PERC steps up campaign to use propane as today’s decarbonization solution
The new study underscores the need to transition to clean energy sources, like propane, as soon as possible The Propane Education & Research Council (PERC) emphasizes the need to accelerate decarbonization today with clean energy sources like propane. A new study from the National Oceanic and Atmospheric Administration (NOAA) found atmospheric levels of carbon dioxide peaked during May 2021 to the highest levels ever recorded at an average of 419 parts per million. “The equipment and energy sources used to move materials daily can have a radical impact on a company’s carbon footprint,” said Matt McDonald, director of off-road business development for PERC. “As the industry continues to fight climate change, we want to encourage material handling professionals to look to propane as a solution. Propane’s environmental performance makes it the perfect energy source for forklift fleets across the country.” Supply chains contribute significantly to a company’s carbon footprint. In fact, carbon emissions in supply chains are, on average, four times those of a company’s direct operations. Forklift fleets are often the workhorse of these operations, creating an opportunity for warehouses and distribution centers to significantly improve their carbon footprint. Propane is a clean, low-carbon alternative energy source and, when used to power forklifts, can reduce greenhouse gas emissions by up to 16 percent compared with gasoline forklifts, sulfur oxide (SOx) emissions by 76 percent compared with electric equipment, and nitrogen oxide (NOx) and hydrocarbon emissions by 94 percent compared with diesel models. Propane’s edge over electric comes down to electric full-fuel-cycle emissions including those produced in the manufacturing, transportation, and disposal of electric forklift batteries. Propane’s low-emissions profile allows the equipment to safely operate indoors (in properly ventilated environments) and outdoors. In fact, well-maintained propane forklifts meet or exceed nationwide indoor air quality standards.
Forks in the road
Hope you noticed I used a plural for the word “Forks”. Did it on purpose because every company out there will have many decision points to consider regarding post-pandemic activity, many of them uncomfortable to discuss but in some shape or form necessary to deal with. And when you add the “forks” into the mix it seems managements time will be increasing preparing plans for ’22 and beyond using gameplans that are drastically opposed to one another. Almost every line item on your balance sheet and income statement will be in play, with your goal to ensure adequate cash flow to cover debt service as well as operating expenses. Easier said than done under current circumstances because of all of the variables (forks) that need to be considered. And not only do you need to dive deep into your financial needs but also have to take into consideration your customer needs for the periods under consideration, because it does not make much sense to devise a game plan for 2022 and 2023 only to find that customer needs are materially different from what you plan to offer. You are probably wondering what forks we are talking about. The inflation/deflation possibilities are the choices because you will need to decide which horse you decide to ride but also plan for both. Read on to see why. If you guess right good for you. If you guess wrong, you have trouble. But why guess when you can be proactive getting in front of customers to see how you can help going forward. Being that most of your customers deal with large inventory investments they may need to become more efficient or cut costs to assist with debt service issues. If I had to guess a good number of customers are worried about customers coming back online and their ability to service those customers. Then they need to think about getting paid, interest rates, and wages along with cost inflation or potential deflation if they need to liquidate inventory. You have been hearing mostly about inflation fears for the balance of the year and probably into next year. Probably true and probably short-term except for the “sticky” inflation that is tough to reverse, such as wages. But after much reading and research, it is just as likely that deflation could precede inflation by about 15 quarters or more because of debt levels causing above-average debt service demands. The technology could also produce new products for a lower cost. In short, there is a possibility customers may have to liquidate excess inventory to generate cash to pay vendors and bankers and at the same time find lower-cost products coming online to replace what they sell. History tells us that debt bubbles (as we are in now) produce inflation increases as a lagging indicator because debt issues slow growth and cause prices to decrease because companies have to reduce prices to meet debt service needs. The lag is about 15 quarters or four years. So here is one of the forks you need to deal with. Are you planning for an extensive high inflationary period starting in 2022 and what that would mean in terms of employee needs, inventory needs, marketing, and sales upgrades as well as any related costs to execute such a program? Or will you plan based on the other side of the coin with deflation more prevalent because of businesses dealing with debt issues producing a need to unload inventory and assets as well as costs to produce positive cash flow? If a majority of your customers find themselves in this debt bubble scenario dealers could wind up facing lower revenues, excess inventories to finance, and bank covenants that are going to be hard to meet. Had you picked the low inflation plan and assume customers will be in a similar situation most of your offerings to major customers would be to make them more efficient, help them sell off used material handling equipment, and assist on cost reduction where you can. When you stop to think about it there are so many financial scenarios to consider regarding 22 and 23 that you should probably consider quarterly plans for both situations; higher than normal inflation levels for some time to come; and another pushing out the higher inflation out four years taking into account cash flow and debt service issues, customer bankruptcies, excess inventory levels, AR collection problems, and lower rental activity to name a few concerns. Some folks are suggesting we head back to a ZERO-BASED budgeting approach as a middle-of-the-road approach to start with. Not a bad idea and with the gig society out there the ability to cut payroll costs and at the same time pick up some expertise to assist with the budget process is there for the taking. In the end for every fork, you decide to go down there will be other forks to consider before we get back to normal, whatever that may be. A conservative approach seems to be more risk-averse. But if you have another plan on your shelf to apply to a more robust inflation cycle you can operate with lower risk until the time comes to change the game direction. All things considered, talking to your customers should be #1 on your list before making any final decisions. About the Columnist: Garry Bartecki is a CPA MBA with GB Financial Services LLC. E-mail editorial@mhwmag.com to contact Garry.
