Navigating Economic Challenges : by John Mehrmann Navigating Economic Challenges Charting a Course for Survival and Prosperity How did we get here? : 2 How did we get here? Global Community – Global Marketplace How did we get here?
How long will it last?
What should I expect?
What can I do about it? A History of Home Values : 3 A History of Home Values Cause and Effect in our industry http://www.youtube.com/watch?v=kUldGc06S3U 2006 United States House Prices : United States House Prices Latest quarterly, median, existing, single-family home price provided by the National Association of Realtors.
Trailing house price index data provided by Standard & Poors and the Office of Federal Housing Enterprise Oversight.
Inflation data provided by the U.S. Department of Labor's Bureau of Labor Statistics. 2006 In the shadow of foreclosure : 5 In the shadow of foreclosure New York Times Sept 7, 2008 The Great DepressionOct 1929 - 1940 : 6 The Great DepressionOct 1929 - 1940 This chart compares total debt (“credit”) in the U.S. to GDP (Gross Domestic Product) on a percentage basis. Current total credit-market debt stands at more than 340 percent of total GDP.
ChrisMartenson.com The Stock Market : 7 The Stock Market 18 Month Trend Ten Year Trend A Global Trend : 8 A Global Trend S&P 500 Dow Jones Germany London Hong Kong Japan Consumer Tendency Survey : 9 Consumer Tendency Survey Consumer Confidence Indicator Unemployment Rate : Unemployment Rate The Domino Effect : 11 The Domino Effect Cause and Effect in a Global Market Stock Market Loans Banks / Financial Consumer Confidence Consumer Spending Jobs & Unemployment My Business / My Life Real Estate Many theories about how it all started. Many guesses about when it will end. The Domino Effect : 12 The Domino Effect Cause and Effect in our industries Consumer Confidence & External Factors Retail Sales Decline Manufacturers Lower Production Less Demand for Material, Price Drops Recycling Impact Retail Sales Impact : 13 Retail Sales Impact Impact to one is impact to many Consumer Confidence & External Factors Retail Sales Decline Retail Dealers
And Stores Forward Logistics Freight Carriers Reverse Logistics Freight Carriers Product Return Processing Centers Installation &
Field Services Customer Service Sales Administration Credit / Finance Vendors Jobs Producers adjust to market : 14 Producers adjust to market Consumer Confidence & External Factors Retail Sales Decline Manufacturers Lower Production Microsoft
11% drop in profit
cuts 5,000 jobs* Sony
Net Loss $1.7 billion
cuts 16,000 jobs* Intel
cuts 5,000 jobs* Nokia
46% drop in earnings* AMD
33% revenue decline* Jones Apparel Group
$840 million write downs* * Feb 2009 Headline News Manufacturers in many industries react to challenge GE
Profits drop 45% in Q4* Across all industries, manufacturers react responsibly to economic challenges Global Economy : Global Economy Consumer confidence down. Spending “buying” declines Production decreases due to lower demand Less production means fewer jobs, factories close, GDP down Less production also means less demand for material Commodity Prices Plummet : 16 Commodity Prices Plummet Consumer Confidence & External Factors Retail Sales Decline Manufacturers Lower Production Less Demand for Material, Price Drops Recycling Impact Copper Aluminum Nickel Tin Supply and demand.
Eroding Profit Slide 17: 17 Where are you in the product and service supply chain? Where are your clients & partners in the supply chain? What are their challenges? What makes them financially secure? Now What? : 18 Now What? This is a wave of economic transition Recognize changes in the economic cycle and identify the waves of change coming your way. There are more waves of change coming.
Watch what is happening to your clients and their cycles. They are your source of revenue.
This is not a recession or a depression, this is a transition. Make changes and adapt to new conditions. A Brave New World : 19 A Brave New World The World is Flat, Hot, and Crowded The Internet connects business and individuals real time with global resources
Automation and integration have improved and bypassed consolidation for efficiency
Communication, data, visibility, ability to effectively collaborate (outsource & partner) have changed dramatically. Have you?
“Status Quo” is the new “Road Kill” Don’t Fool Yourself : 20 Don’t Fool Yourself Threats may be opportunities Just because you may not have felt the impact YET does not mean you won’t
Thousands of jobs reduced. What happens to all that equipment and assets? A threat to reduce service and support, or an opportunity to help companies with excess assets?
Fewer employees does not mean less work. Can you be the outsource solution for some of those functions and operations at a lower cost? Your Clients : 21 Your Clients Customer Satisfaction is not good enough How are your clients being impacted?
