My entire goal when running operations for my small supply chain firm was to maximize this number without straining customers or employees.

We got to 750,000!!

Some of the best customer satisfaction in the industry. Employees were happy too!
Using two warehouse guys, we could ship over 4000 SKUs to over 120 customers, and have parts coming in from over 3000 suppliers globally

we did not use a lot of automation, or any robotic, or conveyor belt type set up.

Our secret was two things

Communication
Systems
We did the same thing the same way every time, and the systems were set up to take into effect all the upcoming processes and set the next step up for success... like dominos.

we automated a lot of the communication, notifications, and the sharing of information.
We made it possible for people to access use and move forward and information of the 10 times faster than they normally would.

We did this by
- reducing search,
- increasing access,
and using what I called the pull information system
It’s amazing how important communication and information are in a firm.

how people share info, how they use email, how they talk in person, what they send by slack and what they stop by your office for, what’s discussed in meetings, how people use the phone, where files are
I made slight fib. I concentrated on GM per Employee.

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More from @joshuamschultz

31 Jan
Sometimes people miss what automation is about.

It isn't to make things easier
It isn't because is new or tech-forward
It isn't an end of itself

Its a tool... One of many...

For the purpose of building Capacity
As business expands, your resources become more scarce.

You have less time
- to do all things you want to do,
- to make the decisions you need to make
- to service your customers the way they deserve to be serviced.
You can buy your way out of this by hiring people and buying equipment.

However, the paradox of business is this - the faster you are growing, the tighter cash usually is.

So the businesses that need cash most, have it least!
Read 7 tweets
29 Jan
What it means to streamline operations.

We had 1 warehouse person able to ship 3000 skus to 100 customers and do all receiving from 2000+ suppliers. How?

Streamlining involves:
1 internal/external task moves
2 Batching/Consolidating
3 Abstraction
4 Systems
5 Empower
6 Automate
1. Internal vs External Tasks

When looking at a procedure, there are tasks that must be done at that moment, and ones that can or are done at the moment.

By removing all "external" tasks and delegating or move to when there is available time, you create a more steady work flow
2 Ex. Shipping a SKU

When shipping a SKU we need to enter the customer we are shipping to. We can't do this earlier because we just found out where to ship it (a customer order).

These are internal tasks.
Read 22 tweets
25 Jan
Tale of two businesses, each in their 1st year...

A: Everyone works 7 hours a day, spend last hour documenting learnings, reflecting, making job and company better.

B: Everyone works 10 hours a day pushing and hustling, day in and day out.

My money is on A over the long term.
When we are first work on something, individually or corporately, we have beginner mind. Everything is new, we are learning machines.

You'll never get that back.

You should be writing everything down, documenting, changing, erasing, developing.
Without purposeful reflection and development, you may retain 10-20% of what you learn as an organization.

With devoted time to learning, iterating, and small improvements, you can retain 80% or so.

This, compounded over years, leads A to be the better corporation over time.
Read 6 tweets
25 Jan
Sub-accounts you want clean all the time

- inventory
- AR
- Ap

And lists
- customers
- suppliers
- support firms
- employees
- fixed assets

Create a process to keep each up to date. Some ideas below
Cycle count for inventory

Separate your inventory into 12 sections. Check each section each month and make appropriate inventory adjustments in your tracking.
AP

Check all bills. Make sure you are paying each.

Make sure there are no old ones that were paid but still showing open (duplicate, or reconciled wrong and so still show open).
Read 7 tweets
24 Jan
If you aren't using repeating bills for as many things as possible, start doing this asap!

This company uses @Xero.

We have repeating bills for all predictable bills like rent.

Weekly Time Saved: 15 min
If a bill never changes, its easy.

Enter the amounts, assign to the proper account, and set it up to repeat.

We pay this by check, so we have it auto approve now and get sent to the "to be paid section"
If a bill does change (like the payroll or auto loan payment), we setup a repeating bill but have it go into drafts with $1 dollar for each line item (state payroll tax, auto interest, etc).

Then, in a monthly checklist, we review draft bills and fill in the correct amount.
Read 7 tweets
24 Jan
How to double the value of a company over 12-24 months through

- building excellent operations
- streamlining operations
- creating a sales machine

An ongoing thread sharing everything I do in realtime. Will be as transparent as possible!
What: Sells natural gas regulators and water meters to contractors for large projects, private and government.

Who: Single owner in NY

Size: 400k in Rev, takes home 70k salary plus 50k profit

Why: Stuck here for 3 years, burnt out, wants to retire someday, possible sell.
Disclosure: I was a partner in this firm and founded it with him. Sold my share back once we got rolling for a quick profit.

Now he wants me to help him break through.

My time is limited, but he's family and I can give him a little time each month.
Read 5 tweets

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