Hidden forces in transport logistics

Hidden forces exist, but do not perceive clearly, as hampering the shipping process, whose main goal is intended primarily to dispatch the product and, thus, be able to issue the invoice. Difficulties are hidden forces that act contrary to the evolution of the various forms process direction, causing poor performance, poor quality of transport services, increased costs, delays, etc. targets not met.

The shipping area coexists with a component of continuous stress, which requires results because the company depends on the targets set. Therefore, any action that may, even if minimally, negatively interfere in the process, is seen as a threat. The components that act in the opposite direction of the implementation of a project to ensure the smooth operational and economic dispatch in an organization’s process performance are varied. The main identified are:

- Available time is a factor that bars any kind of change is the lack of time Logistics Manager. The shipping area is very bumpy due to problems of various kinds, among them the need for compliance with established goals. Getting the attention of the Manager of Logistics, proposing changes is a task that requires time and patience. An exception to this rule are cases where there is already, by the manager, the determination to revise the structure of dispatch in use. Getting in touch with the manager requires a lot of patience, perhaps because his pile of tasks is greater than can run or just do not want to spend your time with something that does not help in achieving the goals.

- Fear of change: the main reason that the leaders not easily accept changes in the shipment process is because they do not want to take risks, since any problem caused by changes causes injury to the company and that’s all that needs to be avoided . The charge of logistics and cares of the expedition did not even want to hear about changes. For him, change means more problems, and their activities, which are more problems appear. There are two possibilities to achieve change: company restructuring and redesign of processes or express determination of senior management. Not being so, the logistics manager will hardly venture to change the existing structure, even to present problems because the current structure, good or bad, helps you achieve your business goals. The operation on the expedition, the eyes of the Logistics manager, is over his perfect mastery, and way of thinking, the question is always the same: why should I change the structure that is working? If the structure is really good or bad is another issue, taking time, could be considered, but as time is always in short supply, the possibility of change is remote.

- High turnover: a feature of the shipping area is the high turnover of people, changing industry or resigning. The explanation is simple: it is an area that works with continuous stress. At some point, the employee adheres to the kind of life you lead and decides to change when an opportunity arises. The charges are many and the financial compensation does not exist and, therefore, many change jobs thinking they will find a better environment elsewhere. It is also common for some kind of “favoritism” individual, especially the managers or decision makers, realizing that the slightest noise in the audit area or a simple research on costs, resign to avoid any involvement. Getting in touch with the person responsible for Logistics is now a chore. Added to this the fact that his contact had left the office, which requires doing all the marketing work again.

- Lack of manager: the manager of logistics, besides being a very busy professional, need to worry about yourself, about your compensation, your career, your interests and also their reputation. As the Logistics manager was in a delicate situation: how can, for example, justify to senior management which had so long held such high costs freight transportation? How not realize this? To the wise, the answer is obvious: for some reason there was no interest in worrying about costs. After all this is not your job. The fear of being asked for their incompetence in not realizing the high costs, leads the manager to give up to move forward with the project, arguing that it is fully satisfied with the work of carriers and dismisses a study.

- Globalization: Globalization is a very common phenomenon. As a result of this strategy decisions follow a pattern and therefore have certain stiffness. Subsidiaries of a multinational follow guidelines established by the matrix and have little autonomy to decide on certain matters. If the array has established that the transport of cargo shall be done with own vehicle, there is no way to convince him that there are better options outsourced in terms of quality and cost. There are cases where those responsible for the logistics of the project agreed to reduce transport costs, but the first step, where he was asked a set of historical data, the project will not go ahead. This is because the provision of enterprise data has to be requested via ticket for the sector of information technology, which, besides facing an exhausting bureaucracy, takes a long time.

- Exchange of favors: the exchange of favors is a common and even healthy circulation in the market where people thank the other for the favors obtained. In Japan it is common to bring a gift (a box of biscuits, a crate of beer, a ticket to buy drinks, etc..) When he meets someone to ask a favor, or when something got, thank giving a gift making a formal visit to the person. The exchange of favors becomes harmful and violates the principles of business ethics when it assumes large proportions clearly aiming to obtain favors. Often this phenomenon occurs in the market, and it must be conducted with great discretion because it is something unethical done so excuse. Sounds like naive to imagine that this fact does not exist or is uncommon. Even in size businesses and dressed in serious garb, traces of favoritism can be found. This bias can take varying proportions. From a simple pleasure to a real “mafia” within the company, where many are favored. This is perhaps the most invisible “dark force”, which is difficult or impossible to prove, but it operates in a manner contrary to the approval of any project, even if it proves a sizable economy. It is common to find companies that are interested in a project, but just to know the methodology used and, on their own, try to run it internally, taking advantage of the idea.

Cost-cutting

The goal is simple: get as reduce transportation costs while maintaining or exceeding the same quality. Initially it is not known whether the costs charged by a company are competitive and therefore it is necessary to make a preliminary evaluation indicate that the viability of continuing with the study.

