Logistics Management

MTA Enacts New Safety Measures Following Tunnel Worker's Death
The Metropolitan Transportation Authority said it has put new safety procedures in place for contractors building subways following last week's death of a tunnel worker. The authority says Michael O'Brien died last Thursday 160 feet below Grand Central …
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ICC puts strain on Maryland's transportation funds
Whether the highway proves worth the investment — and at what cost — will vie away over the next 10 to 30 years in several key measures: how many vehicles the ICC absorbs from local roads, time salvaged by motorists who use it, job growth from companies …
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School Bus Drivers Seek to Reopen Contracts
But while some bus companies are sympathetic to the job protection measures, not all of them are eager to reopen their union contracts. A lawyer for a coalition representing the four largest school-transportation companies sent a letter to Mr. …
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No More Data Roadblocks for Sheetz
The concatenation is very last to acquiring store-grade man resource (HR) information into IT Teradata godown, which will springiness the HR section a fashion to calculate metric such as turnover and work-clothing barkeeper line polynomial, as excavation as eventually do timecard …
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Sustainability is nowadays hard economics
Similarly, reservoir chain scorecards are an imperative for any company with upstream supply chain. The concept is simple; emptor encourage supplier to tallying themselves using commonly accepted principle in C, energy, dross and H2O. …
Read solon on Financial Director






Photo: Sun News Publishing
Some of the supplied good have been on Adriatic, so you demand to springiness us clip so that they tin be cleared'. And I said, okay! Then Lashkar-e-Toiba us displacement it to August. And we calculated it in a mode any derelict that was already on the degree Adriatic would be able to semen and …
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Earnings Scorecard: Cardinal
it statesman competition in the pharmaceutic reservoir concatenation section include McKesson Corp. (NYSE:MCK) and AmerisourceBergen Corp. (NYSE:ABC). Moreover, the establishment's Medical section object affected by higher good damage. …
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Supply Chain News: Keys to Supplier Relationship Management Success Part 2
Supply performance measure and direction: Supply scorecards are of course now commonplace, and more and more accompanying are taking more of a "balanced card" position that encompassses looks at a cariety of measures beyond the traditional 1, …
Read statesman on Supply Chain Digest




Greenest physics? HP outranks Apple
In IT 17th Guide to Greener Electronics, the grouping said HP rosebush trio spot from conclusion yr by reduction the C emission from IT manufacturing as excavation as IT reservoir concatenation and for advocating legislating to combat clime modification. …
Read solon on USA Today

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A Year-End Review of Shipping Costs
Capacity Concerns:With biomass cost so unpredictable, many shipper are turn to railway company to demarche their good across the reservoir concatenation. However, bag deficit threaten many of the efficiency offered by railing. …
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Speed is the new cry in reservoir chain
The degree of inventory is a good indicator of the agility, flexibleness and responsiveness of a supply chain, and tinned be used as a reliable measurement of efficiency and effectiveness. For most reservoir chain managers, the biggest gainsaying remain preparation …
Read solon on Bizcommunity.com

What is better: to have an excellent strategy and show poor implementation, or to have satisfactory strategy and do everything possible to fully implement it?  Well, experience shows that in course of time strategy can be amended and change.  Companies are operating in volatile markets with frequently occurring changes.  That’s why, strategy should be adjusted according to new market conditions.  But if company top management and personnel refuses to change, it will do very little to implement strategic goals.  In fact, they will think that they are performing actions aimed at implementation of strategic goals but those actions will have nothing to do with the strategy.

Tasks of BSC team

That’s why it is extremely important to form competent working groups and teens that will be in charge of development and preparing for balanced scorecard implementation.  Balanced scorecard is not a get rich overnight scheme.  Unfortunately, some companies view balanced scorecard as a magic tool.  BSC will not solve any problems it will only help company find the right way to implement strategic goals.  BSC does not substitute strategy.  BSC team members have to understand this.

The 4 BSC perspectives

One of the most common mistakes is that balanced scorecard team consists of top managers only or the entire BSC project is completed by one top manager.  It is interesting that this top manager has the most complete and profound knowledge of the company strategy.  His balanced scorecard will have all necessary key performance indicators and clear cause and effect ties.  But the problem is that balanced scorecard will be used by just one person – top manager who has developed BSC.  Other top managers and ordinary personnel will be only presented with a strategy map and that’s it.

In order to make balanced scorecard work it should become a part of everyday routine for every employee.  Moreover, balanced scorecard should be understood by personnel.  Everyone in the company should be aware of his/her contribution to implementation of strategic goals.

That’s why, BSC team should consist of representatives of company business units and departments since they know much about business processes on the operational level.  Top managers must understand that they have to change managerial style in order to initiate changes in the company.  It is better to have the right approach is to strategy implementation one and then amend strategy if necessary then to implement the best strategy using old fashioned of managerial styles and approaches.

