of the operation. The gap between the two lines is the ‘above the line variance’. In order to reduce the gap, the focus needs to be on how the operation is managed. Transport management is measured in terms of cost per kilometre.
The lower line represents the theoretical cost of an improved schedule. The difference between the middle line and the lower line is the ‘below the line variance’. Improving the scheduling efficiency will bring the cost of the planned schedule closer towards the cost of the theoretical schedule. Scheduling efficiency is measured in terms of kilometres run per unit delivered.
It should also be recognised that different skill sets are required for each of these roles, e.g. operational versus planning (technical) and that organisational responsibilities should be allocated accordingly.
The same approach is also true when looking at benchmarking or KPI reviews.
Different parts of the business and different people need to be influenced to drive efficiency (and collaborate as appropriate). This approach should help you focus on where the areas for improvement are, how they can be achieved and the potential value.
It's also been used as a way to explain key principles of transport management for a number of years (and I like to think that's where the whole thing originated).
Here's the concept:
The approach to transport management looks at above and below the line variances.
The middle line of the diagram represents the cost of the planned schedule.
The top line represents the actual cost of the operation. The gap between the two lines is the ‘above the line variance’. In order to reduce the gap, the focus needs to be on how the operation is managed. Transport management is measured in terms of cost per kilometre.
The lower line represents the theoretical cost of an improved schedule. The difference between the middle line and the lower line is the ‘below the line variance’. Improving the scheduling efficiency will bring the cost of the planned schedule closer towards the cost of the theoretical schedule. Scheduling efficiency is measured in terms of kilometres run per unit delivered.
It should also be recognised that different skill sets are required for each of these roles, e.g. operational versus planning (technical) and that organisational responsibilities should be allocated accordingly.
The same approach is also true when looking at benchmarking or KPI reviews.
Different parts of the business and different people need to be influenced to drive efficiency (and collaborate as appropriate). This approach should help you focus on where the areas for improvement are, how they can be achieved and the potential value.
24-Mar-2007
One Tab to Help you Remember that Calculation
Nobody’s perfect and if you sometimes have to pull some last minute changes to those spreadsheet calculations, or go back to that spreadsheet weeks or months later it can sometimes be tricky (and embarrassing) to remember what the hell that calculation meant and where the data came from.
Something fairly simple to do (and get in the habit of doing) is adding a default tab to your Excel start up template.
Use it to record where key data sources came from; for example, which person told you how much that truck cost and on what date?
For those calculations that build up and up and up, make notes to detail what the numbers are, why you used certain multipliers or divisors and any assumptions behind them.
Furthermore, if someone else does a follow-up stage to your project or you are taken ill, then at least they will be able to pick up your work without it seeming like mumbo-jumbo.
This may seem like more work, but if you make key notes and references bit-by-bit then it will become second nature and you’ll hopefully save yourself some time and embarrassment down the line.
Something fairly simple to do (and get in the habit of doing) is adding a default tab to your Excel start up template.
Use it to record where key data sources came from; for example, which person told you how much that truck cost and on what date?
For those calculations that build up and up and up, make notes to detail what the numbers are, why you used certain multipliers or divisors and any assumptions behind them.
Furthermore, if someone else does a follow-up stage to your project or you are taken ill, then at least they will be able to pick up your work without it seeming like mumbo-jumbo.
This may seem like more work, but if you make key notes and references bit-by-bit then it will become second nature and you’ll hopefully save yourself some time and embarrassment down the line.
Benchmarking Checklist
Why benchmark?
At a supply chain level, SCOR can often be the approach (& tool) of choice. But let's get back to basics for a minute and understand some of the key principles behind benchmaking, and its pro's and con's.
Benefits of Benchmarking
Gives you credibility within your own and customer organisation when making a pitch, positioning you as someone who is aware of the key drivers for your customers sector, with some pre-qualified ideas of where improvements may exist.
If sufficiently organised and updated it provides a single point of information holding a pre-specified set of data. If you take this database approach, how often do you update your information? Furthermore, in comparing year-on-year trends in one account or customer you will need to consider the effect of inflation in your workings.
In-built methodology for comparing data and converting this into actionable information for competitive advantage.
It is also beneficial to learn about Best Operating Practice (BOP) from your own businesses, your customers' and the wider marketplace, so that success can be shared across the business.
Ability to highlight immediate value to the customer by demonstrating any gaps to what they should achieve in KPIs or financials. The size of the prize on offer can immediately be demonstrated by applying achievable (and better) rates from a competitor to their own metrics, for example demonstrating the impact on costs by applying a more favourable (and achievable) maintenance cost per kilometre etcetera.
Limitations of Benchmarking
1) “Comparing Apples with Apples”
There is the issue of the difference in definitions across service provider types, e.g. the definition of distribution cost per case within a 3PL environment does not include the same cost components as that in the food service provider sector.
