Today is our second to last day in Cyprus (already!), and we visited GAP Vassiliopolous Group to learn about the integrated services they offer businesses. GAP handles logistics through the entire supply chain, meaning businesses only have to deal with one entity for supply of product. For example, a business can use GAP’s software to know when and what to order. Then, when they place an order, GAP works with its partners such as Hapag-Lloyd to transport the goods by sea for example. Upon arrival, GAP joint-venture partners DP World (sea) or Swissport (air) handle their arrival. GAP’s own warehousing services and fleet of 350 vehicles, which make over 3500 stops a day in Cyprus, move the goods to their destination, where GAP’s merchandising services can even display them on shelves. These services, plus more, greatly streamline and simplify businesses’ ordering and stock handling processes.
This is important because modern supply chains demand not only responsiveness (flexibility), but efficiency (low cost). Dr. Vassilopolous, the group’s Executive Director, explained this concept to us. In today’s economies of scale, customers demand flexibility AND low cost: one model exclusively is no longer sustainable for growth. An example Dr. Vassilopolous gave involves Coca Cola. GAP handles Coca Cola’s distribution in Cyprus, and delivers to its customers on a set schedule (efficiency). However, Coca Cola may call to inform them of a new customer who needs an immediate delivery the next day (responsiveness). If GAP is unable to achieve both, they will lose Coca Cola as a customer. This concept of having “legile” (i.e. both lean and agile) supply chains was also discussed at Asbis, the technology distributor we visited a few days ago. This method minimizes overall costs, reduces lead times, and gives customers greater flexibility. Unsurprisingly, therefore, it is demanded by customers in today’s economy. This was very interesting to learn, as our studies before departure focused on the two models as separate. However, the reality, as we have clearly seen, is more complex.
