Collaboration is a hot topic for conversation among supply chain and logistics management circles, though some might wonder if there is an over emphasis on the concept. Many stress that more collaboration is needed from the supplier, the warehouse, supplier, logistics company and the end customer. The reductive answer from professionals in the industry is to say that the customer only cares that the product is priced well and their purchase is convenient. Collaboration is only fruitful if there is a will from all parties to be explicitly compliant with their partners, and some appear not to be ready for this commitment. This is disappointing for the wider industry, perhaps the problem is that many are only seeing the process of collaboration as an end, where they should see that it is only the means to a harmonious approach to supply chain and logistics management.
Most people are searching for simple answers to their business problems, and harmony is certainly a high priority, as is excellent customer service. If there is a shortfall in levels of customer service, this will ultimately lead to a loss of business. Every operation will come across problems that will impact upon their level of service, what’s important is to communicate them well. In order to achieve harmony in supply chain and logistics management, deliverables in the form of KPI’s (Key Performance Indicators), SLA’s (Service Level Agreements) and ultimately goals should be decided so that all the interested parties are working in harmony wit one another.
In this case, the service provider and client are obliged to meet specific needs. The service provider requires that you pay them, and the client has a need within their business that the service provider can meet. Most issues can be dealt with in a proactive manner and things will run smoothly, and there is no need to dedicate extra resources to search for other service providers, and in this climate the service provider can do a better job.
There are great benefits to be had when a harmonious approach to business relationships is achieved, and this is no more apt than in supply chain and logistics management. Harmony eliminates the risks associated with a lack of or break down in communications, and the needs of everyone in the supply chain can be met.
This blog post is based off of an article from Cerasis, a 3PL with a focus on technology and managed transportation services.
