SEVERAL MONTHS AGO, I CAME ACROSS A HEWLETT
Packard Enterprise advertisement that opened with the following statements: “Tomorrow belongs to the fast. Winners and
losers will be decided by how quickly they move from what they
are now to what they need to become.”
The ad was pitching technology, of course, but these phrases stuck with me. They reminded me of what we could have
accomplished years ago if we’d been blessed with the technological resources we have today. It also reminded me of how
slowly some of us move when implementing new ideas or
processes. Much of this has to do with a lack of resources, particularly in smaller companies, but it’s not
uncommon for managers to face a multi-month approval process in larger corporations that have the necessary resources on
hand or have the funds to acquire them.
Right after the passage of the Motor
Carrier Act of 1980, which deregulated
the trucking industry, there was a rush to
obtain operating authority that had been
hard to come by before the new legislation
took effect. While in this case, speed did not
always spell success, today there are several
very successful carriers that did not exist in
1979. They moved fast and won.
A review of supply chain history would yield other examples, but there are plenty more to be found in today’s market.
The obvious example is Amazon, the mega-retailer whose
innovations in the product delivery arena have reshaped the
industry. Its same-day deliveries, drones, truck fleets, and
aircargo operations have caused many of us to sit up and take
notice. Same-day deliveries, in particular, have disrupted the
orderly, leisurely delivery systems that most retailers once
maintained. Perhaps we’re growing tired of reading about
Amazon, but it moves fast, and to ignore it would be short
sighted.
Uber moved fast and introduced a new concept for moving people from place to place. Uber’s market cap has been
estimated to be as much as $50 billion, and it now operates in
over 70 cities around the world.
One segment of the industry that has sometimes had dif-
BY CLIFFORD F. LYNCH fastlane
Are you fast enough?
ficulty moving fast is the logistics service
providers (LSPs). There are many smaller
players in this segment that have excellent
ideas but lack the resources to carry them
out. That seems to be changing, however,
as we see a continuing consolidation in the
industry. As these firms combine to form
larger entities, they gain the resources to
move quickly, or at least quickly enough to
outpace the competition. One word of caution about this industry: While the ability
to move quickly may be
advantageous to the larger entities, bigger is not
always better. There will
continue to be a niche
for small but innovative
LSPs.
For the users of supply chain services, it is
critical to keep in mind
that today’s environment is all about technology. Businesses like
Amazon and Uber would
be nowhere without it. Not all supply chain
managers are “fast” when it comes to developing technological expertise, but the successful ones will make sure they become proficient with technology or surround themselves with those who are. In other words,
their success will depend on “how quickly
they can move from what they are to what
they need to become.”
Clifford F. Lynch is principal of C.F. Lynch & Associates, a provider of logistics management advisory services, and author
of Logistics Outsourcing – A Management Guide and co-author
of The Role of Transportation in the Supply Chain. He can be
reached at cliff@cflynch.com.
