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New Solutions for 21st Century Supply Chain ManagementThis article is the fourth in a series recapping the themes and issues most relevant to the future of the educational publishing industry, as told by the slate of expert speakers at AEP's June Educational Publishing Summit. This installment discusses the process of bringing a product to market using the emerging trend of fourth-party logistics. In order to remain relevant in the fast-paced and increasingly global marketplace, publishers will need to reexamine their supply chain and explore new ways of bringing products to market in timely and cost-effective ways. According to the presenters of "Supply Chain Survivor," a management session at the Educational Publishing Summit in June, some publishers have found solutions to these challenges in the emerging business component known as fourth-party logistics (4PL). "Successful educational publishing companies are based on a brilliant product vision that anticipates learning needs of students. However, at some point in this journey from vision to content development, to production and manufacturing, to shipping and delivery, to customer satisfaction, the need arises to actually deliver the essentially intangible educational products to the customer in a tangible manner," said presenter Todd Grant, CEO and founder of logistics management firm New Territories. "This component of business, known generically as logistics or supply chain management, is the process for which educational publishing executives typically have limited resources," added Grant. Global management consulting firm Accenture defines a 4PL as "an integrator that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build and run comprehensive supply chain solutions." A 4PL will typically supply services for product design, manufacturing, inventory management, order management, and distribution. According to the session speakers, incorporating such a concept into a company's business model can create several advantages. Speed - Exploiting a time-to-market opportunity is a key decision for most educational publishing companies. Using a 4PL partner allows a publisher to act quickly to convert an educational innovation into a product while the lead logistics partner (LLP) optimizes the supply chain to deliver that product to the market. Economics - Often publishing executives can see the economic advantages of 4PL in theory but cannot visualize a path to implementation. The LLP fills this need by demonstrating the expertise to exploit the advantage in practice. Technology - While publishing executives in this industry are by necessity on the cutting edge of advances in education, a dramatic advance in software, telecommunications technology or shipping and materials handling may escape their view. The LLP vigilantly monitors these and other advances and incorporates the benefits into the 4PL solution. Value - Educational publishing executives leverage the capacity of the company’s most precious assets - the elite professionals, product designers and team leaders - while the LLP handles the management, sourcing and delivery of the product kit. Differentiation - While great pains are taken to build an educational product that offers a clear difference in capability from the competition, that differentiation can and should be extended through the materials and packaging, and the speed of delivery of the product to the customers The sophisticated LLP is well attuned to changes in the marketplace and well positioned to make changes quickly. According to SupplyManagement.com, one should consider the following when choosing a lead logistics partner: * Execution of supply chain management * Extensive IT know-how * Capability to support globalization * Complete cost control and transparency * Successful implementation of continuous improvement initiatives * Capability of integration into existing organizations and environments * Moderation skills Questions, ideas, or in need of more information? Please contact Stacey Pusey at 302-295-8349. |
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