Today, supply chains are under more pressure than ever.
I don’t know anyone who would argue with the assertion that supply chain operations must be highly dynamic and adaptable in order to succeed in today’s fast changing markets. Why is it, then, that pricing of transportation and other supply chain services remains a largely static process, based on annual bids and static routing guides that can never do more than reflect a single snapshot in time of a company’s freight volumes and flows?
At best, this practice often causes a shipper to be behind the curve of market demand. At worst, it results in situations where the freight is not moved at the lowest cost possible.
Collaboration. Supply chain. The two concepts should only appear together in the same sentence if companies are prepared to fundamentally change their way of thinking.
Trusting the right partners, and selecting the right process for collaboration, is as critical as taking the needed time to define the right strategy at the right time.
As part of their Top North American Third-Party Logistics Provider Executive Interview Series for the current issue ofLogistics Quarterly magazine, LQ published a question and answer session with Joe Gallick, senior vice president of sales for Penske Logistics.