Logistics Strategies for Business: 19 Experts Share Tips on How to Develop a Winning Logistics

Strategy

Taken from http://www.camcode.com/asset-tags/how-to-create-a-winning-logistics-strategy/

Shawn Casemore

Shawn Casemore is the Founder and President of Casemore and Co, Inc. Shawn has spent nearly
two decades leading, managing and motivating teams across a vast array of industries and sectors.
He has worked with dozens of dynamic and diverse organizations including Magna International,
Arvin Meritor and Bruce Power LP. Shawn is recognized as a thought leader in the area of
operational excellence and his views are frequently published in industry publications including
the Globe and Mail, CFO Magazine, Enterprise Apps today, purchasing B2B and many others.
Shawn has also been a visiting faculty member at the Humber College Institute of Technology and
Advanced Learning for the past two years.

My top logistics strategy tip is…

Leverage your predicted volumes to reduce price.

I have worked with numerous organizations to develop a logistics network (FTL, LTL, courier)
during business launch. Finding providers who will offer the service levels required at a
competitive price is challenging when you don’t have historic volume to rely on. This is when
predicted volumes become essential. What are your predicted logistics volumes in LTL or courier in
your first year? Positioning this correctly can yield significant discounts in freight costs, the
outcome of which help improve bottom line cash and competitive advantage.

I helped one very small ceramic tile distributor negotiate their courier rates. We ended up using
the top ranked international courier with a significant discount. My client was pleased, but was
never able to validate the discount rate until one day their supplier (a larger national manufacturer
of tile) suggested they ship using their own account (with the same courier). I compared their rate
to that of the negotiated rate of my client to find a 20% difference (in favor of my client).

In logistics network strategy, identifying partners is all about leverage, real or predicted.

Keith Biondo

BondoAs the publisher of Inbound Logistics Magazine – a multi-media publication serving the
informational needs of business logistics and supply chain managers globally since 1981 – Keith
Biondo is considered a supply chain visionary. Early in his career, Biondo recognized the
importance of helping U.S. manufacturers better match demand to supply, and his passion for that
idea fuels many of Inbound Logistics’ accomplishments. Under Biondo’s leadership, Inbound
Logistics helped grow the third-party logistics segment and taught shippers the importance of
evaluating their 3PL providers. He also championed the concept of applying logistics technology to
all aspects of supply chain management, from the largest ERP systems to the smallest SaaS
solutions. Biondo currently serves as a board advisor to the American Society of Transportation
and Logistics. Biondo holds a BA degree in History and English from St. John’s University, New
York.

When it comes to an effective logistics strategy…

My one tip is to start practicing demand-driven logistics if you have not already done so.

The importance of better matching demand for your products to your supply goes far beyond
reducing your transport spend.

When a company begins practicing inbound logistics or demand-driven logistics, transportation

costs are reduced but the savings of replacing inventory with information, and providing better
customer service to your customers, is even more important.

Beyond that important result, aligning your business to practice demand-driven logistics moves
logistics management out of the functional silo and provides strategic benefits to the entire
enterprise.

Subscribe to Inbound Logistics Magazine for examples, case histories, and best practices to help
and support you as you embark upon your demand-driven logistics journey.

Steve Murray

SteveMurraySteve Murray holds the unique role of both a Principal Consultant and as Chief
Researcher for Supply Chain Visions. As the head of research at Supply Chain Visions, Steve is
constantly monitoring the pulse of the supply chain industry for leading edge trends and best
practices that Supply Chain Visions can bring to their clients.

Steve maintains the SC Visions “Catalog of Processes and Best Practices” – which is the foundation
for both the Council of Supply Chain Management’s Supply Chain Management Process Standards
guides and the Warehousing Education and Research Council’s Best Practice Guides, and he
manages the SC Visions / CSCMP Glossary of Supply Chain Management and Logistics terms. Steve
is also a member of the team which performs the annual WERC / DC Velocity Study of DC Metrics,
and is a frequent speaker on the subjects of process improvement and the use of metrics.

The most important tip I can share with business professionals looking to create an effective
logistics strategy…

Comes from many years working as a consultant to companies in the warehousing and supply
chain areas. It is a rather simple, and extremely effective approach that is way too frequently
overlooked, misunderstood, or simply not well executed.