Job Shock: Solving the Pandemic & 2030 Employment Meltdown Part V: Talent Rx: RETAIN Partnerships
The COVID-19 pandemic has triggered widespread doubts about the future. The U.S. job market is in chaos. At the end of April 2021, the U.S. Bureau of Labor Statistics reported an unprecedented 9.3 million job openings across many business sectors. Might this finally be the right time to start anew and find fresh solutions to the skills-jobs shock now underway? Today’s unprecedented economic upheaval presents an unprecedented opportunity. There are millions of unemployed on the one hand, and rapidly evolving job-skill needs on the other – providing a way for the former to solve the latter’s problem. Communities across the United States have a diversity of underdeveloped talent. They badly need local pathways that promote equity by offering high-quality educational opportunities that are accessible to everyone. This means providing more students and workers with enhanced talent development programs aligned with personal aptitudes and interests and the needs of local businesses and organizations. The current U.S. labor market is in desperate need of more people who have developed their cognitive, interpersonal, and leadership skills. People who can problem-solve. These people aren’t going to drop from the skies. You can’t click for brains. How can we successfully prepare more people for the skilled jobs of today and tomorrow? RETAINs Across the United States at least 1,000 non-profit groups have organized to reinvent local talent-delivery systems. These public-private partnerships bring together a broad cross-section of community groups, such as parent organizations; chambers-of-commerce; elementary, secondary, and higher educational institutions; workforce boards, regional economic development commissions; local government units; unions; service clubs; foundations and other non-profit social welfare agencies. To provide a descriptive term for such organizations, we coined the term Regional Talent Innovation Network (RETAIN). They have many local brand names, such as The New North, High School Inc., the Vermillion Advantage, ConxusNEO, and Manufacturing Renaissance. RETAINs began in the 1990s to respond to the economic erosion of their communities. Instead of seeing their young people move elsewhere for employment, they sought to retain them in their communities. Keeping the population stable also enabled communities to retain local businesses and thus stop the erosion of the tax base. Once these communities built a skilled workforce, they could attract new businesses to locate there. In the short term, RETAINs build a network in which local businesses collaborate with training organizations, educational institutions, and in-house training departments to provide training for vacant jobs and to upskill current employees. This both enables employees to move into higher-skill/higher-paying jobs and enhances the profitability of local businesses through the more efficient use of new technologies. Access to pooled resources makes these training collaboratives particularly beneficial to smaller businesses that cannot afford to provide their own in-house training. In the long-term RETAINs update educational programs at all levels starting in elementary schools and extending to a wide variety of post-secondary options including certificate and apprenticeships programs. They work to harmonize existing educational programs and devise new ways to fill in skill gaps. RETAINs help reconciles funding streams and secures new revenue to integrate K-12, career education, higher education, and adult training. We agree with a Wall Street Journal editorial (June 9, 2021) that failing public K-12 schools are the “root cause of America’s skilled-worker shortage.” K-12 schools are locally controlled. The purpose of a RETAIN is to foster communication and cooperation among diverse community sectors. Many students today lack motivation as they find schooling too abstract and unrelated to the “real world.” K-12 students and teachers need active connections to local employers in order to learn about the education and skills required for careers in today’s workplaces. Local businesses need to interact with public and private high school students through sponsoring career education programs, internships, and other activities that allow students to explore career areas that align with their aptitudes and interests. RETAINs see themselves as joint partners in community building and in the renewal of the U.S. free enterprise system. They are rebuilding the pipeline that connects their community members to the job market. The keywords here are “bottom-up collaboration” – defined as a joint authority, joint responsibility, and joint accountability among all the partners. RETAINs Can Make a Difference The good news is what we can expect if RETAINs are instituted across America to rebuild the U.S. workforce. In 2030 the U.S. economy will support about 170 million jobs; 128 million of them will be high-skill or mid-skill jobs. RETAINs can increase the expected 56 million high/mid-skill workers by retraining 30 million additional workers and preparing 10 million more students for skilled employment. Combining these job-ready workers with additional automation will reduce the number of vacant jobs across the economy. There still will be a substantial, but not an overwhelming number of surplus workers. However as more communities use the RETAIN model to sustain job-ready workforces, the number will fall. The American middle class will grow again as high-wage employment rises. Moving Forward The COVID-19 pandemic has heightened Job Shock in the United States and around the globe. It has disrupted schooling leaving the economically disadvantaged even further behind. Millions of workers have either changed jobs or faced unemployment. Education and training solutions are more vital than ever before. RETAINs can be an important force in preparing students and workers for positions in America’s fast-paced, technologically driven, knowledge economy. Regional development can better support broad economic expansion and ensure that the United States remains a highly competitive global economy. The next segment of “Job Shock” will focus on local RETAIN case studies. What do they do? How do they succeed? Who supports them? The monthly Gordon Report Webinars will be focusing on key topics of the “Job Shock White Paper.” For more information on signing up or viewing these webinars, go to www.imperialcorp.com/whats-new/webinars or go to www.MHWmag.com for parts 1, 2, 3, and 4 of this series. About the Author: Edward E. Gordon has consulted with leaders in business, education, government, and non-profits for 50 years. Ed is a big picture thought leader connecting the employment dots between business, education,
Keeping good salespeople is harder than finding them
Hiring a great salesperson is one thing. Keeping him or her on the team is another. Often the manager or boss is too busy scrutinizing and measuring the salesperson’s performance, and ignoring their own part of the partnership. The part necessary to support, build and keep a great team. What are you doing to keep your salespeople? Here’s a list of 24.5 elements to build and grow a stellar sales team: Structure a fair compensation package that is commission-based. The more they sell, the more they earn. People get into sales because it’s got the potential for great financial rewards. Create an attractive package. Give them the tools to sell with. Invest in the best support tools money can buy. They help salespeople sell, and they’re a reflection of the quality of your business in the mind of the prospect. Equip them with 21st-century technology. Or they will die at the hands of the competitor who is equipped. Smartphone, tablet, laptop computer at a minimum. Have the best company in the world. Someplace with a great reputation where they’re proud to work. Have an inside team of people that does not fight with, or resent salespeople. Sales wars (battles between sales and production, administration, and credit) end up killing the customer. Be the best boss in the world. Have the same consistent positive attitude you expect of your people. Have a manager who is a better salesperson than anyone on your team. Otherwise, the respect factor, and pull-the-wool-over-the-eyes factor increases. Reward sales with money. Nothing happens until a sale is made. Have a generous compensation package that rewards success. If they succeed, pay them well. Acknowledge achievement. Have award certificates (not just for sales) to show employees they have achieved excellence or exceeded a goal. Recognize in front of others. Have victory celebrations. Ring a big bell when a sale is made. Instill pride for sales. Have incentives and contests to keep it competitive. Dangle the carrot, whet the appetite, get them to go for the brass ring. The bigger the prize, the bigger the effort. Reward repeat business. If a customer reorders, it means they were satisfied with the way they were sold and served. Pay a larger incentive the second time. Reward referrals. When one customer refers another customer, it’s the most profitable sale. Referrals are hard to get (earn). But once you do, it’s