Monday, October 18, 2010

My Gas Station Roots And the Impact Today

It is an era that is “gone with the wind”, but its impact will live with me forever.  In retrospect, it seems like such a simple event to have such a lasting impact, but working in a customer service environment, as I did in my father’s and grandfather’s old fashion gas station, helped form the foundation for my style of interpersonal behavior in the workplace.

My thoughts on this sparked to my mind today after receiving a series of 1920’s gas station photos from an associate of mine named Stephen Mitchell, who is an independent film maker in Los Angeles.  Picture in your mind a gas station totally the opposite of today’s ubiquitous “self-serve” islands. . .  a place where attendants scurry to your car upon arrival to fill your tank with your choice of gas, wash all of your windows, check your oil level and other fluids, and bring you the day’s newspaper.  It is a place known as the social center of town, where local residents gather to discuss the weather, politics, school happenings, and even a touch of gossip.

Such was the life for me in my late teens when I started working for my father in the Conoco gas station that was founded by my grandfather in the 1920’s.  The experiences I learned on that job of serving customers and balancing the expectations of a thriving business remain with me today and guide how I manage others.  My father always said, “Everyone should have the chance to serve the public in a work environment, and then they would be infinitely more patient.”  I’ve always remembered that philosophical gem, and throughout my career, I’ve reflected on the value of providing supreme customer service in all my ventures.

Without a doubt, I was influenced by growing up in a small community where virtually everyone knew everyone else, and this was certainly a motivator to make sure I was on my best behavior at the gas station.  At times, it was critically tested, especially when the elderly matriarchs of the town would descend upon the gas station at the same time, and expect prompt and quality attention to their automobile needs.  That’s definitely a high level of pressure, even for a teenager, but I learned to be efficient, cordial, and thorough to keep them all satisfied.

The stories are almost endless of dealing with customers in that gas station, and the result was always the same.  They wanted to be served and pampered, and that’s what they were really seeking.  I learned the value of keeping it all in balance, but in all cases I learned the value of customer service and how to apply that to the “customers” I would encounter for the remainder of my life.

In today’s world, there are plenty of venues in which to gain an appreciation for providing supreme customer service.  For me, experiencing it in a bygone era has made it endure and grow in a way that will always be of great value.

Tuesday, October 12, 2010

Managing Your Boss – And Using the Most Important Tactic

Sometimes you can read an article that seems to have a timeless impact - one that touches multiple generations of people and can be applied to an almost endless series of business settings.  Such is the case with Geoffrey James’ blog on "How to Manage Your Boss" in the March 7, 2007 issue of BNET .com online.  In it, James asserts a variety of practices that you can undertake, most of which are founded in common sense and setting your own ego aside, to foster a compatible and productive relationship with your boss.
Regardless of your age, regularly undertaking activities that demonstrate a solid grasp of your business, as well as understanding your boss’s, will help enhance your job satisfaction and create a positive working environment.  I particularly like James’s concept of keeping your boss in the loop, which is a strong endorsement for proper communication.  Along these lines, I’ve always subscribed to my prime philosophy of managing your boss which is, “keep your boss well informed, but strive to keep your boss out of your business.” 
I know what you are thinking, “that has a ring of defiance to it that sounds counter-intuitive”, but let me explain by breaking that philosophy into two parts.

·      Keep your boss well informed.  In order to create the feeling by your boss that you are managing your business effectively, you must keep him or her informed of your accomplishments, ongoing projects, new strategies, and people management matters.  The best setting in which this can be shared is in a regular “touch base” session with your boss in which you review all aspects of your business.  These sessions should occur no longer that every two weeks and should last approximately one hour.  Your discussion should be comprehensive, yet presented in a somewhat summary fashion that displays that you are making decisive progress in your business.  Any new activities assigned by your boss should be noted and addressed during your next session.
·       Strive to keep your boss out of your business.  Sometimes your boss may introduce a new idea or issue and say he or she will explore it further before getting you involved.  You should not willingly allow your boss to take such a stance, for if you do, you are guilty of what I call “upward delegation.”  Don’t think that allowing this “monkey” to remain on your bosses back is going to make your life easier.  By doing so, he or she will now have the opportunity to delve deeper into an activity in your business and potentially steer it in a direction that may not be most effective for your area.  Take the initiative and insist that your boss allow you to research or solve the matter, and then give an update in your next touch base session.  This builds your accountability and helps solidify your boss’s impression of your business ownership.

