Eric Joiner's Freightdawg.com - The Logistics and Supply Chain Blog!

The Real Meaning of the Pledge

Tomorrow is America's birthday.   We live in a difficult and tumultuous world with difficult economic circumstances.  However, I am intensely proud and humbled to be an American.   I know that I and my family are lucky to live in the greatest country in the world. 

 Red Skelton I think is one of the most talented American comedians of the 20th century.  In 1969, he did following bit on his CBS television show.  It's one of the greatest renditions of the American Pledge of Allegiance ever done.  

For those who visit here who are not American, the Pledge is an oath that used to be a part of the start of every school age child's day.  It has meaning beyond the understanding of children. 

Enjoy.  

Eric

The Mess In the Gulf of Mexico

Last week we took the kids to the beach down in Gulf Shores, Alabama.  My bride's sister and brother in law own a condo that we get a chance to use periodically.  We had a BLAST.  

The water was beautiful, the sand was sugar and the weather was great.   Just the kind of break we needed after a long winter and busy spring.  We were fortunate because we don't pay anything to use this family owned condo overlooking the beach.  Gulf Shores was also fortunate, because if we had been paying a typical rental of as much as $1500.00 a week, there is a very high likelihood that we wouldn't have made the trip.  Too much money for the risk of an oily mess on the beaches.   Lucky for us, it was free and the beach was great.  So we went and spent our money in restaurants, shops, movies and the outlet mall.

Interestingly, if you listen to the locals, its not the oil that's killing the Gulf tourism business.  it's the national news.   We heard multiple stories of news folks getting out of their satellite equipped vans in their pressed suits and making a news video with the ocean in the background.   The only thing is, they didn't get within 100 yards of the actual water. They had no clue as to the actual water conditions that day.  This goes out over national airwaves (and probably gets picked up internationally too.) and everybody thinks the Exxon Valdez ran up on the beach.  The truth is, there is more oil afloat in the Gulf of Mexico than the Exxon Valdez ever held.   But its not ashore everywhere.   Beaches are dynamic ecosystems.  Its different every day.  One day may be great, and 4 days later, there may be tar balls. 

There is a guy doing one HELL of a job in keeping would be vacation travelers honestly informed.   Bruce Alexander is a local Realtor in Gulf Shores, who runs a web site called Bruceatthebeach.net.   Bruce goes down to the ocean daily and makes a youtube.com video reporting daily on water conditions, oil clean up etc.   For folks like our family, considering and anguishing over whether to go to the beach, this guy is doing yeoman's work.    I will say this, not only is he helping his community and would be tourists,  I'd buy a property from him.  Anybody who cares this much, must be a good guy to trade with.

This isn't a post about Bruce or the beach really.  This mess is going to take my 2 year old grandsons life time to clean up.  And with millions of gallons of oil now in the global ocean currents,  its a global problem.  Two years from now, I will not be surprised for some of this oil to be found fouling landmasses in Ireland.  The clean up effort is an environmental and economic nightmare writ large.   Who knows how many whales and other lifeforms have died and nobody knows?  

The video below shows what this oil really looks like at sea.  Its a mess, and its everywhere.   From thousands of feet below the surface of the sea to tar balls on the beach.  In thicknesses ranging from heavy brown tar to a viscous shine, this junk permeates the ocean at all levels.  A hurricane would just stir it up like salad dressing in a shaken bottle.

Deepwater Horizon oil spill flyover

There is a large flotilla of ships and activity throughout the northern Gulf of Mexico right now.  It's costing the American people billions of dollars.  (Like we need that with the War in the Middle East, the recession and Obama trying to nationalize healthcare)  People are losing their livelihoods, but at the same time, somebody is making money.  I'd like to own a company that made oil booms or did heavy marine engineering.  Own a septic tank pumping business with pump tanker trucks?  Send em to the Gulf.   The government is paying $50.00 an hour 24 hours a day to move oil from recovery ships to holding tanks and tankers.   Now there is a Logistics Business. 

I believe we borrow the environment from our children.  My children and grandchildren will be paying for this one for their generations lifetime.   That is the real tragedy. Hopefully, the oil companies, the governments and the people will be able to clean this mess up.   To the extent the logistics business plays a role, I hope as an industry we step up and play our part.  God knows, if any shipping company has assets useful in the clean up of oil, they are needed.

To this end an open appeal to Mr. Obama:  Please issue an executive order temporarily suspending the Jones Act restricting foreign vessels in US trade.  There are Dutch and Scandinavian ships specifically designed to collect oil etc. These ships are needed in US waters doing what they are designed for. If you are leading on this issue, lets suspend the bullshit and get with the program for the good of our people and the environment.

