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Posts Tagged ‘Supply Chain’

When you call some firm’s customer service number, do you really care whom you talk to? I mean, beyond basic competence in addressing your request or walking through how to solve a problem, do you really care? Would it matter if there were some way of matching you with a better agent? “Better” here is not about skill level, per se, but rather about someone who matches your personality type. That is, you and I may call with the exact same issue but have different agents recommend as best for each of us based on just how we behave on the phone.

This is the kind of service offered by a Chicago-based firm called Mattersight, which has been featured in recent articles in both Crain’s Chicago Business (Why you might not hate calling customer service next time, Feb 12) and InformationWeek (Big Data: Matching Personalities In The Call Center, Feb 17). Here is how Crain’s describes what they do:

Your call is automatically routed to a like-minded agent who’s been matched to you according to factors such as communication style and personality type. It sounds a little like science fiction, but it works. Clients such as pharmacist CVS Health and online insurers Progressive and Esurance (an Allstate subsidiary) say Mattersight’s software speeds up calls, boosts sales or raises customer satisfaction by 10 percent or more. …

Mattersight’s product, based on more than 10 million algorithms developed by an in-house team of behavioral scientists, is overseen by David Gustafson, Mattersight’s product chief and executive vice president. The algorithms are if-then statements that analyze callers according to speech patterns and cadence in order to gauge their personality type and mood and route them toward a simpatico customer-service rep.

People’s speech patterns constitute “an emotional syntax,” says Gustafson, 37, one that can quickly demonstrate whether a caller “is someone who values order and logic, or if they’re fun, spontaneous and creative.” The best customer service reps are adept at working with all personality groups but still do better with one type or another; Mattersight’s tech aims to play to that strong suit as often as possible.

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As you may have heard, West Coast ports are having some labor issues. The Pacific Maritime Association (which represents the shipping lines and terminal operators) and the International Longshore and Warehouse Union have been going at it, affecting about 20,000 workers at 29 West Coast ports. (Can’t name 29 Wet Coast ports? See here.) The LA Times has a nice summary of what is in play. In a nutshell, management claims that the union is engaging in a slow down (effectively striking while getting paid, see here) while the union claims that they are responding to safety concerns (at LA and Long Beach) and that management is misrepresenting their position. In any event, what has resulted is lots of delays and a  slew of ships waiting off the coast for their chance to unload. (Never seen a slew of ships? Check out these images.)

OK, that’s all well and good, but how is this affecting supply chains? The sheer scale of the problem is rather mind-blowing. If it were just a question of losing one port, things wouldn’t be too bad. Ships bound for LA, could be sent to Oakland or Seattle. But it’s the entire West Coast. If the goods need to be offload to an US port, that means going all the way to the Gulf Coast or the East Coast. It’s not clear that is an easy solution. Part of why LA and Long Beach are such busy ports is that they have an entire infrastructure to support them. Even if a ship could get to, say, Charleston, it’s not clear that it would do a lot of good for some of the customers whose stuff is on the ship. If a company’s whole logistics system is based on breaking bulk in the Central Valley, having a bunch of containers in South Carolina is, at best, an inconvenience. (more…)

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It’s Valentine’s Day and that means roses and big business for flower shops. But how do flower shops get their roses? NPR’s All Things Considered answers that question if, say, you are a shop in the market for 25,000 roses (For Florists, Roses A Nerve-Racking Business Around Valentines Day, Feb 13). Enjoy!

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Over time, this blog has had a lot of posts about shipping containers. Here is another one.

More specifically , we have from Vox and short video on the history and economic impact of shipping containers and why container ships keep getting bigger and bigger (How cargo ships got so huge — and transformed the world economy, Jan 22).

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You may not be familiar with Xiaomi, but you likely will be soon enough. Xiaomi is a Chinese smartphone maker. It sold its first smartphone in 2011 and is already the third biggest player in the market. It also holds the distinction of being the most valuable tech start up going — yes, even more valuable than Uber. (See here and here for more.)

How did they get so big so fast? Mostly by being cheap. Their phones offer a level of value that, say, Apple cannot touch. A new iPhone without a contract with a carrier (i.e., without a subsidy) will set you back at least $600. If you want more storage and a bigger screen, that creeps up to near a thousand dollars. Xiaomi’s phones top out around $500 and they have offerings under $150.

So how does Xiaomi manage to offer so much for so little? That is the topic of a TechCrunch article (This Is How Xiaomi Keeps The Cost Of Its Smartphones So Low, Jan 19). Now part of their success is due to their distribution strategy. In China it sells only on-line. Hence, it can cut retailers or carriers out of the equation. But that is not the only factor. How they mange their product line and purchasing (and consequently their supply chain) also makes a difference.

 [Hugo] Barra [the company’s VP of International] explained that Xiaomi is able to make price concessions thanks to the combination of a small portfolio and longer average selling time per device.

Importantly, Xiaomi continues to sell older devices (and tweaked versions of them) at reduced prices even after it releases newer models.

“A product that stays on the shelf for 18-24 months — which is most of our products — goes through three or four price cuts. The Mi2 and Mi2s are essentially the same device, for example,” Barra explained. “The Mi2/Mi2s were on sale for 26 months. The Redmi 1 was first launched in September 2013, and we just announced the Redmi 2 this month, that’s 16 months later.”

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Today is a big day for companies in the shipping business. Coming off of the last weekend before Christmas, it is not too surprising that the likes of UPS and FedEx are expecting a massive rush of packages ordered by everyone who gave up on the mall and just ordered it online. In case you couldn’t have guess that for yourself, both the New York Times (Crunch Time for FedEx and UPS as Last-Minute Holiday Shipping Ramps Up, Dec 21) and the Wall Street Journal (A Test for UPS: One Day, 34 Million Packages, Dec 21)have articles today about how shippers have planned to deal with the deluge.

For my money, the Journal article is more interesting if only because it contains nuggets like that e-commerce will soon account for half of all U.S. packages. This video summarizes some of the main points of the article.

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It doesn’t seem that there should be that much innovation in shipping. Man has plied the sea for ages, so can there be anything new under the sun? The answer is, yes, there can. And it is really, really big. The New York Times had an interesting article on the new Triple-E class of ships that A. P. Moeller-Maersk of Denmark has been bringing into service (Aboard a Cargo Colossus, Oct 3). These things are immensely huge — longer than the Eiffel Tower is tall. This video gives an idea of just how large these ships are.

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