“Life shouldn’t be about the either/or. We’re capable of more than that, you know?”

Where “logistics capabilities” reside

Three factors affect what a transport, shipping or logistics company can and cannot do: Its resources, its processes, and its values. When thinking about what sorts of innovations their organization will be able to embrace, managers need to assess how each of these factors might affect their organization’s capacity to change.

Resources.

When we ask the question “What can this transport company do?” the place most managers look for the answer is in its resources—both the tangible ones like people, equipment, technologies, and cash, and the less tangible ones like product designs, information, brands, and relationships with suppliers, distributors, and customers. Without doubt, access to abundant, high-quality resources increases an organization’s chances of coping with change. But resource analysis doesn’t come close to telling the whole story.

Processes.

The second factor that affects what a logistics or transport company can and cannot do is its processes. By processes, we mean the patterns of interaction, coordination, communication, and decision making employees use to transform resources into products and services of greater worth. Such examples as the processes that govern product development, manufacturing, and budgeting come immediately to mind. Some processes are formal, in the sense that they are explicitly defined and documented. Others are informal: they are routines or ways of working that evolve over time. The former tend to be more visible, the latter less visible.

One of the dilemmas of management is that processes, by their very nature, are set up so that employees perform tasks in a consistent way, time after time. They are meant not to change or, if they must change, to change through tightly controlled procedures. .

Values.

The third factor that affects what a logistics company can and cannot do is its values. Sometimes the phrase “corporate values” carries an ethical connotation. But within our framework, “values” has a broader meaning. We define an organization’s values as the standards by which employees set priorities that enable them to judge whether an order is attractive or unattractive, whether a customer is more important or less important, whether an idea for a new service is attractive or marginal, and so on. Prioritization decisions are made by employees at every level. Among salespeople, they consist of on-the-spot, day-to-day decisions about which services to push with customers and which to de-emphasize. At the executive tiers, they often take the form of decisions to invest, or not, in new services or routes, and processes.

The larger and more complex a shipping, transport or logistics company becomes, the more important it is for senior managers to train employees throughout the organization to make independent decisions about priorities that are consistent with the strategic direction and the business model of the logistics company. A key metric of good management, in fact, is whether such clear, consistent values have permeated the organization.

 

Sources : Easyfresh News https://easyfresh-logistics.com/news.php?nid=337 & Harvard Business Review

 

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2020 EASYFRESH

AMERICAN E-MEETING

20 OCTOBER