Eric

Living Overseas - A Career Aspiration?

Purchasing.com has an excellent article on ex patriot life and considerations for taking an international assignment.   This was always something I wanted to do but timing, children and life always seemed to get in the way.  If you have the opportunity, take it and give yourself and your family a view of the world that puts American life in perspective.   Check it out here.

Eric

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NASSTRAC Recognizes Regan and Burba

It's great when two people you know personally receive well earned industry recognition for career leadership and personal commitment. Such is the case with Mike Regan, CEO of Tranzact Technologies and Al Burba, VP of Field Sales for DHL Express.

NASSTRAC recognized both at their annual Logistics Conference and Exhibition in Orlando on April 29th.  Regan was recognized as "Regular Member of the Year" while Al Burba was recognized as "Associate Member of the Year".

I serve with Mike Regan on the Board of Directors of the American Society of Transportation & Logistics and know him to be a visionary leader and substantive influence on the direction and strategic value of supply chain and logistics.

Al Burba is a great friend and colleague of mine at DHL and a superior talent for our company. Al's energy and customer care are well known. He teaches his troops by example and has built a reputation for quality in every part of the business he has touched.  Al was a major influencer on the NASSTRAC carrier advisory council for the previous two years. 

These are good guys getting well earned recognition. Congratulations Mike and Al!

clipped from www.trafficworld.com MINNEAPOLIS, MN - NASSTRAC recently announced that Mike Regan, CEO and chairman of Tranzact Technologies, has been named the 2008 "NASSTRAC Regular Member of the Year." Each year, this honor is awarded to an individual logistics executive who has demonstrated personal leadership, commitment, and dedication to the industry as well as to the association. NASSTRAC provides advocacy, education, provider relations, and networking for professionals involved in all areas of transportation, ranging from full truckload and LTL to containerization and global logistics. "As chairperson of the NASSTRAC Advocacy Committee, Mike is very well-known and has been an icon in our industry," said Gail Rutkowski, NASSTRAC's current chairperson. "However, this award is being presented for all of the things he has done behind the scenes. Two years ago, NASSTRAC made a commitment to aggressively devote significant attention to transportation advocacy issues.Mike has worked tirelessly to make sure the shippers within NASSTRAC not only know what the issues are, but also that they clearly understand them." In addition, NASSTRAC also announced that Al Burba, vice president of field sales for DHL Express, is the recipient of the 2008 "NASSTRAC Associate Member of the Year." Each year, the association presents this award to an individual from the service provider community who has shown leadership, continued commitment to the industry, and support of NASSTRAC. According to Rutkowski, Burba has been an active member of the carrier advisory council for the association for two years and has put forth significant energy in encouraging productive dialogue between shippers and service providers while assisting NASSTRAC in expanding membership into all modes and market segments of transportation.

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China: Local Business Professionals Wanted!

This is a "Best of Freightdawg.com" article that was published in June, 2007.  Since Freightdawg.com has grown considerably since then, I republish the article to a larger audience.

Last year, the American Chamber of Commerce in Shanghai surveyed almost 300 U.S.-based companies with operations in China and found that the No. 1 business challenge in China was attracting and retaining talented white collar managers.

As China's economy matures, it is shifting from a manufacturing economy to a more service based economy.  This is a natural evolution as money moves into the pockets of consumers as a result of China's economic success. Service based businesses increase the demand for skilled, white collar employees with professional management and business talent. The problem is there are just not enough local Chinese with the skills to suit the burgeoning market.

Shaun Rein is the Founder and Managing Director of China Market Research Group, based in Shanghai. Recently he published an excellent article on "How Multi-Nationals Err in China". The article highlights three main reasons why multi-national firms have such difficulty in finding, attracting and keeping local talent. 

Two Tiered Pay Systems with Little Opportunity for Advancement.

There is a perception that a glass ceiling exists for local Chinese staff - Western companies often import senior managers from the head office or from Hong Kong or Taiwan to run their operations in China.  Many times these people have only limited experience in local customs or market knowledge. This is very frustrating to talented Chinese employees who think that opportunities should be afforded to them to run the business.  This is seen as a major cause of job hopping, as Chinese employees see little opportunity for advancement in these businesses.

Imported foreign managers often make considerably more money than local Chinese managers. As a result an imbalanced system of payment exists that many local managers feel is unfair. The best Chinese managers therefore often prefer to work for Chinese firms where they feel this kind of two-tier system doesn't exist. Why work for Google when you can work for Baidu.com?

