December 4th, 2011
The exhibit will feature art created in the tri-brand mentorship program.
Hurley, a Costa Mesa-based youth lifestyle brand, is teaming up with Nike and Otis College of Art and Design to present the art and fashion event, “Considered.” The art show at Hurley’s H Space Gallery in Costa Mesa begins with a VIP reception on Oct. 20 from 6-9 p.m. and will continue until Dec. 16. The contemporary exhibit will feature art created in the tri-brand mentorship program established by Rosemary Brantley, the chair of Fashion Design at Otis College of Art and Design.
“The problem today is that fashion has become disposable and unsustainable. It is our responsibility as teachers and artists to empower our students to design with consideration,” said Brantley. “Consumers of the future will choose brands that can find solutions to challenges without compromising design or aesthetic. Designers who excel at creating beautiful and sustainable product will be the leaders of our future.”
When creating their designs, students were required to use the Nike Considered Index Tool. The platform analyzes all characteristics of the supply chain, from origins of the fabrics and throughout the lifespan of the product. In addition to these guidelines, students are challenged with three themes. The first theme, Regenerative, focuses on recycling and reusing materials to create new and innovative apparel. The second, Heirloom, forces students to consider how to design classic and valuable garments that will improve with age. And lastly, Sustainable Design advises students to create low impact and environmentally friendly apparel to challenge traditional beliefs about fashion design.
“For Hurley, the opportunity to support a design mentorship program rooted in sustainability and environmental awareness is one that makes perfect sense as it speaks to precisely who we are as a brand,” said John Cherpas, SVP of Design for Hurley. “This is more than just a fashion education. It is a consumer education, driving purchase behaviors that take into consideration the environment and sustainable practices in the fashion industry.”
Tags: supply chain, supply chain management, supply chain manager
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December 1st, 2011
It’s part of a program the financial institution launched that gives customers an incentive to go green.
BY JENNA SWEENEYPublished: October 13, 2010 09:30 AM
Orange-based Verengo Solar Plus and REC Solar, which has an office in Irvine, are helping Wells Fargo customers in Southern California make the switch to solar energy.
Through the end of the year, Wells Fargo is offering up to $1,000 in incentives to qualified customers who advance $15,000 from a line of credit or home equity loan for installation of a solar energy system through Verengo, REC or Oakdale-based Acro Energy.
Orange County ranks among the top solar markets in the United States, according to the Solar Energy Industry Association. California made up 67 percent of cumulative solar capacity installed through the end of 2009.
“More and more customers tell us they care about reducing their impact on the environment and look to us to provide financing options that make renewable energy installations and energy-efficiency improvements possible,” said Rob Myers, Wells Fargo’s regional president for Orange County.
In January, Wells Fargo installed solar systems at 10 of its Denver locations.
With the installation of an average solar system, Wells Fargo approximates savings of more than $40,000 over 30 years for homeowners in the Southern California Edison service territory.
Under the new Federal Stimulus Bill, homeowners who make the switch to solar are eligible for a tax credit worth 30 percent of the total cost of the system.
“With this special promotion and other incentives,” Myers said, “our customers can potentially reduce their solar installation costs by up to 50 percent while reducing costs on their energy bills in the future.”
Tags: blood donor incentives, corporate incentives, customer incentives, employee incentive programs, incentive
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November 16th, 2011
The newest insights into loyalty programs reveal the best ways to engage customers
Great companies don’t just win new customers, they bring them back for more. Right now, building relationships with current customers is of the utmost importance, since belt-tightening consumers choose to buy from businesses they know and trust.
What’s a loyal customer worth to you in a year? How about two years, or five, or even longer? Loyalty marketing campaigns are the norm for businesses large and small nationwide. Nearly 80 percent of marketers are committed to maintaining or growing their loyalty programs as primary customer retention and relationship building tactics, according to a recent report from the Chief Marketing Officer Council. And loyalty program members constitute the best and most profitable customers.
