Everyone agrees that visibility in supply chain helps to reduce overall costs and make supply chains more reliable.
But who will foot the bill?
An auto manufacturer mandates that all vehicles should be fitted with GPS. But who will pay for installation and maintenance of the same? Typically a transport partner is expected to do the job.
But who benefits MOST from this visibility- Transporter, Supplier or Auto Manufacturer? the answer is fairly obvious-- Auto Manufacturer is the biggest beneficiary.
Thus, the principle should be that one who benefits most pays most. In fact, the HUB who attracts goods to itself or distributes from its locations has a much larger stake in visibility.
A dealer is interested in delivery of say 20 cars at a time- but Auto maker needs to track 1000s of cars for delivery. The benefits from knowledge of any delay or issues or actual delivery are much more to Auto Maker than anyone else.
But who will foot the bill?
An auto manufacturer mandates that all vehicles should be fitted with GPS. But who will pay for installation and maintenance of the same? Typically a transport partner is expected to do the job.
But who benefits MOST from this visibility- Transporter, Supplier or Auto Manufacturer? the answer is fairly obvious-- Auto Manufacturer is the biggest beneficiary.
Thus, the principle should be that one who benefits most pays most. In fact, the HUB who attracts goods to itself or distributes from its locations has a much larger stake in visibility.
A dealer is interested in delivery of say 20 cars at a time- but Auto maker needs to track 1000s of cars for delivery. The benefits from knowledge of any delay or issues or actual delivery are much more to Auto Maker than anyone else.
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