Being Prepared - for the worst?

If there's anything that the recent attacks in Mumbai have taught us - its the need to be prepared & vigilant at all times. The world order is changing - and has caught a lot of us unawares. As if the recent financial crisis - and its feared ripple effects on the world economy are not enough to keep us on our toes, events like these serve a grim reminder about the lacunae in our defenses.

Businesses, like governments can learn from disruptive events such as these. It is more imperative now, than ever to design flexible & adaptive business models - one's that can not only react to external stimuli of change - but can also mold themselves to new realities.

In the US retail world, with Green Friday - just behind us - the heartening news has been that deep discounts offered have definitely drawn shoppers out. In fact this year the average spending has gone up by 7 % to $372.57 for Friday through Sunday. However, there are a couple of things to watch out for. One, deep discounts ultimately imply smaller margins & profits. You simply have to sell that much more - to make up for a healthy bottom line. This combined with the fact that there are fewer shopping days (27 Vs 32 from last year) left to Christmas this year - can still mean a tough holiday season for most retailers.

The one thing to keep in mind is that bail-out plans can only go so far in propping up an economy. Its sound business management, the ability to run a tight ship, and making the right investments for the future that will determine which companies shine in the new world economy.

In Mumbai and India - its time though for introspection - and for taking firm measures to ensure the sacrifices of those that laid down their lives do not go in vain. For now we solemnly pay tribute.

Strike a pace : Get a good running mate!

THE choice has been made. Sen. Barack Obama, the Democratic presidential candidate has chosen Sen. Joe Biden as his running mate. The jury is still out on whether this will help or hamper Obama's chances of occupying the White house. The road ahead will not be without challenges. Sen. Joe Biden is a veteran in American politics. His experience in foreign policy matters, as well as domestic issues is sure to help bolster Sen. Obama's bid for the presidency. On the other hand, there are some doubts on how this affects the promise of "change" - when this could really be construed as a "play-it-safe" choice.

Like in politics, choosing the right partner can be an important business decision as well. In the new global economy - networks rule. Your success with new and ongoing initiatives can easily depend on how well your running mate can not only keep up with you - but also help set the pace. The more you practice and train together (and keep common goals in sight), the better your chances of achieving great results.

Being a good partner is not an easy proposition as well. It calls for establishing deep trust, understanding each other's strengths and weaknesses, and adapting to evolving situations - as and when required.

It is not the number of partners that are important, but the credentials of those few "good-men" that make the difference. In the retail, supply chain information technology space for e.g. partnering with those that have the client situation context, domain experience, complementary skills and demonstrated results are more likely to have an impact.

While Sen. Biden's team has out campaigned the other contenders (notably the Hillary Clinton camp) in the race for the No. 2 spot on the Democratic ballot, it remains to be seen how effective this choice will be in the long run.

For now - the race is on!

2008 Beijing Olympics : Is your supply chain fit to run

THE countdown to the Olympics 2008 has begun. Like the Soviet Union at the height of the cold war, China is looking to make a statement by winning more Summer Olympic gold medals than the United States. Both countries will doubtless honor the systems that they say produce victories — Chinese authoritarianism versus American liberty.

While the next few weeks will be abuzz with which approach comes out tops, the Olympics themselves have a serious and noticeable impact on global business, and supply chain in particular. The impact the Beijing Olympics COULD have on your supply chain can and will be significant.

To summarize as briefly as possible: In an effort to reduce pollution and congestion before, during, and after the Olympic Games the Chinese government has implemented a variety of measures aimed at restricting and/or closing down heavy polluting industries, forced reductions in traffic, etc. Some of these are :

• Trucks weighing in excess of 3 tons restricted from entering Beijing City. Ring roads 3-5 designated by Beijing Organizing Committee for Olympic Games as “Olympic Lanes”
• Trucks registered in other provinces restricted from entering Beijing.
• 20% of registered Beijing enterprise vehicles will be restricted from running during the Olympics.
• All vehicles subject to odd-even license plate number controls, meaning only one type of vehicle (odd or even) allowed to operate in Beijing on particular days
• Trucks that are not emission-controlled will be prohibited from entering Beijing.
• Non-Beijing licensed vehicles allowed into Beijing but can not pass beyond the 5th ring road.
• Hazardous Materials transport to be strictly controlled.

