{"id":255,"date":"2026-06-05T12:38:24","date_gmt":"2026-06-05T19:38:24","guid":{"rendered":"https:\/\/scmwithsekharv.com\/?p=255"},"modified":"2026-06-05T13:06:28","modified_gmt":"2026-06-05T20:06:28","slug":"trust-the-invisible-inventory-in-every-supply-chain","status":"publish","type":"post","link":"https:\/\/scmwithsekharv.com\/?p=255","title":{"rendered":"Trust: The Invisible Inventory in Every Supply Chain"},"content":{"rendered":"\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-1e06de483a8f0b98c46a889cc4204842 wp-block-paragraph\"><strong><em>Most managers think inventory, capacity and cash are assets.<\/em> <em>I learnt during a turnaround that trust can be an equally valuable asset.<\/em><\/strong><\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-4af8553d64444e2bae618d0a15e78849 wp-block-paragraph\"><em><strong>The Incident<\/strong><\/em><\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-57c4768711d950782ab48688b63f9cf1 wp-block-paragraph\">During one of my turnaround assignments as CEO of an export-oriented manufacturing company&#8230;&#8230;     &#8230;&#8230;..One day, a supply chain partner walked into my office with a problem.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-532c7952dab3eaedf13cc16955c45c68 wp-block-paragraph\">Acting on a verbal assurance from our VP-Marketing, he had positioned a container to lift export material from a subcontractor. Unfortunately, the expected Letter of Credit from the overseas customer had not materialized.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-981c77c48b297c111d0ff99d191b4895 wp-block-paragraph\">The container sat idle for three weeks.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-857212532320556632a97a4b04299126 wp-block-paragraph\">Demurrage charges mounted to an astronomical amount.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-6755697a54108aa6aa1594481c7a2f26 wp-block-paragraph\">Our VP&#8217;s defense was simple:<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-54dbf04d6edeffbacfff005c1614cb1e wp-block-paragraph\">&#8220;There was no written commitment.&#8221;<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-a552c1100e2163f9a8b342fc3eabaa36 wp-block-paragraph\">Technically, he was correct.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-c7fa0461171dca740c719eb921a70d8c wp-block-paragraph\">But I disagreed.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-307b17eb31f597beab63886f9be7f152 wp-block-paragraph\">I told him that a company&#8217;s integrity does not begin when a contract is signed. A word given to a supply chain partner is also a commitment.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-49155f55b27a368e4c02a8110abfd033 wp-block-paragraph\">We informed the dealer that the company would stand behind him and help resolve the issue.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-ac21eff5ce424ca7a6b74381c43c3dc3 wp-block-paragraph\">The next challenge was the demurrage itself.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-569547617d50152825832b5174d85988 wp-block-paragraph\">The transporter involved happened to be led by a gentleman with whom I had worked many years earlier. During that earlier association, I had always insisted on fairness, honesty, and transparent dealings.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-00748d575a97aafa4a3b861595f8a4c3 wp-block-paragraph\">When I explained the situation, his response was immediate:<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-21759536a185d182cd57e19ea9b88ccb wp-block-paragraph\">&#8220;No one should charge your company unreasonably.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>The Unexpected Outcome<\/em><\/strong><\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-e42ea9df12f9e67ca1887ecad48da459 wp-block-paragraph\">84% reduction in demurrage<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>The Long-Term Outcome<\/em><\/strong><\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-025c220e2ccf5763dc48a80d782849c9 wp-block-paragraph\">The same partner later helped identify the eventual buyer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Supply Chain Lesson<\/em><\/strong><\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-925a3b027db6b6e81df424dca20dc473 wp-block-paragraph\">Trust creates:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-835e4e9535b7b8e58d226e4e04c0580e\">Faster problem resolution<\/li>\n\n\n\n<li class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-7c7c00f72468923d1336c421ece4b5c4\">Better collaboration<\/li>\n\n\n\n<li class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-c287ad5b1bab47428ae9b0bbb6d74505\">Lower transaction costs<\/li>\n\n\n\n<li class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-0c8ca22a398f0b7dbe61a37638e8403e\">Greater resilience during crises<\/li>\n\n\n\n<li class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-06b5d5e8e4e630c9ecb213a556cdaa49\">Long-term reciprocity<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Modern Relevance<\/strong><\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-965036c22e21c5c3b2e4d7866eb64a70 wp-block-paragraph\">In an age of AI, analytics, ERP, and automation:<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-e6a2a038fd6d1af2b52b46500526a218 wp-block-paragraph\">Relationships still matter.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-303ce659fe2dd11c2eb9ff3e4573323f wp-block-paragraph\">And relationships are built on values.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Conclusion<\/em><\/strong><\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-2b39ef7445492517330b1eb9002b6e0b wp-block-paragraph\">Modern supply chains are increasingly powered by AI, advanced analytics, ERP systems, and digital platforms. Yet, when disruptions occur, it is often trust\u2014not technology\u2014that determines how quickly problems are resolved. My experience taught me that integrity is not merely a personal virtue; it is a strategic asset that compounds over time. Like inventory, it must be built patiently. Unlike inventory, its value often becomes apparent only when a crisis occurs.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-06c452a0f7b013b33aec6e6f59df5fb6 wp-block-paragraph\">A supply chain may be driven by systems and processes.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-a8d2be64a56743bd081f5c91af873812 wp-block-paragraph\">          But it is sustained by credibility.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-340c5fa0425f497fa8f8493b68746bfe wp-block-paragraph\">          AI can improve forecasting.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-c371a9112b4e58407160ccb6e6991d28 wp-block-paragraph\">          Analytics can optimize inventory.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-02f72b6c6a2881878a3d15c268b11758 wp-block-paragraph\">          ERP can improve visibility.<\/p>\n\n\n\n<p class=\"has-ast-global-color-0-color has-text-color has-link-color wp-elements-4a31bccd8bf11e1535aaf69dbb9fd3ae wp-block-paragraph\"><strong><em>But trust remains the invisible infrastructure that enables supply chains to function when unexpected events occur.<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most managers think inventory, capacity and cash are assets. I learnt during a turnaround that trust can be an equally [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[48,1],"tags":[53,51,15,16,20,52,39,54,49,43,50],"class_list":["post-255","post","type-post","status-publish","format-standard","hentry","category-supply-chain-leadership","category-uncategorized","tag-business-ethics","tag-core-values","tag-cpim","tag-cscp","tag-ctsc","tag-executive-leadership","tag-operations-management","tag-supply-chain-certification","tag-supply-chain-leadership","tag-supply-chain-transformation","tag-trust"],"mb":[],"mfb_rest_fields":["title"],"_links":{"self":[{"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=\/wp\/v2\/posts\/255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=255"}],"version-history":[{"count":5,"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=\/wp\/v2\/posts\/255\/revisions"}],"predecessor-version":[{"id":262,"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=\/wp\/v2\/posts\/255\/revisions\/262"}],"wp:attachment":[{"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scmwithsekharv.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}