This step is required because the project does not have the knowledge of the prices charged by carriers. To assess the costs of transport should first perform processing on a mass of historical data that provide a likely reduction estimation. This estimate is conservative and has the intention to determine the continuity of the process. The value obtained in percentage terms is a thermometer and is sufficient to determine the feasibility of the project cost reduction. The continuity depends on this value, but also depends on the company’s decision.

As an example, suppose an estimated 2% reduction is obtained. Apparently a negligible value, which bars the project, but if the company spends tens of millions every month with cargo transport, this means a saving of 200 000, and the manager can opt for continuity. The experience gained over the years suggests two parameters that lead to the realization of the project: a) the monthly amount spent on transport exceeding 50 thousand monthly real; b) estimate of more than 20% at the discretion of the company’s decision reduction.

The first limitation is due to the fact that the study provide an estimate of reduction that does not cover the cost of project development. The second parameter is just an empirical value. They should serve as a reference is not, however, hard limiters criteria, cases that are beyond these contexts should be analyzed.

A project to reduce costs is developed with highly trained professionals in transportation logistics and information technology. In the logistics sector, knowledge of carriers in terms of quality and price is of strategic importance. This combined with several algorithms that process the data load from the shipper and the affinity of the carriers to the load profile and regions, produces information in several steps in project execution directing the studies.

After making an estimated reduction, opted for the continuation of the project, the next step is to characterize the transport company in terms of cargo and destination. The load is analyzed in all aspects, such as fractionation, volume, weight, type of transport, deliveries with limited time, remedies, value, perishable cargo, machinery, etc.. Besides the detailed load analysis should also be made ​​a rendering of the destinations they are sent to the charges. Each shipper has specific requirements that must be considered in the design. One of the parameters required by the majority is a guarantee of delivery within parameter, which demonstrates the quality of the carrier.

Known to cargo, destination, volume and requirements of the shipper, mounts to the bidding document calling on carriers that have the appropriate conditions of the notice to attend the competition profile. Participating carriers should be evaluated and, if they meet the conditions of the notice, are included in the database so they are subjected to various processes.

The project continues with new steps for evaluating the results, refinements, meetings, adequacy values ​​until it reaches a final result which is obtained rankings of carriers. Until now, the shipper has no knowledge of carriers and these are also not aware of the shipper. The project ends with a formal meeting between shipper and carrier where the winning companies are presented.

At this stage of the project occur bureaucratic and legal arrangements between the stakeholders and the end of the process, the operation is initiated. From the beginning of the operation, the project continues this time monitoring the prevailing costs, picking up skills individually informing the shipper freight and the disparities observed. This monitoring should be done by an agreed between the shipper and the designer period.

One of the concerns of enterprises refers to the cost of such a project. It should be emphasized that there is no contribution of value to execute the project. In other words, except a symbolic initial cost that can be eliminated as negotiations, the project cost reduction is paid as a percentage of the savings achieved. The form of the settlement value of the project may vary, but in general, the practice shows that the best way is to make payments as savings are achieved, which does not burden the corporate cash. It follows from this payment method the need for the conference – which is very convenient to the shipper – the knowledge of freight to determine the gain and determine the remuneration of the designer, a good alternative to both.

Results

The main result of the project consists of a new configuration of carriers that provides a cost reduction as assessed. In general, it is also gets an increase in the quality of transport and freight services. Another benefit resulting from reduction project cost is individual of the conference of lading, pointing to cases where there was disagreement in the calculations. This helps the financial area of ​​the company in the treatment of special cases where extraordinary expenses occur.

It is common in companies lack freight conference in full, often being taken for sampling. This is unacceptable in organizations that comply with regulatory frameworks, such as Sarbanes-Oxley, which requires thorough checks of all calculations. In short, the company by hiring the study, get a support that ensures quality and monitoring of freight costs, maintaining a transparent and appropriate relationship with the carrier for the duration of the project.

There are cases where the company is starting its activities in the country and for that we need a transport infrastructure. This is another way to use the project. The company seeks to carriers in the market with the lowest price. In this case, there is no activity to determine the estimated reduction. The study then seeks to find carriers with best price and quality that meet the transportation needs. To be the beginning of the activities, the volume to be transported is an estimate. The load to be transported, however, is known. Recipients can be known or not, depending. Project costs must be agreed in advance and there is no compensation due to the economy, which does not exist by virtue of being the beginning of activities.

Much has been learned about the difficulties of projects in logistics. A great lesson is that a project, as much as is feasible, depends on people to be approved. Thus, the larger work is not always show the feasibility, but to convince the decision makers. It is with this purpose that this text shows the advantages of the project with a good chance of reducing transport costs or even the possibility to check whether the costs charged are compatible with the market. As the amount calculated, one can conclude that there is interest in pursuing studies or not, and all this at zero cost.

Source: http://www.tecnologistica.com.br/

Comments are closed.