Transport and Logistics inefficiencies <ul><li>High inventory carrying cost </li></ul><ul><li>Unproductive waiting time </li></ul><ul><li>Lack of critical network mass </li></ul><ul><li>High transport costs </li></ul>
Traditional view Aim - Optimize cost (through lowest purchase price) Means - Adversarial (arms length negotiations) Scope - Purely Operational Supplier base number - Many Management - Short term contracts
Contemporary view Aim - Optimize value Means - Collaborative Scope - Strategic and operational Supplier base number - Selected few Management - Joint and on-going management
A collaborative supply chain simply means that two or more independent companies work jointly to plan to execute supply chain operations with greater success than when acting in isolation (Simatupang and Sridharan, 2002).
Customers, who are willing to share market information, allow their inventories to be co-managed with suppliers, build in understanding and flexibility into their relationship are able to show improved results (Harrigan, 1985).
Skylark is a telematic internet based system to meet haulage tracking needs. Created for three leading grocery manufacturers who collaboratively united to commission the system.
Value Optimization Improved Service Levels Visibility End Customer Satisfaction AND Potentially Lower Costs