What Is One Supply Chain “Trade-off” That Is Actually Not a Trade-off?
Costs down means performance is up. Not always. Cost control that eliminates waste and duplication is good; but if it squeezes R&D, product quality, etc. it will eventually bring down revenue and profit. Cost and performance (whether operational or financial) are not in a true trade-off like buying vs. saving, or insourcing vs. outsourcing.
–Dr. Darren Prokop
Professor Emeritus of Logistics
University of Alaska Anchorage
Tech integration vs. collaboration. Many see traditional point-to-point integrations with supply chain partners as a barrier to collaboration. But multi-enterprise platforms can improve the efficiency of integration, enabling collaboration.
–Henry Ames
GM, Logistics Orchestration
TraceLink
Global sourcing vs. responsiveness was once a tension. But with the right data and milestone tracking, you can manage suppliers overseas and still respond in real time.
–Rodney Manzo
Senior Director, Global Operations
Sage
People vs. AI
The supposed trade-off between human expertise and AI in supply chain decision-making is a false dichotomy. The most effective strategies combine both. AI enhances human judgment by processing vast datasets, identifying patterns, and suggesting optimizations, while leaving strategic decisions to experienced professionals. This hybrid intelligence fosters superior outcomes and innovation.
–Heidi Benko
VP Product Management and Strategy
Infor
The notion that supply chain managers need to choose between people and technology is false. While digital transformation pressure in our industry is immense, human expertise is indispensable. Success stems from blending task automation with human ingenuity and strong relationships, leading to faster, strategic decisions and robust partnerships.
–Jared Weisfeld
Chief Strategy Officer
RXO
Inventory vs. efficiency. Increasing inventory levels is seen as a trade-off with service and efficiency levels; we find that a win-win-win is achievable. The key: Have the right inventory in the right place at the right time and gain a predictive view of demand to optimize your schedules to reduce inventory while increasing service and efficiency.
–Lisa Anderson
President
LMA Consulting Group
“Free” shipping vs. profitability. Sellers may view “free” shipping as a trade-off to profit margins in favor of customer satisfaction, but it’s a powerful conversion tool. Shipping costs are usually factored into the product price, making the offer appear more attractive without changing the total spend.
–Sean Collins
VP Cross-border eCommerce & Enterprise Procurement
UniUni
Stand-alone solutions vs. integration. We often see companies make heavy investments into siloed solutions as a trade-off to investing in a fully integrated system. While small improvements may occur in technology KPIs, the approach can cause long-term stagnation.
–Robert Nilsson
Chief Commercial Officer
VARGO
Paying more will move a load faster. In reality, a trucker can only drive so fast—the perceived trade-off being a higher price for faster service. The ability to transport a load quickly is equally dependent on available capacity and the reliability of a carrier.
–Dave Sutton
VP Business Development
Montway Auto Transport
Cost vs. Quality
The cost-service quality trade-off is not a fixed rule; with the right strategies, processes, and technologies, supply chains can simultaneously improve cost efficiency and customer service. Take for example AI-driven systems that can identify and prevent flawed decisions like shipping premium air when ground service meets delivery expectations.
–Brad Forester
CEO, JBF Consulting
Don’t sacrifice quality for lower-cost suppliers. Compromising on quality or performance ultimately leads to greater hidden costs, operational disruptions, and long-term damage that outweigh the initial savings. The quality of your supply base is foundational and should not be negotiated.
–Bill Remy
CEO, TBM Consulting
Many assume reducing costs inevitably lowers quality. However, through optimization, territory management, and technology integration, organizations can consistently improve service levels while optimizing costs, demonstrating that cost reduction does not imply decreased quality.
–Mat Witte
CEO, ORTEC Americas
Cost/quality/speed. There is a classic triad of trade-offs often cited, namely cost/quality/speed. Pick two. The reality, though, is that these cannot really be traded off. An effective supply chain defines the minimum quality standards, and procurement meets them, trying to optimize for value (cost and time) while providing the required quality.
–Joe Adamski
Senior Director
ProcureAbility
Traceability vs. the bottom line. The value of traceability is often represented as a cost trade-off. The value of tracing a product’s components, ingredients, or materials through each stage exceeds the cost; traceability provides a foundation for compliance, agility, integrity, and differentiation.
–Jeff Wells
Chief Visionary Officer
Metrc
Safety vs. efficiency. The supposed trade-off between worker safety and operational efficiency is a myth. Efficient organizations integrate safety into their operations, leading to fewer disruptions, better productivity, and higher employee engagement.
–Josh Ortega
VP Safety, Sustainability, and Procurement
Veriforce
SUSTAINABILITY VS…
…profitability. In reality, sustainable practices often drive efficiency, reduce waste, lower costs, and improve brand reputation.
–Scott Lehmann
VP, Product Management
Sphera
…efficiency. Pursuing sustainable initiatives in the supply chain can seem like it would cost more, but many sustainable transportation solutions enable cost savings and optimize efficiency. Retail consolidation, for instance, results in fewer trucks on the road, cutting emissions and saving on fuel costs, while enabling for more direct delivery to big box suppliers.
–Jay Gustafson
EVP, Brokerage Operations
Echo Global Logistics
…growth. Some say you have to choose between profits and a lighter carbon footprint, but more often than not, that’s a false choice. In practice, sustainability goes hand in hand with cost-effectiveness. Intermodal is a clear example: Greater modal flexibility lowers costs while also reducing emissions.
–Charlie Taylor
VP Intermodal Sales
Odyssey Logistics
SPEED VS…
…accuracy. The idea that you have to choose between speed and accuracy is outdated. We’ve seen firsthand how automation and smarter workflows not only reduce delays but also improve data quality and execution.
–Karli Sage
Sr. Director, Emerging Technology
Southern Glazer’s Wine & Spirits
…compliance. Cutting corners to save time only leads to long-term risk and cost. “Slow is smooth, and smooth is fast.” With the right partners and infrastructure, brands can achieve fast delivery and regulatory compliance.
–Thomas Taggart
VP, Global Trade
Passport Global
…Inventory availability. With AI platforms, you can accelerate decision cycles while improving SKU-level precision. Real-time signals allow you to localize replenishment without inflating total inventory or losing on availability.
–Pini Usha
CEO
Buffers.ai
…strategy. Traditionally, companies had to choose between optimizing their networks for long-term cost efficiency or staying flexible enough to respond to short-term disruptions like tariffs. But the shift from reactionary to dynamic processes is eliminating the old either/or. With cloud-based systems and AI-enabled visibility, businesses can be both reactive in the short term and strategic in the long term without blowing up their budgets or operational timelines.
–Farzin Shadpour
Partner
Silicon Foundry
…shipping cost. It’s often assumed faster delivery automatically equates to higher costs, but that’s only true when carriers are forced into reactive mode. When shippers offer timely communication, carriers have the ability to use dynamic routing and optimization tools that cut transportation costs and speed up delivery times.
–Arthur Axelrad
Co-Founder & CEO
Dispatch Science