Traffic, Distribution, Imports - Reducing Cost, Traffic Process

[michellemmm]

Following your views and advice ....
Critics are welcome


Weakness
There are no targets / departmental mission
There is no culture of improvement
There is no standard in the process made
Lack of measuring performance of the processes

My plan...
1.Establish goals / mission
1.1 Role of individuals in achieving objectives

2.Develop a philosophy of continuous improvement
2.1 Training
2.2 Reading (books, articles, etc)
2.3 Encouraging teamwork

3. Developing procedures and WI
3.1 Carry out training on map process and procedures
3.2 Develop a list of the main activities of the dept.
3.3 Develop maps processes of our activities
3.4 Develop procedures of our activities
3.5 Develop Work Instructions

4. Create measuring performance for the department's activities
4.1 Identify the key activities in the department
4.2 Employ appropriate indicator to measure the performance of activities
4.3 Reviewing the results

GREAT Job!!!

Let me make couple of recommendations.

1. I would change "weakness" to "Opportunities for improvement and compliancy" or something similar in the language spoken in your organization.
By approaching this mission positively, you will establish a foundation for "culture of improvement". You will remove the fear and reluctance of your team to participate in achieving organizational goals.

2. Also, to promote team work, try to establish measurement for processes and not departments. Measurement of effectiveness of management Processes consist of cross functional team working together to achieve organizational goals. In some cases, department measurement equates to process measurement. Import, traffic, and distribution are interrelated processes. If import papers are not submitted on time to the customs, distribution is delayed. If there are errors in permits, you know what is going to happen better than me….Why not look at your customer expectation and set them as measurable objectives and then identify the factors that greatly influence the success of objectives?

Try to follow your process map or develop one. It does not have to be too complicated. Don’t do flow charts… Flow chart is good for identifying activities. Process map shows processes and their interaction. Let the process map guide you in putting the package together. You have a very good understanding of the actions required to achieve objectives. The process map will help you organize, synchronize, and prioritize action items.

 

[powerflow]

Thanks, these words are the best Christmas gift for me ....by the way, nice picture of you

 

[michellemmm]

Thanks, these words are the best Christmas gift for me ....by the way, nice picture of you

My Pleasure. Merry Christmas.

By the way, about the avaitor picture....That's is my daughter and not me. I looked exactly like that 20 years ago. I will upload mine when I can find one that does not show my "quality maturity wrinkles and grey hair"...

 

[powerflow]

My Pleasure. Merry Christmas.

By the way, about the avaitor picture....That's is my daughter and not me. I looked exactly like that 20 years ago. I will upload mine when I can find one that does not show my "quality maturity wrinkles and grey hair"...

jejej I Thought for a moment, "somebody of my age and experience", I am 22 years old and less than a year working in the area .... I feel intimidating posting here With the experience of all of you

 

[Craig H.]

jejej I Thought for a moment, "somebody of my age and experience", I am 22 years old and less than a year working in the area .... I feel intimidating posting here With the experience of all of you

Power,

We were all where you are at one time. I just wish I was where you are at 22. Don't be intimidated. You keep those of us who are a little older on our toes.

Keep rockin', and Merry Christmas!!!

Craig H.

 

[BradM]

Hello there!

The other Covers have done a superb job on this for you. However, you asked several questions in your thread. As Marc rightly suggested, you may consider developing a more specific thread on some of the questions.

I would think you would want some metrics. How is your inventory turnover? Is it at acceptable levels? Do you order often enough, or too often? Do you have much spoilage?

The basic Economic Order Quantity model which balances holding and ordering costs is what I am thinking of. While many times reality is too sophisticated to use that model, sometimes it's just the right tool.

How is your logistics? Are the costs managed well? Are you missing orders? There may be times it is best to ship yourself, and times to use a Third Party Logistics.

Is your company just in one area, or do you have multiple tariffs, taxes, customs, etc. that you have to deal with? Many of these factors should be considered with your inventory plan.

What is the strategy of your organization? Is your process geared up for that strategy. Also, make sure you don't develop a system for a different strategy than what management is interested in.

Will you need to consider upgrading the information system to accommodate new visions and strategies? Is that in the master plan?

It just sounds like you are wearing a Supply Chain Manager hat, here. As Craig has wisely pointed out, you are doing the right things by getting advice like you are. The others have brilliantly consulted with you on one or two areas. It sounds like you are concerned with many areas.

1. Don't get overwhelmed. You cannot fix everything yourself, and you will need help.

2. Keep the entire chain in perspective. As the Bullwhip Effect correctly shows, little blips in the chain can end up as huge waves elsewhere in the chain.

3. Someone correctly mentioned process mapping. Make sure you understand the real process going on here, and not the implied process. Some really wrong decisions can be made by not truly understanding the process, and the motivations behind why people do things a certain way.

4. In the end, the decisions made are between you and your upper management. However, I suggest you consider using pilot/test programs. Develop plans for one distribution center, and work it in. This will allow you to determine what works/don't work, before implementing it everywhere. However, if your upper management will truly support you, it might be best to wholesale implements changes desired by management. But little details like that need to be thought of and worked out prior to implementation. There will be mistakes and errors; with good risk management, though, they can be minimized.

 

[michellemmm]

Hello there!

The other Covers have done a superb job on this for you. However, you asked several questions in your thread. As Marc rightly suggested, you may consider developing a more specific thread on some of the questions.

Thanks Brad for your indepth analysis.

My understanding is that the poster's intention is to establish objectives for a service organization, dealing with brokers, warehousing, distribution, permits, import, and export processes. The accuracy of their work is so critical. One little mistake can cost millions in penalty, court cost, etc. They need to be synchronized and efficient. JIT is the key...

I don't believe inventory turns, logestics, EOQ, or other factors that are used in manaufacturing environment play a role in this type of organization.

 

[powerflow]

My boss want to start with measuring performance for the department's activities.....

 

[michellemmm]

My boss want to start with measuring performance for the department's activities.....

Sometimes, you need to let people learn from their mistakes...It took my last client eight months to embrace "Process Approach". During this time, they measured and measured and measured departments and called it "Business Metrics." I kept repeating my semon daily....like a broken record player...After eight months they finally understood that the real purpose of measurement is improvement.

Be patient with your boss. He is between denial and awakening stage and wants instant results without hard work. If you want to stay in this business, you need to allow people to help themselves. He is blaming people and not the system....Follow what he is asking you to do and in between add "measurement of processes" one at a time. I promise when he start seeing the effectiveness of each process, he will change his mind and drop micro (or nano) management methodology.

Good Luck! (Buena Suerte)