Fronetics Logo - navy
Contact Us
5 things the supply chain industry can learn from Top Gear

5 things the supply chain industry can learn from Top Gear

by | Oct 15, 2013 | Blog, Leadership, Strategy, Supply Chain

The Stig

Here are five things the supply chain industry can learn from Top Gear. 

1.  Speed is essential

Jeremy Clarkson advises: “Speed has never killed anyone, suddenly becoming stationary… That’s what gets you.”

For the supply chain industry speed and stagnation can be deadly.  PwC’s Global Supply Chain Survey found that industry leaders (financially and operationally) have “supply chains that are efficient, fast and tailored – a model that lets companies serve their customers reliably in turbulent market conditions and that differentiates between the needs of different sets of customers.”

2.  Innovate

At the heart of every Top Gear episode is innovation.  Whether it be turning a combine harvester into a snow plow, a car into a motorhome, or designing a mobility scooter to that will “tackle the wilds of the British countryside,” the boys on Top Gear know how to get creative.

Innovation is critical to growth and to gaining (and maintaining) a competitive advantage.  Innovation can also save you money.  In Colin White’s book Strategic Management, he provides the example of Ikea.  Ikea redesigned their Bang mug with the pallet in mind.  By doing so they were able to significantly increase the number of mugs they could fit on each pallet (from 864 mugs to 2,024 mugs).  The product redesign enabled Ikea to reduce shipping costs by 60 percent.

3.  There is such thing as too much power

Fast cars are the lifeblood of Jeremy Clarkson.  However, after driving the Ferrari F12 Clarkson surprised everyone by pronouncing that the car had too much power.

As Lao Tzu said: “A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: We did it ourselves.”

4.  Be social

One reason the Top Gear boys have around 350 million views each week and are entered into the Guinness Book of World Records for being the “most watched factual show” is because of their banter.

In a Supply Chain 24/7 article Adrian Gonzalez notes that 30 percent of supply chain professionals currently block access to social media sites.  The reason being that “many supply chain executives and companies are stuck on the starting line because they can’t get past the word ‘social’ and the perception it creates.”  This needs to change.  As Clara Shih and Lisa Shalett point out in an HBR Blog post – it can be perilous to be a social media holdout.  That is, being a social media holdout means that you let others define your company’s reputation, your company is invisible and less credible, and your company is perceived by potential customers as being behind the curve.

5.  Never underestimate The Stig

 “Some say he never blinks and that he roams local woodlands foraging for mouse meat. All we know is, he’s called The Stig.”

The Stig sets lap times and instructs celebrity drivers on Top Gear; we know nothing else about him.  That being said he is an integral member of the team, effective at what he does, and is respected (he has a cult following inclusive of 6 million Facebook “likes”).

Within your company you most likely have a Stig – a silent performer who excels at their job.  Unfortunately, the silent performer often does not receive the accolades the more outgoing employee receives.  This is to the detriment of the company – your silent performer might be your star intrapreneur.

Reducing Electronic Waste through Reverse Logistics

by | Feb 22, 2012 | Blog, Strategy

Over time, we discovered that throwing electronics away is extremely damaging to the environment. With the increasing innovation of new and trendy electronic devices continually entering the marketplace, there is high turnover and greater demand than ever before. Manufacturers and retailers are seeking partnerships with third party logistics (3PL) providers that can decrease e-waste through reverse logistics for used and outdated devices.  With consumers more concerned about their carbon footprint, manufacturers and retailers as well as their supply chain partners have a commitment to reducing negative impact on the environment.

Fortunately, profitable businesses that have capitalized on this emerging green and are known as “urban miners.” In general, there are now two primary methods for disposing of our personal e-waste supply.

  • Trade in the device for the latest model. This is common with smartphones, since they’re small and easy to carry. The process is convenient for the providers and device manufacturers as well. It’s the proverbial “win-win.”
  • “Take-back” events.  Typically orchestrated and sponsored by your local municipality, school, or civic organization, these are a local recycle e-waste process.  It’s best for devices that are not readily exchangeable in their current form.  You’ve probably seen flyers or advertisements encouraging you to bring your dead electronics to a local school parking lot or municipal depot where they will be loaded on a truck, never to be seen again, all in the name of charity and ecology.

There’s Gold in ‘Urban Mining’

While the local organization that hosts the event gets a portion of the fees paid to dispose of the electronics, it’s the e-waste disposal companies that do especially well.

Known as “Urban Miners” in the disposal world, these e-waste disposal companies aggregate millions of pounds of commodities that are bought and sold in a secondary market every day and shipped all over the world. E-waste disposal companies are mining items like plastics, precious and non-precious metals, and rare earth minerals from our basements and closets. It’s one of the most profitable and reliable forms or reverse supply chain.

There is no better testament to the old adage, “One man’s trash is another man’s gold.” I’m not saying this is an easy process. You need to be able to aggregate tons of e-waste material (literally) in order to make money. You need to have the “right” e-waste material, meaning recyclable and not so much disposable, and you need to have your fixed costs low enough to be able to afford the high-touch breakdown process. That’s one reason you see these take-back events popping up more often. These aggregators need tonnage in order to make the model work.

Sometimes they win. Sometimes they lose. But they are providing a service by relieving us of our e-waste in a compliant manner; and they’re supporting the charity or organization with some sort of share of the day’s take, and keeping the green theme going… thus, a win-win-win.

Today’s modern-day gold rush is happening right in our neighborhoods and cities. Instead of a pick and shovel, urban miners’ tools are a truck, a forklift, and a well-placed flyer.