How financially stable are your clients?
What can you do to help them right now?
What are their plans for the future?
How often do you communicate with them?
Are you poised to immediately help new clients if your competition fails?
How are you using your internal resources to protect your current sources of revenue? Executive Level : 22 Executive Level Leadership in tough times Understand the Financial Crisis
Recognize key indicators for your business
Monitor Internal Cash Flow
Be in touch and constantly monitoring cash flow within the organization. What is working?
Communicate effectively with lines of business and all points of customer contact Empower the Sales Force : 23 Empower the Sales Force The right equipment for your team Do you have sufficient training for your sales force? Regulations, processes, technology, and economic factors are changing. Have you educated and prepared your sales force?
Do you have easy to use and effective CRM, ERP, and tracking tools that are shared between the front line and back office?
Customer acquisition and maintenance is a responsibility for the whole organization. Does it feel that way in yours? Human Capital : 24 Human Capital Your most valuable asset Reallocate resources to Revenue sources
Put your best people on most important programs
A goldmine of quality candidates available
Are any of them from your company?
Motivate and maintain morale
Communicate frequently and honestly
Reassure personnel with recognition How can one person cope? : 25 How can one person cope? Can you spare 30 Minutes per day? 5 Minutes to create an action list for tomorrow
5 Minutes to review Headline News
5 Minutes to Review Short Term Projects & Metrics
5 Minutes to Reflect on Long Term Goals
5 Minutes to do something for someone else
5 Minutes to relax and do something for yourself Short & Long Term : 26 Short & Long Term Act now and plan for tomorrow Short term projects
Identify short term projects to reduce costs
Assign teams to concentrate on urgent needs and quick implementation for results
Long term goals
Align short term projects with long term goals
Invest in infrastructure and new business, watch the waves of change for future growth Short Term Improvements : 27 Short Term Improvements Close to the source Need to identify internal improvements? How do you empower suggestions from your employees to improve and thrive?
Small Group Activities
Or an empty suggestion box?
Bottom up starts from the top down . . . Internal Metrics : 28 Internal Metrics What gets measured gets done Identify your core competency
Create or Maintain Internal Measurements
Monitor key metrics
Know your costs and your performance
Outsource for other core competencies
Do what you do well, rely on experts for part time projects and areas of specialty Partner or Perish : 29 Partner or Perish We are all in this together Even if you could do it all yourself, can you do less cost or better efficiency with a partner?
Can a partner help you fill a weakness?
Can you outsource part time requirements, dispatch to remote locations, or utilize special skill sets?
Are you outsourcing your underutilized talent, resources, and competencies to generate revenue? TRIAGE & Remote Diagnostics : 30 TRIAGE & Remote Diagnostics Effective intelligence Reduce using field service dispatch to diagnose
Improve First Time Fix / First Time Complete ratio
Reduce Labor costs, improve quality and customer satisfaction Improve technician quality, accuracy and productivity with pooled knowledge. What was done before and what worked? Route Optimization : 31 Route Optimization More productivity with the same labor Reduce Travel Time (non-productive labor)
Reduce Fuel charges
More Repair Events per Day (more revenue)
Greater accuracy planning & scheduling
Compare costs to maximize internal resources and contracted resources
Have you integrated customer schedules, vendor schedules, parts, and dispatch? Part Prices & Freight Charges : 32 Part Prices & Freight Charges Hidden costs consume profit Do you compare multiple vendors prices?
Do you compare cost of freight and hidden charges?
Do you route parts for most efficient delivery location? (center, customer home, technician)
Do you integrate parts delivery schedule with technician dispatch and route optimization? Logistics : 33 Logistics You want what where when? Are you using the empty trucks?
Are you optimizing your routes?
Do you identify client specific time requirements compared to flexible schedules?
Are you effectively mapping your fleet to contracted supplemental carriers by cost, schedule, route, weight, and contents? Skill Based Scheduling : 34 Skill Based Scheduling The best person for the RIGHT job Are you using the right skills for the right jobs?
Are you maximizing throughput with junior technicians on appropriate tasks?
Are you effectively utilizing the time of experienced skilled labor on the right tasks Are you effectively monitoring internal resources and contracted labor?
Do you have pay for performance? Reporting : 35 Reporting You cannot manage what you cannot see Do you have real time visibility to monitor your process and identify gaps, interruptions, or anomalies?
Do you provide real time visibility to clients & partners?
Do you have real time updates from your vendors, suppliers, and contractors?
