With increasingly longer supply chains, uncertain demand, and short product life cycles, transparency and reliability are becoming ever more important. A fragile supply chain and chronic disruption take its toll on any company's go-to-market strategy, thus impacting revenue streams, material commitments to suppliers, financing, and sooner or later overall profitability.
Together, the above mentioned present a very toxic cocktail. It is clear that being proactive also means being agile, and one needs to understand which variables actually present the risk that eventually will cause the disruption. Often these variables are "floating under the radar" causing surprise impacts. Hence, the reason to dig deeper.
In this case, information within the supply chain is essential. There are massive amounts of unutilized information offering very few stakeholders total information control. In today’s supply chain, pushing risk up and down the chain has become somewhat fashionable – yielding to sub optimization. However, the problem still exists somewhere in the supply chain with one party having to cover the remaining risk. This poses the question: could risk be totally eliminated if information was shared across the supply chain to increase transparency and predictability?
Talking to the different parties across the chain is simply not enough (albeit it is a good start). The supply chain needs the power of collaboration. Cooperation is great, but collaboration is more than just taking and making agreements. It’s about sharing mutually beneficial goals and targets across the supply chain, to prevent supply chain disruption from occurring from end-to-end. Sharing goals across the supply chain will not only reduce risk, but also eliminate it. In return, this will make the supply chain from end-to-end more predictable and reliable for all involved. And in the long run, this will reduce supply chain lead-time and cost.
Finnair Cargo wants to establish collaborative partnerships with the mutual goal of making the air cargo supply chain successful and a great experience. A strong collaborative approach between Finnair and our partners and customers has the ability to provide and dispatch solutions – where in due time will see products in the right place, at the right time and in the right condition. By utilizing the fastest connection between Europe and Asia, Finnair is able to offer shippers and consignees a reliable service, which ultimately enables a fast and responsive supply chain to work its magic. Thanks to this and supplemented with a collaborative approach, Finnair’s partners and customers will be able to capture sales opportunities and reduce excess inventory from warehouses and sales channels – all the while making the logistics and supply chain balance sheet healthier as risks are not only minimized, but removed.
I look forward to future collaboration and making your Finnair Cargo experience even better.
Head of Global Sales, Finland