Mike Dedunovich responds to a tricky question about the dismissal of logistics staff.
“The fact is that we never recommended firing logisticians.
A combination of a person plus a computer is much more effective than just a separate person and a separate computer. It was once hoped that the computer would replace the accountant. After all, this is absolutely not true. It’s just that today an accountant armed with a computer is much more effective than an accountant without a computer. The same is true for a logistician. After all, the human brain is a very flexible instrument. Let’s reason together.
Let’s say the system downloads data from your 1C system about where you need to distribute what, and what time you need to be at each store. Very often, stores assign specific time slots to avoid queues on the ramp. As a result, the car needs to arrive at this store from 2 to 3, to this store from 3 to 4, to that store from 4 to 5, and so on. But the logistician, having included his competence, can remember that, for example, in this store Marya Ivanovna is an excellent merchandiser, you do not offend her with souvenirs for the New Year, for March 8th. Don’t forget about your birthday. And she won’t make a fuss if you arrive not from 2 to 3, for example, but from 1 to 6. And this opens up wide opportunities for you to optimize delivery. There are many such cases throughout the day. A logistician, using his unique competencies and taking responsibility, can slightly expand some time intervals at his discretion. And once again give the computer the task of calculating a new solution with milder conditions. Then it turns out that, for example, instead of 50 cars, 45 are enough for delivery.
Why?
Because it turned out, for example, that 2 stores are located approximately nearby. They had the same time intervals, and if previously it was necessary to send 2 cars there at the same time, one car to each store to service them, now one car is enough, which goes around the shops one after another, because one of them had temporary the windows are open. If none of the clients complained in a month, then the logistician’s decisions were justified. Now imagine that, thanks to the smart initiative and high competence of your logistician, you have reduced 5 delivery vehicles out of 50. This means that you receive approximately $20,000 per month in additional profitability from delivery. If you pay $1,000 of that $20,000 to the logistician as a bonus for working hard for a month, he will be happy, and you will receive significant additional income from delivering to your customers.
Therefore, of course, there is no need to fire logisticians. They need to be trained to work in an automated intelligent system that will increase their own competence and profitability for the company.”