Americans hold 1.8 million loyalty club memberships, and the report shows the average US household is enrolled in more than 14 loyalty and rewards programs. But while they may be enrolled in many programs, Americans are active in fewer than half of them. So to keep your customers coming back to you for additional purchases, it’s vital to create a loyalty program they’ll actively use and rely on long-term.
Follow these tips to build a successful program for your business:
- Don’t Abandon Service for Savings Alone
Discounts and savings are on the minds of most consumers, yet don’t overlook other major customer-pleasing enhancements, such as quick or better service or improved customer handling. New research from Genesys and analysts at Datamonitor/Ovum shows nearly two-thirds of consumers have ended a relationship with a company due to customer service alone, and the majority of them take their business to a competitor. Your best customers want personalized service and support that’s accessible instantly–often by phone. This is where your small business can excel over larger competitors whose customers may feel lost in a maze of automated self-service.
- Make Communication a Two-Way Street
With the cost efficiency of e-mail, it’s no wonder it’s the workhorse for the vast majority of loyalty campaigns. Printed mailings and statements are also used by many marketers to remind customers of benefits and rewards. And corporate websites are becoming increasingly important components in loyalty campaigns. For many types of businesses, it’s smart to build interactivity into your company’s site with customer generated content, online customer service, or live chat with a representative. You can also create a site specifically to enhance customer relationships and build loyalty. Just look at the way Starbucks has created a relationship-building environment at MyStarbucksIdea.com, with a reported 180,000 registered users who have played an instrumental role in helping revitalize the company.
- Avoid Loyalty Turnoffs
Too much spam and junk e-mail top the list of what consumers don’t like about loyalty and rewards program membership. While most member communication is monthly according to the CMO Council report, 20 percent of loyalty marketers interact with members on a daily, weekly or biweekly basis. How often do you communicate with your best customers? Daily or even weekly e-mails may be too frequent for many members, particularly if the offers or other communications are perceived as not relevant to their business or personal needs. Other turnoffs include programs that have too many conditions and restrictions, and rewards that lack real value.
- Personalize Contact with Individual Customers
What customers really want are more discounts and savings based on relevant offers or individualized deals, and rewards that are easy to redeem from companies with which they have positive relationships. They want you to learn their buying preferences and offer rewards they truly value. As you expand your customer loyalty program, focus on deeper engagement with customers and personalized contact to build repeat sales. If you and your best customers value the relationship, you’ll both be rewarded.
Tags: loyalty point rewards, loyalty programs, loyalty rewards
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November 9th, 2011
This article has been excerpted from The Power of Loyalty by Roger L. Brooks, available from Entrepreneur Press.
Reward your customers — they’ll reward you with repeat business
The best way to motivate customer behavior is to provide an incentive or reward for that motivation. Rewarding your customers for a specific purchasing behavior is not much different than training your puppy. With enough repetition and positive reinforcement, your pup can be motivated to act upon instruction. That’s because the pup knows if he listens to your command, he’ll receive his reward.
Human nature isn’t much different. People can be motivated to take specific actions that accomplish their buying goals while also accomplishing your goals to increase their spending, frequency of visits or combination purchases (or comparative goals relevant to your line of business).
The question then is how do you motivate behavior? Below are five ideas that will get you thinking.
- Offer soft benefits that provide value such as special access limited only to members.
- Offer relevant promotions through various lines of communication, for example: e-mail, SMS text, receipt messages, statement inserts, RSS feeds, Twitter, Facebook, etc.
- Up-sell complimentary products or services at the associate level.
- Offer sweepstakes, random rewards or special offers for a limited time frame, keep your strategy fresh and exciting:
- Strategically place messages (via signage, web banners, etc.) that will trigger motivating actions.
Motivate, But Don’t Mislead
Once you decide how you’ll motivate, always do so in an honorable way. Your customers won’t want to be misled into thinking they are receiving something greater in value that what they’ll actually receive as the reward.
