Collaboration still not integral

Oliver Cofler, customer service and logistics director for Mondelez International spoke about a food and drink conference where attendees were asked about collaboration. The consensus was ‘Yes, we all do it’. But Oliver challenges how meaningful that is.

“We do certain projects, but it is at the edge of what we do. KPIs are result-centred and collaboration is not integral. Just to take one small example, what the point of ASN (advance shipping notice) if we are going to check it anyway? We need to trust. We need also to share information in real time, but how often do we do it? We also need to ask if our KPIs are aligned with customers?”

Oliver acknowledged there were significant barriers and that although bosses were buying in to it, it difficult to achieve. One challenge is getting other departments, such as purchasing and systems, on board but Oliver said as these challenges can be worked through, a start must be made.

“In theory, we’re in a brilliant position to exploit this data. Most of the data we share is 48 hours old – what is the point of that if the shelf is empty? Why don’t we share real-time data with other companies?” he asked.

“The logistics sector has to take a lead on collaboration, or it will never happen. Will we have have competitors products on same trucks as ours? Perhaps. We are trying to take that step forward at Mondelez and I ask everybody to take that step forward with us. It’s not going to be easy and we’re going to have to challenge some really core things that we do, but unless we start we’re never going to get there. Let’s start to trust each other, let’s start to move forward and let’s start to think about big collaboration, not small collaboration.”

Unilever logistics director Sarah Greenfield spoke of the need to develop more integrated transport networks. “A lot of the information that will unlock true collaboration, particularly in transport, isn’t necessarily commercially sensitive,” she explained. “From a manufacturer point of view, we’re very open to having those solutions and those ideas coming to us. We don’t know everything – we don’t know the entire networks. We are looking for people to say here’s an unlock.”

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Sarah also spoke about lessons that can be learned from Uber.

“I look at something like the Uber app. There’s considerable controversy around its usage at the moment, but why is that? It’s because it upset the status quo. It unlocked the stranglehold of the organised, traditional service provision. It was a threat to the norm. So if we take that type of technology, that type of approach to logistics, what would that mean?

“How can we harness a different way of looking at accessing and organising our independent contractor base that could unlock peak capacity planning points that are now becoming pinch points in our industry?”

Great Bear Chief Executive Glenn Lindfield stressed the need for greater collaboration between customers and suppliers. “Taking a partnership approach and working in a collaborative manner leads to trust and strategic alignment, and these are the key ingredients to a successful relationship,” he said.

At the stunning setting of Coombe Abey, Warwickshire, SCALA’s Annual Logistics Debate featured speakers from Great Bear, Mondelez International, Shutl, Unilever and John Lewis debating the topic ‘What is the Key to Delivering World Class Service in the Future?’

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