New and existing companies should take time to understand the essence of Sales and Operations
Planning or S&OP. Many times I see companies who “think” they know S&OP, and some who
practices a form of S&OP without actually naming it. But I don’t see a lot of companies practicing
it effectively.
S&OP simply defined is a strategy where all of the primary functions (Sales, Marketing, Product
Management, Manufacturing, Warehousing, Procurement, Finance, Transportation) of the
business come together as a team (face to face or via a communications link) to review, discuss
and plan business activities. Note here that it does not simply include Sales and Operations, but
must include all parties who impact, or are impacted by, the regular activities of the business.

This session must be viewed as a “team” effort, with all understanding a common set of goals
(customer satisfaction, profitability, improved sales, etc.), and agreeing to work together to
achieve those goals. The meeting should be held as frequently as practical, and the team should
have a set of tools, KPIs and reports, to assist in regular checkups and notifications. Meetings
should be focused and short, they should be about cooperation and strictly avoid confrontation.
Yes, we will discuss what went wrong, but with a focus on the “why” and “how” of improvement
and eliminating the issue. It should be more about planning for what is coming in the short and
long term, and how the team will address it.

There must be commitment by all parties to move past the functional silos that continue to haunt
companies. It must, over time, become an ingrained component of the company’s culture.

Properly executed, a solid S&OP process can do more than any other single logistics strategy to
improve the odds of success. Once the “team” is in sync, the individual functional areas can turn
to focusing on how to most effectively address their part of the process, understanding fully what
the goals are.

Without S&OP it has been proven that most functions will create their own goals, but they are
likely to not be aligned with the rest of the business. For example; A DC achieving a high fill rate
for customer orders may not be good for the business if doing so comes at a high cost to the rest
of the business. S&OP can help ensure that all of the logistics related activities are tuned to
getting the highest fill rate possible in the most economic and efficient manner.

Rick Blasgen

BlasgenRick D. Blasgen currently serves as the president and chief executive officer of the Council
of Supply Chain Management Professionals (CSCMP) in Lombard, Illinois, USA. He began his career
with Nabisco, where he held various logistics positions of increasing responsibility in inventory
management, order processing, and transportation and distribution center operations
management. He became vice president, supply chain, at Nabisco in 1998, then vice president
supply chain for Kraft in 2002. From 2003 until 2005, he served as senior vice president integrated
logistics at ConAgra Foods. He earned his degree in business administration from Governors State
University.

When it comes to logistic planning for any business…

My top tip is to acquire an experienced logistician who has great interpersonal skills, is well
connected to the logistics/supply chain world (a CSCMP member of course!), is a proven leader,
and has solid financial acumen.
Richard Wilding

RichardWildingRichard Wilding is the Professor of Supply Chain Strategy at Cranfield School of

Management. As Chair (Full Professor) in Supply Chain Strategy at the Centre for Logistics and
Supply Chain Management, Cranfield School of Management UK, Richard works with European
and International companies on Logistics and Supply Chain projects in all sectors including
pharmaceutical, retail, automotive, high technology, food, drink and professional services to name
a few. He is a highly acclaimed presenter and regularly speaks at Industrial Conferences and has
undertaken lecture tours of Europe and Asia at the invitation of local Universities &
Confederations of Industry. He has published widely in the area of Supply Chain Management and
is Editorial Advisor to a number of top journals in this area.

When it comes to creating an effective logistics management strategy…

The answer to your question is contained in my 60 seconds on Supply Chain Strategy video on
YouTube.

Some notes from the 60 second video:

Logistics and supply chain strategy can be summarized as the operational execution of the
business mission.

So firstly understand the business mission, reflect on the Corporate strategy of the organization
and plan accordingly. Secondly, recognize an “average” supply chain means 50% of customers are
sick of your service and 50% you are spending to much money on! A focused competitive strategy
is required so liaise and discuss with the marketing and sales functions of your business. So you
need to segment your customers and products so that you can develop individual supply chains to
create maximum value at the lowest possible cost for each of these groups. Thirdly, now for a
supply chain strategy to really work, four areas need to be designed.

Your supply chain processes, the supply chain infrastructure including where you locate facilities
and also what equipment is used, your supply chain information systems, and finally the supply
chain organization. This is how you organize your people.