Abraham Lincoln put it best when he said, “You may fool all the people some of the time, you can even fool some of the people all of the time, but you cannot fool all of the people all the time.”
Of course, the statement was made some 150 years ago and the President was referring to politicians attempting to fool their constituents; however, the quote resonates with me every time I see a program that offers empty loyalty. Such programs offer an elaborate program on the outside when, indeed, it’s only a facade to increase business. In time, savvy customers will see through the facade. Your promotional strategy to motivate behavior must be phony proof. Once your customers lift the hood and kick the tires, the promotions must stand on their own and offer real value, not empty promises.
Remember, whatever you do, don’t try to fool the customer! Loyal customers will catch on if the loyalty program does not have true value. This can also backfire and cause disloyalty amongst your customers and defeat the entire purpose of implementing your strategy in the first place.
There are two reasons why your rewards offerings should be upstanding:
- Loyal customers have earned the right to receive a valid reward. If they weren’t enrolled in your program, they may have taken their business elsewhere.
- Customers can see through transparent rewards.
If you want to be in the loyalty game, you have to offer attractive redemption items that are achievable for your customers to earn. If customers are willing to change their purchasing behavior and provide you with their loyalty, they will expect the same in return from you in the form of a relevant reward.
It’s the Little Things That Matter Most
If you put on your consumer hat, you’ll understand that it’s the little things that matter most. One component you should incorporate is providing feel-good loyalty. Feel-good loyalty is just what it sounds like, providing something that the customer will feel good about. Offering feel-good-loyalty incentives should be part of your overall strategy and will require some clever and creative thinking. Some companies offer free Wi-Fi, others offer free shipping. Whatever you decide, brainstorm hard, even hold an employee contest. but find your niche and add feel-good loyalty to the mix.
Photofiddle.com is an internet company that offers a service to turn your photographs into art. Simply upload a photo and you can instantly transform that image into pop art, impasto, a black and white sketch and even more. Once you create your personal masterpiece you then have many options for the type of surface the image is printed on (glossy photo paper, canvas, etc.). Finally, you can choose from a number of print sizes and framing choices.
Although Photofiddle doesn’t have a recognizable rewards program they do provide various levels of feel-good loyalty. Upon opening your order, customers see each piece is carefully packaged and accompanied with a pair of white cotton gloves. The label attached to the gloves reads, “All fine artwork should be handled with care. Please use white cotton gloves. Oils from your hands and fingers can leave finger prints. Jewelry on your fingers and wrist can leave markings.”
That’s a personal touch and that’s feel-good-loyalty. It’s doing the little things that matter most with customers. It’s thinking outside the box so that your brand motivates your customers and resonates in their mind. Providing the white cotton gloves with each order sends both a literal message and subliminal message. It reinforces the need to treat your artwork with care and that they treat all of their customers with care.
Roger L. Brooks is a respected loyalty strategist with more than 15 years of experience in developing, supporting, and implementing customer loyalty and rewards programs.
Tags: awards, corporate incentives, customer incentives, employee incentive programs, incentive, motivate, motivational, reward, reward programs, rewards
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November 6th, 2011
It is no surprise that when the going gets tough, the tough must get going with the incentive being survival. Just about every company around the globe is finding new ways to do more with less while trying not to burn out their valuable skilled workforce. A survey by Deloitte of CFOs and other executive managers working at mid-sized companies demonstrated that 70 % of the nearly 700 survey respondents said they have experienced overall improvements in productivity over the past three years, with approximately half of those reporting gains of 5% or more. Most respondents attributed gains in productivity largely due to improvements in processing and technology. Investments in technology has required some companies to cut expenses dramatically to pay for systems, training and implementation however with remarkable gain.
Although technology has greatly improved our professional and personal lives, it is still human interaction coupled with technolgy that boost a company’s effectiveness. Your employees, vendors and customers want to know that if and when technology fails that there is a skilled and caring individual on the other side to help when needed. Nothing is worse that driving off a car lot with your new car then finding out a few days later that there is a problem and no one is there expect the automated attendant that answers the telephone.
