Unexpected events can, by definition, happen at any time. As supply chain professionals, we know this better than most. We regularly identify every area of our supply chain that has the slightest threat (or hope) of veering from the expected and plan an appropriate response. We meet every area of variance with redundancies, backup plans, and alternatives that are designed to eliminate, mitigate, or otherwise deal with the change.
When it comes to our supply chains, we are masters at preparing for the unexpected. But what about our careers? Are we prepared for the unexpected? When change happens, will we have a backup plan ready?
The Latin phrase praemonitus, praemunitus—"forewarned is forearmed"—means that you can meet a challenge if you know about it in advance. Yet, how can you be forewarned about something unexpected? To be sure, we are not talking about asteroids crashing into Earth. Rather, we mean events such as your department reorganizing, your company being acquired, or your boss leaving the company. These are the scenarios that you may not want to think about but that lurk in the back of your mind. You probably already know what the top five potential disruptions to your career are. Now, it's time to figure out how to prepare for them—however unlikely they are—so that you can stop wasting energy worrying about them.
The first step is to be realistic about what disruptive events could occur. An awful lot of people find this to be difficult, however. Generally, I find that there are two types of people who have unrealistic views of potential careerchanging events. The first type refuses to anticipate even the most obvious deviation from the historical norm. They fail to consider any disruption to their current life. This type is not spending enough time thinking about and preparing for the very real possibility of a career-altering change. For example, I heard from one supply chain manager who was astonished that his company was being acquired, even though he knew it was on the market. I asked him about this inconsistency, and he said, "I just didn't think it would happen." We have all read financial documents that include the disclaimer "past performance is not indicative of future results"; the same goes for much of life. We cannot ignore the possibility of an event happening just because it differs substantially from what has come before.
The second type of person sees disasters popping up everywhere. These people see disasters and conspiracies where none exist. The stress that they feel about extremely low-probability scenarios can deplete them physically and mentally without producing any real benefits.
Don't be like these people. Instead, start by making a list of the changes that could possibly occur in the short, medium, and long term. While no one can see the future, we all have some idea of what can go off-course. In order to be realistic about potential changes, you need to be aware of your work environment. This includes knowing what is happening in the overall economy and your industry in general as well as being aware of conditions at your company and in your department. Get a "reality check" for your list of potential changes by running it by trusted, knowledgeable confidants. Do they think your perception of possible changes is on target? Think about what could change within the month, the year, and the next five years. Clearly, the longer the lead time, the better prepared you can be.
Once you have identified possible changes, start considering what you could do about them. Your road map for responding to change should be guided by one thing: your long-term goal. Where do you want to be at the height of your career? How much money will you be making? What will be your responsibilities? Your goal should be a specific aspirational objective. For example, you may want to be the head of a supply chain organization for a global food or consumer products company. Any deviations from the course will require some recalibration, but the goal will still be the same.
Contacts and accomplishments
At this point, you have established where you eventually want to end up as well as identified the possible disruptions that may occur on your way to achieving that long-term goal. What else do you need to do? You should prepare yourself for the best- and the worstcase scenarios. Surprisingly enough, the ways that you prepare for the best and worst types of career changes are remarkably similar. The formula consists of two main components: know your accomplishments, and use your network.
The first component, "know your accomplishments," is more than just ticking off your degrees and the positions you've held. It involves a deep understanding of what you did and how you did it. A formal example of this is your résumé, (which should always be updated). Your résumé details the responsibilities you have held and how you accomplished them. Another formal example is your annual self-evaluation. However, to make either of these documents meaningful, you must chronicle your accomplishments as they occur, when they are fresh in your mind and you have the hard data in hand to substantiate your claims. Clearly, this should be an ongoing task that will require just a small amount of effort if consistently applied.
Knowing your accomplishments is important for both the best- and worst-case scenarios. Your best-case scenario might be that a position opens up that could serve as the next rung of your career ladder. In that case, being prepared with a detailed story of your accomplishments will help you tailor your pitch for that position. It will also provide facts that will help convince others that you can handle the promotion and are ready for the job change.
The worst case might be losing your job. The good thing is that you will have all the information you need to apply for and land a new job. The only feeling worse than losing your position is losing your position and having to piece together a résumé when you no longer have access to vital information.