So in summary, start with the corporate strategy, identify how you compete in various markets
and understand the competitive strategy, develop the supply chain strategy to serve these
markets by tailoring your Supply Chain Processes, infrastructure, information systems and
organization and people.

Kenneth B. Ackerman

Ken Ackerman has been active in logistics and warehousing management for his entire career.
Before entering the consulting field, he was chief executive of Distribution Centers, Inc., a public
warehousing company which is now part of Exel Logistics USA. In 1980, Ackerman sold the
company and joined the management consulting division of Coopers & Lybrand. In 1981, he
formed the Ackerman Company, a management advisory service.
Ken is editor and publisher of Warehousing Forum, a monthly subscription newsletter and blog.
His newest books are Lean Warehousing and Fundamentals of Supply Chain Management, both
published in 2007. His other recent publications include Auditing Warehouse Performance and
Warehousing Tips. Harvard Business Review published “Making Warehousing More Efficient,” co-
authored with Professor Bernard J. LaLonde. The New York Times published his bylined article
“Just In Time, Right For Retail.” He is the author of numerous other articles dealing with
warehousing and management.

He has the following educational and professional credentials:

B.A., Princeton University

M.B.A., Harvard University

Council of Supply Chain Management Professionals – Past President

Warehousing Education and Research Council – Founder

The most important tip about a business’ logistics plan is…

that it should always be subordinate to corporate strategy. For example:

If your company’s strategy is to always be the low price leader, then the prime goal of the logistics
strategy is to move stuff at the lowest possible cost.

If your corporate strategy is based on agility and the movement of goods faster than competitors,
then logistics strategy is based on speed rather than cost.

If your company sets the standard for quality, then the logistics goal is to have100% perfect orders
and to do whatever it takes to correct any error.

If your company is growing by merger, one logistics strategy is to integrate the operations of the
new acquisition into the existing logistics program.

If your corporation is judged by its return on invested capital, then the logistics strategy is to
remain as free of assets as possible by finding short term leases for warehouse real estate and
transport equipment.

Steve Novak

Steve Novak is the President of PPR Management Services, LLC, where he works with organizations
to define and achieve their goals. He has over 20 years of process improvement and business
operations experience, and is the author of “The Small Manufacturer’s Toolkit”.

My top tip for creating an effective logistics strategy is…

First define what you are trying to accomplish, what goals you are trying to achieve. Your logistics /
supply chain strategy supports the goals of the business, so your supply chain strategy must align
with and help achieve the organization’s goals. The second step is to articulate how the supply
chain strategy works to achieve the higher level goals.

For example, if speed to market is a goal, the supply chain strategy will look different than one
where the goal is to be the low cost supplier.

Timothy D. Garcia

TimGarciaTim Garcia is the founder and CEO of Apptricity, a leading logistics and supply chain
management software solutions provider. Tim brings more than 25 years of software sales,
management and development experience in the enterprise applications market to Apptricity, and
under his leadership, Apptricity’s growing client base now includes three of the world’s largest
organizations, namely Walmart Stores, AT&T and the Department of Defense. Prior to Apptricity,
Garcia held management positions at Pivotal Corporation (Nasdaq: PVTL), Compuware
Corporation (Nasdaq: CPWR), Peregrine Systems (NYSE: HPQ), Sterling Software (NYSE: CA), and
EDS (NYSE: HPQ). He received his BA degree in Economics from the University of California at
Davis.

When it comes to any company’s logistics management strategy…

There is a critical need in today’s hyper-fast, online environment to meet the expectations of
clients. Finding a faster, more efficient means of handling products is important for supporting a
successful organization, and a well-run supply chain is vital to the success of a business. Starting
with a great solution or upgrading the supply chain management system is essential in order to
compete and can provide a substantial boost to productivity. The potential for supply chain
disruption comes from unexpected weather, natural disasters, political upheaval, economic crises
and other “black swan” or unique events that can ruin a start up and cripple an existing business.

