How can you manage logistics risks by building effective relationships with providers and stakeholders?

Identifying both providers and stakeholders is important because you need to develop relationship on both ends. Paid providers are relatively easy to identify by seeing how much you pay to whom. However, a providers importance is not necessarily reflective in the amount paid. You will pay your TMS provider significantly less than your carriers, but if your TMS goes down doing business becomes very difficult, so don't just sort the list highest to lowest by spend. Your stakeholders should be easy to identify by who complains. These are the people most impacted by your work, maybe its your end users, sales, purchasing, etc. But follow the squeaky wheel and you'll find them. And don't overlook who your team complains about.

In my experience: -Build the relationships with all service providers to facilitate work procedure to avoid any problems and reach best JIT work procedure. -Planning the whole steps to avoid any risks suddenly happened. -Diversify the suppliers and distribute the resources from more than one. -Discuss the whole process well and check from the whole data are accurate to reach high knowledgment for best yields.

It is important to look for them among the best positioned in their specialty. It is worth remembering that even though it is your partner, it is a business relationship, it will need to make a profit to be viable. Therefore, it is essential to seek continuous improvement, always being sure that the price you are paying is fair. Thus, delivering to interested parties the necessary requirements and seeking to add value to the image of their products or services, in order to guarantee security, availability, visibility, competitiveness, profitability, and longevity.

Understanding your providers and stakeholders is a key factor in logistics as it enables you to predict outcomes. Building effective relationships with your providers can help you manage risks by getting credit treatments to ensure the timely flow of your cargo even at times when your current financial standing can't settle complete invoice value. Again, an effective bond with service providers gives a better leverage on aspects of timely documentation, prompt updates, and value-added services like consultancy. This puts you a level ahead to your own clients hence a marketing advantage. Effective relationship with stakeholders means timely securing of permits, less clearance bureaucracies and timely cargo clearance.

Identifying the best suppliers is the key to a great business. Be aware that the best one's aren't the expensive ones, but those who are aligned with our company values and objectives. We should get closer the ones who bring value to our company, so we can also give them value and grow together.

Just one important thought and an imperative, I would say - establish one common platform to communicate and transact. Use all persuasion to ensure that is only source of truth….

Sending communication out with no response kills relationship. The most important piece of communication is to see and acknowledge the information you receive. If your inbox in out of control, you are hurting your relationships. There will be no foundation to build a relationship upon if your stakeholders and providers cannot trust that you will read, review, and action their communications. If you can effectively manage your inbox, you will be strengthening your relationships and improving your ability to collaborate. It will also put you in a position to hold your providers and stakeholders accountable for the commitments they have made.

Considerando que en la cadena de suministro existen diferentes elementos que pueden interferir en la buena comunicación, lo primero es analizar cómo nos comunicamos. Dicho proceso debe estar definido con interlocutores, por niveles, con backups establecidos y con una plataforma que ofrezca seguridad en las comunicaciones. Cuando hacemos partícipes a nuestros proveedores de los procesos internos para comunicarse con la compa?ía, cómo deben ejecutarlos, tiempos de respuesta, planes de contingencia y feedback para mejorar las fallas detectadas, tenemos mucho ganado en el presente y futuro de nuestra alianza.

Managing logistics risks through effective relationships with providers and stakeholders is crucial for ensuring smooth operations and mitigating potential disruptions. Here are some strategies for building and maintaining these relationships to manage logistics risks: Clear Communication Collaborative Planning Performance Monitoring Risk Sharing and Allocation Supplier Diversity Build Trust and Long-Term Partnerships Continuous Improvement Flexibility By implementing these strategies and focusing on building strong, collaborative relationships with providers and stakeholders, you can enhance your organization's ability to manage logistics risks and navigate challenges in the supply chain.

Advanced communication channels & collaboration tools helps businesses enhance transparency, streamline interactions. ??Implement AI-driven chatbots integrated with logistics which provide real-time updates on order statuses, ensuring transparent communication & reducing need for manual inquiries. ??Blockchain for transparent collaboration: Smart contracts on blockchain execute predefined actions based on predefined conditions. If a shipment faces delays, predefined clauses in smart contracts trigger compensation processes. ??Cloud-based collaboration platforms ensures seamless interaction. Using platforms that integrate with existing systems allows stakeholders to collaborate on SLAs, share real-time data & collectively address challenges.

