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What are your opinions on logistics consultants?
Do logistics consultants offer enough advice and guidance to be useful? What sort of credentials should I look for when hiring a logistics consultant?
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7 Answers
Logistics consultants do provide value. The amount of value they deliver is inversely proportionate to the amount of time it takes to deliver that value. In other words, if the consultant is looking for a long term project with deliverables that are beyond 1 month away...their value is less to you. If the consultant is looking at a short term project with a deliverable that is days or a couple of weeks away...their value to you is greater.
There are very few "new" things in the world. If a consultant is worth his rate, he can build a pretty good snap shot of your business in a matter of minutes. It may take some time do dive down into the specifics of your business and to define the "actual" solution; but the variance from their original plan is only the "dimensions" of your business. If they propose a long term project to dive into your company you either have the wrong consultant or a truly one of kind business.
I agree with Steve 100%...too many organizations are trying to perform high level inteligence with inside personnel....not a bad idea when the economy is in the bucket ...but your only going to get as much information internally as the level of expertise of your personnal.
I agree with Steve. The logistics consultants bring in additional value from thinking ideas and processes which is prevalent in the industry. While the internal folks can bring in ideas focused on their business operations and needs.
Many companies do not truly understand logistics. They see it as an extension of customer service but allow their logistics to be customer driven instead of company driven. This leads to an excess of equipment in one spot and a shortage in another. Logistic consultants can help companies make sense of these actions thereby saving them money in the long haul. We can help you save shipping dollars, headaches and create a dynamic system for tracking / ordering your materials/trucks. There is much value to be had by utilizing the services of a logistics consultant.
Full disclosure: I am and have been a logisrics and supply chain consultant for decades, so there is a bias in my response.
As usual, the real answer is, "It depends." It depends on what the client wants, needs, can make effective use of, can comprehend, can culturally assimilate, can afford, and can sustain.
In general, the "parachute in, deliver an opinion, get extricated by Navy SEALS" approach delivers little value (although it can be cheap, and is certainly fast). Also, in general, it is more difficult to find commensurate value in an over-structured, over-long, over-kill project with teams of over-educated and under-experienced geniuses.
The issues revolve around finding someone who can take the time to understand the nuances of the business (quickly), is responsive to the cultural imperatives in the organization, is committed to delivering what you need, as opposed to what he/she is selling, and can collaborate with you on a personal level (without losing objectivity), while being committed to achieving results in an environment of sustainable continuous improvement.
For the best consultants, it is all about knowledge transfer, cultural foundation-building, touching lives, and making a difference for the direct client and the overall business.
I'm not sure credentials are as important as a proven and *verifiable* track record.
The next question I would have is if you are questioning whether or not a logistics consultant would be helpful do you have some idea of where your opportunities are?
I've worked in supply chain for many years. Long before becoming a consultant. I would have to ask do you have performance metrics defined for your current logistics processes and are there certain ones you are looking to improve? If so, by how much? Do you have any benchmarks?
If there is enough of a gap between your current capabilities and what the benchmarks show then a good consultant could probably add some value. If you are pretty close you would probably be best trying to close the gap yourself.
Good point. Credentials are not nearly as important as real-world testimony about documented outcomes.
Selection criteria are numerous. When the obvious surface qualifiers have all been met, the real differentiator might be to find a consultant who is much more focused on you, your organization, and the problem to be solved/objective to be met than he or she is on what the product or service being promoted is about, or on self-perceptions of brilliance and superiority.
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