Collaboration And DSD
by: Paul Winkler
Director of Marketing
NCS - Numeric Computer Systems, Inc.

Feb, 2004

 
Collaboration And DSD: Perfect Partners

You can’t open a trade magazine or look at an e-newsletter delivered to your desktop that doesn’t have the term or an article about "collaboration." Taken to a deeper, more basic level, collaboration is really effective communication and understanding between two entities creating mutual value. Kind of takes the magic out of it, doesn’t it?

The road to collaboration:
The excitement around collaboration centers mainly on the benefit that can be derived for both trading partners that practice it. It all comes down to dollars, either making more or saving more and that’s the enticing and exciting part. The tougher part is the roadmap to get to that level of collaboration that, if taken to ultimate CPFR levels, demand and supply partners will some day link arms and sing "Kumbaya" to kick off a planning session. Most partners are far a way from that day, but we’re heading in the right direction.

Do you think technology when you think "collaboration"? You shouldn’t, at least not right away. Yes, technology is an enabling tool but if things are done wrong within your organization, technology will just replicate those mistakes faster. So, the first step on the journey to "collaboration," should start with a good hard look within your own organization first.

So, what’s blocking the road to collaboration?
Basic human traits haven’t changed in eons. Humans tend to fear both the unknown and failure and they have a tendency to place self-interests first. For the more negatively inclined: pain avoidance is the main roadblock of true collaboration.

Yes, you will always have folks that rise above their primal-like instincts. Despite the fact that we think we’re hip and "agents of change", the general population as a rule doesn’t like change all that much. Change takes work above and beyond the normal daily frenzied pace and workload. There’s the risk of failure that never looks good to those who you work for. Additionally most corporate cultures are individually focused with groups or departments that are charged with conflicting goals.

Classically, functional groups still work in functional silos. For instance the sales department’s single focus is to pull in revenue, while the operations group of the same company is tasked with reigning in costs. These groups often see each other as adversaries rather than partners in a greater mission. Leadership needs to address the internal and complex interdependency of each department before attempting to start collaborating with another company that, most likely, needs to address the same issues as well.

A naturally collaborative group walks among us:
Technology is changing so darned fast that user generation gaps are forming between middle school, high school and college age students. Introduction to technology and its application starts in the early elementary school years. For example, my first grader brought home her computer lab introduction. They will be learning about links on the Internet, what a network is, what a server does, storage options and how to burn favorite files onto CDs.

However, it’s at the high-school level where kids become a fully inter-networked demographic. They literally have the world at their fingertips and are never seen far from their mobile phones. Time and distance between peers becomes a non-issue for them. Near or far, a group of friends stay in constant touch with each other either by e-mail (good), instant message (better), text message (better yet) or mobile phone (best).

This is more than a passing fad and it’s done more than just for fun. It’s a social phenomenon driven by a technology that these kids were born into and raised up on. They don’t care as much about the underpinnings of the technology as much as its application to their lives. For the average teen, it’s all about constant communication and the mobility this technology provides. Technology is changing the way things are done, redefining rules of play at home at school and at work.

Communication And DSD Operations
The entire DSD team is a mobile workforce. Drivers, sales representatives and merchandisers all work outside the physical enterprise generally with little contact with the office except at the start and end of the delivery day.

Efficient DSD is all about constant communication and mobility. Unfortunately, we haven’t adapted available technology to our needs as fast as the teens have. (It could be in part that they are scheduling parties versus receiving times)

Operational inefficiencies experienced by DSD companies can occur anywhere along the supply chain. Communication is at the root of supply-chain efficiency. It affects strategic level decisions on new markets or products, and tactical issues such as dealing with balancing inventory levels of multiple SKU’s throughout the supply network.

However, it’s the DSD team that are required to respond to problems that occur due to changes regardless of when or where they occur along the supply chain. Like the game "crack the whip" where the kid at the end of the human chain on the playground tries to hold on against the forces created from the slightest movement made by those up the chain, DSD operations bear the brunt of changes and adjustments that occur throughout the supply chain.


Paul J. Winkler is director of marketing and alliances for Numeric Computer Systems, Hauppauge, NY. He has 20 years experience in the consumer packaged goods industry, working primarily in food distribution and logistics.