Failure is Not an Option
With all the uncertainty in the supply chain world right now, there is always one constant we can rely on: service is key. At Pegasus Logistics Group, we seek to identify and measure service in new and deeper ways than traditional on-time metrics. Of course, we still measure on-time percentage, but more as a vindication that our efforts are paying off than an indicator of performance. In 2020, we have achieved our strongest service metrics yet and we are committed to continuing our pursuit of the perfect customer experience.
Here at Pegasus, we pursue business where one failure is too many. We challenge all stakeholders within Pegasus to understand the true impact of failure for all our clients. Not having a detailed understanding of this could lead to poor decision making and less commitment to mitigating risk at all costs. It’s critical we all understand the consequences of failure and how we can support limited disruptions.
Let’s look at a few reasons why we cannot fail for our clients:
1. Lost Revenue
Everyone is beholden to some sort of revenue goal. It could simply tie to a bonus structure or be as visible as reporting to shareholders. No matter what the case is, logistics providers simply cannot be part of the problem in realizing revenue. Whether bringing in raw materials for manufacture goods to ship out or delivering on the last day of the month, transportation is critical to the organization's earnings. 98% on-time doesn’t sound all too bad does it? Well, try missing 2 deliveries out of 100 at EOQ valued at five million dollars? Sounds a little more painful when you view it that way. One load of server racks could be easily valued at $3 million. Failure is not an option!
2. Marketing Deadlines
Lost sales, displays not set-up, products not on shelves… Think about the big picture impact of millions of dollars spent on a marketing campaign. Then, on the day of release, there are no products on displays or shelves at the retail location? Failure is not an option! We must prioritize on-time performance, as it is impactful to our clients on many levels.
3. SLA / Overtime Penalties
How often have you heard, “But we were only a few hours late?” This lack of understanding can result in major consequences. For example, delivering to trade shows; if a delivery is two hours late to a show, it could miss a target move-in which could cost thousands depending on the booth size. At the same time, what if there were four employees onsite for the scheduled installation? Multiply four employees by two additional hours at $50+ per hour. Costs start adding up quickly. Another example is the delivery of IT services equipment to a location. IT service contracts also have installers scheduled for deliveries, which cost money and will accrue overtime penalties when a delivery is late. They also deal with SLA penalties as “go live” or “down time” can have stringent dollar figures associated to them. Failure is not an option.
4. The "Non-Professional Receiver"
Related to on-time percentage is the concept of a “clear POD” (proof of delivery). Many retail locations do not have logistics experts receiving shipments, and they may sign a “clear POD” even if required services weren’t performed. Our people understand this and make sure we go the extra mile to prevent complications at the final mile. Pictures, pre-calls, and site profiles act as a protection for our clients. Our clients and their clients could be put in a bind when the process is not micromanaged, and failure is not an option!
These simple examples are endless. Connecting our team members to our purpose and helping them understand the real impact of failure is what helps us make service a personal endeavor rather than a numeric goal to pursue. At Pegasus Logistics Group, service is key and failure is not an option!