the easiest sale to make pay handsomely someone has earned it. Reward business was taken from others (accounts from the competition). Taking business away from the competition is a big event that should be celebrated, rewarded, and dissected to see how to repeat it. Reward testimonial letters received. Testimonial letters are the only proof you’ve got. Pay a big reward for the letters that overcome objections. Have regular sales meetings. Air out the field or phone problems, let salespeople have a chance to discuss their challenges and successes. They will learn from the leader and each other. Have an agenda and follow it. Have regular sales training. A weekly sales meeting should include 15 minutes of training. Weekly meetings, a quarterly 1-day training, and an annual 2-day retreat are minimum standards for sales growth. Have regular personal development training. Your team must grow personally in order to achieve sales growth. Train in attitude, goals, responsibility, listening, pride, communication, and change growth elements fundamental for success. Set realistic and achievable goals. Work on sales goals with the sales force. Get them to agree that they’re realistic and achievable then get them to write a plan for their achievement. Every six months ask your sales team what you need to do to help them make more sales. Get them to write a blind (no name) report about situations and needs. Act on them. Have them print out sales reports every week by prospect status. Don’t track salespeople by time (what they did on Tuesday). Track them by account. Look at the sales cycle and the follow-up activity. If you have laptops and contact management software (CRM), a sales report is a one-button act. Don’t talk trash behind their backs. Don’t grumble about their poor performance, help them or fire them. Reprimand in private. No one likes (or deserves) to be ridiculed in front of others. The best way to reprimand is over a meal and have a game plan for improvement. Encourage them. Banners, letters, posters, words, and phrases of “you can do it” goes a long way towards getting it done. 24.5 Don’t let them run you. Tell them what you expect, and follow through to be sure it’s done. Salespeople have all the power you need to achieve your success if you harness it. This list is by no means complete, but it’s a solid foundation to keep your team at peak performance. To ensure the success of your sales team, measure performance two ways, theirs and yours. There is also a huge side-benefit; when you have a great, productive, high-earning team, the word gets out. The “law of attraction” kicks in. Good salespeople will call and want to work for you. What a great dilemma to have. Jeffrey Gitomer is the author of twelve best-selling books including The Sales Bible, The Little Red Book of Selling, and The Little Gold Book of Yes! Attitude. His real-world ideas and content are also available as online courses at www.GitomerLearningAcademy.com. For information about training and seminars visit www.Gitomer.com or email Jeffrey at salesman@gitomer.com or call him at 704 333-1112
Departmentalization leads to Compartmentalization
It always amazes me how as dealers, we all tend to organize ourselves the same way. I suppose I really shouldn’t be amazed. In any industry, there are methods and processes that are proven to be efficient. These methods become “best practices” in the industry, and the effectiveness of the process should naturally draw most of the participants to mimic the most productive model. Financially the “best practices” in our industry call for the dealership to be separated into 5 or 6 distinct “profit centers” (or departments). We do this because the purpose, expectations, and market focus of each profit center is different. The range of sales revenue, gross profit, expenses, and manpower varies greatly between departments. Consequently, the goalsetting standards and metrics used to measure progress are equally diverse. Normally dealerships define these profit centers as follows: New Equipment Sales Used Equipment Sales Rental Department Parts Department Service Department Integrated Solutions (sometimes included with new sales – other times separated) There is nothing inherently wrong with this separation. In order to set attainable goals and grow all facets of our business, we must employ a segmented approach. This helps us to properly plan where our investments in people, assets, and inventory will provide the best return. When we hire team members for our departments, I think it’s a natural tendency for employees to establish personal goals for success, that are in concert with departmental goals and objectives. This is more than simple “esprit de corps”. Personal commitment to departmental accomplishments may be tied to financial incentives that reward departmental achievement. I have observed that the most successful dealerships SHARE many of their goals with their rank-and-file employees. You have heard me say before that it’s impossible to hit a target that you never hang on the wall. Whether those targets are financial, operational, or behavioral, if you share these objectives, every team member will most likely view them through the prism of their role in their assigned department. All this focus on departments has a downside however that we routinely ignore. One of my favorite business axioms is that “Departmentalization leads to Compartmentalization”. As an example: If my role, my activities, and my rewards are predicated on the success of the RENTAL departments, I will naturally prioritize my efforts based on what is best for the RENTAL department. The emergence of this “silo” mentality is a common internal enemy in any multi-profit center organization. Naturally, we tend to look out for our own interests. Therefore, MY involvement in any particular issue may be mitigated or enhanced by the value that it represents to MY department. By default, my interest is to preserve profitability in MY silo. This danger is more insidious than it seems. Silos can operate on more than one level. Not only do we accommodate departmental silos, but we can also erect branch-based silos. Territorial disputes, inventory allocations, and training support are all areas where our efforts are affected by branch silo concerns. Management may view silo battles, simply as dedicated employees paying attention to the details. We want our employees to be engaged. We want them to watch out for the bottom line. We want them to care about performance. But have we considered at all, how the CUSTOMER is viewing our silo-centric activity? The glaring gap in our customer experience effort may be grounded in our inability (or unwillingness) to defeat the silo mentality. Through all of this noise, one thing remains clear: The customer couldn’t care less about our departments! Customers are not interested in what department is responsible for crafting the solution to their problem. This shouldn’t be a surprise…… customers care about THEMSELVES. Customers care about the part that was ordered next day air, actually showing up the next day, AND BEING INSTALLED the next day. Customers care that we sent the right size forks or the right attachment on the rental unit. Customers care about response time – especially when they have trucks to unload today. Customers care about quality control, PM completion, and parts availability. Customer care about us “getting it”, and about us understanding their urgency. It’s not their job to care about US. It’s our job to care about THEM. They want our relationship with them to be efficient, timely, intuitive, and productive. They want us to anticipate their needs and make their material handling issues almost invisible. None of this can really happen if we are not dedicated to deconstructing silos. If we don’t take silos seriously, we end up with customer communications that sound like: I told the parts department that we needed to order it NDA. The service department was supposed to check the rental before it left. Sales were supposed to contact you about the warranty coverage on that repair. It’s not my fault. That’s not my job. We don’t want to think that we would ever allow a customer experience that includes these responses. The departmental blame game, however, is usually employed as a “last-ditch effort” by a customer-facing employee, attempting to explain the failure. Its roots are fed by the silos, but there are both policy and communication tools that can create an environment where the customer is shielded from ever being subject to our silo-based excuse-making. In my next column (Sept 2021), I will be recommending some operational and policy measures that put critical internal communications and processes in focus. I will also outline suggested customer contact protocols when delays emerge, and commitments cannot be kept. In the October issue, I will challenge dealers to rethink their systems of departmental incentives and rewards. We cannot expect to deconstruct silos if the motivation behind building them remains in place! We mix our message when we say that customer satisfaction is our number one priority, then base our entire reward system solely on profitability. Although we tend to universally use a system that rewards RESULTS (sales, profits, and expenses), it may be prudent to investigate a system that rewards BEHAVIORS. My experience
