One of the best quotes I’ve heard in a while came out of the CSCMP Annual Conference during a presentation by Dick Armstrong, chairman and CEO of Armstrong & Associates. When the topic of supply chain collaboration came up, Dick said, “Collaboration is a lot like sex in high school. Everyone is talking about it but no one is doing it.”
It’s true. We hear and read a lot about collaboration within the supply chain, but we don’t know of many companies that are actually doing it. Why? While collaboration can lead to fiscal and service improvements, the road to collaboration nirvana has a few sizable speed bumps. Participants must address a variety of issues that can range from technology interfaces to change management. But the good news is that a collaborative program can be carried out successfully – it just takes some forethought and planning.
LMS understands this process because we facilitate collaborative transportation programs. With planning and proper facilitation, we’ve found these programs produce cost and service benefits for all participating companies. For example, we can link one-way truckload moves into cost-efficient continuous move routes. One of our larger initiatives involved LMS client Monsanto and a supply chain partner. In fact, we presented this case study at the annual CSCMP conference in October.
Yes, collaboration is happening at Monsanto and beyond, but it’s not enough. A warming economy, rising fuel costs and cooling capacity levels have created an uncomfortable climate for today’s shipper. However, shipper collaboration programs can temper these conditions while delivering cost savings and service improvements. In my opinion, there’s never been a better time to explore the collaboration concept.
So let’s talk less and do more . . . starting with LMS. For one, we’ve created an online freight compatibility survey that helps shippers identify potential collaboration partners. It spots origin/destination similarities, compatible freight classes, and corresponding mode types that exist among interested shippers. Some people have likened it to a dating service for freight. Regardless, this is the first step in helping companies determine their collaboration eligibility and it initiates important discussions about collaboration.
LMS also hosted a Collaborative Consortium in August to give shippers the opportunity to discuss freight collaboration opportunities and challenges. In fact, the compatibility survey was a result of this workshop. Among those companies represented were Emerson, Danaher Motion and Monsanto. The workshop confirmed our belief that shippers are ready to pursue collaboration – as long as key issues, such as safety, service and data confidentiality are addressed. Participants also felt a pilot, perhaps using stock transfers, would be the best way to begin a collaborative program.
The ultimate goal is to create a large and varied community of shippers that can leverage their collective freight activities to benefit all participants. As a third-party provider, we can facilitate the program to ensure data confidentiality and proper savings distribution, but we want shippers to drive the program.
So now I bring the challenge to you. If freight collaboration is something you are considering, get the ball rolling. Hold a meeting, gather your data and, of course, you can always contact us and/or take our freight compatibility survey, too. But most importantly, let’s commit to less talk and more action.
0 Responses to “Multi-shipper collaboration: All talk and no action?”