|
| |
| QuickREAD |
September 6, 2006 |

You Mean Your Employees Don't Engage Customers Just Because You Want Them To?
The fastest ticket to customer satisfaction is through consistent, excellent service. As companies battle for competitive advantage, many find that improving service quality and customer satisfaction can be elusive. The first step to achieving both is to raise employee engagement.
All organizations benefit from having an engaged workforce. For those whose success hinges on delivering excellent customer service, however, a special type of employee engagement, customer-focused engagement, has an even stronger impact. Customer focused engagement occurs when employee work groups are committed to (and passionate about) delivering excellent service to their customers.
Employees won't become engaged with service quality just because you wish them to. It takes time and effort to nurture an environment where engagement can take root and grow. With the right leadership, resources and information, you can shape the environment to engage employees and focus their efforts where it matters moston customer satisfaction.
Source: CRM Buyer, http://crmbuyer.com/
Investing in Minority-Owned Suppliers is a Money Loser, Right? Hackett Survey Says No
Companies wanting to expand their supplier diversity programs can do so without sacrificing savings, according to a recent report by The Hackett Group.
While many executives may assume that proactive efforts to use women-or minority-owned suppliers result in higher costs or additional administrative burdens, Hackett's report concludes that companies that make such efforts see no negative impact on procurement costs.
Source: CFO, http://www.cfo.com/
1) On-Demand Software Is Cheaper, Simpler and More Flexible
Packaged software is slowly disappearing from the corporate landscape, and it's being replaced by software-as-a-service (SaaS) offerings. Businesses are finding these predominantly Web-based packages to be cheaper, simpler, and more flexible. As software becomes available "on demand" from vendors, more organizations are realizing how much sense it makes to procure applications this way. Research firm IDC predicts that the SaaS market will grow at a 21 percent compound annual rate, reaching $10.7bn in 2009.
The new model has several advantages over packaged software products that are proving attractive to CIOs. First, SaaS is easier to install and less expensive to buy and maintain. When software is accessed via a service, there's no need to manage and patch applications and versions across hundreds, if not thousands, of desktops. That results in huge savings.
In addition, companies can launch SaaS-based projects more quickly because the software is ready to use; IT departments don't need to get involved with software cycles and renewals; and there's no need to worry about hardware or upgrades as the applications evolve. Also, SaaS delivers standardized applications that can be configured to meet specific business processes.
Source: Optimize, http://optimizemag.com/
2) On-Demand Software Isn't the Elixir to All Enterprise Problems
Clearly, software as a service is proving to be a disruptive force in the software industry. It's likely that the golden age of large, enterprise-wide, single-vendor software offerings is nearing its end, and packaged software is likely to change drastically. But will SaaS bring about the death of packaged software? The answer is no. Proponents argue that software as a service is a completely new way of approaching enterprise applications. Perhaps, but past experience shows that it isn't an elixir to the problems enterprises encounter when delivering applications to the business.
Packaged applications and all the troubles that ac-company them will be extinct, the SaaS proponents pro-claim, and we'll all subscribe to software services that can be rolled out in minutes and exact a fraction of the cost in maintenance.
The reality is quite different. In fact, every company is in the software business, and that just isn't going to change. Software as a service may make it possible for some companies to ease the development and maintenance burden, but it won't completely replace existing models of software delivery, just as packaged software didn't replace custom development.
Specialized industry and government users will still require packaged and/or customized applications for needs as diverse as food-service distribution, health care, and energy exploration. Specialized distribution, procurement, sales incentive, and quality-management applications are examples where the SaaS model cannot deliver the complete solution.
Source: Optimize, http://optimizemag.com/
Do You Outsource Your Mobile Solutions Needs, or Do You Build a System In-House?
So, you've decided to go wireless. After doing the research and looking at others' successes, you're confident that arming your field workers with the right mobile solutions beyond e-mail can increase their productivity and reduce your operational costs. With the compelling economics of such a move, you expect a measured improvement in your company's top and bottom line. But how do you make it happen? What is the best way to go mobile beyond e-mail? Both outsourcing this process and building a customized in-house solution offer advantages and disadvantages. It's important to consider a number of issues to help you make the right choice for your organization in the short and long term.
Source: CIO, http://www.cio.com/
Azerbaijan Wants to Reclaim Its Place as Important Cargo Hub Between East and West
As logistics interchanges go, the former Soviet state of Azerbaijan has some impressive credentials. A mere 2,000 years ago it sat at the crossroads of the Great Silk Roadnot a single route, but myriad interconnecting trails that formed the main trading link between China and Europe.
Today, of Azerbaijan sits well outside the planning for global trading routes but the independent state is looking to reclaim some of its history. This time it wants to foster the role of a regional air cargo interchange, with Baku International Airport the focal point of its ambitions. On a path taking in the growing trade between Europe and Asia, the site also can provide vital access to Iraq and Afghanistan.
Source: Air Cargo World, http://www.aircargoworld.com/
Manufacturers Keep Market for Continuous Improvement Systems Growing
ARC has conducted surveys among manufacturers on their continuous improvement systems preferences and practices. The results show that 80 percent of manufacturers are applying one or more CI methodologies. The CI programs used most often by manufacturers are Lean Manufacturing, Six Sigma, Total Quality Management, and Theory of Constraints. Manufacturers are looking to CI systems to improve operational performance in the areas of labor utilization, inventory levels, quality, asset utilization, and cost of goods sold.
The market for continuous improvement systems was $211.5m in 2005. It is forecasted to grow to $402.8m by the end of 2010 with a strong compounded annual growth rate of 12.7 percent.
