Facing changes in distribution/supply chain
There are three major disruptions that companies and their distribution networks are now facing: financial, market and regulatory impacts.
A discussion on these recent changes that have affected the distribution and supply chain industry was recently hosted by Vaco, the staffing firm. The presentation was led by David Sterling of Savills Studley, who offered these observations:
- Financial impacts: Companies have experienced significant increases in transportation costs, primarily due to driver shortage. In 2017, there was a shortage of 50,000 drivers, and that number is projected to continue rising. The shortage of drivers and the continued demand for shipping allow carriers to increase their contract rates.
- Market impacts, aka the "Amazon Impact": Behaviors have increasingly demanded B2C shipping orders. Expectations for companies to deliver on their promise of overnight or two-day deliveries has put pressure for them to improve their processes and at times even open more distribution centers. Consumers are also ordering items beyond just clothes now. Orders for fresh groceries and technology have impacted the way distributors store and deliver a variety of products.
- Regulatory impacts: Recent regulation has changed the way companies report their distribution center leases. This requires companies to review the current structure of lease charges in order to separate operating costs that aren't required to be capitalized.
Sterling says that disruptions in the market can be an opportunity for businesses.
“Companies should frequently evaluate their distribution network so it can easily adapt and respond to ever-changing impacts on the industry,” he says. “This will make it easier to add distribution locations or expand a new distribution network to accommodate changes. Once companies embrace flexibility, they can accommodate the shift in consumer behaviors and create different warehouses to store varying products, such as refrigerated warehouses, so people's groceries still have that fresh, farm-to-table quality.”
In order to comply with new Financial Accounting Standards Board regulation, Sterling says, “companies should be prepared to assess the cost/benefit of flexible lease terms against the potential cost savings and certainty of longer terms. They should review leasing agreements with their real estate and accounting consultants.
Since carriers now have the upper hand with increased transportation costs, begin negotiations with them early to help reduce total costs and maintain efficiency.”
DCA’s new digs
DCA, a creative communications consulting firm owned by Doug Carpenter, has a new address. The half-acre Downtown property at 11 West Huling is more than the agency’s offices. It’s introducing a new brand identity and community space activation plan.
The building’s interiors — including a state-of-the-art, 30-foot by 30-foot by 15-foot cyclorama photography cove with a catwalk and garage door access — will be available for community meetings and events, receptions, photography and videography shoots, house shows for emerging musicians, and other uses.
DCA is the primary tenant of the 8,500-square-foot space and gated private parking lot. “11 West Huling allows DCA to open our culture to other people and projects,” says Carpenter. “We’re fortunate to work for and alongside many community-minded, inclusive organizations and initiatives, but we don’t want to stop there.”
The attached three-level, 2,200-square-foot private residence on the property, which once was a carriage house, will open as an Airbnb.
11 West Huling Properties, LLC has partnered with the Downtown Memphis Commission (DMC) to use two incentive types: a development loan to support permanent building improvements, and an exterior improvements grant for cosmetic enhancements.
“We love this kind of development,” says DMC President and CEO Jennifer Oswalt. “Converting a renter to an owner in a key neighborhood is definitely a win for Downtown. And this project further elevates that story by creating space that will be both a corporate HQ and community asset. In the future, we hope to see more like it.”
Carnival salutes fashion
Carnival Memphis will recognize the Mid-South Fashion Apparel Industry during its 32nd annual Business & Industry Salute Luncheon February 28.
The event, from noon to 1:30 p.m. at the Hilton Memphis Hotel, honors designers, manufacturers, and multi-generational retailers that have had an impact on fashion in the Mid-South. Oak Hall will receive the Cook Halle Award for outstanding contribution to the Mid-South, Babbie Lovett will receive the King’s Award, and Pat Kerr Tigrett will be honored with the Chairman’s Award. The President’s Award will be presented in memoriam to Bernard Lansky, founder of Lansky Bros.
