When first engaging in a partnership, shippers and their logistics providers have certain objectives in mind. It may be to reduce transportation costs or centralize their transportation management but, unfortunately, over time, daily activities often fail to directly connect to those original objectives. In order to achieve the desired ROI and deliver on the promises made during the sales process, both parties need daily activities to align with that objective. By taking a strategic approach to managing operations and applying an OGSM (Objectives, Goals, Strategies and Measurements) model, shippers and logistics providers can:
- Better define their overall vision
- Set tangible goals
- Build strategies in order to focus their daily efforts on achieving those goals
- Establish benchmarks to track and assess their progress
DELIVERING ON PROMISES AND ACHIEVING GOALS
Organizations are constantly looking for ways to reduce operating costs, gain a competitive advantage and deliver better service to customers.
That’s why many choose to partner with a logistics provider to support (or fully manage) their transportation operations. Both parties identify a desired outcome, which is detailed in the contract and statement of work, and then work collaboratively to deliver on those promises. And while both sides have the best of intentions to deliver ROI and committed value propositions, targets are often missed in the midst of business “noise”. Lack of communication, changes within both organizations and near-sighted focus on tactical/first order problems can, and do, pull focus away from critical commitments derived from the contract/scope of work or subsequent goals created during the life of the partnership.
In order to deliver on the commitments made during the sales process, everyone involved needs to align their daily efforts with meeting the overall goals and objectives. By applying a proven methodology to business management, shippers and their logistics providers can better define the overall vision, which helps them to establish and document specific goals, strategies and benchmarks to fully achieve those objectives. But what should that methodology look like, and how should shippers and their logistics providers be applying it in their everyday operations and ongoing partnerships?