Tune into how Compass is redefining supply chain partnerships:
Host 1 (00:00):
Hi. Thanks for listening. We’re exploring a topic that’s been making headlines for years, supply chain disruptions,
Host 2 (00:08):
But we’re taking a fresh perspective focusing on how companies can transform these challenges into opportunities by building trust and collaboration with their suppliers, ultimately turning them into deeply seeded partnerships.
Host 1 (00:20):
That’s right. Specifically, we’re going to look at how the traditional transactional relationship in supply chains can evolve into something more resilient, innovative, and efficient.
Host 2 (00:30):
And we’re going to talk about how Compass data centers a leader in data center development, has reimagined their approach to supply chain management, to not just survive disruptions, but to thrive in spite of them.
Host 1 (00:42):
Host 2 (00:46):
It’s something we’ve all heard about supply chain disruption,
And in recent years, it’s felt like it’s everywhere, right? First covid, then extreme weather events, material shortages, and disruptions happening all over the world, and in the data center industry, that impact has been even more pronounced. But what if we said, this disruption doesn’t have to be a given?
Host 1 (01:03):
Yep. Many supply chain disruptions actually come from the very nature of the relationship between businesses and their suppliers. You see, a lot of companies focus solely on getting the lowest prices for materials and components, which while cost-effective in the short term, can result in missed opportunities for stronger, more collaborative relationships with suppliers.
Host 2 (01:24):
This is where Compass data centers really differentiated themselves. They decided to rethink the entire supply chain process instead of just focusing on transactions, they set out to build a supply chain that was not only flexible and resilient, but an actual driver of innovation.
Host 1 (01:41):
This isn’t just theory. The benefits have been clear, faster timelines, lower costs, new service models and products, and most importantly, partners who are truly helping them thrive in a fast changing industry.
Host 2 (01:55):
So they didn’t just rethink their supply chain, they redefined how they work with suppliers.
Host 1 (02:00):
That’s right. Compass doesn’t even have a typical procurement function. They have what they call an innovation function. It’s all about a shift in mindset.
Host 2 (02:10):
So rather than seeing suppliers as mere vendors, compass sees them as partners, and this shift is what’s helped them tackle challenges head on and navigate disruptions with a sense of unity.
Host 1 (02:21):
Compass started meeting with their supply chain partners on a weekly basis, and that regular cadence of communication isn’t about checking boxes, it’s about transparency. They’re asking questions, sharing challenges, and making sure there are no surprises down the line.
Host 2 (02:38):
Yeah. That transparency is key, right?
Host 1 (02:41):
Right.
Host 2 (02:41):
It’s not just about keeping the suppliers in the loop. Compass also meets with customers frequently providing updates on potential supply chain issues. They take an all hands on deck approach to ensure that available materials stay in the pipeline, keeping projects on track.
Host 1 (02:56):
It’s that kind of openness that lets them find solutions in real time, which is critical when disruptions inevitably happen.
Host 2 (03:03):
I love that and research backs it up too. McKinsey found that companies who regularly collaborate with their suppliers tend to see higher growth, lower operating costs, and better profitability.
Host 1 (03:15):
For Compass. That’s been a reality. The collaboration with their supply chain partners has led to tangible dividends.
Host 2 (03:21):
But let’s get into the real world examples. One of the most interesting partnerships has been with Schneider Electric
Host 1 (03:28):
At the start of this decade, as data center development exploded, Schneider needed to expand their ability to deliver power centers fast, but without the usual risks of securing land and infrastructure. So Compass invited them to be their neighbor. They had the land, the power, and the capacity to build the facility. Schneider needed.
Host 2 (03:49):
And this collaboration didn’t just benefit Schneider. It was a win for Compass too. By co-locating, Schneider could quickly integrate their power modules and test their uninterruptible power supplies right next to Compass’s campus.
Host 1 (04:03):
This partnership accelerated delivery times and improved efficiency for both companies. And bonus by locating the Schneider integration facility at Compass’s campus, compass has avoided the equivalent of 2600.26 metric tons of CO2 and reduced emissions from transportation.
Host 2 (04:22):
Incredible. It’s really an example of the power of collaboration. The trust they built meant both teams were working toward the same goal solving problems together. When the inevitable challenges popped up, they were better positioned to weather the storm.
Host 1 (04:36):
That’s it. And when you have these close knit partnerships, you can respond to market forces more quickly.
Host 2 (04:43):
Take Compass’s relationship with Vertiv, for example. Compass knew they needed a new cooling system to meet the needs of ai, but needed a solution that wouldn’t involve a full redesign or costly retrofit of their data centers.
Host 1 (04:54):
Right? And that’s where the close collaboration paid off. Instead of going down the expensive and time consuming route of retrofitting, compass engineers collaborated with Vertiv to develop a hybrid system that could flex between air and liquid cooling, providing the energy efficiency and flexibility their customers needed for their AI or cloud compute, all without major changes to the existing infrastructure. It literally plugs right in.
Host 2 (05:21):
This kind of innovation wouldn’t have been possible without that close partnership. Today, these Vertiv cool phase flex units are already being deployed. It’s incredible to think about the speed in which they brought this idea to the market
Host 1 (05:34):
Within a year. It went from inception to reality, and is meeting the demand for AI while also being cost effective. This is a perfect example of how building trust and intimacy with your suppliers can lead to real breakthroughs.
Host 2 (05:49):
Real breakthroughs for sure, and the supply chain can always improve. It can always be more flexible, more efficient, more resilient. With Compass’s continuous improvement mindset and a strong foundation of trust, every challenge becomes an opportunity to discover better ways of doing things.
Host 1 (06:07):
A closely coupled supply chain where suppliers and businesses work as true partners is clearly the future, but it takes time, effort, and most importantly, mutual trust. When companies come together with this mindset of transparency and innovation, they can tackle challenges as a team turning every obstacle into a competitive advantage. And Compass is living proof of that
Host 2 (06:31):
By building strong long-term relationships. Compass has created a supply chain that’s not just about getting the job done, but about pushing the boundaries of what’s possible.
Host 1 (06:41):
We hope you’ve enjoyed this. Look into how trust and collaboration can transform supply chains from transactional to transformational.
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Schneider Electric Opens Data Center Integration Facility in Red Oak, TX
