'Tis The Season . . .Yikes!

Celebrations at about the time of the winter solstice have been a staple of many cultures across the millenia.  North Americans' and Europeans' versions have powwerful religious roots, however much they may have morphed into secular adventures in retailing.  The movement of goods stresses supply chains and relationships, and, as we ride the crest of this year's tsunami, business publications are making much of the struggles (including DC Velocity's perspective on toy sales, Toys: A Supply Chain Christmas Story, available at www.dcvelocity.com).

While we think of this annual surge of merchandise as a retail phenomenon, affecting B2C supply chains, there are many upstream B2B relationships that feel the pain of capacity, resources, and capability shortfalls.  Suppliers take the hit a little earlier in the season, but their pain is real.  Other supply chain partners caught in the riptide include carriers (in all modes), and those third parties providing warehousing, distribution, and fulfillment services  to meet consumer demand.

Failure would not seem to be an option, but failures do occur.  In toys, in apparel, in electronics, in confections - the list goes on.

Next comes the returns peak, which inexorably follows the outbound surge, and brings the potential for even more involvement by third-party logistics service providers (LSPs) and the strength of relationships with them.

This would not seem to be the time to be randomly selecting supply chain partners, and certainly not from the shallow end of the gene pool.  It would seem to be the time when carefully built and nurtured business relationships with capable and committed partners pays off with exceptional execution, flawless recovery from challenges, the vision and stamina to get through the toughest times, and the reserves to really rev up performance after the storm has passed.

Have you been burned trying to get by with arm's-length performance in arm's-length relationships?  Has the heat been turned up during seasonal peaks?  Is this the time to re-think how you prepare to collaborate for a better peak next season?