June 2021 Logistics Manager’s Index Report® (second-highest in the history of the index)
LMI® at 75.0 Growth is INCREASING AT A DECREASING RATE for Inventory Levels, Inventory Costs, Warehousing Utilization, Warehousing Prices, and Transportation Utilization, Growth is INCREASING AT A DECREASING RATE for Transportation Prices Warehousing Capacity and Transportation Capacity are CONTRACTING June 2021’s LMI comes in at 75.0, the second-highest in the history of the index. The overall index rate has now come in above the 70-point mark in five consecutive months, the longest streak in the history of the LMI. We also see a new record established in the quarterly three-month moving average from April-June 2021. The reading of 73.6 suggests that Q2 2021 has seen the fastest rates of growth in the five-year history of the LMI – something that seems to reflect the sentiment of many LMI respondents throughout the Spring and early Summer. Much of this growth has been driven by Inventory Costs and Warehouse Prices, both of which read in at all-time index highs this month. Researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score is a combination of eight unique components that make up the logistics industry, including inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50 percent indicates that logistics is expanding; a reading below 50 percent is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in June 2021. As we have seen for most of the last year, June LMI displays continued expansion in the logistics industry. Overall, the LMI is up (+3.7) from 71.3 in May. June’s reading of 75.0 is the second-highest in the history of the index (besting the previous second high-score of 74.5 which was only set two months ago in April). Much of June’s increased rate of growth is driven by movements in inventory. Inventory levels are up significantly (+9.1) to 67.8. Inventory Costs are also up (+5.6) to 89.4, which is an all-time high for this metric. This marks the third consecutive month a new all-time high score has been set. At this time last year, the two-inventory metrics were relatively close, a mere 0.8 points apart. Today they are separated by 22 points. This trend of moderate growth for Inventory Levels with a record or near-record rate of growth for Inventory Costs has continued through much of 2021. In April 2020, the Federal Reserve’s retail inventory-to-sales ratio read in at 1.67, one of its highest readings ever and highest since 1995. One year later in April 2021 (the most recent data available at the time of this writing), the inventory-to-sales ratio registers at 1.07 – the lowest reading ever by some distance. The movement of 0.6 points is the largest one-year movement in the history of this metric. This record movement is not due to lower levels of inventory, overall levels are actually up by 1.3% from the same time last year (and up 4.7% from their nadir in July). The difference lies in retail sales being 48.1% higher in April 2021 compared to April 2020 due to the reopening of the economy and the ending of COVID-19 lockdowns. Taken together with LMI inventory metrics suggest that a high volume of inventory is moving through supply chains at a significant velocity. This velocity has led to low available capacities and high costs, including an all-time high for Warehouse Prices, up (+2.3) to 85.4. Increased logistics costs are a primary culprit behind the 5% increase in consumer prices for the 12-month period ending in May – the sharpest increase since 2008[1]. Consumers have not been deterred by these price increases, the U.S. economy grew at a rate of 6.4% in Q1 2021, and economists expect consumer spending could be up 9% this year – the highest levels since 1946 – the year after the end of World War II. Savings were at 12.4% in May 2021, nearly 50% higher than the 8.3% registered in February 2020 before the lockdowns, suggesting strong demand will continue through the rest of the year [2]. However, consumers will be less willing to absorb increased costs if they are not provided the service levels they expect. One of the key bottlenecks is low available Warehouse Capacity, which is down (-7.7) to 40.7. Other than July 2020 when it grew at a rate of 50.5, which at only 0.5 points above 50.0 is very close to no growth at all, available Warehouse Capacity has been contracting for a full year. Next-and same-day delivery promised by many e-commerce retailers requires a high volume of warehouses located close to population centers. From Q1 2020 to Q1 2021, U.S. where e-commerce sales increased 39.1% [3],[4]. While the majority of COVID-related lockdowns have ended, this growth is likely to continue. E-commerce only made 13.6% of U.S. retail sales in Q1 2021, but this ratio is expected to double to 26% of retail sales by 2025. Industry experts predict that 330 million square feet of warehouse space dedicated to online fulfillment will need to be added in the U.S. by 2025 to keep pace with the anticipated increase in demand [5]. A similar strain is observed in our transportation metrics. Available Transportation Capacity reads in at 34.5 (+1.9) and has been contracting for the past 13 months, with readings in the 30’s – indicating extreme rates of contraction – for five consecutive months. FreightWaves’ tender rejection index, which tracks how many potential truckloads (tenders) are being rejected, has hovered around 25% since Fall 2020, indicating that for every four loads that need to be moved, only three are being picked up [6]. This has led to further shipping delays as well spot rates increasing 46.8% for dry vans and 51.9% for flatbeds year-over-year [7].
Do you have Meatloaf Syndrome?
You’ve likely heard of Meatloaf – the American singer and actor known for his powerful, wide-ranging voice and theatrical performances. In 1993, he released one of his most popular songs, “I’d do anything for love (but I won’t do that)”. While there’s a bit of ongoing discussion about what Meatloaf won’t do for love, the song title actually has applications in the ways we think about and manage change. Take a situation where you were considering a major change. For example, vying for a major promotion or switching to a new career. You make the decision it’s something you want to do. You think about all of the steps needed to get things moving. You talk to friends and colleagues about it. You even prep any needed documentation, research, or coursework to shore up your skills. But then, nothing. You don’t pull the trigger. You “just can’t do that”. Why? Meatloaf Syndrome. It’s a combination of Loss Aversion Bias (preferring to avoid losses to acquiring equivalent gains), Status Quo Bias (preferring the current state of affairs), and Worse-than-Average Bias (the belief we are worse than others at difficult tasks or jobs). While people may say it’s just cold feet, or a hesitancy to pull the trigger. But it’s more than just fear of change. The majority of decisions we make are founded on emotion rather than logic. This emotion doesn’t manifest in a single way – it’s a combination of perceptions, context, and biases. And usually more than one bias. Meatloaf Syndrome inhibits people’s ability to get out of a cycle or circumstance which they want to change. Think about how this not only affects you individually but organizations as a whole. People in companies who are offered promotions they don’t take. People who aspire to contribute in a more meaningful way, but hesitate to take action. People who take on new responsibilities for a period of time, and then request to go back to their previous role. As leaders, we have the opportunity to identify Meatloaf Syndrome and help those employees to work through those biases holding them back. This includes tools like providing mentors, creating “small step” career journey paths, driving positive reinforcement, and developing coaching programs (note that I did not mention training, as we’re talking about influencing emotional drivers, not logical ones). Because why waste great potential over meatloaf? About the Author Andrea Belk Olson is a speaker, author, applied behavioral scientist, and customer-centricity expert. As the CEO of Pragmadik, she helps organizations of all sizes, from small businesses to Fortune 500, and has served as an outside consultant for EY and McKinsey. Andrea is the author of The Customer Mission: Why it’s time to cut the $*&% and get back to the business of understanding customers and No Disruptions: The future for mid-market manufacturing. She is a four-time ADDY® award winner and host of the popular Customer Mission podcast. Her thoughts have been continually featured in news sources such as Chief Executive Magazine, Entrepreneur Magazine, The Financial Brand, Industry Week, and more. Andrea is a sought-after keynote speaker at conferences and corporate events throughout the world. She is a visiting lecturer and Director of the Startup Business Incubator at the University of Iowa’s Tippie College of Business, a TEDx presenter, and TEDx speaker coach. She is also a mentor at the University of Iowa Venture School. More information is also available on www.pragmadik.com and www.andreabelkolson.com.