In Call Centers across the world, a systems called call presentation delivers incoming calls very efficiently to representatives without them even having to pick up the phone. The representative simply hears a beep and in a few seconds a caller is waiting on the line and their account seems to magically present itself on the Call Center Representative’s screen. Seems easy but if that employee is not trained correctly, is stressed or is disgruntled, it is a recipe for disaster.
Do you remember the scene on the “I Love Lucy” show when Lucy and Ethel were working at a candy factory when all of a sudden the conveyor belt quickly speeds up preventing the two friends from wrapping each piece of chocolate? The belt goes faster and faster sending chocolates all over the floor causing Lucy and Ethel to panic! Soon the two best friends become stressed out due to lack of training, experience and become forced to look for ways to cut corners eating many of the chocolates before more landed on the floor thinking they could save themselves from being fired. It was one of the most memorable scenes of the show and something like this is just as memorable to your customers but without the humor.
Doing more with less is sending productivity higher however at what costs? Usually the first to suffer is quality because employees become tired and frustrated if cuts result in long term sacrifice. Without an incentive to hang in, stretch and grow accustomed adjusting to new demands, employees will make more mistakes and as soon as their is an opportunity, they will leave to greener pastures. Last month, a survey found that a growing percentage of workers are unhappy on the job and are looking for new employment. No matter what the economy, quality skilled workers will always have a place to go. Turn over is just as costly now as it was 6 years ago before the Recession however it is much harder to find those who are skilled.
As Managers, one has to become more creative, foster an atmosphere that is stimulating and provide incentives to push employees to higher standards during challenging times. If you are not a people person that gets involved and greets your employees at least a few times a week, you are not investing in your future. The way you manage your department today will carry you and your company ahead of the competition as the economy begins to turn around. If employees are left to continually think about getting a new job as soon as the economy changes because you did not demonstrate appreciation for their dedication, you will be spending more hours spent on recruiting than in planning for future growth.
Tips to Help Boost Productivity:
1. Make everyone fully aware of goals and expectations each week. Don’t badger just go over expectation, recognize employees who are doing well and train those who need help.
2. Brighten up your department with motivations posters, balloons when they reach their goals and Pep Rally type meetings on Mondays.
3. De-clutter your department and ask your employees to work on doing the same with their work space.
4. Create a contest and reward employees who can an opportunities list suggesting methods to cut waste and increase productivity.
5. Deliver a “Do it right the first time” campaign that often results in less phone calls and rework saving thousands of dollars.
6. Request that employees batch small tasks together and getting them done quickly each day.
7. Revisit individual employee talents. If you have someone who is a good researcher, have them be your point of contact for those needing to do research to complet requests. If one or two of your employees have good people skills, appoint them as your rallying team so they can help you engage other employees. There’s no reason not to use your team’s natural talents to your advantage.
8. Always be ready to capture new ideas as they pop up. Don’t put it off because you may forget.
9. Communicate clearly and often keeping everyone’s eye on the ball.
10. Keep them healthy mentally and physically by bringing in oranges during flu season and have fun frequent contests to provide an incentive to reach higher p
Tags: customer incentives, gift incentives, incentive, incentives, marketing incentives, motivate, reward
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October 27th, 2011
A manager has evolved from being a time keeper and making sure things get done into a coach, counselor and driver of corporate strategies. Since managers are the closest to front line staff and have more direct customer contact they are a wonderful source of information that provides leads regarding the need for future development and can more easily influence employees during times of change.
If you are a manager, you know you are not only sandwiched between executive level people with big requirments, you are also surrounded by employees who look to you for guidance, advancement opportunities, motivation and at times a friend. Being a manager on almost any playing field is one that may require you to walk gingerly through political land mines while keep things calm on the home front, your department.
