I interviewed Glenn Rosenholmer who discussed Logistics End to End - Efficiency, Coordination and Leadtime.
Hello there, Dustin. Nice to be on, and I'm looking forward to giving some insights about, as I call it, the black holes in the complex supply chains.
Can you first provide a brief background of yourself?
I've been working with several complex and challenging networks, or as I like to call it, value chains. I have always been targeting to make it more stable, make it to be more endurance, to predictability from both stakeholders but also, of course, the people working the flow. So, firm infrastructure and getting conditions for that has been the purpose in all the assignments.
What are the black holes that companies are not able to control or coordinate regarding the flow in logistics in supply chain?
Well, normally, everybody gives an idea about the flow as, normally at least, inbound.You have the operations and you have your outbound services in the end. Or, if you like to call it the demand chain. When you work with it, I have very often came into discussion about where to start and where to end when you want to change your supply chain or make adjustments. First of all, I like to mention the problem of variety of lead times.
Depending on the different procurements that you feed into your supply chain, both from first tier and second tier, those are in variations so much. So, giving a set of conditions for each supplier becomes a big, big problem.
And the preconditions, not being able to control or coordinate it, is what I call the black holes, major dilemmas.
So, first of all, I think you can work with before going ahead, making sure where you want to stop and end your end-to-end study, and what to do in the flow. The first thing I want to mention is really understanding the customer's customer. Even if you, on a daily base, want to please your customer, not having anyone in your organization working on the issue of customer's customer, that becomes a black hole in what is really expected.
The other one is also going upstream. This was downstream. Both areas need to have an understanding. So, that means going to supplier's supplier, or if you like to call it, second tier, is also underestimated when you look at your flow.
And the [inaudible 00:03:41] of this is, as I see it, is it's not any time or effort set to get the broader view when you do your analysis of your flow. So, those things are to make you sure that those black holes, as much as you can, to understand both downstreams as well as upstreams, what's going on and the strategists do that.
Can you talk about how do you address these challenges?
I have a very good background in looking at it to work with the challenges to the setups with a sort of a new value chain thinking. And doing that is to have a starting point that keeps the network a freshness and sense of urgency. And what I mean by that is if we have a view from the start to learn from other branches or industries, that will help a proper starting point. And typically, you pick out two or three [inaudible 00:04:59] conditions from selected industries, and you use them as a case and not as a typical benchmark. But you try to pick out the main essential way of changing. And also, what I have done to get more predictable flow, so you can sort of have a cherry picking from that.
Then, that prioritized program and step-by-step plan in the same sort of approach end-to-end is making sure that broad perspective is held, which I mentioned earlier. The supplier’s supplier as well as the customer's customer.
Where have you seen some success or results?
The key findings, so to say, has been when I worked with a company who actually took this approach. I cannot mention the company's name, but they were very successful. And using a team to review their [inaudible 00:06:11] as mentioned before from two — how do you call it? — branches, other branches, industries, and sitting down and doing a four-quarter plan. The plans in action was then taken to be followed up on a quarterly basis. There also have been both structure as well as operational perspective in that plan, how we cannot improve our [inaudible 00:06:47].
And the key conclusions I find from these success results, it's the key approach being plan into work practice, working prerequisites, clear define measuring when we are looking at the benchmark. And number three, and not last, where we want to be. Description is shown as a business plan and broken down, meaning that it will touch the work practice. And after that, each quarter, it's been reviewed with those three key approaches as I mentioned — working practice, prerequisites, where we want to be description, and the fine measuring.
Thanks, Glenn, for sharing today.
Thank you. And looking forward to giving more insights, and also the feedback from these findings I've seen. Thank you.
About Glenn Rosenholmer
Management Consultant and CEO