Reverse Logistics - Logistics Quarterly

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32 LQ winter 2003/2004 What Doesn’t Kill You Makes You Stronger By Jim Davidson, President, iWheels Dedicated Logistics LogisticsQuarterly.com
LogisticsQuarterly.com This account of an online auction involving one of the world’s largest manufacturers shows today’s vendors face inherent and unprecedented risks in this new way of conducting business. Even a momentary lapse in judgment can significantly damage a company’s business. Here is a look at lessons learned from internet auctions. “ FASTER, BETTER, CHEAPER” has been the battle cry since the dawn of industry and commerce. However, after we have “maxed out” plain old blood, sweat and tears as a means to setting a new pace for business,we once again turn to technology. The fundamental principles of commerce really haven’t changed over the centuries.After all,buying and selling products and services and negotiating terms is a pretty simple concept to grasp. Marco Polo 800 years ago had a pretty good thing going when he was the only supplier of silk in Venice.However,when another clever ship captain added an extra sail for speed and “down-sized”his crew by a couple of sailors to cut cost - the competition heated up. As a buyer, competitive pressure pushes your suppliers to sharpen their pencils and dig a little deeper in the innovation basket.As a supplier, competition forces us to trim waste and think creatively. Healthy competition is good for everyone. However, when we reach that inevitable day of reckoning when we’ve collectively trimmed the process to the bone,then what? You have probably heard the story a few years ago about a farmer who won $2 million in a lottery and was asked by the weekly newspaper what he planned on doing with his new wealth. His response:“Oh, I guess we’ll just keep farming ‘til it’s all gone.” A new lexicon has added sophistication in defining transportation and distribution in recent years.A term like supply chain management hints at the hidden intricacies of our industry.However,there is still an underlying simplicity to the mindset that continues to drive much of our business,particularly when it comes to transportation. The question still is:“when can you get it there and how much will it cost?”But, this question tends to belie the complexity of the supply chain in general and the value suppliers can bring to a business relationship based on service at a fair market price. It is with that thought in mind that I’d like to make a few observations about an intense,exciting and stressful phenomenon that our company participated in this year … a multi-million dollar, live Internet auction for transportation services conducted for a major global manufacturer. From a buyers’ point of view, there are serious advantages that make the process extremely attractive. In fact, one U.S. analyst told a journalist the Internet made procurement “sexy.” And there is probably some truth to that notion. The business media will report on major sales but not a lot of buyers make the headlines of the Wall Street Journal for an astute purchase. However, Internet auctions have certainly LQ winter 2003/2004 33
Page 1: Ideas for Leadership in Logistics L
Page 4 and 5: You progress a lot faster when you
Page 6 and 7: One America, One Vision Changing co
Page 9 and 10: JIM ELLIS B.Sc., P.Log., FCAM, CM i
Page 11 and 12: New Members of LQ’s 2004 Editoria
Page 13 and 14: LogisticsQuarterly.com LQ winter 2
Page 15 and 16: Mobile or Field Inventory “means
Page 17 and 18: Making Sense of the New Hours of Se
Page 20 and 21: CreatingValue ThroughReverse Logist
Page 22 and 23: Return Net Net profit ( Net worth)
Page 24: Fourth,return products are often an
Page 27 and 28: Introduction Traditionally, supply
Page 29 and 30: Focus on Supply Chain Management La
Page 31: CONQUER NEW MARKETS WITH ONE CALL.
Page 35 and 36: S P E C I A L • T E A M S Third a
Page 37 and 38: Leadership in Logistics How does an
Page 39 and 40: What Every CFO Should Know The 80 y
Page 41 and 42: Supply Chain Analyses Versus Synthe
Page 43 and 44: Making An Investment in Learning Th
Page 45 and 46: A COMMENTARY: Changing the Landscap

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