While this might be a touchy issue ( read Olympic cyclists wearing smog masks) with the Chinese authorities, the bottom line is that if you havent been planning for this - it is very likely that your supply chain and replenishment strategy in particular will take a serious beating. Back-to-school sales might be the first to get affected.

That said the Olympics do bring a feeling of celebration and healthy competition to the world. Get the latest action here : Olympics Tracker.

Green strategies to cope with climate change

Increased regulation, structurally higher energy prices, and shifting consumer demand and are driving a slow but very visible transition to a global lower-carbon (*) economy. The writing is on the wall. Only some companies will be winners and others losers in this new order of the world.

Businesses with global supply chains are the first to experience the stress caused by shifting weather patterns on one hand, and increased costs on the other. From devastating tsunamis to mighty hurricanes – it is clear that there is no messing with nature. Katrina (see picture) is estimated to have been responsible for $81.2 billion in damage, making it the costliest natural disaster in U.S. history.

Ongoing turmoil in the middle-east, increased demand for fuel and energy from growing economies in China & India (though per capita consumption is still very low in these countries) have spurred an unprecedented oil price rise in 2008. The most recent price per barrel maximum of $147.02 was reached on July 11, 2008.

Not all is lost though. Awareness about the environment, eco-friendly products, and the desire to comply is at an all time high – and growing by the day. Terms such as ‘Corporate responsibility’, and ‘sustainability’ are increasingly finding their way into boardrooms of large companies. According to an Aberdeen Group March 2008 report – they found that Best-In-Class companies have demonstrated improved operations in at least four different areas:

• Transportation & Logistics Costs – 2% decrease Vs 1% for industry average
• Energy Costs – 6% decrease Vs significant increase for the industry
• Operations & Facilities Costs – 2% decrease Vs No Change
• Supply Costs - 2% decrease Vs No Change

There are many initiatives being pursued. The three “R”’s have emerged as an easy reminder to workable plans for saving the environment:

• Reduce: Initiatives focused on reduced energy usage across transportation fleets, decreased electricity consumption due to facilities redesign/reequipment etc.
• Recycle: Utilizing “grey water” for washing, paper and plastic recycling among others
• Reuse: Leveraging new more durable packaging to reduce waste – and cutting down trees

In addition we recommend a fourth “R”-Replenishment (or carbon offsetting) as a sustainable complement to the strategies outlined above.

It is evident – going “green” is not strictly about the environment – but that it also translates to big green $$’s!

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(*) Source McKinsey Quarterly

(**) Source Wikipedia: A carbon footprint is a "measure of the impact human activities have on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide. It is meant to be useful for individuals, nations and organizations to conceptualize their personal (or organizational) impact in contributing to global warming.

The Expicient - API

For those that are familiar with the software and the use of APIs (Application Programming Interface).
At Expicient, we have defined a simple API for our team.
A.spire, P.erspire & I.nspire!

Aspire

The world over, those that achieve great results, have demonstrated first, a desire to excel. Take the 2008 men's Wimbledon final (R. Nadal Vs R. Federer). Both men demonstrated a fire in their belly and deserved to win! At the end, though Nadal won, Federer was hailed for rallying till the last minute. They both Aspired. And so do we - to be the best at what we do for our clients!

Perspire

There is no substitute for hard work. There are no free lunches. Our clients have complex problems that require focus, perseverance and creativity to analyze. But the best of solutions would be no good without execution and follow through. We are committed to making it happen - and are committed to work really hard to help ease their pain. It might be our clients' skin in the game, but its definitely our perspiration too!


Inspire

"Keep your eyes on the stars, and your feet on the ground" - said Franklin D. Roosevelt. In the summer of 1921, when he was 39, disaster hit-he was stricken with poliomyelitis. Demonstrating indomitable courage, he fought to regain the use of his legs, particularly through swimming. His story is full of inspiration. At Expicient, our team shares a common indomitable optimism and belief in our work ethic and principles. Each one of us - are inspired by our mates and in turn work on being role models for our team members.

We dream, and therefore we are...

our vision

“To be the partner of first choice for our global clients for creating and deploying high-impact & eco-friendly supply chain product solutions”