California Warehouse Executive elected to Industry Board
Members of the International Warehouse Logistics Association (IWLA), the resource for warehouse logistics, recently elected Jeremy Van Puffelen, vice president of business development of PRISM Logistics, to the association’s board of directors. IWLA is the only supply chain industry association focused solely on the needs of third-party warehousing providers. PRISM Logistics is Northern California’s leading 3PL and a family-owned company. He will formally be recognized during the 2021 IWLA Convention & Expo Nov. 3 in San Antonio, Texas. IWLA is a family tradition. Van Puffelen’s father, Jere, served as the 2009-2010 IWLA Chairman of the board. “I have been involved in warehouse logistics all my life,” Van Puffelen says. “IWLA functions and annual meetings anchored even family vacations.” The younger Van Puffelen worked as a warehouseman while attending Diablo Valley College in Northern California, moving over the years from janitor to forklift operator to warehouse lead to supervisor. He transitioned into an office role where he learned the ins and outs of customer communication and managing facilities. Now serving as the PRISM Logistics vice president of business development, he is also a partner in the company. “We’ve doubled the company since 2014,” he says. “I honestly credit the developmental support from the IWLA as a contributor to our success. It’s been a great group for learning that has helped us in so many ways to grow.” “I’m pleased to serve on board of the IWLA, one of our industry’s leading organizations in terms of supporting and developing warehouse logistics professionals and a powerful voice advocating on behalf of our businesses,” Van Puffelen says. The IWLA Convention & Expo, Nov. 1-3, in San Antonio, Texas, will include Van Puffelen’s formal installation to the board. Find out more at www.IWLA.com.
Warehouse Safety Focus of IWLA Fall Event in Atlanta
As the only trade association focused on the third-party warehouse logistics industry, the International Warehouse Logistics Association created the IWLA Warehouse Safety & Risk Conference. This annual event, coming to Atlanta, Georgia on September 8th and 9th, highlights how warehouse operators can keep employees – and the materials they handle – safe. The IWLA Safety & Risk Conference focuses on risk control and safety, best practices, strategies to minimize on-the-job risks, and how these actions improve a warehouse’s bottom-line: Securing Your Facility Keeping Employees and Your Warehouse Safe Understanding Legalized Marijuana Forklift & Truck Inspections & Safety Working with OSHA Deescalating Dangerous Situations Unraveling Transportation Challenges The course is open to any interested warehousing professionals – although most attendees are safety officers or operations managers in their companies. Individuals from IWLA-member companies receive reduced or free tuition. Registration for the IWLA Safety & Risk Conference is open at https://www.IWLA.com/.
EP 194: SVT Robotics
On this episode, I was joined by A.K. Schultz the Co-Founder and CEO of SVT Robotics. A.K. and I connected during ProMatDX 2021 earlier this year to discuss SVT Robotics and their mission to help improve the deployment and integration of robots from multiple vendors. Key Takeaways SVT Robotics is not technically a robotics company from a hardware perspective but they are leading the way in ensuring that robots are here to stay in our industry. They are doing this by making it incredibly easy to deploy and integrate robots and automation solutions from multiple vendors in the same operation. One of the big challenges as technology has developed is ensuring that multiple automation solutions can coexist in the same operation and work together. A.K. and the team at SVT Robotics is tackling that challenge and creating an amazing solution so that these types of scenarios are completely feasible for companies. The solution that SVT Robotics has come up with is the SOFTBOT Platform. This platform creates a standard for multiple robotics and automation platforms to connect to. What this allows you to do is simply configure the setup that you would like in the SOFTBOT Studio by dragging and dropping the different automation solutions you are utilizing. Since all of the background work is done this automatically connects them without any coding or engineering on your end. It is this simple connection that is what is driving these types of multi-faceted operations to move forward with automation. Why is a technology like this so important? As robotics and automation adoption rates increase and the accessibility to these technologies also increases there will be more scenarios where more than one solution is under the same roof. This is inevitable as many solutions are only focused on one process. The key will be ensuring that all of these technologies are able to communicate effectively with each other in order to have continuous flow through your operation and really see the benefits of each solution. SVT Robotics has created the technology to allow this to happen and it will only increase the opportunities for companies utilizing the technology but also the companies creating the solutions. Listen to the episode below and let us know your thoughts in the comments. The New Warehouse Podcast EP 194: SVT Robotics
U.S. Rail Traffic for the week ending July 10, 2021
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending July 10, 2021. For this week, total U.S. weekly rail traffic was 451,825 carloads and intermodal units, up 0.6 percent compared with the same week last year. Total carloads for the week ending July 10 were 210,297 carloads, up 4.3 percent compared with the same week in 2020, while U.S. weekly intermodal volume was 241,528 containers and trailers, down 2.4 percent compared to 2020. Four of the 10 carload commodity groups posted an increase compared with the same week in 2020. They included metallic ores and metals, up 8,599 carloads, to 22,486; coal, up 6,575 carloads, to 58,469; and chemicals, up 923 carloads, to 31,220. Commodity groups that posted decreases compared with the same week in 2020 included motor vehicles and parts, down 2,531 carloads, to 10,316; grain, down 2,120 carloads, to 17,136; and miscellaneous carloads, down 1,403 carloads, to 7,255. For the first 27 weeks of 2021, U.S. railroads reported a cumulative volume of 6,212,822 carloads, up 9.3 percent from the same point last year; and 7,573,595 intermodal units, up 16.8 percent from last year. Total combined U.S. traffic for the first 27 weeks of 2021 was 13,786,417 carloads and intermodal units, an increase of 13.3 percent compared to last year. North American rail volume for the week ending July 10, 2021, on 12 reporting U.S., Canadian and Mexican railroads totaled 295,096 carloads, up 2.2 percent compared with the same week last year, and 309,376 intermodal units, down 5.7 percent compared with last year. Total combined weekly rail traffic in North America was 604,472 carloads and intermodal units, down 2 percent. North American rail volume for the first 27 weeks of 2021 was 18,808,728 carloads and intermodal units, up 11.7 percent compared with 2020. Canadian railroads reported 64,203 carloads for the week, down 6.2 percent, and 51,982 intermodal units, down 20.9 percent compared with the same week in 2020. For the first 27 weeks of 2021, Canadian railroads reported a cumulative rail traffic volume of 4,037,939 carloads, containers, and trailers, up 8.1 percent. Mexican railroads reported 20,596 carloads for the week, up 10.1 percent compared with the same week last year, and 15,866 intermodal units, up 5.2 percent. Cumulative volume on Mexican railroads for the first 27 weeks of 2021 was 984,372 carloads and intermodal containers and trailers, up 5.9 percent from the same point last year. To view the U.S. Rail Charts, click here.
