Many people regard choices as a good thing. However, one must realize that few choices can beget discomfort or unhappiness and too many choices leads to confusion, regret of alternatives not taken, and second guessing. Today, the business world is more complex than it has ever been. Adaptation to the marketplace is required in order to be successful, and therefore, choices must be made.
Choices must be made with respect to Crossborder, Omnichannel, Customer Centricity, and Final Delivery. Without making these choices supply chains will flounder and fail. Steps must be taken right away or risk falling behind your competition.
Jim Tompkins addressed these four topics during his keynote speech at the 2015 Tompkins Supply Chain Leadership Forum. Attendees had great follow-up questions that required detailed answers from Jim.
We have selected two questions from each of the following topics for Jim to answer:
- Customer Centricity
- Final Delivery
Over the next few days, we will release these questions and answers in four separate blog posts. Parts one,two, & three have already been released. Here is part four which is based on the Final Delivery section of Jim’s keynote.
Forum Attendee: You mentioned the ending of Socialism of Transportation and of Service. Please explain.
Jim Tompkins: I am using the word Socialism here as “An approach or a philosophy of community sharing the benefits in an equal manner independent of individual circumstances.”
- So, by saying “Transportation Socialism” I am referring to the cost of transportation being equal for High Density Delivery (HDD) within a zone as for Low Density Delivery (LDD) in the same zone. HDD is overcharged and LDD in undercharged. This will end when we charge for transportation not based on socialism, but on the cost to serve.
- So, by Service Socialism I am referring to the delivery times being equal for Rural Locations vs. Large City Locations. So, Rural is getting delivery too fast and Large Cities too slow. This will end will HDD in Large Cities is quicker and LDD in Rural Cities is slower.
Forum Attendee: Are 3PLs ready to support Final Delivery?
Jim Tompkins: In 2015? No. In 2016? Yes. To really support Final Delivery 3PLs must provide local inventory, delivery to store / home, and alternative locations along with an adequate volume to do it inexpensively. Lots of work will need to be done in the area of Final Delivery.