Global logistics is a battle, possibly the biggest and bloodiest in world commerce. The Economist reports that between 1985 and 2007, trade volumes increased at twice the rate of the global GDP. A complex mix of organisations large and small are trying to grab a slice of a rapidly changing market. Our new Insights paper, Who shares, wins, takes an in-depth look at why data, not equipment, is the most important front in the supply chain logistics battle.
Consumers have been empowered by the information and access the Internet gives them and are demanding greater transparency across all aspects of commercial life, yet it’s lacking when it comes to supply chain visibility. The Insights paper outlines the current state of play, such as the challenge of managing incredibly complex global networks, how the enormous size of the market increases complexity, and how with the race to the bottom is over. There’s no longer any material gain to be achieved through reduction in shipping and transportation costs; the next race will be for time. Those that use technological innovation in their supply chain strategy to improve customer service and speed up operations will ultimately win out.
The Insights paper goes on to outline the four main barriers to change:
- Outdated processes and protocols
- Lack of visibility across the supply chain
- Supply chain management issues such as administration problems and idle cargo
- Unsustainable cost reductions
So how can you share and win? In order to achieve success in global supply chain management, serious improvements need to be made to the way information is shared. The Insights paper outlines why there needs to be a technological marriage of information and transportation.
Sharing works when it is driven by the user of information, rather than always controlled by the provider. When it comes to supply chain solutions, this means enabling customers of the logistics industry to access and use cargo data however they want, to get complete visibility to what’s happening with their goods at any time, so they can make smarter, more efficient decisions.
To find out more about why who shares best will win across the global supply chain, download the Insights paper Who shares, wins.