Managers know that it can be a challenge to keep valuable skilled employee who are grateful but still keep an eye out for new and improved opportunities. After all, in today’s job market if you don’t see thing happening within 2 1/2 to 3 years at your company, it is time to move. The days of moving up in your own company are often limited because many executives and directors bring in their own teams for their own job security limiting advancement for mid-level managers and front line staff. Managers must keep nuturing their staff providing an environment that fosters cross-training in other departments, involvement in decisions and direction of the department and incentives to stay.
Regardless of our lovely economy, recent surveys reflect that over 80% of workers hope to change jobs in the near future. Job satisifaction is at a low. People need to feel valuable and appreciated and I don’t just mean during the holidays. One time in a job interview someone asked me “Why aren’t employees more loyal?” I almost burst out with a “Are you kidding?” Employees have felt since the 1980′s that companies are not loyal to them. Employees watched their mom and dad’s pension diminish or evaporate, we had Enron then we also began to see many mergers and buyouts. Company raises began to shrink from the once robust 10% increase down to a ceiling of 5% to 7%. Health benefits were beginning to shift into a more of a cost sharing type of thing.
As a manager, it is up to you and not just your employer to provide an valued incentive to stay interested in their job. If most people feel that their boss is doing what they can to keep the job and environment productive and interesting, they will invest added time. Also, if their manager sincerely cares about them as a human being and meets with them on a one on one basis once a month to hear about the family and the manager gives of themselves a bit, an employee will feel appreciated and enthusiasm will soar! As it has been for years, employees leave their jobs first and foremost because of their boss, the job itself and then, because of dissatisfaction with pay.
Going back in time we learn about how our roles changed over the decades contributing to our jobs today:
70′s …
Training focused primarily on discrimination, racism, and management by objectives.
80′s …
Popular training topics were behavior modeling, the first real push towards teamwork, empowerment, diversity, feedback, quality and employee incentives.
90′s …
Lots of manager training to become visionaries, learning groups, performance management, sexual harassment, re-engineering, fun incentives incorporating company executives and the evolvement of balancing work and life.
00′s …
A time when our employers want us to learn how to protect the company by attending training on topics such as employment law, computer security, workplace violence and prevention, stress management, differences between men and women managers and employee motivation to help with mergers and/or rightsizing.
Fun Ways to Provide that Added Incentive:
- Fun Fridays
- Funny Sock Fall Contest
- Outdoor Meetings under the Trees
- Host a surprise Un-Meeting
- Bring a Treat Friday
- Manic Monday Casual Day
- Scavenger Hunt Thursday
- College a Coupon for a Good Deed for a Prize
Being a manager is rewarding. The more you involve your team and keep them motivated, the better it is for you. Your team will help you meet your goals and your involvement with them will help them grow and feel valuable. Those at the executive level will quickly see that you can easily motivate your team to move ahead through change.
Here is to being a manager, enjoy!
Tags: awards, employee, employee incentive programs, employee rewards, incentive, incentives, motivate
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October 21st, 2011
Key factors include benefit plans and potential for career advancement.
Career Bliss, an online company-review site based in Irvine, recognized 50 companies with its 2011 Bliss Leap Award, which gives a nod to those that are making the biggest advancements in employee happiness year after year. At the top of the list was Target, with a 12 percent difference from 2010.
To develop the list, CareerBliss assessed more than 250,000 company reviews from employees on their website. The appraisal evaluated factors that affect company happiness, such as work-life balance, work environment, compensation, growth opportunities and interpersonal relationships. CareerBliss reps found a common element among the Top 50 companies: a comprehensive benefit plan.
“We take great pride in caring for our employees, our customers and our communities,” said William Strahan, Comcast’s senior vice president of human resources. “We believe it’s essential to invest in proper training, communication, competitive pay and benefits, and professional growth opportunities to create a supportive and motivating work environment where diverse employees thrive.”
Comcast, which ranked No. 26 on the list, offers a benefit package that includes above-average health insurance; a dollar-for-dollar 401(k) match; free financial planning services; life and disability insurance; tuition reimbursement; long-term-care insurance; pet insurance; commuter, legal, and adoption benefits; and more.