The most important tip in mitigating the potential negative outcomes of supply chain disruptions is
doing effective and careful pre-planning. Benjamin Franklin said, “An ounce of prevention is worth
a pound of cure.” That quote absolutely applies to supply chain logistics. Each company has a
special “finger print” with its products; some are sensitive to spoilage, some are fragile electronics
and others require more human labor. In order to react swiftly and decisively, a plan supported by
the right solution is critical to an organization. With corporations, suppliers and manufacturers
situated in different parts of the globe, you need technology that can link everyone together in a
way that provides consistency, streamlines processes and enhances visibility to meet challenges in
real time. A business is only as successful as its supply chain. Pre-planning now and elevating this
to the executive team in an organization today can eliminate the majority of customer service
issues tomorrow.

Finding the right solution can be game-changing in today’s frantic, uncertain market. Potential
problems lie within mismanaged warehouse processes, inadequately tracked fleets and their
inventory, scattered inventory, lackluster transportation management or some other supply chain
conundrum.. Many warehouses handle massive numbers of shipments every year and in an
economy that has seen less frequent hiring of additional help, much of the focus has been placed
on maximizing the potential of the workforce. Having fewer hands to help receive and move
shipments places an increased premium on accuracy and speed. This applies closely to
organizations that deal with perishable and time-sensitive products, such as food, beverages or
anything that involves the cold chain. Within these organizations, careful tracking of shipments is
essential.

Many organizations still rely on “tribal knowledge” for this sort of information, but even the best
memories fail. Manual processes tend toward error, but a system that centralizes information and
helps automate the supply chain provides a level of support and real-time access to information
that can help a business reach its maximum potential with minimum investment of time, planning
and solution implementation.

Planning for the future with innovation is the key, whether it’s through whipping your company
fleet into shape with fleet management software, keeping close tabs on product through
inventory management solutions or maximizing every square foot of space with improved
warehouse management. Innovation is hitting the market as solutions centralize data and provide
real-time access to what you need to know, whether you’re in the office, down the street or
several continents away.

Technology is linking vendors to customers and customers to shippers through an interlinked web
that promotes the sort of fast, adaptable response that sets a business ahead of its competitors.
Today’s logistics is mobile-enabled, connected and requires much more than the pencil-and-
clipboard style of management from years past. Google CEO Eric Schmidt has said the world now
creates as much data in a span of 48 hours as all of human civilization managed to produce from
the beginning of history until 2003. Planning and leveraging that Big Data to better understand
and propel a business means building a sustainable future.

Clay Gentry

Clay Gentry is VP of Logistics Operations, responsible for developing innovative TMS technology
and improving processes for clients of Transportation Insight, a leading North American 3PL. He
has more than a decade of experience in non-asset based logistics management. His engagement
with clients has included transportation planning and process management, engineering,
continuous improvement and Transportation Management System (TMS) process design and
integration.

The most important tip I can share with business professionals for better understanding how
logistics strategies work is…

Logistics strategy is the science of evaluating the most cost effective methodology of distributing
goods to market while achieving service level objectives. When establishing an effective logistics
strategy, you need to understand to what degree logistics impacts your operations and your
customers’ operations. How crucial is timely delivery to your inbound and outbound deliveries,
and what constraints exist, such as budget, resources and existing network of providers. If you
choose to outsource your logistics operations, make sure you use an organization that will work
with you hand-in-hand to co-manage your logistics, so that you keep all your front-line carrier
relationships and control. Work with an organization that doesn’t see you as a “project” but as a
“partner” who will share with you their best practices and understanding of emerging trends. This
partnership-type relationship ensures success within your logistics operations.

Samuel Levin

Samuel Levin is the Cofounder and Managing Director of Maven Wire LCC. Prior to co-founding
Maven Wire LLC, Samuel served in a variety of roles at G-Log Inc., (Global Logistics Technologies,
acquired by Oracle Corporation in 2005), including Technical Consultant, Senior Functional
Consultant, and Project Manager. While implementing G-Log’s award winning GC3 Supply Chain
Management solution, Samuel has had the opportunity to work in virtually every logistics vertical
including CPG, Automotive, 3PL/4PL, Manufacturing, and International Freight Forwarding.

