In the dynamic world of retail supply chain, there is constant demand for opportunities to revolutionize the status quo. In this article, we dig deeper into the revolutionary potential of combining vertical collaboration with real-time visibility, and why the time to adopt a new approach is now.
Examples of true vertical collaboration in supply chain remain unfortunately rare, however more evidence is gradually emerging to influence outdated attitudes towards the obvious benefits of retailer and supplier integration and to prove the power of the network. University research studies* show that ‘vertical collaboration between retailers and suppliers...has a positive impact on both parties’ output measures, including improved information and inventory visibility’.
When companies in different verticals are working together, effort is reduced, productivity grows, efficiency is high, costs are lower, and the level of customer service increases. It’s important to recognize that achieving effective collaboration is not a one-size-fits-all process, however, with the right tools, it can benefit all members of the supply chain.
“Innovation can only happen with cooperation. We want to continue working together with our retail customers, with FMCG suppliers, and with carriers, to make better use of data, increase capacity and avoid inefficiencies.”
Tim Bruun, Head of Customer Management - Retail and FMCG, Transporeon
Effective vertical collaboration can happen only when all stakeholders – from the shipper to the final destination – have shared access to accurate, up to date and reliable information. Hence, gathering and sharing real-time data can help tackle the biggest challenges connected to supply chain capacity and inefficiencies.
“When you still have to manually shuffle 450 trucks back and forth on a piece of paper and by emails, it's incredibly difficult. If your plane misses the landing slot, none of you ever have had to wait 12 hours to disembark. Why aren't we able to react just as flexibly to demand?”
Guido Schierhofer, Supply Chain Director, Intersnack
When the right people have access to the right data at the right time, turbo-boosting traditional manual processes becomes possible. For example, a solution like Real-time Visibility provides full insight into what’s going on with your shipments on all lanes, as well as the power to action that insight in a way that really can boost the efficiency of the supply chain operations.