Establishing provider KPIs that positively influence stakeholder KPIs allows all parties to be working toward the same aim. Often times, we don't know how this work relates to that outcome several processes later. However, doing this work helps everyone understand the importance of their contributions. It also allows us to better justify the business decisions we make with our providers. Adding bonuses/penalties are a distraction. Motivating via carrots and sticks is just not as effective as relationship based methods. In this case, we focus on the numbers (potentially how to manipulate or excuse them by pointing fingers) instead of working together to solve actual issues.

Understanding that everyone in a given business is in it for the benefit (financial or otherwise) is the key to being able to conduct business with someone. Under-cutting someone's profits to marginally increase yours will in no way solidify your business partner's position. Once you acknowledge the fact that everyone in business is in it for the "business", you can find ways to align your goals and grow together.

Los proveedores son un elemento vital para una empresa, ya que gracias a ellos se logran cumplir las estrategias que se plantean al interior de toda organización. Por lo anterior debemos destacar la importancia de los proveedores, sus funciones dentro de la organización y políticas entre otros. Para que una empresa tenga la oportunidad de operar correctamente y un buen funcionamiento los proveedores entran a formar una parte importante dentro del proceso. Si se cuenta con un buen proveedor todo saldrá como se tenía planeado, dando cumplimiento a todas las estrategias planteadas al interior de la compa?ía.

It is recommended to use SMART methodology to establish your objectives. SMART: Specific, Measurable, Achievable, Realistic, Time-bond.

By aligning clear measurable objectives with well-defined incentives, businesses create a shared vision with providers & stakeholders. Eg., ?ML to analyze customer feedback & sentiment data: This align objectives with customer satisfaction by identifying areas for improvement tailoring incentives accordingly. ?Blockchain for transparent performance measurement: Smart contracts on blockchain triggers incentives or penalties based on predefined performance metrics. Meeting or exceeding delivery timelines could result in bonuses, promoting efficiency. ?Data analytics helps monitor & evaluate objectives: Analyzing efficiency metrics allows for identifying bottlenecks or delays, aligning incentives with objectives for continuous improvement.

With all meaningful relationships, worth celebrating and having what it takes to pass the test of time, there is a foundation of mutual trust and respect. It may seem as though it’s companies in business with one another, but inside these companies, it is people doing business with people. Most would agree that being treated fairly, dealt with honestly and appreciated openly promotes strong and prosperous relationships.

Maintaining trust and respect is foundational to any long term relationship. These are bank accounts which require frequent deposits. There is no set it and forget it with real relationships. I was surprised when I entered the workforce how many times I'd be presented with the opportunity to make poor choices. Short term decisions that help me in the moment, but backfire long term. Especially where relationship is concerned. Tell the truth. Share information. Take responsibility. Be accountable. Don't shame and blame.

Trust & respect are core for strong relationships. ??Envision implementing a blockchain-based transparency system. Eg., Using blockchain to securely share key performance indicators ensures transparency, building trust by providing verifiable data on commitments & achievements. ??Consider a scenario where AI-driven sentiment analysis tools monitor communication channels. Eg., These tools detect positive language or expressions of appreciation, providing real-time insights into respect & trust dynamics within the relationship. ??Creating a feedback loop through regular surveys ensures an avenue for improvement. Eg., Using survey data to address concerns or conflicts promptly demonstrates a commitment to open communication, reinforcing trust.

Establishing "win-win" relationships with our suppliers is the best way to trust and respect each other as professionals and persons. Integrity, Honesty and trust are the basis to add value to our company and to our suppliers companies.

It is important to build trust with internal and external stakeholders. Few things I have found helpful during managing logistics situations are as follows: 1. It is important to build a trusted relationship with internal and external stakeholders beforehand, by demonstrating cofidence. 2. It is important to help your stakeholders during their times of KRA needs by doing your best and responding on time pro actively. 3 Understanding the needs of your stakeholders and solving their problems who in turn help you when in times of need. 4. Create a scenario which is win win for all parties involved.

Knowledge sharing, collaborative training & joint ventures helps create learning & growth environment ingrained with providers & stakeholders. Use AI-driven analytics to identify best practices. Analyzing data on efficient logistics processes can reveal insights that providers & stakeholders can collectively adopt building mutual learning. Implement collaborative training programs. Using VR simulations for logistics training ensures hands-on experience without disrupting operations. This enhances the skill set of both internal teams & external partners. Pursuing joint ventures showcases a commitment to shared growth. Entering new markets together or jointly investing in innovative technologies allows for mutual expansion & exploration.

