Tag Archive for: supply chain provider

Why Businesses Must Look for More Than Supply Chain Visibility

Businesses today have more resources and technology than ever to manage their logistics processes. So why did a recent Business Continuity Institute report state that two-thirds of them lack end-to-end visibility into their supply chains?

Juggling logistics providers, inaccurate data and outdated processes are all prime culprits behind poor visibility. As more global shippers rely on multiple carriers to mitigate risks and costs, establishing a single source of truth for all logistics information is a challenge.

Many shippers check three or four carrier systems directly for updates or circulate error-prone spreadsheets via email, slowing down their workflow and causing confusion. Information supplied by carriers can also be riddled with errors, yet incorrect data often slips through unnoticed by time-strapped employees and makes supply chains even more opaque.

True visibility into each step of the supply chain is essential for peak operations, particularly in today’s uncertain global landscape. The Business Continuity Institute’s 2016 Supply Chain Resilience Report found that 70 percent of businesses had experienced at least one disruption over the past year, ranging from IT outages to supplier insolvency.

To remain competitive, businesses need the technology, processes and systems to identify where products are and redirect them quickly around the globe.

A focus on real-time technology

As shippers seek greater visibility and control over their freight movements, the supply chain tech industry has seen several notable acquisitions this year aimed at delivering a new level of service to customers. “Real-time visibility” is the promise for many of these providers, offering businesses the ability to see every SKU’s path through the supply chain as it occurs.

But technology is only one piece of the solution. How helpful is total visibility if you can’t manage the massive amount of data produced? Does it matter if you receive real-time carrier updates if the information is wrong?

A better approach involves combining the right technology with the human capital to establish and support effective logistics processes.

A holistic supply chain partner combines systems, logistics expertise and service to ensure you can see and manage everything you need to — and nothing you don’t. Here are two areas where the right solution can help you go beyond real-time visibility.

1. Gaining transparency, not just visibility.

While visibility means having a full view into your supply chain operations, transparency means empowering the right people at the right time with the right information — and the ability to adjust as needed. This requires building your supply chain platform around your business rules, so you can manage by exception, rather than having to wade through a deluge of data for every shipment.

One often overlooked area is the actual production process. As shippers use just-in-time methods to pare down inventory levels to the essentials, an overseas factory that doesn’t hit its manufacturing target can mean delayed shipments and unhappy customers.

For one business with a five-step production process, a lack of information about what was perceived as insignicant to production progress resulted in signicant ongoing issues downstream.

By working with a supply chain provider to establish a platform that offered complete insight starting with the purchase order, the company was able to spot any items that didn’t meet expected lead times, adjust shipping timelines where necessary and identify long-term trends that allowed it to operate more efficiently.

While a robust technology platform is the backbone of a successful supply chain, businesses need to devote ongoing resources to determining which areas they can manage via exceptions and monitoring new areas for potential cost savings.

For lean internal teams, a third-party provider can offer the industry knowledge, such as sourcing international carriers for a company for the first time, that enables greater supply chain transparency and control.

2. Ensure data accuracy, not just speed.

Aggregating real-time data is a major focus for today’s supply chain tech players. But without the assurance that a carrier’s estimated time of arrival or spot rate is accurate, receiving data fast doesn’t do shippers much good.

The carrier industry is not historically known for attention to detail, a critical component of the data communication process. Claims by many providers to provide visibility alone, without accountability for its accuracy, is often misleading and, in many cases, irresponsible.

For example, Maersk reported that 12 percent of its shipper invoices had errors in 2013, according to JOC.com, while several industry observers estimated overall error rates of up to 25 to 30 percent. For businesses already overloaded with logistics tasks, poring over each carrier document in an attempt to glean data and determine their validity is neither reliable nor feasible.

A supply chain provider with the right resources, technology and commitment to service can scrub data in near-real-time, using algorithmic intelligence to determine whether it’s correct. If it’s not, they’re responsible for following up with the carrier to reconcile errors and omissions, enabling your business to make data-driven decisions.

For example, if one of your carriers consistently delivers later than stated, having that information at your fingertips can help you choose a better alternative for the next shipment.

3. Beyond visibility.

Achieving true supply chain visibility starts with understanding not only what’s possible, but what’s best for your business. By working with a supply chain provider, organizations can build a more transparent supply chain that offers unprecedented control over operations, allowing them to deliver a better experience to their own customer.