Other factors influencing employee happiness include opportunities for career advancement and work-life balance.
“Our data continues to show that even more important than salary is a company’s commitment to providing a balanced work environment that allows employees to enjoy ample time with their families and friends outside of work,” said Matt Miller, CTO and co-founder of CareerBliss.
All data is derived from 2010 to 2011, and in order to qualify for the award, each company must have at least 50 reviews on the CareerBliss site.
“What is unique about this award versus any other award out there is that employees, independent of their company, can review and evaluate their employer based on factors that determine work-place happiness,” said Heidi Golledge, CEO and co-founder of CareerBliss. “Each company on our Top 50 list should be proud to know they are making a difference in fostering a happy work environment.”
Tags: employee benefits, employee incentive programs, employee incentives, employee retention, employees
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October 20th, 2011
How would you react when you ask someone what they do for a living do for a living and their response is Supply Chain Management?
“What kind of job is that!?”
“Oh, so you work in a warehouse?”
“Gee, I thought this person had a good job!”
“How ‘bout them Bears!?”
Most people cannot begin to imagine what a Supply Chain is or does. They don’t realize that it’s the backbone of every company and in literally every industry around the world that produces a product or provides a service. There is the typical Finance, Marketing, Sales, R&D and manufacturing departments. But what people at fundraisers, around the water cooler or as a matter of fact, in your own company don’t realize that a Supply Chain a main contributor to a company’s success.
Typically, Supply Chain will attempt to centrally control or link demand, production, shipments and distribution of a product. This is managed through detailed planning and analysis. By managing the supply chain, companies are able to control costs, conduct risk management controlling excess inventory, work with off shore plants and vendors and most importantly provide products at a faster rate in to the hands of the consumer. This is done by keeping tighter control of inventories, production, distribution and sales.
It’s all a network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer. Supply Chain management is a crucial process for many companies, and many companies strive to have the most optimized supply chain because it usually translates to lower costs for the company.
One example is the I-Phone. All of the parts to produce a phone requires someone to plan and procure those materials, manufacture the phone, distribute it and stock it on the shelf in a retail store. All of this is managed by Supply Chain.
In a nutshell, it’s the complicated, behind-the-scenes work of getting goods from one place in the world to another, on-time when the customer expects it and on budget.
Next time you meet someone in an airport and learn that that they are a Supply Chain Manager rushing off to a plant far away, you will have a little more appreciation of the efforts in the supply chain process that made the I-Phone available to you when you purchased off the shelf to enjoy.
Tags: demand, distribution, logistics, shipments, supply chain, supply chain manager
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October 16th, 2011
Cash flow issues keeping you up at night? Instead of throwing money at the problem, try strengthening each part of your supply chain.
Cash is the fuel that drives business, and many financial analysts consider the condition of a company’s cash flow to be one of the most important indicators of that business’s financial health. After all, a well-managed flow of cash–like a strong heart–is usually indicative of a healthy business, while poorly managed cash flow, or a weak heart, can cause problems that affect the entire business.
Unfortunately, companies facing cash flow crunches simply throw money at the problem, which is a temporary solution at best, akin to treating heart disease with drugs alone. And just as heart surgeons encourage their patients to eat well, increase their physical activity and reduce stress, cash flow management requires more than just a financial fix. It requires a holistic approach that focuses on making a company’s entire supply chain operate more efficiently. After all, the faster goods move from seller to buyer, the faster sellers can be paid.
It’s important to note that a cash flow crisis is usually a symptom of a broader supply chain sickness. Treating this illness requires the attention not only if the CFO but also of the logistics manager, the purchasing department, operations, the tech guys and even the CEO. And while working with a bank to open a line of credit or amending an existing financial instrument can certainly help, the only real way to address a cash flow problem is to take a holistic, long-term view of the issue. Fixing a cash flow problem requires companies to examine and improve the three key flows of commerce: goods, information and funds. Let’s take a look at the first key flow.