Supplier development for high-potential vendor strengthens aspects that would have otherwise paused a risk in the logistics process. This can take different approaches such as: - Collaborating with suppliers for joint demand planning to improve delivery lead times. - Integration of technologies with vendors to increase visibility and the sharing of information in real-time. -Regular quality and process audits of vendors to optimize their production processes. - Building long-term relationships by aligning incentives that will encourage the suppliers to also invest in their own development and capacity building.

Logistics vendors often are experts in their areas where clients should at least consult them for their experince or recommendations. In order to resolve a shared issue, joint working grops often acceptable solutions and gets credibillity from both parties.

Colaborar es esencial para solucionar los contratiempos, una buena relación permite acortar tiempos, mejorar costos y evitar sanciones. Las 3 partes son el mismo socio: proveedor, almacén y cliente.

Innovation is one of the most common word in our present, but how can we take risks with our carriers? It is needed a real collaboration between us so we can be fully transparent in what we want in the future.

By managing logistics risks through effective relationships, businesses ensure smoother operations & unlock a spectrum of advantages, from cost reduction to increased innovation & competitiveness in logistics. ??Advanced analytics enhance visibility. Predictive analytics foresee potential disruptions, allowing for proactive risk mitigation & maintaining control over logistics processes. ??Collaborative innovation initiatives lead to the adoption of sustainable practices. Joint efforts with suppliers to optimize packaging reduce environmental impact, aligning with customer expectations enhancing reputation. ??Blockchain ensures transparency in the supply chain improving reliability of services & building trust & loyalty among customers.

By fostering strong relationships with providers and stakeholders, a company can create a network that is better equipped to handle logistics risks, leading to improved reliability, efficiency, and overall performance in the supply chain.

We can discuss about being a professional all day long and it's obvious that a great professional is someone who can maintain the quality of their work even in very difficult scenarios, but it's impossible to take the human side out of the equation and one of the things that demotivates people is the lack of organization and good visibility that many companies do not seem to care about offering, especially to their suppliers, thus damaging the relationship between companies.

Entender que fornecedores s?o potenciais parceiros para longo prazo é algo que pode beneficiar imensamente as empresas. Nem sempre o melhor pre?o é o mais atraente, atendimento, escalabilidade, condi??es de pagamento, QUALIDADE, prazos de entrega s?o exemplos do que avaliar antes do menor pre?o. Fornecedor bom é o que atende suas necessidades no momento certo, no local ideal e sobre padr?es de qualidade de excelência. Gerar atrasos ou problemas futuros para pagar um pouco menos é sinal de falta de planejamento e uma vis?o imediatista.

Colaboración en la planificación de la demanda: ? Trabajar de cerca con proveedores y partes interesadas en la planificación de la demanda, compartiendo información sobre pronósticos y tendencias del mercado. ? Implementar sistemas colaborativos para mejorar la visibilidad de la cadena de suministro y permitir una respuesta más rápida ante cambios inesperados.

In many cases, the service providers may not study and understand the challenges that the suppliers and third-parties may face. Hence the service providers will fail to anticipate problems that may arise. If these factors are taken into account , then their service providers will be able to provide a more compatible solution to prevent problems.

Still the vendor you have built a great relationship and trust may not always be able to fulfill your needs. In order ot minimize risk, an alternative logistics vendor should always be kept ready by allowing a minor portion of the total business. A reliable partner is a must; on the other hand you and your partner should know that you are not binded only to them. Flexibility is also a great asset to overcome logistics risks.

For instance, consider these examples: ??A logistics firm, in collaboration with suppliers, invested in AI predictive maintenance which reduced fleet downtime, enhancing operational efficiency. ??Picture a retailer deeply aligned with logistics partners. Through a shared analytics platform, real-time consumer trend insights enabled agile inventory adjustments, minimizing excess stock & ensuring timely product availability. ??A global supply chain sailing the COVID-19 crisis. Effective relationships facilitated swift adaptations—adjusted shipping routes, strategic inventory management—showcasing the resilience & adaptability forged through strong partnerships.

For both shippers and carriers, teaching your teams the skills to objectively assess and actively optimize the supply chain improves resilience, productivity, and drives growth. Examples include using data to mine opportunities and knowledge of current technologies that integrate systems and automate processes. Annual quick strike assessments led by internal teams provides an opportunity to benchmark risks, identify cost-out opportunities, and drive change without significantly impacting resources and schedules. Learning how to do this organically and consistently yields the most tangible results.

I did successfull logistic operations at remote and dangerous places, especially because of following one rule: -Always show appreciation to delivery drivers and warehouse staff, no matter what kind of logistics you are doing..