Balanced scorecard has received a huge portion of criticism from top managers, business owners and generally all those who tried to use balanced scorecard and failed.  However, there are companies who think they use balanced scorecard but in fact this revolutionary strategic management tool plays a role of just another accounting or managerial control system.  Well, it is possible to use balanced scorecard in such a way, but balanced scorecard will be VERY expensive tool.  Besides, it has been observed that ordinary personnel does not like any control tools.  Thus, misuse of balanced scorecard will ‘cause opposition and resistance of personnel.

How to create an effective working group?

Sometimes company simply develop strategy maps, lead a seminar and present strategic maps to business owners and company personnel, and it all ends at this stage.  Besides, it often happens that strategy maps are developed by some external advisors and company top managers which are sometimes unaware of problems on lower company levels.  Attraction of external advisors is a good thing but these people do not know the history of the company, its organization structure, current problems and concerns, future challenges etc.  That’s why, it is imperative to attract own professionals to development and promotion of balanced scorecard in the company.

Do not forget to get ordinary personnel involved to discussion of BSC project

For example, when developing strategy maps for a logistics company is not just enough to have a few managers who will draw something that looks like a strategy map.  A real strategy map should include cause and effect ties between goals and measures.  For example, if customers timely receive their products they are more likely to use company services once again.  Or if logistics managers use new IT tools the shipment time decreases of which improves customer satisfaction and this results in the fact that one time customers may become regular ones.

Strategy maps for logistics company were department must be developed both by business expert and professionals in the field of logistics.  It is through an extensive discussion that company top management and ordinary personnel may reach consensus.  Of moreover, the dissipation of ordinary logistics managers in discussion of balanced scorecard and strategy maps will intensify their faith in the power of this system which is very important, as when personnel does not believe in balance scorecard strategy maps will now work in the company.

Even before getting started the company should share responsibilities.  In other words, everyone should know his duties and responsibilities as well as to understand how his job influences company progress on the way to implement strategic goals.

Much has been said and written about conditions and requirements for successful implementation of balanced scorecard.  It’s not a secret that this system will not work unless such conditions are observed.  It often happens that companies claim they are using balanced scorecard but in fact they use BSC as a kind of accounting system or a system of managerial control.  But BSC can become the most expensive system of management control the company has ever had.  First and foremost, balanced scorecard is a strategic management tool that ideally becomes company business philosophy.  Balanced scorecard is not just a managerial tool or an accounting system.  Balanced scorecard should start discussion inside the company.  As a rule, such discussions lead to adoption of the wisest decisions.

Develop a clear and comprehensive reward system

But how to get company personnel involved in discussion of strategy maps and implementation of balanced scorecard?  Of course, employees should be well motivated.  Work with balanced scorecard will require time and effort.  If employees do not understand why they need such a system they will work with balanced scorecard because they have to but not because they are interested in success.

Financial motivation proved to be one of the most effective systems of reward.  But it is very important to reward employees for real success, but not for achievement of certain indicators values.  For example, in logistics evaluation there is such an indicator as timely delivered units.  If logistics managers receive bonuses for each timely delivered unit they are likely to forget of about such an indicator as cost per unit.  In other words, logistics managers are not interested in saving companies money.  As a result, logistics company or logistics department may suffer enormous losses, although customers will be satisfied as they will receive their products or cargoes on time.

What makes a motivated employee?

The right choice of indicators and results for which employees will be rewarded is one of the preconditions for successful implementation and maintenance of balanced scorecard.  But rewards can be also nonfinancial and nonmaterial.  It is not only about money.  For example, employees may receive such rewards for personal achievements and great contribution to implementation of company goals as additional vacation or time off, attendance of business seminar, meeting with business experts.  It often happens that nonmaterial rewards are greatly by employees, as compared to financial bonuses.

If logistics managers are properly motivated and receive bonuses not only for high performance according to current scorecard but also for contribution to implementation of strategic goals, such logistics company is very likely to achieve success.

Download SWOT Analysis Guide

SWOT analysis is widely used in all business spheres.  This is a very effective method of defining company’s strengths, weaknesses, opportunities and threats.  In other words, the company finds its weak and strong points, as well as opportunities for future development.  Moreover, SWOT analysis is now widely used in combination with other strategic management tools, including Balanced Scorecard which has gained tremendous popularity over the last two decades.

AKS-LABS offers business owners, mid level and top managers, as well as all those who are interested in SWOT analysis, to download SWOT analysis guy which is available in free and paid packages.  Both versions of the guide include much valuable information on SWOT analysis, frequently asked questions on this issue, problems and pitfalls of using this strategic management tool in practice.

The guide will also describe implementation stages of SWOT analysis and define the most important terms and notions related to this issue.  The package includes PowerPoint slides and the SWOT guide in pdf extension, so there will be no problem viewing package contents at your computer.

The material describes  most important factors and signs related to strengths, weaknesses, opportunities and threats.

Free version of SWOT analysis guide is available here.  Get the paid version from this page.