logistics

Raising Productivity in Logistics Operations: The BHAG Approach

Raising Productivity in Logistics Operations: The BHAG Approach

Achieving business goals successfully is rather like working in a sports team. Some teams are really successful, some aren’t. Some have great coaches—and some just don’t seem to make it. So what makes the difference? Why do some businesses and organisations seem to achieve far more than others? As a consultant, I work with many businesses. Some just seem to get things done. They have an enormous number of projects going on and they achieve great goals, while others struggle and seem to spin their wheels all the time. The BHAG—the Big Hairy, Audacious Goal I recently attended a great presentation during which the presenter referred to a BHAG—a big hairy audacious goal. I think we’ve seen that in a lot of businesses. I am sure you know of companies where these goals are put up on notice boards, but often they just never seem to be achieved. The idea of a BHAG was conceived by James Collins and Jerry Porras in their book “Built to Last: Successful Habits of Visionary Companies”. The authors define a BHAG as a long-term goal that changes the very nature of a business’s existence. A BHAG, as they put it, “engages people, it reaches out and grabs them in the gut. It’s tangible, energising, highly focused, and people get it right away—it doesn’t need further explanation.” The person who gave the presentation I attended offered the example of a speech by late US President John F. Kennedy: “This nation should commit itself to achieving the goal, before the decade is out, of landing a man on the moon and getting him safely back to Earth.” That was a fantastic big, hairy, and audacious goal that galvanised the nation behind the whole lunar programme. How does all this fit with your situation and your business? One of the things that can go wrong when you set these big, hairy, audacious goals is that people don’t believe they are achievable. One of the causes of this is that we get set in paradigms. We’re used to things being difficult, we’re used to things being done in a certain way, and we don’t believe that the world can change or that our performance can lift significantly. A Compelling Reason to set a BHAG As I explain in a YouTube video on this subject, I recently saw a good example of how a BHAG can galvanise a workforce and...

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4 Common 3PL Mistakes on Logistics Outsourcing Contract

4 Common 3PL Mistakes on Logistics Outsourcing Contract

Having clear expectations is one among the four common mistakes that 3PL companies get into logistics contracts. It’s the power of the draft that is your opportunity to lay down exactly what you want and how it is going to work. Surprisingly, there are still a lot of companies that don’t have a contract! How is this possible? Find out more in this video: Related article on this topic has appeared in our Benchmarking Success site, check this out: How to Prevent Your 3PL Contract from Harming Logistics Performance Editor’s Note: This post was originally published on December 09, 2020, under the title “4 Common 3PL Mistakes on Logistics Outsourcing Contract” on Logistics Bureau’s website. Best Regards,Rob O’ByrneEmail: robyrne@logisticsbureau.comPhone: +61 417 417...

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Why Logistics Outsourcing can go Badly Wrong

Why Logistics Outsourcing can go Badly Wrong

Having been involved in hundreds of outsourcing projects over the last 23 years, I’ve been able to deal with various clients. And when Logistics Outsourcing goes wrong, I get questions like “Who’s to blame? Is it the 3PL company who screw it up? Or Is it the customer? And how can we avoid those Logistics Outsourcing mistakes?” Watch this: Related articles on this topic have appeared throughout our websites, why not check them out? Robobyrne: 4 Mistakes in Logistics Outsourcing Supply Chain Secrets: Avoid Outsourcing Disaster Benchmarking Success: How to Prevent Your 3PL Contract from Harming Logistics Performance Editor’s Note: This post was originally published on December 02, 2020, under the title “Why Logistics Outsourcing can go Badly Wrong” on Logistics Bureau’s website. Best Regards,Rob O’ByrneEmail: robyrne@logisticsbureau.comPhone: +61 417 417...

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All about Logistics Outsourcing

All about Logistics Outsourcing

One of the most common questions we get asked is all about outsourcing. What is it exactly? Watch this episode as we discuss the different situations and challenges of this business strategy. Related articles on this topic have appeared throughout our websites, why not check them out? Robobyrne: 4 Mistakes in Logistics Outsourcing Supply Chain Secrets: Evaluating Logistics Outsourcing Proposals: Look Beyond the Scorecard Benchmarking Success: Why Large Companies Increasingly Opt for 4PL Services Dawson Consulting: Logistics Outsourcing Editor’s Note: This post was originally published on November 04, 2020, under the title “All about Logistics Outsourcing” on Logistics Bureau’s website. Best Regards,Rob O’ByrneEmail: robyrne@logisticsbureau.comPhone: +61 417 417...

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Interview with Sarah Barnes-Humphrey on 3PL Industry

Interview with Sarah Barnes-Humphrey on 3PL Industry

What is going on with the 3PL industry nowadays? What is the industry needs to do better? Let us hear the insights of an expert, Sarah Barnes-Humphrey. She comes from a 3PL family and she is now based in Canada. Related articles on this topic have appeared throughout our websites, why not check them out? Robobyrne: Definitions for Supply Chain & Logistics – LLP, 3PL, 4PL and More Benchmarking Success: How to Prevent Your 3PL Contract from Harming Logistics Performance Editor’s Note: This post was originally published on October 28, 2020, under the title “3PL Industry Perspectives” on Logistics Bureau’s website. Best Regards, Rob O’Byrne Email: robyrne@logisticsbureau.com Phone: +61 417 417...

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Improve your Warehouse Productivity Through Product Slotting

Improve your Warehouse Productivity Through Product Slotting

ARTICLE SUMMARY Product slotting can significantly improve warehouse productivity—and reduce labour costs by up to 30 percent. Simply put, product slotting is about putting the right product in the right place so you can pick it in the most efficient way. In other words, you put the fastest moving products closest to the packing and dispatch area to minimise the movement of people in the warehouse. How to do this? To start with, find out which products are picked the most and place them as close as possible to where dispatch is situated. It is important not only to think horizontally but to think vertically as well. So, slow-moving products go up on the top shelves because it takes longer to get them, while faster-moving products come down on the bottom shelves. Doing it right can save you 15 to 30% in warehouse labour costs. One of the key things you can do in your warehouse to improve the productivity of your staff as far as picking and packing go is to institute a system of product slotting. How Supermarkets Slot Products You may well ask: “What the hell is product slotting?” To answer this question, let me give you an analogy. When you walk into a supermarket you will invariably find that the fast-moving products—such as milk, and eggs, and bread—are stocked at the back of the store. Why do the stores do that? It’s because they want you to walk through the entire store, seeing all these other products that you might buy. On the way through you may pick up a packet of biscuits or a chocolate, and by the time you leave you’re laden with goods you didn’t intend to buy. In effect, retail stores slot their products (understandably) in a way that is optimal for sales, not ergonomics. How Warehouses Slot Products The supermarket example above represents the exact opposite of what you should do in your warehouse. Here, you put the fastest-moving products closest to the packing and dispatch area to minimise the movement of warehouse staff. You want to lay out your warehouse so your picker’s travel the least distance. Simply put, warehouse product slotting is about putting the right product in the right place so you can pick it in the most efficient way. Here’s another way to look at it. Imagine the warehouse as a big box. On one side...

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