Chinese Baby Boomers Want a Balanced Life

Younger Chinese workers have experienced three decades of Chinese economic explosion. As a result they want many of the same trappings of a comfortable life that those in the West enjoy. These include more free time, more disposable income and the ability to enjoy both. Quality of life is more important to younger Chinese employees than just a quest for money itself.  These Chinese Urban Professionals, or "Chuppies" want the same things young western people do.  They know brands, they know fashion, but want it on their terms.  That will be a difficult transition for business and Government in China going forward.  It is not about "all work and no play".

Education / Training Opportunities

China's educational system is largely based on rote memorization. Chinese employees want and need more advanced education that prepares them for the dynamic pace of business. Younger Chinese employees value education and training.  They see it as a link to better pay and quality of life. Firms that can offer educational opportunities are likely to be able to attract better candidates and keep the talent they invest in.  Especially prized are overseas assignments for Chinese managers or trainees. American hotel chains such as Ritz-Carlton, Marriott and Starwoods  excel at this.

Chinese HR Professionals: Pure Gold.

In a previous article, I highlighted that in addition to savvy business managers, it is critical that multi-national firms hire and retain skilled Chinese HR managers. These are among the most highly prized of all available Chinese business professionals because they understand the local market and can advise multi-national management teams on what it takes to satisfy and retain local talent. Chinese HR professionals often command as much as a 20 percent premium in salary above other Chinese management professionals according to Korn/Ferry due to their rarity.

Eric

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World Economic Forum - January 23-27th

Next week, the World Economic Forum will be meeting in Switzerland for the 2008 summit.  The theme this year is "The Power of Collaborative Innovation".This message has to do with how well we work together as well as how well we innovate.

There will be more coverage on the WEF in Davos in the coming days.

The video below showcases the issues that will be covered in Davos.  This will be the first of a few from the Davos Switzerland WEF meetings.

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Mental Acuity: Winners Imagine Winning

Winners Expect to Win.

I blog about a lot of stuff within the logistics and supply chain space.  There are also a few topics that don't seem to be directly attached to my chosen field.  I blog about airlines because I love airplanes and my first internship job was with an airline.  I blog (sometimes) about character and leadership because I believe in it.  More importantly, I think this is an area where I will be a student for my entire life.

I look at the Boston Red Sox and the NFL's New England Patriots and I see two teams of players who expect victory but work at the process.   They know how to win because they've done it. That leads to an air of expectation.  Also let me say I live in Atlanta, so there is no special attraction to Boston.  I just know a winner when I see one!

This is what I know so far. 

The secret to being a champion is knowing that the most fun part of the baseball game is when its 3 balls-2 strikes-2 outs..9th inning...last at bat...game 7 of the world series and the winning run is on second base.   It is the most defined high pressure point in all of sport.   It is also the most mentally played through event by 9 year old boys playing little league baseball there is.  Virtually every child imagines hitting the winning run.  Running, jumping, smiling, yelling...winning.  What's interesting is that no little kid imagines himself popping out to shallow left field.  What the kid gets intuitively is that only ONE PERSON gets to be in that special position. Only one gets the opportunity to be the hero. 

Then there is "Reality" 

Somehow, most of us get the idea that because we are grown ups...we can't imagine victory.  Especially we can't pretend or "play" victory.   Not So!   Did you know that the best pro sports players imagine themselves catching the winning touchdown or hitting the winning run?   Did you know that the US Navy flight demonstration team, the Blue Angels and the USAF Thunderbirds literally imagine (as a group!) their airshow?  They do this before every single performance.   Not many adults want to be the hero.   They are too busy imagining failure. Imagining victory is the key to getting it. Pretending Victory is like rehearsing a musical performance.  You imagine and you train your mind. How many guys rehearsed the first call to the girl you eventually married?    How many sales people rehearsed their presentation in the car on the way to the big pitch?   You may still lose, but you won't win if you don't play. 

Laws of Attraction 

Are popular today as a subject relating to expecting to be successful.   My personal belief is that if you work hard and practice hard, you have a right to expect victory.  You should imagine it, taste it, expect it.  Regardless of outcome, you not only have a RIGHT to fight the fight, but you also have a right to EXPECT to win.

Most people don't work hard. Not really. There are TONS of people who give lip service to whatever sounds PC at the office.   I am convinced that if you work hard first, know your material, and rehearse your presentation, you have every right to expect to win.

