Drake Says:

If efficiencies of full shelves, full trucks, and full lanes are to be realized, collaboration must be practiced and not just discussed. What do you say? Send us your comments here

Empty shelves…less than full trucks…excess capacity in lanes. A logistics manager’s nightmare?

These are real conditions that exist in too many distribution channels across the country, preventing some supply chains from operating efficiently. There’s no doubt that the end game of solving these problems
would be significant cost reduction, improved profits, and better service. There’s a natural synergy between various manufacturers to exploit this excess capacity, so what keeps it from coming together?

It seems to me there are two main obstacles to making the most of the synergy and the capacity. The first is the inability – or unwillingness—to collaborate effectively. The second is that even though technology exists that could develop a formula by which manufacturers could share in the cost reduction and savings, such a formula has rarely been achieved.

But new minds are coming to the table, and with them come improved possibilities based on the following:

1.  This new generation of supply chain professionals is tech savvy and more focused on the need for a “win-win” formula.
2.  They are keenly aware of the need to attack rising fuel costs and limited transportation capacity.
3.  They understand that collaboration is the enabler to achieving the vision and they are more open to a cooperative approach.

As with many other aspects of the supply chain, there’s a need to move past the greed. If efficiencies of full shelves, full trucks, and full lanes are to be realized, collaboration must be practiced and not just discussed. Collaboration doesn't happen by magic -- but can be achieved through a well-designed process -- a partnership process through which people from two or more organizations share information and decision-making through all stages.

Agree or disgree with our expert's perspective? What would you add? Let us know your thoughts for publication in the SCDigest newsletter Feedback section, and on the web site. Upon request, comments will be posted with the respondents name or company withheld.