MELDING SALES FORCES AFTER A MERGER
The tricky task of melding sales forces is addressed in this Wall Street Journal article. The article offered best practices based on the experience of Lafarge SA and Blue Circle Industries PLC, which merged in 2001. The new company created a sales-force integration team that included the best sales people from both companies. The reason: Lafarge was afraid of losing customers if the integration was not done properly. The company also hired an outside consultant to help assess customer needs, as well as each salesperson's performance, competency and client relationships, according to the article. One of the biggest pluses in the sales force integration was that there was no "us-versus-them," one Blue Circle executive remembers.

Some missteps companies often take, according to ZS Associates as quoted by the WSJ: forcing one company's sales model on another, eliminating too many jobs based on perceived duplication and poor communication with sales force, who then defect. Subscription to WSJ required. More...

KEEPING A SMILE ON YOUR EMPLOYEES' FACES
Keeping top talent keeps most employers up at night. Employers should make appreciation of their employees their top priority, according to this Forbes article. Take the case of Nugget Markets, the 10-store California grocer featured in the article. It has a turnover rate of 12%, which is much lower than the industry average. The low rate is attributed to management's commitment to showing appreciation through dance parties, field trips, financial giveaways and free food.

This obviously is not the best road for all employers to take. The culture and needs of every workplace is different. Recognize that flexibility, values, career development and meaningful experiences are important ways to minimize turnover, the author writes. Nugget Markets, while it likes having a good time, also offers benefits like paying for sick days employees don't use – an incentive to show up to work. Nugget's chief says: "It's an investment, and you can't figure out a return on investment on each event, but as long as we're creating a great working environment, it's worth every dime." More...

VOICE RECOGNITION TECHNOLOGY IS CATCHING ON
Voice recognition technology in warehouses is become more common, according to the results of a recent ARC Advisory Group survey of warehouse professionals and Modern Materials Handling readers. Some of the findings:

• Voice recognition software is filtering down to smaller distributors and suppliers.
• Though the grocery industry was one of the first to get on board with voice recognition, other verticals are catching on.
• More than half the respondents were considering voice recognition in the warehouse.
• Nearly 60% of respondents saw productivity gains of more than 8% in picking operations after adopting voice. More...

Related from MDM
MDM Technology Case Study: Weighing the Cost of a WMS

THE SHOCK THAT COULD COME WITH $100 OIL
Expensive oil has become more the norm than the exception lately, this article from Forbes says, but the recent fall of the dollar has played a part in more recent jumps in price. The dollar price of oil has risen 30% since August but only 21% in euros. The current price of oil is in the low 90s. On Nov. 8, oil prices reached more than $98, but retreated shortly after.

This article asks: When will the resilience of the developed world – including the U.S. – to high oil prices crumble? Though the doom-and-gloom scenarios presented from 2003-2005 when oil prices doubled never played out, pessimists say that consumers this time around will not be able to take equity out of their homes to sustain spending. More...

Economic indicators, including a link to fuel costs, can be found at the MDM Databank online.

PRODUCTION COSTS RISING FASTER THAN EXPORT GROWTH
Exports are rising in the Great Lakes region, but suppliers there are still seeing production costs going up, according to a recent report from Grant Thornton LLP based on IndustryWeek/Manufacturing Performance Institute data. Price increases have been the result. According to the study, seven in 10 suppliers in that region have increased prices in the past year, with most increasing prices from 1 to 10% - consistent with trends in the rest of the country.

There are cost increases in components, wages, benefits, transportation and energy, with utilities/energy and logistics/transport at the top of the list. The steepest increases were for utilities/fuel and components/materials. Another interesting finding from the report: Great Lakes plants are twice as likely as other plants to source from China based on median figures, with 61% of plants surveyed saying they did so. More...

IN THE LATEST ISSUE OF MDM: DISTRIBUTION IT IN TRANSITION – AN INTERVIEW WITH DOUG LEVIN
Doug Levin has been involved in distribution information technology for more than 20 years. He is well known in many distribution sectors as the former executive vice president of Prophet 21 software company, acquired by Activant Solutions in 2005. In this interview, the guy who sold a lot of technology systems urges distributors to optimize current systems first. Here’s Levin’s perspective on IT best practices, standards, consolidation and challenges ahead. Subscription to MDM required, or pay-per-view available. More...