Y=f(X) In Logistics
If you have been trained in Six Sigma process methods you know what that means. The “Y” is the function of all the input “Xs” combined.
In Logistics you can think of it as Y (Freight Spend) = f(x) are the inputs to the shipment. Weight, density, rate, distance, packaging, volume, and speed are all different variables you can assess a value to in calculating your Y. I think the biggest questions is do you know what your Xs are?
Logistics professionals spend a lot of time on the rate X question. Meetings, RFPs, market bids, conferences, and technology are dedicated to improving that X. In my opinion all that time is spent there because so few of the other Xs are in the span of control of the Logistics professional.
Stephen Covey in the time-tested missive “7 Habits of Highly Effective People” discusses at length the “Circle of Influence” and “Area of Concern.” Meaning there are things we control and are the masters of while many other things we are concerned about but accept as they are to focus on our influence.
In the context of traditional Logistics is that quite often the rate X is in the Circle of Influence and all the other cost drivers are in the Area of Concern. You are free to choose to accept the current circle as the only area you control. You are free to sit back and watch others influence your future by continuing to manage the other Xs.
Covey would say proactive people seek to expand their Circle of Influence. I would slightly revise that by saying Leaders seek to expand that. As the market now drives the rate X you need to, as a Logistics leader, seek to control the other Xs. Shipping once per day to a customer, managing the delivery to the expectations of a transit time performance and not the carrier name, improving pallet density, partnering with operations on product availability, partnering with Sales and Customer Service to set agreed upon service standards, measuring at a detail level carrier performance, and other process areas drive change.
More than that they put the control of your future back in your hands. You may feel pressure yet from the upper levels of the organization but an effective change management program let’s them know you are a leader. It also let’s them know where the root cause of not just spend failure is but possibly where customer unhappiness come from.
Be a leader. Be proactive. Be a protagonist and not an antagonist. Communicate change and drive it hard.