Recognize Safe + Sound Week, August 9-15, 2021. It’s time to register.
Safe + Sound Week is a nationwide event held each August that recognizes the successes of workplace health and safety programs and offers information and ideas on how to keep America’s workers safe. Why Participate? Successful safety and health programs can proactively identify and manage workplace hazards before they cause injury or illness, improving sustainability and the bottom line. Participating in Safe + Sound Week can help get your program started, energize an existing one, or provide a chance to recognize your safety successes. Who Participates? All organizations looking for an opportunity to recognize their commitment to safety are welcome to participate. Last year, more than 3,400 businesses helped to raise awareness about workers’ health and safety! Participating is as easy as 1-2-3! Click below for more information. Sign Up to Participate Let us know you are participating this year by registering now. Plan and Promote Your Events Identify activities and events to plan and promote for your workplace or community. Check out our example activities, graphics, and other resources. Recognize Your Participation After you’ve completed your events, you can download a certificate and virtual challenge coin to recognize your organization. Register now by clicking here.
U.S. Rail Traffic for June and the week ending July 3, 2021
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending July 3, 2021, as well as volumes for June 2021. U.S. railroads originated 1,175,232 carloads in June 2021, up 19.1 percent, or 188,164 carloads, from June 2020. U.S. railroads also originated 1,386,745 containers and trailers in June 2021, up 10.9 percent, or 136,634 units, from the same month last year. Combined U.S. carload and intermodal originations in June 2021 were 2,561,977, up 14.5 percent, or 324,798 carloads and intermodal units from June 2020. In June 2021, 19 of the 20 carload commodity categories tracked by the AAR each month saw carload gains compared with June 2020. These included: coal, up 84,109 carloads or 33.5 percent; chemicals, up 22,660 carloads or 16 percent; and metallic ores, up 20,228 carloads or 164.6 percent. It was farm products excluding grain, down 425 carloads or 10.6 percent. “U.S. rail volumes in the second quarter of 2021 reflect an economy that is in much better shape than it was but still has room to grow,” said AAR Senior Vice President John T. Gray. “In the second quarter, total U.S. carloads were the highest since the fourth quarter of 2019; carloads excluding coal were the highest since the third quarter of 2019, and intermodal and chemical volumes were both the highest for any quarter in history. Carloads of steel-related commodities were also relatively strong in the second quarter, reflecting higher demand as the industrial economy continues to recover.” Excluding coal, carloads were up 104,055 carloads, or 14.1 percent, in June 2021 from June 2020. Excluding coal and grain, carloads were up 100,564 carloads, or 15.9 percent. Total U.S. carload traffic for the first six months of 2021 was 6,002,525 carloads, up 9.4 percent, or 517,580 carloads, from the same period last year; and 7,332,067 intermodal units, up 17.5 percent, or 1,093,832 containers and trailers, from last year. Total combined U.S. traffic for the first 26 weeks of 2021 was 13,334,592 carloads and intermodal units, an increase of 13.7 percent compared to last year. Week Ending July 3, 2021 Total U.S. weekly rail traffic was 512,919 carloads and intermodal units, up 17.1 percent compared with the same week last year. Total carloads for the week ending July 3 were 236,846 carloads, up 22.8 percent compared with the same week in 2020, while U.S. weekly intermodal volume was 276,073 containers and trailers, up 12.6 percent compared to 2020. Nine of the 10 carload commodity groups posted an increase compared with the same week in 2020. They included coal, up 17,570 carloads, to 66,380; metallic ores and metals, up 9,419 carloads, to 23,185; and chemicals, up 6,179 carloads, to 34,869. One commodity group posted a decrease compared with the same week in 2020: grain, down 794 carloads, to 19,863. North American rail volume for the week ending July 3, 2021, on 12 reporting U.S., Canadian and Mexican railroads totaled 329,932 carloads, up 18 percent compared with the same week last year, and 355,466 intermodal units, up 11 percent compared with last year. Total combined weekly rail traffic in North America was 685,398 carloads and intermodal units, up 14.3 percent. North American rail volume for the first 26 weeks of 2021 was 18,194,144 carloads and intermodal units, up 12.2 percent compared with 2020. Canadian railroads reported 72,692 carloads for the week, up 5.1 percent, and 64,113 intermodal units, up 4.9 percent compared with the same week in 2020. For the first 26 weeks of 2021, Canadian railroads reported a cumulative rail traffic volume of 3,921,754 carloads, containers, and trailers, up 8.9 percent. Mexican railroads reported 20,394 carloads for the week, up 15.1 percent compared with the same week last year, and 15,280 intermodal units, up 11.1 percent. Cumulative volume on Mexican railroads for the first 26 weeks of 2021 was 937,798 carloads and intermodal containers and trailers, up 4.7 percent from the same point last year. To view the rail traffic charts, click here.
