If you are not a newcomer to the TFI Blog, then you may have seen our posts about reducing corporate travel, choosing and aligning manufacturing and customer locations, and providing customer-focused contract-manufacturing services and in-region support. Well, last week’s volcano eruption in Iceland and the subsequent shut down of air travel in the region reinforces the strategic importance of all shades of travel reduction.
One San Francisco Area-based client found out this morning that her flight this week to Europe has been canceled. One European-based EMS company reported its inability to meet product shipments. A European conference and expo scheduled for later this month and early next is sure to be lightly attended, because the exhibitors are supposed to ship their booth and demonstration equipment this week and attendees’ travel plans are in question while wondering if the event is still on.
Regional strategies for manufacturing, sales, and customer support — as well as using travel-alternatives such as web- and video-conferencing — are about reducing risk, expense, and environmental impact. No one would have asked for a volcano to further illustrate the strategic importance of reducing movement of product and people around the planet, but now that we have this one we can connect the dots.
What else do you think it will take for industry executives to markedly reduce travel of people and product around the world?
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Dear Pam,
I think this headline is too general a comment to make as you are categorically speaking of different job functions and the need to reduce travel. Regarding the sales function, I can agree with virtually all the travel myths with the exception of one. Oracle and companies of their size may be able to command an audience at a potential customer for an online presentation, but not smaller companies with lower asp products. Also, you give up the ability to read customers reactions, body language and other telling actions which are only available during an in person meeting. These points are never mentioned during Citrix’s and Cisco’s online meeting commercials.
Planning for acts of God such as a volcano eruption, terrorist plot and hurricanes are more important for risk managers coordinating production activities rather than sales forces. If a sales trip gets cancelled it is hardly a catastrophe, it happens and is rescheduled. In the case of the CM’s in Eastern Europe, that is where a risk manager should have established redundancies in production lines in other areas to offset the risk of delivery issues. Yet even as “bad” as things are in Europe, we are talking about a week or so of delays as flights have now resumed. Acts of God are typically covered in a contract for just this reason.
I enjoyed the discussion. Thank you.
Mark
Pam Gordon at TFI wrote about the havoc that supply chains and business travel have endured this week.
John Constantine commented on the global business ramifications:
The Iceland volcanic event is certainly making people think about global business. Companies need a set of suppliers and partners in all of their markets – in case the logistics chain for their main suppliers closes, dries up, is stopped by natural events, etc., etc.
Actor John Clese had to take a $5000 cab ride around Europe to make an event – would your goods and/or executives need to make the same kind of trip???