Follow The Goods
The faster a seller moves goods to a buyer, the faster the buyer will pay for those goods, and that impacts cash flow. Therefore, businesses must ask themselves how they can better improve the speed at which their goods exchange hands. And this goes well beyond the actual transportation of the goods. Rather, it requires an examination of the entire process–from sales all the way through invoicing.
Let’s start with sales. It’s vitally important for a company’s decision-makers–and for small and growing firms, that usually means the owners–to be plugged into the sales process, examining the data from the sales staff on a regular basis. How much was sold yesterday, how much will be sold today, and what about tomorrow? The more accurate this information, the tighter the inventory. And the tighter the inventory, the better the cash flow.
After all, every item that’s sitting on a warehouse shelf represents inaccessible capital. Turning that inventory into sales begins to unleash that capital. If the inventory isn’t moving, you’re not moving cash. On the flip side, you have to be prepared to quickly replace sold or outdated inventory. Robust and accurate sales data ultimately drives inventory levels. Of course, this is sometimes a game of chance, but your chances of having optimal inventory levels increase with the accuracy of our sales data.
Next comes fulfillment. When a customer places an order, what happens behind the scenes? Who handles the fulfillment–that is, moving the goods out of inventory and toward the buyers? Is the pick and pack of the goods and the preparation of the shipment an arduous, manual process that delays shipments from leaving your facility? Or have you integrated technologies that create a streamlined, automated and efficient fulfillment process?
And, of course, transportation decisions are also important. Sometimes the cheapest form of transportation–usually also the slowest–isn’t the best choice. Spending more on expedited services can often result in improved reductions in the cash flow cycle.
Use The Information
Your next vital key to good cash flow is information, and for that, you must have visibility of your product shipments. Once your goods leave the dock en route to your buyers, how much visibility do you have regarding the progress each shipment is making? Do you have a tracking number for every package? Did you share the tracking number with the customer? Are you aware that a package was delayed due to weather? While all these questions primarily reside in the operations side of the house, they can also have a major impact on customer service, which in turn can impact cash flow. After all, a customer who feels well treated is more inclined to pay on time–and buy from you again.
In addition to tracking your shipments, using the information you have about each shipment’s status and delivery time enables you to put invoices into the hands of your buyers as soon as possible. Once the goods are delivered, does your business receive confirmation that the order’s been delivered? And upon receiving that confirmation, do you automatically trigger an invoice? All this information helps to build solid, long-term relationships with your customers while improving cash flow.
Speed The Funds
This is the area where business owners usually look for a quick solution. After all, most of us have heard the laundry list of best practices from a financial perspective on how to improve cash flow. Some of these traditional but important remedies include:
- Doing customer credit checks. Perform credit checks on all new and non-cash customers. This process can immediately reduce bad debt, since you’ll stop offering credit to customers who haven’t proved they deserve it.
- Offering term discounts. To encourage customers to pay on time, consider offering term discounts. For example, if your invoice terms are “net 30/2/10,” customer payment is expected in 30 days; however, you’re offering the customer a 2 percent discount if payment is made in 10 days.
- Asking customers to pay by cash or credit card. Rather than sell on term payments, sell on cash or credit card payments. Once you’ve got the cash in hand, deposit the funds immediately.
- Charging late fees. Indicate on your invoice when payment is due, and specify the penalty interest for late payment.
These solutions have been and will remain key ingredients in helping to cure cash flow ailments. But they’re not the only funds-related prescriptions. Consider these options:
- C.O.D. (Collect On Delivery). C.O.D. delivers cost savings and processing efficiencies that improve cash flow. This process may seem archaic, but the reality is that you’ll be paid faster with C.O.D. than a traditional 30-, 60- or 90-day term agreement.
