As a result of the current capacity situation, we see two core themes rising to the surface for 2015. The “shipper of choice” theme is one that will continue to gain momentum in the coming months. Many suppliers will be selecting and evaluating shippers (while developing fact-based scorecards) to further understand the fundamental structure of their relationships. We see many shippers and suppliers coming together to build a formal “collaborative” process that is much more strategic in nature vs. commodity-based buying. Not only will this help to secure capacity in the short term, but it will lay a strategic foundation for these organizations that can be used for years to come. Shippers and suppliers must align their business goals and objectives with built-in efficiencies and move away from the general procurement methodology of finding the cheapest price.
Another core theme will be proactively using available data to drive change in the supply chain. Supply chains need to be consistently modeled and optimized to ensure maximum efficiencies. The available information can be used for predictive modeling to proactively drive change versus a reactive scenario. This data mining will be tied to core supply chain and transportation metrics between various organizations. This step will be an important part of all shipper and supplier relationships. That step will separate the innovative, dynamic companies from the organizations that are flatfooted and stagnant.
Tommy Barnes, Senior Vice President, Operations; President, LTL, Coyote Logistics