Two other things also help though... and aggressive pricing department and a good relationship with God. 

Eric

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CPO Reality: White Guy, Decent Money, Dead-end job?

There are some great studies around lately. The other day I posted an article reviewing Logistics Management Magazines excellent logistics salary survey.  In that article I asked some questions about what career paths logistics professionals were taking, and what the demographics were for logistics execs.

Today over at Supply and Demand Chain Executive, they had an excellent profile of the "typical Chief Procurement Officer" for Fortune 500 firms based on a recent study by CAPS Research.   While  procurement is a wider field than just transportation and logistics, I thought it interesting to look at the compensation and responsibility of this broad executive role.

The influence of CPO's on buying methods across a business is likely to impact how logistics and transportation services are bought.  Carriers often fear this kind of strategy will be a "price only" consideration (despite declarations otherwise!!) especially if the CPO has a background where auctions are used for broad based procurement.

CAPS' study shows some basics: the CPO is predominantly a middle aged, white guy. (want to test this theory? Go to Google and do a search of "Chief Procurement Officer" then looked at "Images".)   He makes an average of $366,000 bucks a year according to the CAPS Research Study.

That number in a Fortune 500  company, at the "C level" is low middle ground compared to say, a Chief Marketing Officer or Sales EVP, whose compensation can go from $750,000 to a million or higher at a Fortune 500 firm. Typically the CPO has been at his firm for around 6 years and has responsibility for all purchasing and an annual spend of as much as 3.5 billion dollars!      

Whats interesting is that the CPO position is also the career apex for the executive who holds the post.  It's not normally a post that leads to the CEO job.  Most CPO's either attained the job after retirement of a predecessor or were the first to hold the position.

Download the complete CAPS Research study here. (Caps registration required).

Eric

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Leadership Hint: "You Need to Blog."

Guy Kawasaki is a venture capitalist and is very famous for his blog.  blog.guykawasaki.com. Guys blog contains great stuff!   I had it blog rolled for awhile, then after a couple of emails with Guy himself, decided that I shouldn't blog roll Guy Kawasaki for the simple reason that his world (VC finance) and mine (supply chain and logistics) are not the same.  He knows little of my world since he doesn't finance in my industry.  I know relatively little about his.  Dat's cool. 

"Respekt.. in the words of Ali G."

I got interested again in Guys site today.   He has a post up called the "The Nine Biggest Myths of the Workplace by Penelope Trunk"   These are excerpted from Trunk's book called  "Brazen Careerist: The New Rules For Success". This is a book that attempts to debunk some business thoughts and practices that Penelope thinks are overrated.  My assumption is that Guy Kawasaki agrees with Penelope Trunks missive.  That's nice internet validation...but I'm going to "pull a Shrek"...and say "hang on a minute".  I think there's more to this than what Penelope Trunk wrote.  I agree with some of her listed myths, and some I don't.

Here are Ms. Trunk's listed myths...(followed by my commentary)

You’ll be happier if you have a job you like - Certainly it's true.   If you like what you do you are likely to be more creative in what you contribute above and beyond what your pointy haired Dilbert boss says you have to do. Penelope says its all about optimism and personal relationships more than happiness, but if I am optimistic and love my job, I'm going to be happy and even better, I am going to be innovative.

Job-hopping will hurt you - Penelope says it won't hurt. Much depends on the HR person who receives your resume.  I'm 45 years old.  I've spent a number of years at most of my employers, followed by experience after 2000 in which I've spent a very healthy 2+ years at a few places.  I gained major experience at each.  Nevertheless, I'm sensitive about the appearance in my resume that perhaps there may have been job hopping. In todays market, changing jobs does not hurt if you can clearly show a trend in experience gained and value driven for each of your employers. You need to be able to articulate the value both in your resume and in person.

The glass ceiling still exists. - HECK YES.  It still does.  I look at the management boards of many of the companies I have worked for and frankly if you were a six foot plus tall white guy...you had a shot.  This isn't just a male/female/white/black deal.  This is a body type deal as well.  This was especially true in ocean liner shipping even up through the 1990's.  Tall, White and Male were the only keys to the executive washroom.

Office politics is about backstabbing - Yes.  Is that news?  Machiavelli wrote books?   Penelope says office politics is about being nice and helping people get what they want.  I'm wary of anybody who is too political. Generally speaking I like Penelope's ideas, but there are still plenty of people who smile with their mouths but not with their eyes...beware.

