Logistics Management

John A. Gentle

Stand Guard - You are Accountable for Protecting Your Customer!
September 6, 2007

Dysfunctional Risk Management Syndrome (DRMS) is striking at an alarming rate.  This time it is the 'lack of Due Diligence".  Whether it is toys, patent research, or vendor qualification....Due Diligence is all about the active protection of your customer and your company from both obvious and hidden issues.

It is not the Government's job to protect your customer! It is your responsibility and you must charge yourself and your team with that accountability.

For example - It is of the utmost importance that your team understands all the critical elements of and spends enough time on Due Diligence to ensure that all of your carriers and or 3PLs are completely qualified and maintain that qualification and a certain level of competence; and that your team aggressievely oversees and promptly takes action to protect everyone from harm and wasteful/needless litigation.

The Mattel issue is particularly sad as it strikes at those who cannot protect themselves. Families trusted a brand name and the promise of that brand failed them at many levels.  Recent court cases too are sounding the alarm bells.  The most progressive shippers and 3PL freight brokers are now thinking twice before they consider putting their company's freight on a carrier with marginal insurance, safety issues, poor maintenance, driver qualification problems, and questionable financial credentials.  It's foolhardy to think that you are not accountable and will be held harmless from litgation 'simply' because you outsourced some process - like painting toys,  or in this case carrier selection, to a third party provider.

Remember, 80% of your job is somewhat routine. It's the 20% for planning, vigilence, risk management, and problem solving that the company really hired you for.  Left untreated, DRMS can be deadly to your customers and destroy not only the promise of the company's brand, but your career along with it.  I cannot imagine having the industry reputation as the person who was not paying attention or worse yet chose not to pay attention to something which led to the injury or death of others.

Test immediately to ensure that both logic and the intuitive functions of your on-board computer are actively engaged and probibing for the business challenges which places the public, your customers, processes, and company's business at risk.

Posted by John A. Gentle on September 6, 2007 | Comments (2)