Supply Chain Discussion: The Rise of Worldwide Delivery Networks
Updated: Jul 18
In this interview, Russell W. Goodman, from Supplychainbrain talks to Niklas Hedin; the CEO of Centiro. They are a technology and cloud service for managing flows of goods for e-commerce, logistics and industry. And in 2021 he was awarded the EY Entrepreneur of the Year Award.
He speaks about how Artificial intelligence has a valuable role to play in optimizing delivery networks around the globe. He says that it seems that you can’t have too many connections to delivery networks — not in a world seemingly always facing disruption of one sort or another, while customer demands keep growing at the same time. How, then, do you navigate a challenge when your network is congested, or you need a new service for your customer?
“I think this is the very reason why delivery networks are rising on the scene,” - Niklas Hedin
He says, the goal is to digitally link retailers and warehouses with service providers, carriers and delivery networks of whatever kind, but be prepared for complexity to grow. And that, the more you connect with any of those, the greater the complexity.
“Let's first just accept that complexity is a requirement, because you need to satisfy the customer’s demands.” - Niklas Hedin
Here's where Nucleus would interject that partnering with a 4PL Supply Chain as a Service provider like us helps to manage and reduce that complexity. We are always and continuously managing the complexity of our customer's and our own supply chain network. That is what we do. Our multicustomer, multiservice provider network is complex but already built and always monitored, managed, tweaked and optimized.
As he says, success lies in working with good partners and having the right architecture in your supply chain. For instance, where onboarding a new carrier or delivery network used to take a year or so, it can be done now in two weeks with the right technology.
“So there are a lot of things going on that you need to balance, in order to get this right. But ultimately, I think the final message here is that there is a business decision to be made. It's not only a functional supply chain operation thing. It actually goes to the top line, because this connects to growth for many companies, and is the tool with which you can actually leverage and unlock growth.” - Niklas Hedin