Shippers and receivers have been required to work together for years to transport products and goods across the country on time and in one piece. The deregulation of the trucking industry assisted in opening up the door for collaboration, as it brought forth an economy that could be contributed to by many, rather than one that was segmented and highly regulated. Collaboration is vital in the logistics industry, not only because logistics companies must navigate the many moving pieces of the shipping and receiving process, but they must also work with partners across the country to achieve a common goal; to keep freight moving across the continent.
Collaboration in the Transportation and Logistics
The transportation and logistics industry has always relied on communication, but collaboration hasn’t always been so common. For years many experts have been predicting the death of long-term supply chain relationships due to increased competition. Instead, the transportation and logistics industry has continued to thrive- all because of collaboration.
Collaboration simply means having multiple parties working towards the same goal. The transportation industry is heavily divided; because of this, it can be hard for everyone to remember they have a common larger goal. When companies actively encourage individuals to work together to achieve this goal, instead of simply telling them that they all are, they will see major benefits.
Supply chains have historically seen a lot of waste. Simply communicating weak spots of waste between channels isn’t enough. What companies have found is that collaboration between various levels and branches has reduced waste. When people from various positions are able to collaborate, they can most effectively trim away what isn’t needed and keep what is.
One of the key benefits of collaboration in the transportation industry is, of course, cost efficiencies. Research shows that companies with collaborative relationships survive even at times of severe economic stress. Buyer-supplier collaboration is especially vital. When both the client and company work together there is an increased focus on services, quality, time management, and more. Collaboration also often leads to long-term relationships, which help both sides, especially during tough economic times. The longer the suppliers and buyer have worked together, the smoother and more efficient the whole operation becomes.
Innovation is born out of collaboration. Sharing ideas and ways of thinking allows everyone to gain a new perspective. Competition is driving force behind the need to innovate and develop new processes to enhance cost efficiencies and customer services. Long-term collaborative partnerships both provide the incentives to add more value and the stability to explore. These innovations aren’t necessarily the big breakthroughs of advanced new processes, but they are innovative combinations of existing tactics well suited for the market.
Collaboration is a key component to the survival and success of transportation and logistics companies. It should be integrated into the core values of the company from the beginning. At Traffix, we strive to maintain open communication and collaboration in all aspects of our company. Our goal is to have cooperation at the forefront of everything we do, because, through collaboration innovation, efficiency, and success is born.
Want to learn how our collaborative mindset can help your company? Contact us today!