Do good work, and you’ll do fine.- Ahem.  Do good work producing new revenue.  Then you will be fine.  This is especially true in VC backed enterprises.  Penelope says be nice and self-promote.  I say earn the company some money first...then promote.  Depending on your role, saving the company money is as valuable as new money.  It all goes to the bottom line.

You need a good resume. - The blog is the new resume.   Anybody who wants to be a thought leader better start leading on-line. Having said that you still need a great paper resume.  However thats just a ticket to the show.  The recruiter you deal with, and most hiring authorities, are going to go on-line just to see what else they can see. Look up your name on google.  I bet you'll find quite a lot of stuff!   What you find on-line will impact an interviewers perception of you from an experience and a character viewpoint. A blog is an opportunity to demonstrate those qualities on your terms.  Please make SURE any facebook or MySpace accounts don't depict anything you wouldn't write at the top of your paper resume.

People with good networks are good at networking.  - Good networks make good networkers.  Virtually everybody who reads this post should go over to LinkedIn Networks and get busy.  Let me reiterate that the blog is the new resume. 

These days the thought leaders in any industry will be found on-line and in professional social networks.

Work hard and good things will come. Yes. This is true. However in the meantime "do humble works greatly and great works humbly". Dare to take advantage of new technology and every opportunity to communicate your personal vision.

Create the shiny new brand of you! - Blog.  Nuff said.   This is about personal branding.

Eric

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Reducing Fuel Costs: National Vision is Needed

Steve Hargreaves at CNNMoney.com wrote an article today on 6 ways to lower gas prices. The points he makes are recapped below. They highlight a number of options that all could work, but given the political dynamics of the US Congress, most won't get more than lip service.

I see the fuel cost and sourcing issue as being the most strategic issue of our time. Face it, if you own it...at some point it moved in a truck. Where DC's are placed, where jobs are created and what industries source from what global locations are all influenced by fuel costs. The global influence of OPEC member states is created by our dependency on foreign oil. Further, with the rise of China and other Asian economies, we are competing for middle eastern oil on an ever increasing basis.

"Its going to take a dynamic leader to get these measures done.   Not Congress.  The President. To me this is the next "space race" type vision for the United States.    The President must create a national vision similar to the way John Kennedy declared that the US would put a man on the moon by the close of the decade of the 60's.   Private industry working with government can get this done, but not without a mandate and a visionary leader that can work with industry and bring congress in tow" 

Six Ways to lower Gas Prices

1. Pass a Carbon Tax - Hard on the poor and big oil.  No chance politically. This is a brute force method that would work, but it would hurt.

2. Make more fuel efficient cars - Congress likes this one because it plays well in public. Automakers hate it. By 2020, automakers are likely going to be forced to produce vehicles that get 35 mpg or better. This one could save the US 3 million barrels of oil a day.

3. Fuel Alternatives - using biofuels to ease demand for gasoline.  Congress is said to be pushing a requirement for up to 20 percent use of biofuels such as ethanol by 2020. Ethanol has a way to go before being practical because of the volume of plant matter that would have to be grown and processed to meet US demand. However, I recently wrote an article on use of animal fats rendered from meat and poultry processing that could also supplement ethanol. Tyson Foods and ConocoPhilips are engaged in trials now on this. Imagine if McDonald's and Burger King contributed the fat reserves from their waste?

4 - Make more gas.- Oil companies make more money by controlling fuel availability, thus driving prices up. Exxon Mobil is the most profitable company in the world.  There is a reason why. This idea mandates creation of more refineries and requires certain production levels to keep supplies plentiful. Good luck with this one.  Big Oil will fight it. Environmentalists will fight it. Nevertheless, some new refineries are a good idea. The last refineries built in the US were constructed over 30  years ago.  Katrina took out her fair share of those.

5 - Build a gasoline reserve. - The government maintains a 700 million gallon strategic oil reserve. However there is no gasoline reserve.  Gasoline is a refined product derivative of oil. So if the government releases oil from the strategic reserve, as it did from the Hurricane Katrina disaster, the oil still has to be refined before it can be distributed and sold as gasoline. The problem of not enough refineries means a bottleneck is created in the refining process. We need to do this one.

6 - Drill for more oil - The US has oil reserves.   Both off the US east and west coasts as well as in pristine parts of Alaska. At some point we will have to tap those. Anybody who has been to the beach in Southern California has seen the oil platforms just off shore from San Diego to north of LA.   This one wont be popular especially with environmentalists for all the usual reasons. Some of this is probably going to have to happen anyway...but it won't be popular.

What do you think?   Vote in the poll and leave comments!

Eric

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