The 2:00 Minute Warning

Can I be candid with you? 

Since we started TranzAct 39 years ago, I've had more conversations than I care to count with logistics professionals about one common frustration: their lack of support for tackling critical supply chain issues affecting the balance sheet.

That is why over the years I have given several presentations at industry conferences about why your C-Level executives have overlooked concerns and requests for more support. In a nutshell, here is my message to transportation and logistics professionals: You’re not speaking their language!

And that is also why we have been using these recent Two Minute Warnings to take a look at how supply chain decisions impact balance sheets. Trust me, if you want to get your CFO's or even your CEO's attention, explain how your supply chain issues are affecting your company’s balance sheet.

For example, two weeks ago we addressed how your supply chain processes may be causing your company to carry excess inventory and have higher inventory carrying costs. And that is why this week we’re focusing on how to reduce your cash conversion cycle through changes to supply chain practices and processes.
 
Although this topic doesn’t get much attention, a company’s cash conversion cycle is extremely important to every CFO and CEO. Let me cut right to the chase: Your company’s supply chain processes are having a positive or negative impact on your company’s financial statements.

Over the years, we have seen and proven that subtle changes to your supply chain process can have a sizeable impact on your company’s financial statements. Having said that some companies ask: “Where do we start?”

If you have thought or asked that question we have great news. We are revising our checklist of items to consider in addressing the impact of how your processes can affect your company’s financial statements.

Sign up here if you’d like a revised copy when it’s published.

Update on Contract Negotiations Between UPS and the Teamsters

We have good news on contract negotiations: At this time, it appears that UPS and the Teamsters are making progress in their talks. While UPS has been saying that they don’t anticipate a strike all along, there were some contentious issues to settle ahead of the deadline. One potentially challenging issue was that the Teamsters were asking for air conditioning to be standard on all their vehicles. Recently, we learned that UPS is moving in this direction. We'll be watching the situation closely as the negotiations continue.

If you’re looking for additional advice or have any questions, give us a call, send us an email, or schedule time to meet on Calendly.

BY MIKE REGAN, CO-FOUNDER OF TRANZACT

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