GOODQUESTION Readers Weigh In
What Is One Supply Chain “Trade-off” That Is Actually Not a Trade-off?
COSTS DOWN MEANS PERFORMANCE IS UP. Not
People vs. AI
always. Cost control that eliminates waste and duplication is good; but if it squeezes R&D, product quality, etc. it will eventually bring down revenue and profit. Cost and performance (whether operational or financial) are not in a true trade-o like buying vs. saving, or insourcing vs. outsourcing. –Dr. Darren Prokop TECH INTEGRATION VS. COLLABORATION. Many see traditional point-to-point integrations with supply chain partners as a barrier to collaboration. But multi-enterprise platforms can improve the eciency of integration, enabling collaboration. –Henry Ames GM, Logistics Orchestration, TraceLink GLOBAL SOURCING VS. RESPONSIVENESS was once a tension. But with the right data and milestone tracking, you can manage suppliers overseas and still respond in real time. –Rodney Manzo Senior Director, Global Operations, Sage Professor Emeritus of Logistics, University of Alaska Anchorage INVENTORY VS. EFFICIENCY. Increasing inventory levels is seen as a trade-o with service and eciency levels; we find that a win-win-win is achievable. The key: Have the right inventory in the right place at the right time and gain a predictive view of demand to optimize your schedules to reduce inventory while increasing service and eciency. –Lisa Anderson President, LMA Consulting Group
The supposed trade-o between human expertise and AI in supply chain decision-making is a false dichotomy. The most eective strategies combine both. AI enhances human judgment by processing vast datasets, identifying patterns, and suggesting optimizations, while leaving strategic decisions to experienced professionals. This hybrid intelligence fosters superior outcomes and innovation. –Heidi Benko VP Product Management and Strategy, Infor The notion that supply chain managers need to choose between people and technology is false. While digital transformation pressure in our industry is immense, human expertise is indispensable. –Jared Weisfeld Chief Strategy O cer, RXO
“FREE” SHIPPING VS. PROFITABILITY. Sellers may view “free” shipping as a trade-o to profit margins in favor of customer satisfaction, but it’s a powerful conversion tool. Shipping costs are usually factored into the product price, making the oer appear more attractive without changing the total spend. –Sean Collins VP Cross-border eCommerce & Enterprise Procurement, UniUni STAND-ALONE SOLUTIONS VS. INTEGRATION. We often see companies make heavy investments into siloed solutions as a trade-o to investing in a fully integrated system. While small improvements may occur in technology KPIs, the approach can cause long-term stagnation. –Robert Nilsson Chief Commercial O cer, VARGO
PAYING MORE WILL MOVE A LOAD FASTER. In reality, a trucker can only drive so fast—the perceived trade-o being a higher price for faster service. The ability to transport a load quickly is equally dependent on available capacity and the reliability of a carrier. –Dave Sutton COST/QUALITY/SPEED. There is a classic triad of trade-os often cited, namely cost/quality/speed. Pick two. The reality, though, is that these cannot really be traded o. An eective supply chain defines the minimum quality standards, and procurement meets them, trying to optimize for value (cost and time) while providing the required quality. –Joe Adamski Senior Director, ProcureAbility VP Business Development, Montway Auto Transport
14 Inbound Logistics • July 2025
Powered by FlippingBook