One of my most important tips for maximizing the effectiveness of your business logistics strategy
is…

Focus on your competencies. Many companies think they need to “do it all” when it comes to
logistics, but in reality there are many options available to organizations that are looking to
develop effective and efficient logistics processes. Depending on the complexity of your reader’s
shipping needs, for example, in some cases it may be easier to outsource logistics domestically to
a 3PL or a global freight forwarder. And, even start ups that lack established IT departments can
create effective logistics strategies by using an affordable SaaS-based transportation management
solution (TMS). These platforms allow organizations to plan, execute and track freight without the
concerns of managing software applications and computer hardware.

Raad Mobrem

Raad Mobrem is the CEO and co-cofounder of Lettuce, which he originally created as an internal
solution for his first wholesale small business. Getting tremendous demand from other wholesale
businesses after seeing Raad’s company use the product, Lettuce was launched in early 2012 with
the help of CTO Frank Jones. Raad is the visionary behind Lettuce’s product and company, which is
focused on creating consumer-like business applications that make it simpler for businesses to run
their company.

The best way to increase the effectiveness of your logistics plan is through…

Utilizing the technology available to you. My own company, Lettuce, has innovated a way for small
business owners to cut costs by consolidating the entire sales, processing, accounting, inventory,
forecasting, fulfillment and shipping process into the click of just one button – let that sink in a bit.
It’s taken a task that spans across multiple departments and translated it into a single click.

Tools like this are what I think are essential for maximizing your logistic process. Lettuce is an
inventory management program accessible via the web portal and iPad app, cuts out the middle
man and eliminates repetitive data entry, saving businesses money by cutting overhead costs and
brings in more profit by allowing salespeople to secure more sales because they’re not wasting
time with back-end order processing. Not to mention it helps small companies go a little bit
greener (like Lettuce) by replacing pen and paper, the traditional sales method, with an iPad.
Companies can utilize this app to create instant digital catalogs, validate credit card info on the
spot (perfect for trade shows), calculate shipping charges, sync with QuickBooks, forecast
inventory needs and give wholesalers 24/7 access and ordering capability, slashing countless hours
off the back-end fulfillment process.

Dr.McKay

DrMcKay is the CEO for MJMcKay Consulting Corporation. He was one of the first academics asked
by the Boeing Company in the early 1990’s to create a Lean manufacturing curriculum for the
company’s middle management. The training that he created has since been used to teach Lean to
thousands of participants. He has also enjoyed his time discovering growth opportunities for giant
corporations such as Microsoft Corporation, Starbucks, and Pfizer. He has worked with
government organizations, NGO’s, service organizations, and manufacturers. He has substantial
experience successfully working with the particularly unique challenges of the family-owned
business.

When it comes to creating an effective, yet realistic, logistics strategy…

Plan to give the decision away.

I don’t mean that you have to use a 3PL or necessarily outsource your logistics in any way, but if
you are an executive of your company, no matter how small, then make plans now to intentionally
stay away from the logistics decision making. Smart executives hire smart managers to take care of
inefficiencies in logistics and information flow, and then stay out of the way. Dumb logistics are
sometimes the result of bad spreadsheets and bad logic, but that’s only a symptom of the disease.
The real cause of dumb logistics is internal company politics. The “people with influence” want this
or that, and the logistics get hammered. Spend your time making sure that your logistics
managers, whether in-house or outsourced, are both (1) totally on-board with how logistics
supports your strategy, and (2) totally empowered to make decisions without asking permission.
You have bigger fish to fry.

Mark Broussard

Mark Broussard is the President & Chief Operating Officer for SAMI, responsible for global
consulting operations, knowledge operations, administration and marketing. Mark entered
management consulting over ten years ago and has created substantial value for clients in
upstream oil and gas, mining, metals, power generation, pharmaceuticals, and entertainment
industry verticals. Mark is a member of the American Management Association, Society of
Maintenance & Reliability Professionals and is a Certified Maintenance & Reliability Professional.

The #1 way to increase the effectiveness of your logistics strategy is to…

Have absolute clarity on the purpose of the logistics function in the organization. Investing in
developing and clearly articulating the vision of logistics in support of the overall operation are
foundational steps in defining optimum logistics strategies.