How real time is your data and your decision-making process? How are you alerted? Security : 36 Security Ready or not, here it came Gramm Leach Bliley, HIPAA
State regulations being created now
Do you handle computers, servers, hard drives, or other memory?
Do you processes customer records or handle financial transactions? (Do you bill anyone?)
Are you properly prepared and have you taken reasonable steps for privacy protection? Recycling & Sustainability : 37 Recycling & Sustainability Extended producer responsibility Fourteen States have regulations today
Federal Regulation have been proposed
WEEE & RoHS are being updated
Are you a collector? Do you take product?
Do you provide data wiping services?
Do you refurbish or provide asset recovery?
Being prepared for regulation creates opportunity. Failure to prepare is a threat. IT Budgets : 38 IT Budgets How will IT spending change in 2009?
InformationWeek Analytics Outlook 2009 Survey 76% Investing in Cost Cutting and Long Term Goals 24% IT Driven Results at UPS : 39 IT Driven Results at UPS Real Bottom Line Results! Route Optimization
30,000 miles saved in 2008 by using package flow technology to optimize routes for packages and vehicles. Fuel, labor, and time!
Integration and Communication
30,000 packages a month ship globally without three copy invoice it used to take (Project launched January 2008 with 100 countries)
Collaboration and real Cost Reduction
Working with HP, “spray on” locations and instructions reduce printed labels. 1.5 million packages per day (3.1 million by 2010) Slide 40: 40 ZSL Inc is dedicated to help you through this transition.
Visit us at the Reverse Logistics Trade Show Conference & Expo in Las Vegas Feb 3-5, 2009
Triage & Remote Diagnostics
Parts Price & Freight Comparison
Integration & Data Collaboration
Real Time Reporting & Visibility
Private & Shared Public CRM
Skill Based Resource Management
Coordinated Dispatch & Tracking
Scheduling Control Software
Technician Profile Management
Inventory Control & WMS
Unique Logistics Management
Collector Systems for Recycling
Solutions for Recyclers Reverse Logistics Conference & Expo : Reverse Logistics Conference & Expo Third Party Service Providers (3PSPs) will be exhibiting their Reverse Logistics services & solutions at the Reverse Logistics Conference & Expo in Las Vegas in February 2009.
At the RLA Conference & Expo in Las Vegas, the focus of 3PSPs will be to help OEMs, Retailers & Branded companies become aware of RL support on a global basis. This is a rich opportunity for OEMs and Branded companies to identify future service partners. There has never been an opportunity like this for 3PSPs to sit down face-to-face with the key outsourcing decision makers from the major OEMs and Branded Companies. Conference & ExpoFeb 3-5, 2009Las Vegas John Mehrmann, Vice President, Business Development - ZSL IncSpeaker - Reverse Logistics Conference & Expo : John Mehrmann, Vice President, Business Development - ZSL IncSpeaker - Reverse Logistics Conference & Expo John Mehrmann is Vice President of Business Development for ZSL Inc., a leading Technology Solutions Provider. John has over 20 years of experience that spans logistics, operations, sales, e-commerce, accounting, customer service, marketing, and training. His experience as an author, speaker at several trade conferences, and consultant for many of today’s executive management, has made John a valuable resource to colleagues in many industries.
Prior to ZSL Inc, John served as Director of Service Operations for Toshiba, Regional Sales Director for Data Exchange Corporation, as Operations Manager for SatisFusion. In 2005, John founded Executive Blueprints Inc, an organization dedicated to the advancement of human potential in business. John has had the privilege to design strategic solutions with esteemed colleagues and clients at Toshiba, Fujitsu, FUNAI, Sirius, Service Net, Wells Fargo, Deloitte & Touche, P&G, AT&T, AIG, Zurich, GE Capital, UPS, Iomega, CDC, and NSA.
John Mehrmann is author of the award winning book, The Trusted Advocate: Accelerate Success with Authenticity and Integrity. This groundbreaking book demonstrates practical applications to grow profit and retain loyal customers with honesty, integrity, and obligation. The Trusted Advocate contains entertaining stories and easy activities to personalize the experience, not only to boost revenue, but also to achieve a greater sense of personal satisfaction by an ethical approach to business.
Past RLTS Participation:
Topic - "Evolve or Become Extinct! A RL Model to Deliver Expanded Shareholder Value" - Singapore 2007 Las Vegas 2007
Topic - "Create Your Reverse Logistics Financial Model: Putting Dollars to the Metrics to Measure Your Options" - Las Vegas 2008 42