Cross supply chain control centers, what's in a name...?

The Dutch government recently affirmed Logistics and Supply Chains to be one of its focal points for the foreseeable future. This of course comes as no real surprise inasmuch as about 10% of its total workforce is employed in this sector. With this strategic choice to focus on logistics the government has expressed the desire to turn The Netherlands into a “supply chain orchestrator”. To fulfill this function they seek to encourage cooperation amongst different supply chains rather than cooperation within any one single supply chain.

 

 

 

Unfortunately, most companies still only focus on vertical supply chain efficiency, rather than also on horizontal alignment, though there are some examples of those that do. Consider the two competitors in sanitary products, Kimberley Clark and Lever Fabergé, they deliver their products out of the same warehouse, and within the electronics sector two electronic manufacturers, Samsung and the major household appliances firm, Miele, both operate out of the same warehouse to increase volume per drop.

 

In order to achieve operational excellence and maximize sales margins, competition today must be won between supply chains rather than just between individual companies. Therefore it is crucial that companies recognize that that the optimization of their internal/vertical supply chain be assigned a high strategic level of importance. However, given the fact that most corporate supply chains reach maturity in a short span of years, it is vital to actually start looking now beyond the boundaries of your own supply chain. By being an early adopter, you can gain a significant advantage over your competitors.

 

Without a doubt, not joining now would not only be a missed opportunity, but it could also be a direct threat to your competitive advantage and consequently your business continuity. This is not the case just because the Dutch government sees the potential of cross supply chain initiatives, but especially because the largest supply chain opportunities in the next decade are likely to be found in cross supply chain collaboration initiatives. This will happen without question in Europe and certainly as well in the USA.

 

I am very curious if any of the readers of this blog will be amongst the first adopters of this new direction. I would be pleased to hear about any great examples of parties collaborating with other supply chains.   

 

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