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It's Getting Serious
March 26, 2008
In this blog entry, I’d like to share something that may upset a couple of people. I really wonder how many transportation and logistics professionals realize, or understand that their jobs – notice I didn’t say careers – hang by a thread.
Since the start of the year, I have received more e-mails and phone calls from highly competent transportation professionals (just like the readers of this blog) than I care to count. Most of them have an urgent request; they’re looking for a job!
Why am I getting so many requests? Maybe I’m a good person to have in their network, or maybe some of these people are reaching out to anyone they think may be able to help them. I really don’t know the answer, but I do know that most of these people did not think they would be the ones to get (to use a term in honor of a great professional, Dick Velton) “whacked.” And I truly believe that before the year is over, they will have plenty of company joining them.
I am an optimistic guy by nature who also happens to be a realist. Realistically speaking, as a company’s financial performance suffers during this recession, the Captain of the ship (that would be the CEO) is going to be looking to offload cargo (a.k.a. employees). When you throw in factors such as fuel surcharges that have increased your motor carrier transportation costs by 5% to 7% in the past 60 days, the absence of recommendations from the logistics group on what can be done to reduce these costs, and the people who are whispering in the captain’s ear that they can do better … well, you do the math. But if you are sitting there thinking your job is safe and secure remember that famous saying: “Denial ain’t just a river in
This is my tenth blog. Based on the plausible absence of comments, it’s hard to know or gauge just how many people are reading this thing, or whether it’s making any difference at all. But just in case a couple of you are reading, here is some advice from my heart.
First, this is no time to be shy. If you are sitting back thinking it can be business as usual in running your department, guess again. Your boss may not be asking you for recommendations about how to control costs, but practically speaking, you should have your cost saving list ready to go in case you’re asked. If you’re not asked, put a couple of recommendations in writing and circulate them so that people can see that you’re willing to make a difference.
Second, this is no time to go it alone. One of the paradoxes of our time is that those who try and protect their jobs by keeping others out of their area, are often the ones who end up losing their jobs. I could go on and on about this, but the main point is that there are resources out there that can help you and your company get better performance. Use them! If you’re still stubborn, remember, even the Lone Ranger had Tonto.
Third, this is no time to sit on your laurels. One of the saddest things I encounter is what I call the ‘once great logistician’. This is a person who was, and is, capable of doing great things. But instead of continuing to advance the ball, they want to sit back on their laurels and recount how good things were in the old days.
For those people, and others who might be counting the days until retirement or their golden severance package, pick up the clue phone and listen to this recorded message: The good old days are gone! Regardless of what you may think, in this recession, every company is in a battle. These companies need competent soldiers on the front line. That is why logistics professionals need to get active and be effective.
This has been a rather somber blog, but folks the stakes are high and your job is on the line (regardless of the last performance evaluation you got). With a recession upon us, it’s getting serious.
TranzAct Technologies
Posted by Michael Regan on March 26, 2008 | Comments (8)
In response to: It's Getting Serious
AL commented:
This is particullary scary for those of us who are new to a company. At my site, business is down, way down. And being at the front lines it can sometimes be hard competing with the guys who have been in the same position for 5 + years. But like you mentioned, I must get off my rump and start looking for positive ways to change preformance and increase revenues.
In response to: It's Getting Serious
ROGER BRYANT commented:
Good to focus this topic as 'the belt tighens'. But I have found logistics opportunity seem to always abounds in areas like repackaging, adjusting purchased quantities/transit or shifting manual burden to automation. And since selling ideas take time, I would suggest starting - now. Then when better times appear on the horizon, one has the groundwork laid. One's best survival kit is through 'showing value'.
In response to: It's Getting Serious
Mike commented:
Roger: Great point! Showing Value is a great option. And as you note, there are lots of ways to generate savings in the logistics area. Keep up the good work
In response to: It's Getting Serious
T. Riley commented:
Right to the point..and usually most businesses will revert to their old ways...I don't really know what those guys in Logistics do therefore they must be expendable. In our company the focus is on the customer but it always how to stretch the dollar even more.....get more from the working bees that are left behind. So be alert and be aware you need to show and prove value in what you do!
In response to: It's Getting Serious
Mike commented:
T.Riley, I hope every reader takes a look at your comments and understands their merits.
In response to: It's Getting Serious
Truckers Understand commented:
Watching TV gets me hot. The story was about the cost of fuel that might cause trucks to shut down. The cost of fuel affects everyone from those who drive Humvees to those who ride a bike or walk. Truckers pay for spendy meals, showers and fuel as well as payments on trucks, trailers, loading fees, unloading fees, 5 kinds of taxes and tolls, Insurances and licenses, not to mention mainaince and tires cost and then that is only a start for most all truckers have families and pay cost of rent/payments for home and food and medical for family and utilities for home. Why are trucks going broke?? They work 7 days a week for less pay than they did 10 years ago and cost has more than tripled to them. Shippers and Buyers have raped the trucks and refuse to pay a decent price for work performed and then when most do they go bankrupt. Then the domino effect takes place. The trucker has most to lose in any case but nobody really realizes what they do when they make an xtra dollar off that truck. Yes having illegal labors is a pain to the whitehouse but I say any man or woman who wants to work should be capable of working and then go back home. As it is tons of produce is going to waiste because nobody cares enough to allow anyone to work the fields and clean and package and ship the food available so now the cost soars and farmer loses and truckers cannot get paid. Without Trucks America Stops..
In response to: It's Getting Serious
Dave Snyder / Federal Rack commented:
Mike is right on with his advice. Everything cycles, including business. When times are good, we forget that we can't have good times without a corresponding bad. None of us should forget that everything changes, nothing stays the same. If we as professionals are not constantly prepared to adapt and improve, then we have to expect that those above us will find someone that can.
In response to: It's Getting Serious
EJaso commented:
Mike thanks for the heads up, sometime we take the job for granted and its always good to rethink on new possibilities and keep updated and eager to start again.