The second component, "use your network," also requires constant tending. Your network should consist of co-workers (current and past), mentors, people whom you have mentored, schoolmates, industry associates, and people from other industries (such as lawyers, consultants, and public relations professionals). These are people who know you or know of you. You've worked with them; you've shared a table with them at a conference; you've commented on their blogs. When positive, unexpected change happens, your contacts will be your cheering section. When the worst case occurs, they will be your advocates, your eyes and ears, and your support.
But first you need to put effort into maintaining and growing your network. Exchange business cards at events (quaint, but effective).
Use one or two online networking sites like Plaxo or LinkedIn to maintain contacts. Reach out to your contacts in some meaningful way at an appropriate frequency. For example, you should e-mail the people you met at this year's conference saying how you enjoyed meeting them. Before next year's conference, e-mail them to see if they will be attending again. People you know well require more frequent and personalized nurturing, like inviting them to lunch or calling them when their company is in the news.
To be prepared for the unexpected, you need to invest time and effort into all of these steps on a continuous basis. But that investment will be repaid in terms of the peace of mind you will gain. If you know your long-term career goal, know your accomplishments, and use your network, you will be ready for anything—except, perhaps, for asteroids crashing into Earth.
J.B. Hunt President and CEO Shelley Simpson answers a question from the audience at the Tuesday afternoon keynote session at CSCMP's EDGE Conference. CSCMP President and CEO Mark Baxa listens attentively to her response.
Most of the time when CEOs present at an industry conference, they like to talk about their companies’ success stories. Not J.B. Hunt’s Shelley Simpson. Speaking today at the Council of Supply Chain Management Professionals’ (CSCMP) annual EDGE Conference, the trucking company’s president and CEO led with a story about a time that the company lost a major customer.
According to Simpson, the company had a customer of their dedicated contract business in 2001 that was consistently making late shipments with no lead time. “We were working like crazy to try to satisfy them, and lost their business,” Simpson said.
When the team at J.B. Hunt later met with the customer’s chief supply chain officer, they related all they had been doing for the company. “We told him that we were literally sitting our drivers and our trucks just for you, just to cover your shipments,” Simpson said. “And he said to us, ‘You never shared everything you were doing for us.’”
Out of that experience, came J.B. Hunt’s Customer Value Delivery framework. This framework, according to Simpson, provides a roadmap for creating value and anticipating customer needs.
Framework for Excellence
J.B. Hunt created the above framework to help them formulate better relationships with customers.
The framework consists of five steps:
Understand customer needs: It all starts, according to Simpson, with building a strong relationship with the customer and then using the information gained from those discussions to build a custom plan for the customer.
Deliver expectations: This step involves delivering on the promises made in that custom plan.
Measure results: J.B. Hunt believes that they are not done when freight makes it to the destination. They also need to measure how successful they were versus what the customer expected from them.
Communicate performance: This step involves a two-way exchange, where J.B. Hunt walks the customer through their performance and gets verbal agreement on whether or not they have met the customer’s needs.
Anticipate new value: Here J.B. Hunt looks at what they are hearing from their customer today and then uses that information to derive what the customer may be looking for in the future.
Simpson said the most important part of the process is the fourth step, communicating performance (perhaps reflecting the piece that went wrong in that initial failed customer relationship).
Not only can this framework be used to drive excellence in a company, but it can also be adapted as a model for driving personal excellence, Simpson said. Instead of understanding the customer needs, the process starts with understanding yourself: what your strengths and interests are. This understanding helps drive a personal development plan and personal goals for the year, which can be measured and assessed. For example, each year, Simpson gives herself a letter grade on each of her personal goals and communicates her assessment back to her boss. She has also found it helpful to anticipate where opportunities lie beyond what she is personally doing.
Confronted with the closed ports, most companies can either route their imports to standard East Coast destinations and wait for the strike to clear, or else re-route those containers to West Coast sites, incurring a three week delay for extra sailing time plus another week required to truck those goods back east, Ron said in an interview at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
However, Uber Freight says its latest platform updates offer a series of mitigation options, including alternative routings, pre-booked allocation and volume during peak season, and providing daily visibility reports on shipments impacted by routings via U.S. east and gulf coast ports. And Ron said the company can also leverage its pool of some 2.3 million truck drivers who have downloaded its smartphone app, targeting them with freight hauling opportunities in the affected regions by pricing those loads “appropriately” through its surge-pricing model.