Ben Cubitt

BenCubittBen Cubitt currently serves as the Senior Vice President, Consulting & Engineering of
Transplace, and has more than 20 years of industry and consulting experience in freight
optimization. At Transplace he leads the engineering, carrier management and consulting teams.
He has a deep familiarity with the freight procurement field working for consulting firms and
multiple Fortune 500 companies in the consumer products, paper and automotive industries. Mr.
Cubitt has led and assisted with bid projects for companies such as MeadWestvaco, Kellogg’s,
RockTenn, The Home Depot, Colgate-Palmolive, RockTenn and McCormick Foods.

When it comes to logistics planning and strategies…

Within the supply chain, there is the constant challenge to optimize service and cost performance.
There are more tools and challenges than ever before; but at the end of the day, for supply chain
professionals, it’s all about delivering low cost and great service. To accomplish this, companies
need to gain end-to-end visibility of their network and analyze service and cost performance. It
starts with building a solid transaction and information foundation. Often this means partnering
with a third party logistics provider (3PL) who has the people, processes and technology needed to
execute, gain visibility, track and report cost and service performance.

Secondly, companies need to make sure they have the right people planning, executing and
optimizing their transportation network. Do you have a team of transportation professionals with
a mix of real world experience and solid academic and analytical skills? Are they trained in Lean or
Six Sigma? Can they communicate? Communication is critical across the supply chain – to internal
stakeholders, customers, suppliers, carrier partners or others in the industry – and managing those
relationships.

Once you have a solid base of information, you need to analyze the data then optimize their
freight. There are two levels of optimization: strategic and tactical. Strategic optimization looks at
procurement processes, mode selection and overall network design. Tactical optimization is
considering if you’re using right carriers, if deliveries and pickups on-time, etc. Shippers need to
analyze cost of service daily to see where they’re having carrier performance or other service
issues.

The next step is reporting and continuous improvement. You’ve built that solid foundation of data
accuracy and visibility and have the right team in place and made changes to optimize your freight;
then it’s time to report track and seek continuous improvement. By creating executive dashboards
and actionable reports, quarterly business reviews, and continuous ad-hoc reporting it’s possible
to examine trends over time and how you’re trending versus a prior period.

Gaining visibility and leveraging the data can help companies identify opportunities to take cost
and inefficiency out of their supply chain. Logistics should to be a resource to the entire company
and help the organization meet its strategic objectives and drive value for shareholders and
customers.
Danny Yunes

DannyYunesDanny Yunes is the Manager of Supply Chain Strategy at Coyote Logistics. Coyote
Logistics is a new third party transportation & logistics company built on a wealth of experience.
Started in 2006 by a 22-year veteran of the industry, Coyote brings together the brightest, best
trained employees and arms them with brand new technology that combines vast operational
experience with the latest advances in optimization and applied probability sciences.

The most important tip I can share with logistics professionals…

Would be to always remember your core competency. Focus on it. Ingrain it into your culture.
Then, align your logistics strategy around that competency, and segment out your products,
customers, and vendors.

If your company is renowned for producing an industry-leading product, then focus on the
innovation, quality and consistency that your customers expect. Your supply chain / logistics
strategy should have a high-touch, value adding service component that keeps quality high.

If your product is commoditized and price is the only thing that differentiates you from your
competitors, your supply chain / logistics strategy should focus on economies of scale and
innovative ways to reduce waste.

Customers can then also be segmented by level of “importance” — focus on the ones that impact
your business the most. These customers may or may not be the largest ones in your portfolio in
terms of revenue. They may be middle of the pack customers who are collaborative and drive
improvement in your business that can be replicated across other customers. Prioritizing these
customers should be part of your logistics strategy.

Vendors can also be segmented by level of “importance” and again, it’s the collaborative ones —
the ones that will work with you to improve your business and grow together — that you should
include in your supply chain strategy.

Often times, start-up companies will try to differentiate themselves and win business by providing
high levels of logistics service. If this is part of your strategy, then you know you have several
options, from operating your own fleet to paying for premium service from an asset based or non-
asset-based 3PL. This is why it is important to first understand your core competency. Are you a
transportation company? Then yes, you should probably operate your own fleet. Do you make the
best damn cupcakes in North America? Maybe you would consider outsourcing logistics…

