A Catalyst for Supply Chain Profitability

Supply Chain Participants

The Iceberg Impact of Hidden Costs

Getting a handle on how to improve your insurance costs is step one, and one step, of profitability maximisation. And it applies to manufacturers and shippers as equally as it does carriers. Understanding a company’s on-boarding and termination costs is vital. Why? Because both demand a great deal of time to be done poorly, and even more to be done well. Therefore, this is a prime area to seek out "iceberg costs." Iceberg costs invisibly leach away your profits.  Being able to identify, quantify and eliminate Iceberg costs is a foundational element for superior profitability. Click on the diagram below to see an expanded discussion on Iceberg costs, and how they affect your bottom line.

Iceberg Cost Diagram

Silo Management

Silo Management



When departments don't interface, systems breakdown. How often have we seen a change in design result in increased costs to the shipping department's budget? Strategic planning using standardized procedures that include stakeholders from all affected departments results in higher quality, on-time delivery of projects. And that pays dividends in brand quality. No matter your processes, every company brings something into their organizational process, be it service or product based. The organization adds value, and the product is delivered to the end consumer.  Reduce internal errors and costly corrections by implementing a strategic plan.  





Freight Claims

How is your team with freight damage claims? Freight damage is a significant contributor to iceberg costs.  How do you track the cost of claims? By the replacement cost?  It goes far beyond that. What about the delay in the manufacturing process or the lost sales from the stock out? Do you carry extra inventory to offset high-frequency freight claim SKUs? What about the administrative time to submit the claim? Or, do you just write it off because the costs of processing the claims are too great?  Freight claims are so prominent, there are entire departments in carriers whose primary goal is to minimize freight claim payouts while offsetting the cost against customer satisfaction.  There are legal texts that fill a library. And yet, most shippers and receivers have very little understanding of the process. Liabilities vary by region, carrier, mode, and contract. If you are interested in more on Freight claims - please contact me. I'd be happy to discuss how to minimize freight claims, streamline the claim filing process, and maximize your returns on each and every claim filed. See more on this topic in my Links page - Managing Your Freight

HR Practices

Consider for a moment, what does it take for a long term employee to complete their task? How much supervisor time? Compare that to a new hire. How about breakdowns, troubleshooting, customer relations, and on-time performance or goal realisation?  All better with a long term employee?  Understanding these costs is essential for reducing them, improving training and value returns from your team members.  Consider a few costs; how long is orientation? Updates to payroll, insurance reports, and benefit plans. Do you offer hiring bonuses?  If so, how many people stay only until the bonus is paid and then move on? Each of those lost employees is money lost. They represent an expense, not the investment they should be. Maximize potential value return by developing effecting retention strategies. Redirect hiring bonuses to programs that promote retention. Increase your percentage of long term employees, whose productivity is greater.

How about the termination side – whether resignation or company initiated termination, the costs are significant. And in the event of a challenge to the Labour Board, it can become punitive. So it makes sense to minimize or eliminate these costs.

Do your employees refer their friends to the company? If not, why not?  It’s a simple concept, but the recommendation of a friend is a great reason to work somewhere. Do you know your level of employee engagement? 

Look Outside The Box

The opportunities for improvement are different in each organisation, and too varied for us to discuss here. My services range from topic-specific help (for example Transportation of Dangerous Goods, WHMIS, and Vehicle Inspections) to entire department development. I can champion or participate, guide or provide. My solutions are dependent upon your needs. I am not interested in overprescribing. Targeted solutions with maximum impact is what you will see.  

Safety Programs



Occupational Health & Safety – Policies, procedures, Workplace Committees

RFP response / RFP creation

On-Boarding, employee screening, and development


Freight Claims Management

Termination and Labour Board case management

WSIB case management, Safety Groups Participation, policies and procedures

Strategic Problem Identification and Operational Improvement

Policies, procedures and Incentive programs, on-going development

Have I caught your interest yet?  Yes? Awesome - click here to book a time to discuss how we can work together.

No? Hmm well, I'd love to hear what it would take! I invite you to keep looking through the rest of the site. You may still find what you need, including how to quantify your results and report back to your management group on the savings delivered.  Focused KPIs, Transportation Management Programs, Reputational Capital - they are all key links in making your supply chain resilient, profitable and respected. Send me a note - let's start a dialogue on your needs.