Source: ARC Advisory Group, http://arcweb.com/
Say, This Is Really Strategic! Uh, Hello? Wake Up, Wake Up!
The word strategic is used so freely these days that it's at risk of losing all meaning. People attach the S-word to their pet project hoping it will help gain others' approval. With such overuse, the word has come to mean little more than nicea bland superlative. He's a nice guy. This project is strategic. Yawn. This is a serious problem, because it's imperative that IT and business leaders know what truly is strategic in order to focus scarce resources on really important, high-payoff initiatives.
Source: CIO, http://www.cio.com/

What Are Companies DoingRight NowAbout Service-Oriented Architecture?
The service-oriented architecture (SOA) approach to software development will affect both buyers of technology and the producers of commercial business application software packages. While the entire IT industry seems to agree that SOA will mean greater agility and flexibility to business change, as well as a lower cost to deliver it, SOA will still fundamentally change the way companies need to develop, deploy, and manage that software. So what are companies doing now?
Source: AMR Research, http://amrresearch.com/
Apparel Maker Says Producing in Florida No More Costly than Overseas, and Control Is Greater
"The toughest part of embroidery and sewing is finding the work force. That's why so many companies turn to inexpensive labor overseas," says Tim Mossberg, who owns TLM Industries of Fort Walton Beach, Fla.
In Atlanta, Mossberg had trouble finding a skilled textile workforce and keeping good employees once he found them. In contrast, Fort Walton Beach had once been a base of operations for large clothing manufacturers. When these companies moved their manufacturing overseas, they left behind a trained, skilled and available employee base.
Mossberg transferred TLM's operations down to Fort Walton Beach, moved into a factory, and hired 20 or so workers at his factory and another couple dozen who work for a domestic contractor. Mossberg explains that manufacturing locally is simply the best way for him to do business.
Like many U.S. manufacturers, TLM has experimented with outsourcing. In the mid-1990s, TLM bought finished goods for its clients in factories from Japan to Guatemala, but problems soon arose. "We started having delivery issues," says Mossberg. "We had problems getting the sizing and the colors correct. As a result of these quality control issues, our prices started increasing rather than decreasing as it should for an imported product."
Making the garments locally gave Mossberg more flexibility and control over the end-product. And on average, the company introduces one new style per year.
With its own production facility and nearby contractors who can be called on when demand spikes, TLM can go from sold out to fully restocked in four weeks, though typical restocking times average two weeks since the company's running order of raw goods usually prevents product shortages. By eliminating the costs of transporting, storing, loading and unloading, Mossberg says TLM can offer its clients a uniform that costs the same price they would pay for a competitor's imported product.
Source: Industry Week, http://industryweek.com/
It's Beneficial to Know Just What Your Supplier Think of Your Supply Management Abilities
In supply management, we measure slightly different items: our teams' accomplishments, our suppliers' performance, our company's use of our services, the effectiveness of our technology and so on. While we are busy conducting measurements and evaluating results, we should be aware that we are also being measuredby our suppliers.
Proactive supply management teams realize they are also under the measurement microscope. As such, they want to know how they are faring according to their suppliers. In an ideal business world, your suppliers would initiate an assessment of your relationship. However, few companies report their suppliers initiating this endeavor. Therefore, it is incumbent upon supply management organizations to take matters into their own hands by conducting their own survey of their supply base.
Source: Inside Supply Management, http://www.ism.ws/
Lean Initiatives Paying Off, and Fairly Quickly, Study Finds
Manufacturers pursuing lean are already well on their way to achieving competitive differentiation by satisfying customers and driving operational improvements. AberdeenGroup's new "Roadmap to Lean Success: Measurement and Control" study characterizes some of the lean efforts already under way:
92 percent of best-in-class companies are pursuing lean for operational excellence
69 percent of best-in-class are looking to improve profitability
39 percent of companies have improved schedule attainment by over 40 percent
29 percent have boosted first-time quality results by 40 percent or more
14 percent enjoy at least a 6 percent uptick in bottom-line profitability
Given the successes achieved by companies overall, it's not surprising that best-in-class performers are gravitating to lean for operational performance improvements and bottom-line results, and have the highest expectations for their lean initiatives. Of those best-in-class companies that have started lean initiatives, 100 percent expect to recoup their investment within one year; 59 percent are even more ambitious, setting their sights on breaking even within six months.
Source: Managing Automation, http://www.managingautomation.com/
You Must Put Intelligence in 'Sense' and Fast Action in 'Response'
In the supply chain, you need to sense and know what's going on inside the company as well as what's going on outside the company, downstream and upstream, says Hau Lee, professor of operations, information and technology at Stanford University's Graduate School of Business. You need to have much better information inside out. When you figure out what's going on, you will be able to create a plan of action and be able to execute it. The common mistakes company make is just gathering information and having overloaded information. They try to capture signals. But when you are overwhelmed with thousands of signals, what would you do with it? You have to have a way to understand what are the reasons that caused the signals, try to create intelligence out of information. When you respond, you have to respond fast. It doesn't do you any good if you could respond, but miss the time window. The selling season is short and competitors are doing something during the same time. If you are not able to respond fast, the opportunity is gone forever. So I think you have to put intelligence in the sense and put fast action in the response part.
Source: MoreRFID, http://www.morerfid.com/
Click here to subscribe or renew your subscription to Global Logistics & Supply Chain Strategies magazine
Wireless Technology
The push toward a real-time enterprise demands that supply chain data be collected and relayed at the point of transaction, whether in the warehouse, on the loading dock or at the customer's door. Wireless technologies are key to enabling this capability.
In the October issue of Global Logistics & Supply Chain Strategies magazine.
|
Back to top
|
|
|
|
|