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Quick Bits from Ed Rigsbee, CSP
Partnering Chronicles—Large and Small Businesses Succeeding Through Smart
Alliances - 5/20/03
Sears has reduced its distribution inventory levels of Michelin tires by 26%,
while improving its store fill-rate by 11%.
How did they do it? Internet Retailer reports that following a year of
collaborative planning, forecasting and replenishment (CPFR) with Michelin,
Sears, has achieved this result. Sears collaborates with Michelin through its
supply chain collaboration application hosted by the GlobalNetXchange web
portal. Sears gets a better view of Michelin's production levels and can
coordinate that information with changing demand throughout Sears’ retail
operations. This has enabled the Sears to work with Michelin early enough in the
production cycle to increase or decrease orders. The benefit is that Sears can
assure that the right amount of particular models and sizes of tires to get
delivered to the stores and regions where demand is greatest. Sears has also
started similar collaboration efforts with Goodyear and Sumitomo tires and
expects to collaborate with several more tire manufacturers soon.
How can you better collaborate with your suppliers to take costs out of the
distribution channel? Perhaps you should ask your suppliers for their
Ed Rigsbee, CSP is the author of PartnerShift-How
to Profit from the Partnering Trend;
Art of Partnering
Internet Retailer-News Story
from Tuesday, December 31, 2002
No baloney: Wireless
fidelity is attracting new customers to Schlotzsky’s
Schlotzsky’s Inc. President and CEO John Wooley
had a hunch that offering free wireless fidelity Internet access would draw new
customers to his restaurants. He was right: A recent survey showed 6% of
customers came in mainly for the wi-fi web access. The increase in business,
about $100,000 over the course of a year in a single restaurant, is 20-25 times
what Schlotzsky’s pays to install wi-fi at each location. "We’re seeing
a really positive response from customers of all ages," Wooley tells Internet
Wi-fi, which extends high-bandwidth Internet
access from fixed lines to wireless access, enables Schlotzsky’s customers to
quickly download Internet content, including streaming media, music recordings
and other data-intensive files, to their personal laptops or PDAs or to one of
Schlotzsky’s iMac computers.
The cost to implement a wi-fi network in a retail
location depends on the range of applications involved. Schlotzsky’s used its
own IT staff to install wi-fi at a cost of $4,000 to $5,000 per location. But
Wooley figures the new revenue at each location from customers attracted mainly
by wi-fi amounts to about $100,000. The average ticket in a Schlotzsky’s Deli
is $6, and each restaurant handles about 300,000 customer orders per year.
only additional costs related to the wi-fi program are the 3 to 6 iMac desktop
computers the company installed in each Deli, though Schlotzsky’s had planned
to purchase these with or without wi-fi, Wooley says.
It’s Time To Deliver Your Conference Attendees
By Ed Rigsbee, CSP
Find out what your alliance
partner considers as valuable and deliver it! The proceeding is, and has been,
the basis of my partnering philosophy that I have shared over the last decade in
my books, articles and seminars. For trade associations in particular,
delivering true value to your attendees can at best be difficult.
Generally there are two types
of conference attendees. First, there is the member that attends the conference
to basically support the association. They come no matter how good, or bad, the
program. Usually, they also consider the trip a vacation of sorts. Second, there
is the attendee that is coming for education. This type also has the agenda of
synergy. They believe they can get more for their education dollar through the
collaborative effort than on their own.
The second attendee type is the
one that will select not to come if the price seems too high for what they
believe they will receive. This is the attendee that needs the maximum amount of
value in order to leave their business to attend your conference. What have you
done for this attendee lately? They ask the question, so shouldn’t you?
Meeting Surveys? Unfortunately
they can be meaningless if laid out only for the affirmation of the meeting
organizer's. Are your surveys detailed to determine the value received? And
hoped for, but not received?
Have you ever asked your
speakers to comment? Generally they will only give positive unless there is a
safety net in place.
By Ed Rigsbee, CSP
Use your bullets wisely. Every business leader
gets a limited number of workplace bullets to use. When you waste them on issues
unimportant to the success of your business, you diminish your stature in the
eyes of your employees as well as your ability to lead. Here is an example of a
company president squandering one of his precious bullets. It was later referred
to as the toilet caper by his office staff.
From the men’s restroom, just across the hall
from the conference room, an unpleasant scent appeared to originate. It was a
problem because the conference room was regularly used to meet clients. One day
the president decided the problem was resulting from certain individuals’ library
habits. His solution was to remove the toilet seat, thereby restricting library
usage. Sure he could have had the smelly old carpeting replaced with tile or
purchased a scent control device, but instead he took the easy but draconian
measure. Needless to say, it caused quite a stir.
the executive realized his foible when one of his partners had the carpeting
replaced with linoleum, purchased a scent device and connected the fan switch to
the light switch, thereby solving the problem. Even years later when someone
brings up the president’s toilet caper in the presence of a new employee,
it’s always the same. The disbelieving incredulous look on the face of the new
employee is worth a thousand words. Be careful how you chose to use your
|Ed Rigsbee, CSP is the
author of PartnerShift, Developing
Strategic Alliances and The
Art of Partnering. Rigsbee has over 1,000 published articles to his
credit and is a regular keynote presenter at corporate and trade
association conferences across North America. He can be reached at www.rigsbee.com.