EP 191: Manhattan Associates COVID-19 guidelines
On this episode, I was joined by Peter Schnorbach of Manhattan Associates. Peter is the Senior Director of Product Management at Manhattan Associates and we connected back at ProMatDX to discuss some COVID-19 guidelines they had put out and also talk about which ones will continue on beyond the pandemic and their labor management system. While we seem to be moving on from COVID there are still some really great pieces of information on how it has an impact on the way we move forward. Key Takeaways Manhattan Associates brings software solutions to the marketplace to help your business operate more efficiently. They are well known for their supply chain suite which covers a wider variety of systems that operate in our space. This includes a warehouse management system (WMS), a yard management system, and what we focused on in our discussion which is the labor-management system. The labor-management system helps to track all productivity in your operation so you can ensure that you plan your resources properly and understand your capacity utilization. When it comes to COVID Guidelines I think we have all become pretty familiar with them. What I was interested in learning from Peter was his thoughts on what guidelines will stick with us as we head out of the pandemic. There were two very interesting guidelines that sound like they will stick and definitely caught my attention. The first was the utilization of mobile apps to communicate with your employees. I learned about two apps that I had not heard about previously which are Shyft and Work Jam. These apps allow you to send out notifications to your employees on when shifts are available or when extra coverage is needed. I love this idea because it gives you more flexibility and better planning tools because you do not need to wait until the employees come in for work next to ask if they can cover a different shift. The second takeaway from our discussion around COVID guidelines was the guideline to maintain and create open and honest communication within your operation. I believe this is such a key factor to overall success in business not just during COVID but all the time. Doing this allows you to have better insights into what is happening in all aspects of your operation because your employees will tell you what is going on without any hesitation. This is the best way to improve and ensure that you are on the proper track for growth. Listen to the episode below and check out all the guidelines from Manhattan Associates after the episode. The New Warehouse Podcast EP 191: Manhattan Associates COVID Guidelines
If you’re Presiding, You’re not Leading
Your CEO announces its strategic planning season. Every department head is asked to develop and deliver their strategic plan and budget for the coming year. Because they all have proprietary subject matter expertise, each one brings their vision to the table. The presentations are reviewed, some superficial tweaks are made (often in the area of budget) and approved. Then the year continues on, with the CEO checking in periodically to make sure everything is on track. But the strategy isn’t a function over which to preside. Presiding instead of engaging in the creation of organizational strategy is a major leadership mistake. It is fundamentally abdicating the responsibility of being a leader. If I was a board member and the CEO informed me the CSO had created our strategy, I would believe we didn’t actually have a real CEO. Department leaders often push for strategies to support their own area, not always the interests of the company as a whole. Strategy is an integrative discipline, not simply a siloed function. It requires collaboration, integration, and alignment to maximize the value of the department efforts put forth. Yet still today, organizational leaders are cobbling together disparate department plans and calling it a strategy. As businesses have grown, there’s a larger and larger need for coordination and control – therefore, we have created layers of management who don’t produce, but supervise others who do. Major business schools teach management as an academic discipline. But at the same time, domain specialization has increased, and becoming an expert in one specific area, such as finance, marketing, or human resources. But this comes with a flaw – where CEOs misinterpret their role as watching over these specialties, rather than engaging in each area continually. But as business leaders, we need to suck it up and learn, not just preside over, the work of our functional heads. Consider this – how can we be true evaluators and assessors of a department strategy we don’t fully understand? Or be an advisor and mentor to a department head when we have no understanding of the job, they do each and every day? We wouldn’t hire a supervisor which didn’t know their subordinate’s job or how to evaluate their performance. Why as leaders do, we often defer this responsibility when we reach higher levels in the organization? We cannot be intimidated into believing that we don’t have the necessary subject matter expertise to engage in strategy development. Not only can you do it, but you must in order to truly lead. About the Author Andrea Olson is a speaker, author, applied behavioral scientist, and customer-centricity expert. As the CEO of Pragmadik, she helps organizations of all sizes, from small businesses to Fortune 500, and has served as an outside consultant for EY and McKinsey. Andrea is the author of The Customer Mission: Why it’s time to cut the $*&% and get back to the business of understanding customers and No Disruptions: The future for mid-market manufacturing. She is a four-time ADDY® award winner and host of the popular Customer Mission podcast. Her thoughts have been continually featured in news sources such as Chief Executive Magazine, Entrepreneur Magazine, The Financial Brand, Industry Week, and more. Andrea is a sought-after keynote speaker at conferences and corporate events throughout the world. She is a visiting lecturer and Director of the Startup Business Incubator at the University of Iowa’s Tippie College of Business, a TEDx presenter, and TEDx speaker coach. She is also a mentor at the University of Iowa Venture School. More information is also available on www.pragmadik.com and www.andreabelkolson.com.
Ontario Warehousing Executive elected to Industry Exec Committee
Members of the International Warehouse Logistics Association (IWLA), the resource for warehouse logistics, recently elected Daryl Lester, Vice President and Partner of Simtech Supply Chain Management Ltd., London, Ontario, as the association’s 2021-2022 Secretary/Treasurer. IWLA is the only supply chain industry association focused solely on the needs of third-party warehousing providers. Simtech is a third-party warehousing, distribution, e-commerce fulfillment, and 3PL services company with locations in London, West Lorne, Chatham, and Ontario, Canada. The company provides customized “Simtech Solutions” to e-commerce, food and beverage, automotive, retail, and chemical industries. Simtech operates and manages, general warehouse, food-grade, and AWSA-certified facilities and provides warehouse and order fulfillment solutions for many Fortune 500 and global companies. “The IWLA presence in Canada is much stronger because of Daryl’s active leadership during the past decade,” says IWLA Chairman of the Board Jared Stadlin, president of Linden Warehouse & Distribution Co. in Linden, N.J. “More warehouses are tapping into the IWLA network of third-party professionals to benchmark and to hone their businesses because of the efforts of volunteers like Daryl.” Lester’s election to the IWLA Executive Committee is the first step toward becoming a future chairman of the board. He would be the first Canadian to hold that position in IWLA’s 130-year history. He is ready for the challenge: “Some of the most rewarding benefits of IWLA membership are the relationships that are built, the willingness to share and help each other,” he says. Lester is a former student of Fanshawe College where he studied business. He is actively involved with IWLA: He is a co-chairman of the IWLA Canadian Council Steering Committee, serves on the IWLA Membership Committee, and plans the IWLA Fulfillment Council Fulfillment Forum. He is a former co-chairman of the IWLA Warehouse Technology Symposium planning committee. The IWLA Convention & Expo, Nov. 1-3, in San Antonio, Texas, will include Lester’s formal installation as IWLA Secretary/Treasurer. Find out more at www.IWLA.com.
