Issue link: https://maltatoday.uberflip.com/i/884700
maltatoday, SUNDAY, 8 OCTOBER 2017 IV Logistics & Shipping TODAY'S marketplace rewards those who dare to challenge convention. Firms like Amazon are depart- ing from traditional business practices, using true supply chain management thinking to blur the boundary between to- day and tomorrow. In the mean- time, others are standing by the metaphorical shore, not daring to depart to worlds unchartered. In failing to conquer the sea, they fail to see a brighter future. Fortunately, not all is lost. The findings from the "26th Annual Study of Logistics and Trans- portation Trends (Masters of Logistics)" suggest that more companies are realising that new competitors and new business models are shifting customer requirements. In fact, results from the 2017 study show that roughly 75% of respondents are using the mix strategy as the predominant approach for their companies compared to the 51% who were reported utilising a mix strategy in the 2016 results. However, unlike 2016 where many of these same companies focused on reducing cost as a primary objective, respondents this year were almost equally focused on increasing customer service or reducing costs—31.3% and 30.9%, respectively. In this year's study, the rela- tionship between a company's strategy and its structure was examined. Stated differently, if the strategic direction and the organisation's primary objec- tives are aligned then it follows that the company will organise itself in a way that enables the achievement of those goals. The results indicate that, for a number of companies, there is a statistically significant gap be- tween their strategic focus and organisational structure. For example, companies that reported a cost leadership focus strongly agreed that transporta- tion is strategically important to them. However, there is not this same level of strong agree- ment for elements that would provide the supporting organisa- tional structure, such as working together with transportation service providers to be success- ful or spending time with those providers to learn more about various aspects of their business. In comparison, customer service focused companies are better aligned to support that objective. Firms using a cost leadership strategy tend to view transportation as strategically important, yet in many cases this is not backed up with ac- tion. That is, the organisational alignment to support this strate- gic view is lacking. Two inferences can possibly be made. First, a successful cost strategy requires a deep understanding of the tradeoffs between cost and service. Sec- ond, as service, and particularly speed of delivery becomes more important in a digital economy, companies along with their transportation service provid- ers must be able to quantify the cost/value of increasing service levels. "Understanding transporta- tion pricing should rely heavily on data science," says Tommy Barnes, president of 'project44', a sponsor of the survey. "Cur- rently, there are a lot of deci- sions being made without a firm grasp and understanding of how they will affect transportation costs—both in the short-term and long-term." In most cases, Barnes contends that transportation providers do not have the right modern technology systems in place to determine the true cost of delivering services to their customers. "Without that, they can't accurately convey the value associated with increas- ing service levels or capabilities, leaving their customers to make decisions on a commodity price basis only," he adds. Why does this matter? Of the study participants that repre- sented the retail sector, some 54.5% reported that they're cur- rently working on implementing an omni-channel supply chain structure. While this industry sector is on the front lines on this initiative, they are by no means the only affected group, as the impact of an omni-chan- nel supply chain is being felt by multiple upstream supply chain partners. The study results show that the top five challenges being faced by companies include (in rank order): 1) supply chain analytics to gain necessary insights; 2) lead time to customers (speed of order fulfillment); 3) system wide inventory man- agement and control; 4) demand uncertainty across all distribution channels; 5) cost to serve using an omni- channel approach. Transportation directly influ- ences a company's ability to meet several of these challenges; most notably the service and cost factors. Thomas Smith Group supports the Grid Sprint Transportation at digital speed THOMAS Smith Group, in line with its corporate social respon- sibility programme to promote healthy living habits, is proud to once again support The Grid – a local obstacle race which has gained considerable interest since its first run in May 2016. A second event was held earlier this year, reaching a participation level of 800 entries. The Grid or- ganisers have now added a shorter obstacle race to their series – The Grid Sprint. Thomas Smith Group has supported the past two races and is happy to be backing up the event for this October's Sprint. Maersk Line containers featured as giant obstacles in the past two races, and will once again be a highlight at the upcoming event. The Grid Sprint shall be held this coming Saturday at Golden Bay and Riviera grounds, involving a 6km course including obstacles such as hurdles, mud pits, rope climbs and sand crawls amongst others. Competitors taking part in the elite wave will this time be followed by a drone throughout the whole course, and streamed live for family and friends to follow from the comfort of their home. The event has attracted over 830 participants, exceeding the target of 400 entries. Most contestants are naturally Maltese, however participation has enticed over 200 international registrants from UK, Italy, Sweden, Norway, Germany, Spain, and France, as well as from USA, South Africa, Australia, Jamaica, Venezuela and even New Zealand. "When Thomas Smith Group sponsored the first event or- ganised by The Grid in 2016, it had hoped that the event will be such a success that it becomes an annual one. The event has now reached a level of partici- pation and interest that it has marked Malta's annual calendar of events. We are thrilled with its evolution, and hope it continues to develop into a high-profile sport event, drawing an interna- tional spotlight onto Malta" said Mr. Gerada, Managing Director at Thomas Smith. "The event is great fun, and instils elements of personal development and team building – besides the obvious adrenaline rush!" Thomas Smith is a group of companies offering a diversified portfolio of services in interna- tional shipping and logistics, and insurance. 26th annual study of logistics and transportation trends: While a majority of companies strongly agree that transportation is a strategically important function, a significant percentage of them have not organisationally aligned transportation in a manner that supports their goals Of the study participants that represented the retail sector, some 54.5% reported that they're currently working on implementing an omni-channel supply chain structure