pillar of the logistics framework leads to customisation of specific and targeted customer logistics needs and expectations. Tailor made solutions address specific and target needs, such as timeliness of deliveries, precise custom routes, delivery schedules, packaging, tracking and real time solutions for feedback and communication. Customer needs keep on evolving and require modifications to meet their exact needs. Customisation enhances efficiency and leads to better customer experience. Customisation is essential for addressing specific logistics needs.
Customisation leads to better quality control throughout the entire supply chain. This builds trust as errors get eliminated, and solutions are delivered in full and on time with no errors. In a competitive world, this can be a source of competitive advantage.
Coordinate: Delivering simplification in complex supply chains
Supply chains evolve to become complex. Complexity arises with growth, coverage and involvement of multiple and tiered relationships. Expanded geographical coverage and reach is another driver of complication. Additionally, changing market conditions and trends push the need for flexibility. Market trends include seasonal demand shifts and global economic trends. These too, add to the complexity of logistics management.
Coordination therefore is critical in achieving a well orchestrated supply chain. This process includes managing the movement of goods and services through different stages, from suppliers to manufacturers, distributors, and ultimately to customers. Coordination is driven by effective planning, advanced management systems, and careful attention to transportation, warehousing, and distribution. Effective coordination is achieved by balancing customer demands and driving teamwork among the stakeholders in the supply chains.
As supply chains become complicated, challenges arise. Common coordination challenges include communication between suppliers, customers, financiers, regulatory agencies manufacturers, warehouse and shipping solution providers. Poor communication between suppliers and manufacturers can result in expensive delays. Strong communication and collaboration ensures that operations remain balanced and efficient.
Consolidate: Manage costs within the supply chain
Consolidation looks at opportunities to combine shipments to manage costs and deliver efficiencies. Consolidation involves delivery of comprehensive end to end logistics solutions to customers. This leads to lower total costs and improved efficiency. Other methods adopted under consolidation include peak planning to address seasonality and re allocation of resources. Examples of this include trucks planning and assignment that is aligned to capacity demanded by customers supported by aligned demand forecasts. This guarantees customer satisfaction and lays the foundation not just for short term success but sustained performance in the longer term.
As competition grows, businesses also consider opportunities like mergers and acquisitions. Some convergencies under this include elimination of duplicated processes, costs, sharing of excess operational capacity and skills.
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Collaboration is about developing and participating in partnerships within the supply chain. This helps in better management of resources to drive competitiveness. Collaboration can be achieved from sharing platforms and skills among players in the supply chain. Through partnerships, suppliers, partners, and even competitors can combine their strengths to create innovative solutions. Technology advancements are creating huge opportunities for collaboration.
Collaboration frees time and resources that allows employees to focus on strategic projects. Improved teamwork achieved from collaboration efforts can drive success even at industry level. Collaboration unlocks opportunities for shared continuous improvement, cost optimisation, and shared advantages from technology, for example with collaborated deployment of AI among players in the supply chain or specified industry.
Contribute: Create and deliver sustainable value
Businesses are now very conscious about creating, delivering and sustaining value to communities. It is no longer a good-tohave stuff. It is another factor of production. Businesses impact industry, society and environment. Supply chains are a source of major pollution to the environment. All forms of transportation used have great negative impact to physical environment. Location of manufacturing sites impacts communities and the environment.
Companies therefore must make right choices that lead to positive contribution. This may cover use of clean energy solutions, engaging positively with communities, work environment policies that promote inclusion, diversity, accountability, governance and transparency. By prioritising these initiatives, companies can improve their brand perception while achieving long-term success in a competitive industry.
Businesses are called to make positive contribution as they navigate through the complexities of regulatory frameworks. These include import and export laws, environment regulations, and industry specific guidelines. Businesses must, therefore, keep up to date with regulatory requirements and evolve their processes to eliminate compliance risks. This will ensure that they remain efficient and avoid regulatory interruptions. This drives responsible and sustainable business practices within supply chains.
Frameworks are just a guide. The choice of deployment of the framework determines success or otherwise. The 7 Cs are a great starting point. Supply chains must keep on evolving to remain agile and to deliver efficiencies, sustainability and delight customers.
CPA Michael Maithya Nzule is the Finance & Strategy Director of Mitchell Cotts Freight Kenya Limited. He holds an MBA in Accounting and a Bachelors of Commerce( Accounting Option Hons) from the University of Nairobi. He is a member of the Institute of Certified Public Accountants of Kenya( ICPAK). Views expressed here-in are personal. You can commune with him via mail at: Mikemaithyanz @ gmail. com.