Logistics: Its what I do.

Today, I want to write something a little more personal, but don't worry it is related and relevant. People often ask me, "what do you do?", and I always respond, "I help other companies make more money and become better competitors in their industry" The next question is naturally "How do you do that?", I then explain to them about how many companies have a real need for turning their Supply Chain and Logistics operations into competitive advantages. I also explain how the Supply Chain is the link between every strategic function in a company, and can be the real difference maker between winning and loosing. At this point most peoples eyes have fully glazed over and they want change subjects. With this in mind I thought that it would be best to use Industry Averages along with real averages that I can bring to the table to show what I do for companies.

What I do is very simple, I look at a clients Logistics setup, and with a team of engineers we optimize their Supply Chain based on the client's needs. To give an example using averages here is what the numbers look like.

Figure 1

In Figure 1 is an example of what happens when we partner with a typical company that is doing $200MM in top line sales. I would just like to point that that client would have to figure out a way to sell 28% more product in order to realize the same addition profit that we can bring through supply chain optimization. I don't know many companies that are projecting 28% increases in sales this year. In addition to the First year Profits, look what happens when we continue to be partners with this sames customer.

Figure 2

As you can see in figure 2 as we continue to be partners, this client continues to realize increasing profits year after year.

In addition to these hard monetary improvements, this client is also experiencing a more agile and responsive supply chain, higher customer service numbers, better order execution, higher fill rates, increased market share due to consistent supply versus the competition, and even increases in brand equity due to better execution.

So this is basically what I do, and I hope the visuals give a better understanding of the value of partnering with a logistics solutions provider.