- Inventory financing. Have you ever thought about unleashing working capital generated from inventory that traditional banks won’t finance, such as inventory you’ve got housed overseas? What about moving that inventory to a different location that enables those goods to be financed? Unfortunately, many businesses simply throw up their hands in defeat when they learn that overseas inventory can’t be financed. But that’s giving up too soon. If you take a holistic supply chain approach, you’ll realize that realigning your supply chain can enable you to gain economies of scale, reduce inventory expenses and ultimately obtain additional working capital. Most traditional banks are simply focused on the money flow, not the supply chain.
- Credit insurance. Today’s business environment pretty much mandates that small companies go global. But conducting business with trading partners overseas can be risky. Credit Insurance can help mitigate the risks by protecting the value of your receivables. By guarding your bottom line against nonpayment–or even slow payment–of invoices, you can breathe easier about your decision to conduct cross-border trade. And credit insurance can be used on a case-by-case basis–for example, with new customers whose payment histories you’re unfamiliar with. Once you’ve established a more solid relationship with them, you can then stop charging them for the credit insurance.
To be successful at cash flow management is to make sure all three flows of commerce–goods, information and funds–are working together to accelerate the movement of money through your supply chain. In all my years in business, I’ve learned that cash flow can be–and must be–managed wisely, and that better cash flow management goes hand-in-glove with better supply chain management. This will help you create a healthy, strong business.
Tags: cash flow, manage supply chain, reward, supply chain, supply chain management
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October 11th, 2011
Made in America is gaining momentum as more Americans now understand that we have given to much away. We have a real chance to start a movement and recharge our economy. Chinese employees who are tired of working long hours, in conditions that are sometimes not favorable are wanting more pay and incentives for labor. Our challenging economy is also creating a passionate movement and getting people to stop and think about the benefits of made in America. Global supply chain is costly and difficult to manage. Because of all the moving pieces and delicate relationships between Supply Chain, Engineering, Quality, Sales, Customer Service and costly day-today delivery of product companies are taking a more serious look at things.
The once great cost savings gained from doing business in China, India and other countries along with soaring transportation expenses; increasing risk of supply chain disruptions when doing business globally; and, unregulated overseas markets where companies cannot be as assertive about their rights for quality control, intellectual property and at times a fear of managing a staff that may not maintain its loyalty to their distance clients.
For years the Chinese and Indians have gained from the U.S. thanks to mega stores such as Wal-Mart and others who have done business abroad. As consumers, we are very much to blame for ignoring the little sticker on our clothes, at the bottom of our products and the key compenents to international participation in the supply chain delivery process.
If you know someone who is a Veteran they will most likely tell you that we need to buy American to keep our country financially strong and secure. These vets usually drive Fords, Chevys and look at labels because they know that buying other than American is going to come at a much bigger price than what they may be saving if buy foreign goods. Why do they get so emotionally charges when you ask them why it is so important to buy American made goods, because they have fought for this country. They have watched what can happen when we are too dependent on others for our day-to-day goods. We all were striving for a global economy but we all know that things have gone to far at the sacrifice of our American jobs. It is not all about China, India or anyone else, it is about respecting and appreciating the great things that this country manufacturers, grows and delivers. There is a big incentive to understanding the benefits of buying from your own backyard, all we have to do is look back in history.
Our country offers intellictual advantage with some of the brightest minds in Engineering and Supply Chain in the world. We have well managed harbors with millions of products going and coming in every single day. American companies are modern with high tech automation, assembly, and packaging systems that are respected world wide and are located in proximity to the world’s largest markets. As a nation, we are more stable than other arising countries and can easily function in any language because of our diversity.
If we stay committed we can change how Washington thinks, we can change the trend of what our teachers are telling their students and foster a lasting beneficial commitment. The cause is for our livelihood and an investment for all generations to come. Stand and take notice of where your products are coming from and speak of the benefits of made in America from a supply chain strategy.
Imagine how much easily life would be with Engineering, manufacturing, Quality and sales being all in this country.
Tags: delivery, global supply chain, manufacturing, supply chain, supply chain management
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