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January, 2009 | List all feature stories
 
THE IMPORTANCE OF BEING EARNEST
Partnering For Success
 

Managing supply chains requires equal measures of strategy and tactics. Businesses do their part to address future planning, but often rely on the trust and endeavor of third-party Partners to rethink the basics.

Paying attention to the finer points of transportation and logistics management gives antiquarian routines a new pulse. For some companies, a fresh perspective serves as a baptism into supply chain management; for others, it provides a means for re-envisioning business processes through existing, sometimes neglected, functional scopes.

Such diligence pinpoints definitive whirs, hums, and sputters in an otherwise noise-ridden, data-deluged supply chain, offering contrast between what works and what does not. Taiichi Ohno, principal architect of the Toyota Production System, gave face to this process of "defect delineation," then elimination, by stressing the importance of the 5 Whys -- a sequential line of questioning that identifies root problems when process exceptions recur.

Often perceived as a process for problem-solving, businesses may consider reengineering this approach to initiate a similar cascade of inquiries that explores how seemingly infinitesimal and inconsequential operational changes trigger far-reaching supply chain progressions.

But allocating the time and wherewithal to consider these details and ask these questions invariably leads businesses to find supply chain partners that can help.

World-worn branded lifestyle apparel manufacturer and distributor VF Corporation found a welcome logistics mentor when it partnered with LTL carrier Averitt Express about three years ago. The Greensboro, N.C., company has engineered sweeping change in its U.S. distribution network by utilizing Averitt's consolidation facilities to reduce transportation and labor costs.

On the surface, the return on partnership is abundantly clear: VF has greatly reduced shipping costs by consolidating LTL loads and carriers, and its stores are better able to manage labor hours with more consistent deliveries. Less visible is the evolving relationship, the collective mindshare and trust that has sprouted during this transition.

Companies often place a premium on developing strategic processes, supported by robust IT architectures, to seamlessly mine and convey information throughout the supply chain. But what really drives innovation and progress is the very fundamental aspect of human collaboration -- partnering for success.

"A true relationship starts with the honest sharing of information," says Pete Cicchetti, transportation manager for VF Corporation. "The ability to evolve is critical, as well as the need for a driver at both ends to make changes happen."

Case in point: Cicchetti recalls approaching Averitt with an idea to more quickly scan inbound pallets and eliminate idling and labor time in the shipping process.

"On a given day during peak season we have to scan 400 to 500 cartons at a clip, while trucks sit outside waiting for us to count cartons and verify receipts," he explains.

Averitt responded by creating a specific bar-code label scan that is more receptive and accurate in identifying cartons on a particular skid. In concert with this technology, VF is rolling out a complete visibility system that allows all its partners to see real-time inventory in the network.

As yet another example of this partnership, VF's merchandising department approached Averitt with concerns over transit times on replenishment shipments -- recurring and consistent orders that generate purchase orders, then prompt vendors to ship restock.

"Together we identified a key in the purchase order, that in accordance with our scanning technology, could immediately identify demand for replenishment items, and move them to the front of the line," says Cicchetti.

As a result, VF's stores have better visibility into inbound movements and can flex labor accordingly; and Averitt is making quicker turns and getting better productivity out of its resources.

Finding these types of inefficiencies and identifying measures to improve performance requires bi-directional communication between shippers and service providers. Technology exists to execute on ideas; but the questions and answers that bring these ideas to the surface spring from a shared vision.

"The key is having a constant dialog, a sense of trust, a partner that is willing to evolve with the business," says Cicchetti.

Partnerships give enterprises the latitude to address fundamental transportation and logistics disciplines. In their unique ways, each of these preceding examples offers a different purview into how shippers address and approach functional problems and solutions within their enterprise.

In today's environment, as businesses struggle to find new ways to squeeze out costs and inefficiencies without undue capital expense, identifying areas for improvement requires thoughtful deliberation. The very notion of contemplating transportation and logistics classics demands as much.

There are myriad approaches to mediating external, and unavoidable, market changes that threaten efficiency and economy. The same can be said for the many avenues businesses take to elicit broad-stroke changes that allow them to grow and prosper. Strategic thinking has a role to play. Technology investment and application yield considerable dividends as well.

But rediscovering the classics offers another opportunity. These functional areas of logistics and supply chain management have been tossed around, acted upon, and written about to nth degrees. One unique attribute of classical disciplines, however, is that new readers and converts see other means for appreciating their value. What one has interpreted this way, another will run with in a different direction.

Doing what every other enterprise does leads to generic and archaic methods for trying to stimulate fresh and creative ideas. In a competitive market, towing the status quo captures little ground, while often ceding much more. Companies that only consider the fashion of the times to envision the future fail to capture the relevance and importance of what has worked well before.

Alternatively, and with help from dedicated intermediaries, resources, and expertise, new-age enterprises can revolutionize age-old standards. Through these relationships, businesses rediscover and appreciate Logistics Classics anew.



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© 2009 Thomas Publishing Company