Article written by Blake Shumate. Blake Schumate co-founded American Global Logistics in 2007 as part of an accomplished team of logistics professionals. With more than 20 years of global logistics experience, he currently aligns IT, process improvement and service operations to drive positive customer experiences as AGL’s chief operations officer. Contact him at bshumate@americangloballogistics.com.

Creating a Successful Supply Chain in a Customer Experience-Focused World

For organizations with complex shipping operations, the supply chain offers one of the best opportunities to impact customer satisfaction directly.

In the “Age of the Customer,” it’s no surprise that nearly three-quarters of businesses say improving customer experience is their top priority. For organizations with complex shipping operations, the supply chain offers one of the best opportunities to impact customer satisfaction directly.

An effective supply chain can delight customers through timely service and clear communication, while late or inaccurate deliveries erode customer trust fast. As shippers seek to meet growing customer expectations, many are turning to process enhancements across the supply chain. In a recent retailer study, for example, 71 percent said they need to improve access to clear order, consumer and carrier data for shipments to deliver a quality customer experience.

With unpredictability lurking throughout the supply chain, getting goods to the right place at the right time also requires proactive, around-the-clock management. From capacity crunches to an unexpected call from regulators, shippers need deep supply chain expertise and careful attention to detail to find solutions that minimize impact to their own customers.

A Shared Focus on Customer Experience

To help them manage increasingly complex supply chain operations, 90 percent of Fortune 500 companies now rely on third-party logistics providers, a figure that has doubled since 2001. These partnerships go far beyond the transactional: Three out of four shippers say they depend on their supply chain partners for innovative ways to enhance logistics effectiveness, a recent Council of Supply Chain Management Professionals study found.

As businesses seek to enhance the customer experience, a supply chain partner equally focused on customer satisfaction—both for the shipper and its customers—is key to meeting that goal. By combining technology, processes, industry relationships and service, the right provider can help businesses build stronger customer relationships in the following ways:

  • They create efficient technology-driven processes. From spreadsheet-based processes to outdated systems, many businesses lack the right technology to manage operations effectively. Two-thirds of retailers, for example, say their current systems do nothing to improve the customer delivery experience. A partner that offers a single platform for all data, from purchase order to final destination, can help businesses can gain a clear view of the entire supply chain. Features like exception-based management allow shippers to identify what needs attention and head off potential issues quickly, rather than wading through data on every shipment. That said, technology alone won’t deliver the supply chain control that large shippers need. As businesses juggle a changing mix of shipping locations, modes and carriers, a dedicated provider that understands their supply chain and their business can help them adapt systems and processes accordingly.
  • They help shippers address issues when—or before—they arise. When you’re facing apotential disruption, speed and expertise are essential to fix problems before they spiral. A supply chain provider who takes the time to understand customers’ shipping preferences, employee workflows, reporting requirements and business rules can oer immediate, knowledgeable support. For example, when U.S. customs officials contacted one tire distributor with questions about countervailing duties, the business turned to its supply chain partner for assistance. The provider attended an on-site interview and gave a thorough overview of distributor’s import compliance program, helping the business avoid a potentially lengthy audit and importing issues that could have compromised customer deliveries.
  • They ensure accuracy. Providers that offer a dedicated support team to each business can help ensure nothing falls through the cracks, keeping the shipper’s customers happy while allowing the business to focus on other priorities. That point of contact is accountable for verifying data, shipping milestones and other due diligence needed to move goods around the globe. This allows businesses to reallocate internal resources, focusing on other aspects of the business to create differentiated customer experiences.

Choosing a Provider

As your business consider potential supply chain partners, do your research to uncover which ones are as devoted to customer experience as you. Network with companies both in and out of your industry, develop a short list of candidates, and review key analyst and research insights to find the right fit. By combining hands-on support, technology and logistics services, a dependable partner can be a valuable asset in your company’s efforts to deliver customer experiences that are memorable for the right reasons.

Article written by Blake Shumate. Blake Schumate co-founded American Global Logistics in 2007 as part of an accomplished team of logistics professionals. With more than 20 years of global logistics experience, he currently aligns IT, process improvement and service operations to drive positive customer experiences as AGL’s chief operations officer. Contact him at bshumate@americangloballogistics.com.