“If this [strike] continues a month, we will see severe disruptions,” Ron said. “So we can offer them alternatives. We say, if one door is closed, we can open another door? But even with that, there are no magic solutions.”
Turning around a failing warehouse operation demands a similar methodology to how emergency room doctors triage troubled patients at the hospital, a speaker said today in a session at the Council of Supply Chain Management Professionals (CSCMP)’s EDGE Conference in Nashville.
There are many reasons that a warehouse might start to miss its targets, such as a sudden volume increase or a new IT system implementation gone wrong, said Adri McCaskill, general manager for iPlan’s Warehouse Management business unit. But whatever the cause, the basic rescue strategy is the same: “Just like medicine, you do triage,” she said. “The most life-threatening problem we try to solve first. And only then, once we’ve stopped the bleeding, we can move on.”
In McCaskill’s comparison, just as a doctor might have to break some ribs through energetic CPR to get a patient’s heart beating again, a failing warehouse might need to recover by “breaking some ribs” in a business sense, such as making management changes or stock write-downs.
Once the business has made some stopgap solutions to “stop the bleeding,” it can proceed to a disciplined recovery, she said. And to reach their final goal, managers can use the classic tools of people, process, and technology to improve what she called the three most important key performance indicators (KPIs): on time in full (OTIF), inventory accuracy, and staff turnover.
CSCMP EDGE attendees gathered Tuesday afternoon for an update and outlook on the truckload (TL) market, which is on the upswing following the longest down cycle in recorded history. Kevin Adamik of RXO (formerly Coyote Logistics), offered an overview of truckload market cycles, highlighting major trends from the recent freight recession and providing an update on where the TL cycle is now.
EDGE 2024, sponsored by the Council of Supply Chain Management Professionals (CSCMP), is taking place this week in Nashville.
Citing data from the Coyote Curve index (which measures year-over-year changes in spot market rates) and other sources, Adamik outlined the dynamics of the TL market. He explained that the last cycle—which lasted from about 2019 to 2024—was longer than the typical three to four-year market cycle, marked by volatile conditions spurred by the Covid-19 pandemic. That cycle is behind us now, he said, adding that the market has reached equilibrium and is headed toward an inflationary environment.
Adamik also told attendees that he expects the new TL cycle to be marked by far less volatility, with a return to more typical conditions. And he offered a slate of supply and demand trends to note as the industry moves into the new cycle.
Supply trends include:
Carrier operating authorities are declining;
Employment in the trucking industry is declining;
Private fleets have expanded, but the expansion has stopped;
Truckload orders are falling.
Demand trends include:
Consumer spending is stable, but is still more service-centric and less goods-intensive;
After a steep decline, imports are on the rise;
Freight volumes have been sluggish but are showing signs of life.
CSCMP EDGE runs through Wednesday, October 2, at Nashville’s Gaylord Opryland Hotel & Resort.
The relationship between shippers and third-party logistics services providers (3PLs) is at the core of successful supply chain management—so getting that relationship right is vital. A panel of industry experts from both sides of the aisle weighed in on what it takes to create strong 3PL/shipper partnerships on day two of the CSCMP EDGE conference, being held this week in Nashville.
Trust, empathy, and transparency ranked high on the list of key elements required for success in all aspects of the partnership, but there are some specifics for each step of the journey. The panel recommended a handful of actions that should take place early on, including:
Establish relationships.
For 3PLs, understand and get to the heart of the shipper’s data.
Also for 3PLs: Understand the shipper’s reason for outsourcing to a 3PL, along with the shipper’s ultimate goals.
Understand company cultures and be sure they align.
Nurture long-term relationships with good communication.
For shippers, be transparent so that the 3PL fully understands your business.
And there are also some “non-negotiables” when it comes to managing the relationship:
3PLs must demonstrate their commitment to engaging with the shipper’s personnel.
3PLs must also demonstrate their commitment to process discipline, continuous improvement, and innovation.
Shippers should ensure that they understand the 3PL’s demonstrated implementation capabilities—ask to visit established clients.
Trust—which takes longer to establish than both sides may expect.
EDGE 2024 is sponsored by the Council of Supply Chain Management Professionals (CSCMP) and runs through Wednesday, October 2, at the Gaylord Opryland Resort & Convention Center in Nashville.