Honorees being saluted are: City Gear, Cotton Tails, Dawn’s Couturiere, James Davis, Joseph, Mo’s Bows, Memphis Fashion Design Network, Sachi, and The Pink Door. Proceeds of the luncheon benefit the 2018 Carnival Children’s Charities: Agape Child & Family Services, Emmanuel Center, and Memphis Athletic Ministries. Tickets are $45. For more info: carnivalmemphis.org
Women of Achievement
Seven women leaders will be honored on March 11 during the annual Women of Achievement awards. The event will also pay tribute to past honorees whose work emulated the issues and courage of Dr. Martin Luther King Jr.
The honorees for 2018 are:
- Courage: Kamillia Barton, advocate against domestic violence
- Determination: Rachel Sumner Haaga, activist against sex trafficking
- Heroism: Tami Sawyer, civil rights activist
- Heritage: Lois DeBerry, former speaker pro tempore in Tennessee’s House of Representatives
- Initiative: Wanda Taylor, advocate against domestic violence
- Steadfastness: Miriam DeCosta Willis, civil rights activist
- Vision: Cherisse Scott, reproductive justice activist
The celebration will be at the Holiday Inn University of Memphis with a 2 p.m. tea party reception and 3 p.m. awards. Tickets are $35 and reservation deadline is March 8. For more information, go here. A $60 donation includes the awards event, membership for WA for 2019 and inclusion in selection of 2019 honorees and other WA gatherings. Use PayPal at www.memphiswomen.org by clicking the yellow "Donate" at the bottom of the page, or make checks payable to Women of Achievement and mail to Women of Achievement, 2574 Sam Cooper Blvd., Memphis, TN 38112.
Tie one on
A recent U.K. study found that only 1 in 10 people now wear a business suit to work. Meanwhile, 3 out of 4 workers say that they ‘dress down’ every day. And, 69 percent of the surveyed employees say that they are more concerned with dressing comfortably rather than dressing for success. Other recent studies on American sartorial choices show similar results, that we are eschewing suits and heels and instead reaching for yoga pants and comfy shoes when we dress for the office.
With a certain air of disapproval, Rob Wilson, President of Employco USA and employment trends expert says, “Casual Friday is no longer just a once-a-week affair. Now it’s more common to see men wearing button down shirts and chinos rather than business suits, and women in leggings and tunics instead of blouses and skirts.”
He blames tech moguls like Steve Jobs for the trend. “They proved that you don’t have to wear a business suit to make millions. You can wear jeans and a T-shirt and still be a CEO,” he says. “Additionally, the new remote-employee trend means that many workers are now Skyping into meetings or working half-days, so they are less likely to put on that power suit.”
It’s a troubling trend, Wilson says. “What I have seen is that many employers don’t know how to approach the issue of a dress code. They want to be politically correct and they are afraid of being accused of being sexist or inappropriate, so they say nothing. Meanwhile, workers dress more and more casually. It’s important to nip this in the bud or you are going to wind up with employees wearing flip-flops when they meet with your clients. While casual dress might work in Silicon Valley, studies show that people are more trusting and have more positive opinions of people in professional dress, so it really could harm your image if your workers are dressed for the beach rather than the conference room. Additionally, other research shows that the way we dress actually impacts our performance, so casually dressed employees might not perform to the same heights as those in professional attire.”
He says employers and HR managers need to be sure that dress codes don’t use gendered language and that the rules are equal for men and women. “It’s also important to consider political messages on T-shirts and pins. You want your office to be a place for work, not a place for political debates.”
Power Players
Inside Memphis Business publishes a list of local Power Players every year. These are the movers and shakers in more than 30 categories who get things done in their respective fields. IMB’s next issue in April will have the complete list. We also publish individual categories in other issues throughout the year, and now we’re featuring individual Power Players in our Tip Sheet.
Today’s Power Player in the Security category is Chris Bird: President, Dillard Door & Security, Inc. Past President, CrimeStoppers of Memphis. Past President, Door and Hardware Institute, Mid-South Chapter. Past Vice President, Construction Specifications Institute. Member, State Leadership Council and State PAC, National Federation of Independent Business. Member, Greater Memphis Chamber, Electronic Security Association, American Society for Industrial Security, and Building Owners and Managers Association. Board Member, Regional One Health Foundation.
