Key to Business Sustainability – Beating the Commoditisation Trap

Transforming your ticket to the game into business sustainability

These days the ability to provide a 3^rd party logistics service (freight management, freight forwarding, contract logistics etc.) is simply a ticket to the game: it may open doors, but it puts the business in the commodity space, where the lowest price wins.

Leveraging the whole picture for sustainability

If the people in your organisation have the tools to speak the language of Supply Chain Management and to offer solutions across the whole supply chains of your customers then you are adding huge value: monetising that value is what will sustain your business.

To attain such an objective implies radical changes at a strategic level: sustainable 3^rd party logistics providers have the ability to collaborate with others in building end to end solutions and the ability to integrate systems so that the implementation of such solutions is seamless and transparent down to the last nut and bolt in every transaction.

It is the people within your organisation who must be empowered to make all of this happen and in this context it is those responsible for training who are the critical change agents in such a transformation.

From the training manager’s point of view, for such a transformation to be successful, it needs to take place at all levels. The whole of your company needs to have an awareness of supply chain management terminology and its role in your customers’ respective supply chains, people at operation level need to have certain foundational competencies in the different aspects of supply chain collaboration and integration, those at supervisory and operations management level need to be proficient in these areas whilst those at, or aspiring to be, senior managers need to be experts.

To bring your company to these levels is not cheap and the secret to cost effective training interventions lies in establishing firstly the specific competencies required and then what is already available within your organisation.

Just as the 3^rd party logistics provider needs to use consultative selling techniques to find out exactly what the customer wants and to tailor solutions to meet those needs, so you need a training provider to work with you in mapping your organisation’s competency needs and how these should be met. Such solutions must be structured to meet individual needs down to study unit level and to make use of the best blend of face to face and elearning methodologies. For honing the sword of your company’s ability to stand out in the crowd, at least some of these solutions will need to be developed and delivered in house.  

For successful training programme development and maximum delivery impact it is essential that those responsible for training act as the bridge between your organisation’s departments its training providers.

For the person who will act as this connection, these are some tactics for building the bridge to your business units:

Obtain copies of annual reports, strategy documents, team meeting minutes or notes, and any other documents that can give you a sense of what is important to the business.

Participate in team and/ or strategic meetings and invite line managers or supervisors to join you for meals;

Show an interest in the business and their challenges by asking questions which will help you understand their language and speak it.

Above all, ensure that the impact of your training programmes is evaluated, both immediately and some time after delivery and that the data so obtained is used to continually improve your and your training provider’s programmes.

The key to building bridges is to first establish each individual’s needs in relation to the organisation’s strategy. Training interventions need to be prioritised in terms of the needs of the business, not your training department.

How does your company rate as a provider of solutions as opposed to a deliverer of services?

Does your whole company speak the language of supply chain management or is there still much work to be done?

Is the lack of skills a constraint to your company’s growth? If so, how can you address this?

Would you classify your company as a mover of cargo or a manager of inventory whilst at rest or in motion? Are you comfortable with this?

Your input will be much valued. Please join the discussion 

Change management - strategic weapon for competitiveness

Gap between intent and implementation

2014 supplychainforesight respondents ranked lack of relevant skills and talent as the number one strategic business constraint. Whilst skills development of employees ranked as a top area for investment for long term gain in supplychainforesight 2015, this is seen as an area of clear intent but lack of implementation.

This article outlines the necessity for bridging this gap.

Arming for Change

Why is there a hesitation on the part of organisations to invest in skills if possessing relevant skills is identified as having the biggest positive impact on achieving a sustainable future?

Since “Identifying and managing change” is the top strategic objective in this year’s supplychainforesight survey, what strategic constraints were identified as preventing this from happening? The top 3 were: - (lack of) willingness to change/breaking old habits/relationships, supply chain information and intelligence and reactive vs. proactive approach.

These constraints can be addressed by training, provided it is understood that training is a process which will lead to changes in behaviour, performance or both. Of these constraints, the second (supply chain information and intelligence)  is a technical competency which will require some theory and a great deal of practice to impart. Such a need responds well to formal training.

The first and last constraints (willingness to change/breaking old habits/relationships and reactive vs. proactive approach) provide the biggest opportunity for business sustainability because they are attitudinal. They inevitably require substantial behavioural and cultural changes which in turn indicate a more holistic approach aimed at both the organisation and the individuals in it.

Change initiatives are time consuming and costly, significantly impacting the organisation’s drive toward success. Since we are living in a climate of rapid and radical change, supply chain organisations need to resolve how to successfully adapt and sustain change.

The first step requires the whole company to participate in workshops whose purpose is to identify why there is a need to change. Unless each person within the organisation can see for him or herself what is happening out there to necessitate changes in the way the company does its business, very little will happen. Such recognition can only be achieved through participation at all levels in workshops where senior management identifies strategic threats and opportunities whilst those at the coalface recommend the changes needed to deal with them.

By incorporating these recommendations into the company’s future strategy, top management will win the hearts and minds of those who must behave differently if the initiatives are to deliver and sustain their strategic benefits.

Whilst this consultative approach to developing organisational strategy will identify the need to change, it must also identify the measurable indicators which will show that the organisation has achieved its change goals and the target dates by which they need to be achieved.

At the heart of this method lies the identification of the key skills which will transform the organisation. An adaption of an old saying is very apt, “To change into what we’ve never been before, we need to do what we’ve never done before”.   To do what we’ve never done before means acquiring the relevant skills to do those things and this is where the winners emerge from the pack. Companies that will thrive in this climate of radical change are those which are aggressively upskilling each team member so that they are equipped and confident to thrive in a changed environment. This means not only the acquisition of new, “hard” technical skills but also the “soft” skills needed to adapt to change.

One of the most exciting things about managing change is that the job is never done: no sooner have we transformed the organisation to meet one set of changes than there will be a new set of changes facing us.

In conclusion, the important factor that makes organisations effective at change is having a culture that embraces continual change. After all, delivering strategic change is only half of the story. The other half is all about sustaining the change.

Is your organisation proactive or reactive when it comes to change?

What steps are you taking to bring about a culture of change in your organisations?

What skills do you see as being key to a sustainable future in the supply chain management field?