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Darin Cooprider of Ryder wrote an interesting blog post on ARC Advisory’s site about how collaboration is the key to logistics excellence. Citing Darwinian theory, it really is the survival of the fittest. The supply chain can often be complex involving many different parties. And when the parties collaborate and work together, supply chain efficiencies can reduce costs for everyone.

He cites that example of how the traditional delivery model for soda to a convenience store can involve as many as 15 suppliers in addition to the staff at the store and the back-end marketing. The benefits of collaboration include:
  • Increase visibility allows for making more informed and faster decision making
  • Optimized inventory levels reduce the need for buffer stock and increases fulfillment accuracy
  • Improved order-to-case cycles speeds up transactions so money gets to where it needs to go faster
Right now is the time for evolving the business because once the recession ends—and it will—it may already too late to play catch up with your competitors.

ARC Advisory Group: Logistics Viewpoints
“What Doesn’t Kill Us, Makes Us Stronger: A New Model of Logistics Excellence
By Darin Cooprider, Ryder
August 11, 2009

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