Agility and flexibility are the essence of good warehousing and smart logistics management. Adaptive and able to move-quickly is necessary for an effective distribution strategy. Each order must be handled differently. Each customer has its own set of instructions and requirements to satisfy its supply chain.  In addition Logistics processes need to be lean.  Lean is a fact-of-life in today's business world. Do more with fewer resources.

Time

Time is the biggest driver and enemy of agility. It drives customer satisfaction and responsiveness. It is important to gaining competitive advantage with supply chain management. Faster. Faster. Faster. Orders change, demand changes. Delivery requirements shorten. Inventory requirements change. Customers expectations increase.

Information Technology.

Visibility is very important to an agile supply chain. Visibility requires systems capability to see customer orders and inventory. E-mail, faxes and phone calls do not give visibility to the supply chain. They are emergency measures and do not provide transparency. Logistics cannot manage using e-mail, especially with international suppliers.

Information technology is not the complete answer. Technology is one part of three parts to success. Processes and people are two other parts. Some make the mistake of assuming that systems will solve all problems, be a silver bullet, and are disappointed when that does not happen. It does not because of other issues with processes and/or people.

Technology is necessary. Visibility into multiple customers with multiple purchase orders is vital to managing the inbound part of the supply chain. Revising, reprioritising and amending open orders is needed to be agile and flexible to changes in inventory and customer requirements. E-mail and faxes are not the way to manage suppliers and purchase orders; technology is.

Management Process

We have implemented an effective business management system that creates a confidence amongst our staff in the capability of our processes and the reliability of our services; while at the same time, benefiting from improved risk management. In addition, we have an effective business management system to create the basis for continual improvement leading to increased customer satisfaction and ultimately to the success of the business.

Collaboration.

Collaboration often centres on working with another company to better utilise transport or warehouse assets. This is a narrow view of collaboration that misses the bigger issues of being agile and the sheer complexity of a global supply chain with its many participants.

Collaboration really means working with trading parties to improve the exchange of information, the management of orders, both purchase orders and customer orders, and delivery of shipments. If lean is a problem, gaining the assistance of others in the supply chain makes good sense and good use of limited resources.

Collaboration can be difficult because of the "trust" issue with sharing information and the differing roles of buyer versus seller. Firms in supply chains cannot collaborate with every participant in the chain. Volume, critical need or other selection method defines firms that should be collaboration targets.

Smart Logistics

The devil is in the details, the execution of the supply chain plan. Good information technology is important to successful collaboration. Working together reduces time and uncertainty in the supply chain; and uncertainty contributes to increased inventories in the chain, as a safety buffer. Start with sharing key information and forecasts, especially revised ones, inventory levels, order information, and production schedules. Doing this helps all parties know and understand what is expected and happening and to identify and resolve potential problems.

The pressure to be agile continues. Time demands, inventory pressures, cost and service requirements and continuing supply chain complexity demand it.