A further factor is that, for a number of benchmarks there is no industry standard, e.g. the benchmark “on the shelf availability”.
To counter this, it is important to try and establish a common unit of measure across the areas being benchmarked. For example if you are trying to compare the comparative efficiency of a general merchandise distributor to a food service transport company you may look to convert your data to a generic pallet (as an example); this will make benchmarking meaningful.
Whatever you do, make sure you detail each data source for each metric; if you have to make complex calculations to make meaningful comparisons, make sure you know how these were derived - if you don't re-visit your work for an extended period you will lose track of where the numbers came from - trust me!
2) Confidentiality
The vast majority of information can often be considered by the benchmarkees as highly confidential; when sharing the information be aware of what you can reveal. If you can't use he company name, can you present it at sector level or industry?
3) Applicability of Benchmarkees
Supply chain benchmarks by their nature tend to be single number summaries representing the aggregated performance of a number of supply chain activities and processes. The activities and processes underpinning these benchmarks will be different from company to company. This is particularly true when companies being benchmarked are serving different markets. The list below provides an indication of factors that need to be considered:
Drop Size & Drop Frequency
Delivery Days & Windows
Temperature Regimes & Product Compatibility
Transit Media (Pallets/Totes/Parcels etc)
Geographic Spread & Density
Product Cube & Weight
Procurement Strategy
Stocking policies
Service Level Agreements
In summary, determine if your work is a one-off exercise or a continuing cycle of analysis. Know the target audience and account for confidentiality issues. Ensure you demonstrate the opportunities available to the customer should they achieve more favourable KPIs and unit costs. Finally, note and track your data sources - much of the time benchmarking is about reporting back numbers to the customer that they provided to you; you are really just clarifying what these numbers mean and identifying where they could/should sit against what their performance reveals.
At a supply chain level, SCOR can often be the approach (& tool) of choice. But let's get back to basics for a minute and understand some of the key principles behind benchmaking, and its pro's and con's.
Benefits of Benchmarking
Gives you credibility within your own and customer organisation when making a pitch, positioning you as someone who is aware of the key drivers for your customers sector, with some pre-qualified ideas of where improvements may exist.
If sufficiently organised and updated it provides a single point of information holding a pre-specified set of data. If you take this database approach, how often do you update your information? Furthermore, in comparing year-on-year trends in one account or customer you will need to consider the effect of inflation in your workings.
In-built methodology for comparing data and converting this into actionable information for competitive advantage.
It is also beneficial to learn about Best Operating Practice (BOP) from your own businesses, your customers' and the wider marketplace, so that success can be shared across the business.
Ability to highlight immediate value to the customer by demonstrating any gaps to what they should achieve in KPIs or financials. The size of the prize on offer can immediately be demonstrated by applying achievable (and better) rates from a competitor to their own metrics, for example demonstrating the impact on costs by applying a more favourable (and achievable) maintenance cost per kilometre etcetera.
Limitations of Benchmarking
1) “Comparing Apples with Apples”
There is the issue of the difference in definitions across service provider types, e.g. the definition of distribution cost per case within a 3PL environment does not include the same cost components as that in the food service provider sector.
A further factor is that, for a number of benchmarks there is no industry standard, e.g. the benchmark “on the shelf availability”.
To counter this, it is important to try and establish a common unit of measure across the areas being benchmarked. For example if you are trying to compare the comparative efficiency of a general merchandise distributor to a food service transport company you may look to convert your data to a generic pallet (as an example); this will make benchmarking meaningful.
Whatever you do, make sure you detail each data source for each metric; if you have to make complex calculations to make meaningful comparisons, make sure you know how these were derived - if you don't re-visit your work for an extended period you will lose track of where the numbers came from - trust me!
2) Confidentiality
The vast majority of information can often be considered by the benchmarkees as highly confidential; when sharing the information be aware of what you can reveal. If you can't use he company name, can you present it at sector level or industry?
3) Applicability of Benchmarkees
Supply chain benchmarks by their nature tend to be single number summaries representing the aggregated performance of a number of supply chain activities and processes. The activities and processes underpinning these benchmarks will be different from company to company. This is particularly true when companies being benchmarked are serving different markets. The list below provides an indication of factors that need to be considered:
Drop Size & Drop Frequency
Delivery Days & Windows
Temperature Regimes & Product Compatibility
Transit Media (Pallets/Totes/Parcels etc)
Geographic Spread & Density
Product Cube & Weight
Procurement Strategy
Stocking policies
Service Level Agreements
In summary, determine if your work is a one-off exercise or a continuing cycle of analysis. Know the target audience and account for confidentiality issues. Ensure you demonstrate the opportunities available to the customer should they achieve more favourable KPIs and unit costs. Finally, note and track your data sources - much of the time benchmarking is about reporting back numbers to the customer that they provided to you; you are really just clarifying what these numbers mean and identifying where they could/should sit against what their performance reveals.
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