Cargo securing, strategy, innovation, and value networks

Cargo securing involves ensuring that cargo stays stable and does not shift during transportation. While it may not solve humanity's greatest challenges, this small yet critical process (and the equipment that supports it) acts as the glue for moving goods around the world, therefore facilitating the transport of products to billions of people worldwide.

The typical spent of a firm on cargo securing is a drop in the ocean compared to other categories. In many cases, it doesn’t even have its own category. Directors often overlook the value that effective cargo securing can bring to their businesses and customers, leaving these decisions in the hands of operators who may not fully understand its importance. On one hand, this helps stay below the radar of procurement officers, but on the other hand, it results in a general lack of awareness across many businesses.

Having transitioned from managing site operations—export packing, logistics, safety, maintenance, employees, customer satisfaction, auditing, planning, ISO certifications, budgets etc.—to a commercial role solely focused on securing cargo, I now see the contrast in perspectives. It’s not surprising though. Even during my time in the operations, I recognized the importance of cargo securing, despite it being a small piece of the puzzle. Today, I aim to raise awareness among shippers and operators about the safety risks involved in moving goods.

Furthermore, cargo securing provides valuable insights into global trade. I often look for trends to better understand the markets and more broadly where business strategies might be headed. The typical paradox (among the others), is the one of markets and resources as discussed by De Wit (2017). ?Should an organization adapt itself to its environment or should it attempt to adapt the environment to itself? What should be dominant factor driving a firm: its strengths or the opportunities.

As organizations become good at doing something in a certain way, they develop routines and systems that reinforce each other and make it difficult to do things differently (Iansiti and Lakhani, 2020). This is where the concept of a "value network" becomes critical. A network includes customers, suppliers, distributors, and other stakeholders who all become interdependent on an organization’s model. According to Christensen (1997), the pattern of innovation within a company often mirrors the way resources are allocated within this value network.

What’s new, however, is how this approach and even the broader approaches to continuous improvement have been somehow overcome by digital technology. As Iansiti and Lakhani (2020) further explain, recent analysis show the emergence of a new type of firm that go beyond the increasing complexity of the traditional operating models and leverage new levels of scalability, achieving broader scope, and learning and adapting at a much faster rate than traditional firms. Operational constraints are removed by implementing AI-powered technology and by connecting networks to create and capture superior value.

The question arises: when will our networks become fully connected?

List of References?

Christensen, C. M., 1997. The Innovator’s dilemma. Boston, USA: Harward Business Review Press.

De Wit, B, 2017. Strategy an international perspective. 6th ed. Andover, England: Cengage Learning.

Iansiti, M. & Lakhani, K. R., 2020. Competing in the age of AI. Padstow, England: Harward Business Review Press.

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