Acme Distribution - Denver, Chicago, Harrisburg, Dallas

March 2011

Message from the CEO
CARMELO HAS LEFT THE BUILDINGJeff Goldfogel, CEO
 
DEFINING VALUE (or not)

Carmelo Anthony, who many thought to be the Nuggets franchise, was finally traded to the Knicks following an excruciating series of negotiations between the Nuggets and any host of teams who at least feigned interest.

Many in the city were incensed at his leaving while others saw the handwriting on the wall following the "King" James fiasco in Cleveland. As for me, a long time sports fan, I couldn't have cared less. To my way of thinking, professional sports has often become a match of egos between owners and players who deserve each other. The notion that neither has much loyalty to the other is hardly a revelation.

Being in the logistics business for several decades, I often marvel at the price vs. value concept. It exists in every industry and every business. We have come to understand differential advantage and core competence. We understand that the cost of second-day air can be a bargain one day and an unaffordable extravagance the next. We've learned that air freight (regardless of the up-charge) frequently never sees an airplane – really!

So, what has this to do with Carmelo? Maybe it's the notion that value is in the eyes of the check signer. Or, maybe it's the question about what we value and why. Maybe it's just simple perspective. Consider the following box score comparing Carmelo's first game as a Knick with "A Day in the Life" at Acme.

Carmelo Tuesday at Acme
Points: 27 On time shpts / ttl shpts 1488 / 1504
Shots made 10/25 % on time shipments 99% +
% shots made 40% Inventory accuracy 99% ++
Cost per shot made $21,951 Cost per order shipped +/- $ 18

If you're an NBA owner, $22k per basket may seem like a bargain even at a less than impressive 40% success rate. As for Acme, we'll spend our time, our energy, and a much more modest amount of money improving on our 99% performance and on innovating solutions for our customers.

Carmelo is gone, and the sun will come up in the morning.

Acme is still here and has been since 1947. That's a lot of sunrises.

Jeff Goldfogel

 

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