Now, if you don’t want to be at the mercy of a logistics provider that treats you as the “little fish in
a big pond,” one approach might be to seek a longer-term, contractually bound, collaborative
relationship with a 3PL. By entrenching yourself into the 3PL’s business, a small or medium-sized
start-up company encourages the logistics provider to invest in network development and build its
capacity around the start-up company’s market. It’s the long-term commitment that builds
stability for both the shipper and the carrier. With a strong collaborative relationship established,
you can then work with the 3PL for additional value-adding and differentiating services down the
road, such as custom software development, reporting and analytics, etc.
Richard J. Sherman

Richard Sherman is an author, speaker, and consultant on Supply Chain, Business, Leadership, and
Information. He is an internationally recognized pundit and author on trends and issues across
supply chain management. He currently serves as a Principal Essentialist at Trissential co-leading
their supply chain consulting practice. His book “Supply Chain Transformation: Practical Roadmap
for Best Practice Results” (Wiley, 2012) has received praise by practitioners, academics, and non-
supply chain executives as a great read on business transformation. Throughout his career, Mr.
Sherman has held senior management positions with visionary technology firms such as EXE,
Syncra, and Numetrix, and marketing leading corporations such as Microsoft, Information
Resources (IRI), Mercer Management Consulting, Digital Equipment Corporation (DEC), and Unisys.

One of my most important tips for maximizing the effectiveness of your logistics strategy is…

Begin and end with customers and how they use your offerings! Logistics is about optimizing costs
while providing outstanding service. And, not all customers are created equal! A segmented
logistics strategy that considers the requirements of your most valuable customers first and
designed accordingly wins! Business is about growing exceptional current results while building a
strong base for the long term. Logistics is the capability that can orchestrate all of that to happen,
by starting with an intimate understanding of product and service needs of every customer
segment and linking them to the steps that provide breakthrough satisfaction to customers.
Logistics is the external link between suppliers, production, customer interface, and results. It is
the internal link between product development, marketing, sales, procurement, production,
finance, and executive leadership. An effective logistics strategy will contribute to the financial
health of the company and fuel its growth. When it starts with customer segment needs and
expectations and understands the value you create for the customer, only then can it produce
exhilarating customer response through delivery of knockout value.

Naseem Malik

Naseem Malik is Managing Partner of MRA Global Sourcing, an affiliate of MRINetwork, one of the
largest executive recruitment organizations in the world. Naseem brings over 15 years of
experience in the supply management and logistics function to the search and recruitment
business. Spanning diverse industries, he has worked in numerous roles of increasing
responsibility, including implementation of global supply strategies, product and process cost
reductions, logistics and transportation management and supply chain improvements. He was also
Director of Global Sourcing at both Terex Corporation and ACCO Brands, and his background
includes working in management consulting for AT Kearney, as well as multiple start-up
businesses.

The truth about logistics strategy is that…

An effective logistics strategy at its core, is nothing more than the process of moving and
positioning inventory to meet customer requirements at the lowest possible total cost to serve.
For a business leader, it’s their responsibility to design and administer a system to control the flow
and positioning of materials to support the business strategy. Every firm should adopt a strategic
initiative to align suppliers and distributors into collaborative relationships to gain a competitive
advantage. When this synchronization takes place, it’s called an integrated logistics model. There
are a few key factors that comprise a successful integrated logistics model and they are: asset
minimization, lowest total cost, and supply chain connectivity.

Since the business of logistics has become big business in the U.S., it’s also important to have a
solid logistics structure in place. Critical components of a logistics structure that an organization
should encompass are as follows: facility network, warehousing and material handling packaging,
order management, transportation and inventory.

All of these things have one goal and that is to ensure customer success. No longer will excellent
service and customer satisfaction lead to loyalty. For companies to now be competitive and
successful, they will have to evolve their philosophy towards ensuring customer success. They will
have to ask: “How can I enhance my customers’ performance?” This entails understanding
customer requirements, processes and their total costs.

A successful logistics strategy will be a customer focused strategy. This will allow for a stronger
franchise with best customers and lower logistics costs. It should also result in higher inventory
turns and reduced expediting because you will be in a true partnership and not a tactical
relationship with your customer base. The logistics value proposition for any company will focus
on configuring in a customer relevant way while concurrently enhancing quality, productivity and
operational excellence. Any successful strategy cannot remain static. Business leaders need to stay
atop of technology and trends as they impact and change the scope of business faster than ever
before.

