Company Logistics Assessment Answer

2. Collaboration plays a significant role in any business affair. In the context of managing supply chain the issue of collaboration should be highlighted being an important aspect of the entire business process. It must be noted that supply chain collaboration, with focus on transportation, should be presented as a way of mitigating the impact of different economic crises. It should be noted that while there are concerns related to the issue of control, trust, and despite the fact that there are potential risks of entering into collaborative relationships; the potential benefits of such collaboration cannot be undermined. In this respect it must be stated that collaborative transportation management (CTM) is the need of the hour. In the context of modern economy and supply chain functions the importance of CTM cannot be overlooked. But before coming to the point one must know what CTM exactly is. CTM is “a holistic process that brings together supply chain partners and service providers to drive inefficiencies out of the transport planning and execution process. The objective of CTM is to improve the operating performance of all parties involved in the relationship by eliminating inefficiencies in the transportation component of the supply chain through collaboration” (Sutherland, 2009). Hence, it can be seen that CTM is the need of the hour in terms of successfully supporting the supply chain in the context of modern anomalies. It should also be taken into account that to enhance the interaction between three principle parties (to a supply chain) viz. shipper, carrier, and receiver – CTM must play a crucial role. In such a system the participants would be allowed to collaborate by sharing information about demand and supply, ideas and capabilities that are needed to improve the performance of the overall transport planning and execution process (Sutherland, 2009). It should also be taken into account that “The process begins with an order/shipment forecast, and includes capacity planning and scheduling, order generation, load tender, delivery execution, and carrier payment” (Sutherland, 2009). 

References

Sutherland, J. (2009). Collaborative Transportation Management: A Solution to the Current Transportation Crisis. Lehigh University. Center for Value Chain Research, 1-8. 
Wang, X., Herty, M., & Zhao, L. (2015). Contingent rerouting for enhancing supply chain resilience from supplier behavior perspective. International Transactions in Operational Research, 23(4), 775-796.