The modern IT architectures, similar as stream processing and new technologies like the Internet of Things (IoT) and artificial intelligence (AI), have made it possible for logistics companies to reuse and dissect real time data in previously unimaginable ways. By using these technologies, logistics companies can gain real time visibility and a competitive edge by quickly and directly responding to demand changes or supply chain dislocations. In this composition, we will explore how to improve supply chain visibility with ultramodern IT architectures and new technologies enable real time data processing in the logistics sector and how companies can profit from these advancements.
With real time freight analytics, logistics providers can optimize routes, manage their lines, read demand, and make informed opinions that ameliorate effectiveness and reduce costs.
Also read: IoT Solutions for Logistics and Supply Chain Management
How to Improve Supply Chain Visibility?
Supply chain visibility refers to a company’s capability to track and cover the movement of products, accoutrements, and information across their supply chain in real time or in near real time. To improve supply chain visibility is both internal and external. Within your business, you need to know the position and status of orders and inventory. This is commodity enterprise resource planning (ERP) systems aim to give, although achieving responsibility and effectiveness in product can be grueling.
Why is Supply Chain Visibility Important?
Picture this, you just placed an order for raw materials, but you have no way of tracking its status. You have no idea when the order might arrive, meaning you do not know how long you have got to make current forecast. However, it will disrupt product schedules, taking transformation and overtime work to avoid late deadlines, if your order arrives too late. Also, if client demands change suddenly in terms of volume and product type, you might not have enough supply on hand to meet demand.
This is just one illustration of the impact a lack of supply chain visibility can have on your business. In the script over, client satisfaction is hovered — as is your business’ bottom line due to the increase in business charges. On the other hand, supply chain visibility can enable better decision making so you can optimize how your resources are used to satisfy your clients. Other crucial benefits include:
Obtain Measurable KPIs
Carrying measurable Key Performance Indicators (KPIs) is a significant benefit of supply chain visibility. Through real time tracking and data analysis, companies can quantify their performance criteria across the supply chain. You may want to consider tracking these important supply chain KPIs:
- Perfect Order Performance
This is the chance of orders delivered complete and on time with no errors or disagreement.
- Client Order Cycle Time
This dimension tracks how long the client waits to admit their products.
- Days Supply On hand/ Supply Development
These criteria indicate whether a business has further supply than it needs (or maybe not enough).
- Fill Rate
This measures the chance of single complete orders that do not bear subsequent shipments.
These measurable KPIs give practicable perceptivity for nonstop enhancement, enabling companies to make informed opinions that enhance functional effectiveness and client satisfaction.
Gain a Distinct Competitive Advantage
Data has long been a source of competitive advantage, and a company with excellent visibility into its supply chain operation conditioning has a substantial advantage over challengers that do not.
Granular and rather real time data enables planning because it predicts the appearance and movement of resources, factors, and orders. It can support sustainability enterprise, too, by helping reduce waste, especially in the realm of perishable goods transportation.
Forecast Supply Chain Trends
Past data is the foundation of forecasting. In the supply chain, forecasting includes determining the probability of a payload arriving in a defined window, cost increases, lead times, and more — occasionally called “ threat detention criteria . ” The thing of forecasting is to reduce query and variability, and ameliorate resource application. Good forecasts let a business reduce safety stocks, manage demand oscillations, and ameliorate client satisfaction.
Boost Customer Satisfaction
Clients are satisfied when they admit what they want, rather in the least possible time. KPIs like perfect order rate and fill rate help measure client satisfaction, although tracking these criteria alone won’t boost it.
Streamline Compliance
To improve supply chain visibility, it is required to be done globally to help business partners and allow smooth flow of products to the consumers. Accoutrements are uprooted and refined in one country, also packed to another, where they come the input material for manufacturing processes in a third country. Also, the finished product enters the distribution system, which may see it exported to a fourth country. All these movements and deals are subject to regulations and, of course, taxation. For illustration, there are rules about where raw resources can and can not come from, as well as tariffs and warrants assessed by some countries on others. Demonstrating compliance with all the applicable rules requires excellent visibility and attestation.
Also read: IoT Based Tracking System for Supply Chain Management
Enhancing Supply Chain Visibility With Aeologic Technologies
Modern supply chains are too complex to be managed effectively with spreadsheets, and are beyond what ERP systems can handle. Using the wrong supply chain operation product means risking dislocation to your product schedules and late deliveries to your customers. To learn further about how Aeologic Technologies results helps ameliorate supply chain visibility and make a further modern supply chain, communicate with our team today!