Women In Trucking Association announces its July 2021 Member of the Month
The Women In Trucking Association (WIT) has announced Amanda McLaurin as its July 2021 Member of the Month. She is a student currently attending truck driving school in Pennsylvania. McLaurin has several years of courier and delivery experience that she hopes to draw on as she finishes school and begins her career. Since 2019, she has wanted to earn her CDL. The maintenance and upkeep of a delivery vehicle can add up fast, so she began looking for a way to do what she loved: delivery, customer service, and an independent work environment, in a financially sustainable way. McLaurin’s overall experience in CDL school has been a positive one. “If anything, I think being the only female in a class of eight has helped me adjust to the gender disproportion that still exists in the industry (even though it’s getting better). Just as important, I think it has also helped my classmates learn to be more considerate, respectful, and sensitive. I believe that I have gained their trust and respect, and they have gained mine too,” she said. McLaurin joined WIT because she was searching for a welcoming, female-driven environment where she could ask all of her questions as a newcomer. Entering a male-dominated industry with very little prior exposure to it can be daunting. She wanted to connect with more experienced drivers, and other women in the field, who could help guide her and encourage her in her steps toward becoming a trucker. “Having a mentor is incredibly important,” said McLaurin. “I am fortunate to have found a mentor in a supportive male driver. He is a great resource and gives me sound advice when I need it.” Having previously been a driver trainer, he is eager to teach and has the patience and experience to know the common pitfalls a new driver is likely to face. McLaurin added, “beyond that, having his support has helped keep me going after my goal many times when I felt like giving up. I wouldn’t have made it this far without him.” McLaurin offered this advice to others considering a career in trucking, but who feel intimidated about giving it a try: “Don’t let anything distract you from pursuing your dreams. When you are training, it’s not ‘you versus all the big boys.’ It’s you and the truck. Learn it, respect it, and mature in how you handle it. All you are responsible for is learning to drive safely, carrying yourself professionally, and maintaining healthy boundaries. Do what you need to in order to achieve those three things. Your journey is your own. Travel it at your own pace, and don’t be afraid to ask for help. If you work hard, you can get your CDL, and step into a world full of possibilities. No matter what, never give up!” It is the stories of mentorship like McLaurin’s that have inspired WIT to partner with LeadHER Alliance to develop a new program to connect recent female truck driving school graduates to experienced professional female drivers. The 10-month mentorship program, launching mid-July, supports new drivers during the most transitional period of their truck driving career. For more information about the program contact Debbie@WomenInTrucking.org.
EP 190: BWS Logistics
In this episode, I was joined by Rob Bussey of BWS Logistics. Rob is the National Account Manager at BWS Logistics and he is always on the job, confirming two loads right before we started recording this episode. Rob and I discuss BWS’s specialty which is the beer, wine, and spirits industry, and some of the unique aspects of that business when it comes to the logistics side of things. Key Takeaways BWS Logistics focuses primarily on handling the logistics aspects for beer, wine, and spirits companies. Not only do they handle the finished product but they also handle the packaging for bottling as well. Rob actually talks about how the demand for cans cannot keep up and they need to import empty cans from different countries. As mentioned above, they provide great service and I experienced it as a bystander when Rob had to answer a call at 8 pm at night right before we hit the record button to ensure two loads were going to deliver properly to their customer. One of the things that I was interested in learning about when talking to Rob was some of the unique aspects of the industry BWS Logistics deals in. Rob discusses some of the unique things like temperature regulation and how special blankets can be utilized to capture the right temperature for wines or other spirits. We also get into some of the rules and regulations with shipping certain products. It was really interesting to hear how expensive some of the freight can get due to the rarity of the liquor or the quality of it. Definitely a unique industry. Rob has many years of experience in the logistics industry so I asked him what he thought is next for the industry. He says the big focus is on expanding the track and trace capabilities of shippers and carriers. While the technology has grown and developed over time, Rob says there is still plenty of space to keep improving. We discuss how the consumer expectation of tracking on the B2C side is now translating over to the expectations on the B2B side and some of the steps being taken to give customers better visibility. Listen to the episode below and let us know your thoughts in the comments. The New Warehouse Podcast EP 190: BWS Logistics
EP 189: An SOP for your SOP’s
On this episode, I was joined by Dave Baiocchi of Resonant Dealer Services. We focused the discussion on something I love, the SOP! This is the latest in our partnership with Material Handling Wholesaler for their July 2021 issue. Dave wrote the cover story entitled “Unifying your dealership data: ERP or SOP?” which discusses the different aspects of technology and how it can help you organize your data. Key Takeaways Dave has been focusing on the customer experience and how that has evolved over time. One thing that certainly increases as your business grows is the amount of data that you accumulate. Many people will bring in technology to help track this data and get it organized. However, the one big point that Dave makes is that employees need to know how to use this technology. That is where the SOP comes in or the standard operating procedure. Why do I love SOP’s so much? The SOP is such a great tool in any operation or company because it gives you guidelines on how to do a process the correct way every time. It creates repeatable results and avoids any deviation from the process which can cause issues. Additionally, they make the training process much easier and ensure that nothing is missed during the training of new hires. This is a big focus of Dave’s article on how things can get lost from employee turnover if there is no documentation. Having an SOP is great but can be a big undertaking to create. If you are well established and have no SOP’s in place then it may seem daunting to start. Dave advises that you have a dedicated person at the minimum to start. As far as what process to start with, Dave recommends focusing on the processes that have the biggest impact on your customer. With this mindset, you’ll be able to ensure your customer is getting the same experience every time. Listen to the episode below and leave your thoughts in the comments. The New Warehouse Podcast EP 189: An SOP for your SOP’s
Portland warehouse executive elected to Industry Board
Members of the International Warehouse Logistics Association (IWLA), the resource for warehouse logistics, recently elected Seth Schmedemann, president of Fulcrum Logistics, Inc., as the association’s 2021-2022 director. IWLA is the only supply chain industry association focused solely on the needs of third-party warehousing providers. Portland, Ore., based Fulcrum Logistics is a privately held, full-service third-party logistics company established in 2019. It specializes in the storage and handling of food and beverage. The company has public and contract warehouses across the Pacific Northwest. Schmedemann’s logistics career began in 2009 at Oregon Transfer Co. (OTC), an IWLA member company for more than 110 years. There he served in a variety of administrative, operational, and business development responsibilities, eventually becoming vice president. OTC liquidated warehouse real estate holdings in 2019, leading Schmedemann to launch Fulcrum Logistics. “Seth brings an entrepreneurial spirit and genuine enthusiasm to everything he does,” says IWLA Chairman of the Board Jared Stadlin, president of Linden Warehouse & Distribution Co. in Linden, N.J. “That approach in his service on the IWLA Board will help the association tackle new ideas for its warehouse-operator members and continue to support and improve the broader supply chain.” His history with IWLA includes chairing the Membership and Essentials of Warehousing Committees. He says, “IWLA has been foundational in my career. I had the good fortune to get started with a company that understood the value of the IWLA and was always supportive of my involvement. Looking back, I can’t imagine what my path might have been without the IWLA.” Schmedemann received a bachelor’s of business administration degree from Kansas State University and an MBA from Oregon State University.