Douglas Holdsworth

Douglas Holds is currently the Manager of Operations at Quality Freight Logistics, Inc, a
transportation company based in Michigan. Prior to helping found and mange Quality Freight
Logistics, Doug helped launch and grow logistics firm, R2 Logistics, over the course of six years. He
has more than 12 years of management and customer service experience in the Logistics industry.

When it comes to logistics strategy success, the most important tip I can share is…

Employ an experienced transportation procurement specialist to vet and manage your vendors “in
house”. Within these vendors, you want to work with a combination of asset based companies
and at least 2 third-party logistics companies (3pl’s). 3pl companies have access to all modes of
transportation throughout the entire market, and will be able to adapt to changes in the market
throughout the year. Also, working with more than one of these companies will keep them in
competition with one another and will usually net you the lowest price for their services.

Nick Martyn

Nick Martyn is the CEO and Founder of RiskLogik. Before founding RiskLogik in 2010, CEO Nick
Martyn held various command and staff appointments in both the Canadian and British Armies
over 27 years of military service in Canada, UK, Germany, Former Republic of Yugoslavia and
Afghanistan. From 2008 to 2011, he served as CEO of the Afghanistan Information Management
Services (AIMS) where he oversaw the transition of AIMS from the United Nations to independent
NGO status and transformed the organization taking them from a negative cash position to a peak
of USD $9M revenue in 24 months. During that period AIMS delivered a world class international
aid effectiveness management system (ANDMIS) to the Government of the Islamic Republic of
Afghanistan while also modernizing the Land Management System and Mapping the Electrical
Service in Kabul.

If I had one fundamental piece of logistics management advice for a company, it would be to…

Conduct a complete risk and resilience assessment prior to establishing a new supply chain.
Unfortunately, resilience does not come in a box, and cannot be purchased just when you need it.
While designing and building a resilient supply chain from the very beginning is much more cost-
effective than trying to change the supply chain in mid-stream, many organizations must redesign
them as they live with the results of one or more disasters or shocks.

A resilient supply chain is one that is flexible in the face of disruptive events. For example, an
inbound supply chain that uses Just-In-Time delivery of parts is lean and cost-effective in the short
term, but may be easily disrupted by events beyond the control of its managers. Resilience means
having the flexibility of being able to choose from multiple suppliers, several backup modes of
transport, or keeping 24-48 hours of parts on hand to smooth out the parts flow during disruptive
events. This type of built-in resilience can give operational managers the time to react should the
event prove to be a longer-term disruption.

Although logistics systems are called supply chains, they are not linear chains as the name
suggests. Rather, supply chains are very often complex webs or networks of infrastructure,
suppliers, supplies and services. Managers can’t use linear thinking when determining the
weaknesses and risks in a complex system. Therefore, using systems thinking to map and quantify
the movement of goods and services, and the dependencies between the parts of the supply
chain, is a much more effective way to identify risks in a modern logistics network. This map or
model can then be used to demonstrate to company decision-makers where vulnerabilities exist,
and by extension which parts of the network are at greatest risk.

Large firms with their own planning departments run scenarios to determine the most costly and
the most vulnerable nodes in the network, and use the results of the scenarios to mitigate the
risks ahead of time. Until now, smaller firms did not have that ability. However, new software
tools are enabling small and medium-sized companies to run their own planning scenarios, and
recover more quickly from known events.

Identifying vulnerabilities and mitigating the supply chain risks ahead of time is critical to your
survival when the disruptive event hits. This extra time can mean the difference between collapse
and the ability to save money, recover faster and with less impact on the business and, most
importantly, its customers.

A resilient supply chain is the product of thorough analysis and careful planning. Tomorrow`s
resilience is the product of the smart decisions made today. Risk discovery, risk analysis and risk
mitigation are complex and potentially costly. Our company, Risk Logik, provides the skilled
professionals, proven techniques and leading edge tools to help your company build resilience
quickly and cost effectively. RiskLogik’s software is being used by the Government of Ontario to
analyze and plan for critical infrastructure risk events, and also by the Government of New
Brunswick to map supply chain risks and vulnerabilities within the province. RiskLogik software
and methodology has also been used to support program management in Afghanistan, security
risks for NATO and the Canadian Forces, and critical infrastructure risk for the Government of
Canada.