This simple philosophy is at the pinnacle of the tactics to managing your boss.  Using the basic elements of regular and proper “touch base” sessions that revolve around your accountability will pay significant career dividends.  

Monday, October 4, 2010

UPS Freight to Raise Rates 5.9 Percent


Need a Transportation Boost?  5 Ways to Make a Difference

Imagine this scenario; you land a new position in the logistics area of a seemingly stable company, and the products they distribute and sell appear to be popular, but you quickly find that their transportation network is not designed to achieve the optimum results. 

I’m not talking here only about transportation rates.  After all, rate increases seem to be a fact of life in the logistics world, as William Cassidy addresses in the October 3rd issue of The Journal of Commerce on-line.  In his article entitled, “UPS Freight to Raise Rates 5.9 Percent”, it’s not just UPS but other carriers who are raising rates.

So what do you do if your new found transportation area is in need of a thorough review?  Don’t turn and run, but instead, see it as a great opportunity to redesign the network and create tangible profits for your business. 

Start by considering these five important items:  

1.     Evaluate the merits of a private fleet vs. a dedicated fleet.  Not all companies manage a fleet operation, but maintaining a private fleet will usually result in a lower cost per mile and better control over performance as compared to a dedicated fleet.  However, a private fleet will carry a higher level of liability for your company, since the DOT licensing and insurance liability rests with the company who owns the fleet.  By using a fleet owned by a third party logistics company (i.e. dedicated), they assume the licensing and liability requirements.  This can be advantageous, especially if you contract with a dedicated provider who will partner with you to ensure the highest level of service.

2.     Capitalize on backhaul opportunities with your fleet.  In most fleet operations, there is always the opportunity to secure backhaul movements.  For a fleet that is delivering goods to a distribution center, retail store, or manufacturing facility, there may be situations in which a return trip may contain empty trailers.  Rather than allowing this to occur, work to find companies for whom you can carry their products back to your home base area or other feasible destination.  By doing so, you can at least cover your return cost and provide a service that is very competitive in price versus a common carrier.

3.     Conduct regular bidding for third party logistics support.  If you are using a third party for your dedicated fleet services or using a common carrier service, you should regularly bid the support at least every three years.  The bidding should include a detailed analysis of rates, including accessorial fees, and it should include qualitative factors such as financial strength of the company, systems support, claims ratios, and delivery time commitments.  A practice of regularly bidding your transportation services will help ensure that you are keeping abreast of the competitive market.

4.     Implement a freight bill auditing program.  Just because a fleet provider or common carrier has an agreed rate structure with your company does not mean they will always be 100% accurate in their billing.  You should implement an auditing program to check the accuracy of the billing to capture any overcharges.  This process can be accomplished through an internal system, or you can utilize the services of an outside audit company.  In either case, billing errors can occur, and correcting these can result in significant savings for your company.

5.     Evaluate team vs. single drivers in your fleet.  Speed to market is critical in today’s highly competitive business arena.  Using a team driver model in your fleet may result in quicker delivery times as compared to those with a single driver.  Single drivers are allowed to drive a maximum of 11 hours that must be followed by 10 consecutive hours off duty.  As a result, utilizing a team avoids the downtime and enables the drivers to quickly switch and continue with their route.  Keep in mind that the team driver concept is suited for long haul operations where the product is time sensitive.

Understanding your company’s transportation network is important in determining where you can implement improvements.  Starting with these five points will certainly get you on the right track to boosting your logistics performance.