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Denny’s Daily Zinger: In a Crisis, Will You Be a Champ or a Chump?

July 14, 2014 By Denny Hatch
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A photo in The Wall Street Journal stopped me cold. The entire fuselage sections of three Boeing 737s had slid down a river bank in Montana and were partially submerged.

The Dangers of JIT: Just-in-Time Inventory Management
It makes sense. Don't tie up money in inventory that sits around in a plant or warehouse. Instead, make computers tell you precisely what's needed—and when. Then order delivery for use "just in time."

A train had derailed in Montana carrying fuselages and wing tips to the Boeing plant in Washington State:

The derailment threatened to throw a wrench in the tightly choreographed, far-flung aerospace supply chain, which depends on just-in-time deliveries of giant parts by train, plane and boat to meet record demand for jetliners.

You can imagine the panic in Washington when the news hit. Dozens of workers suddenly had nothing to do. Boeing's expected revenue from the sale delayed.

Presumably airline customers expecting the new planes could make do with older models until the Boeing deliveries arrived.

But for Boeing, this had to be a nightmare.

Takeaways to Consider

  • Does your organization have a system in place to deal with a major screw-up?
  • I urge you to have an emergency plan in place with competent people assigned in advance to deal with manufacturing, customer service, public relations, employee confusion and revenue interruptions.
  • "It's only in times of marketing disasters that you can show your customers how much you care about them." —Malcolm Decker

Denny Hatch's new book is "Write Everything Right!" Pat Friesen writes, "This book is guaranteed to help you fine-tune your writing skills, whatever you write. Denny's wit and craftsmanship as an experienced writer/author shine through on every page." Click here to download (opens as a PDF) and read the first three chapters FREE. The title is also available on Kindle. Reach Denny at dennyhatch@yahoo.com.

 

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