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The New Supply Chain Paradigm

By: Simon Kaye
Posted: January 24, 2012, from the January 2012 issue of GCI Magazine.

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The global supply chain is already embedded in the economies of most countries. Companies that don’t want to make a conscious global supply decision will find that marketplace forces make it for them. When producers and logistics specialists work together in an integrated process founded on initial logistics planning, it facilitates the movement of products around the globe, quickly, cleanly and without loss, creating a supply chain with a minimal amount of inefficiency and maximum amount of flexibility.

Industry Insight

An efficient global supply chain requires detailed familiarity with each shipper’s industry requirements and practices, in addition to understanding the associated service parameters and costs. When it comes to challenges such as throughput, security, customs and other regulations, and product tracking, industry insight is essential. Logistics companies, until recently, have largely emphasized general freight forwarding experience. Supply chain management, by contrast, requires in-depth logistics and purchasing knowledge as it relates to an industry itself, creating a value proposition directly focused on the industry’s freight requirements.

With global sales of more than $300 billion, beauty presents one of the most complex global freight forwarding challenges of any industry. What is needed for global sourcing success is not just supply chain management, it is in-depth logistics and purchasing knowledge as it relates to the global beauty industry itself. Complete and timely delivery is the ultimate measurement of service and reliability, and this is synonymous with an integrated transport management system that coordinates every phase of the process—from contractual activity, to delivery and cost finalizations.

Transporting either raw materials or finished product is a complex process and one that requires precise integration. From transport contracting to trip closure, with storage and shipment in between, an interactive transport management system will have action points where performance is measured and documented. With transportation systems that allow for "vetting" interactions for the smooth flow of clearance data from one operational activity to the next, a global supply chain becomes fully transparent and operationally efficient. It transcends past decades of fragmented processes and brings predictability and consistency to logistics performance.

Simon Kaye is founder and CEO of Jaguar Freight Services, with operations and fully integrated door-to-door freight solution networks in Europe, North America, South America, Australasia, Asia, the Middle East and Africa. simon@jaguarfreight.com; www.jaguarfreight.com; 1-516-239-1900