Visibility Platforms Won’t Fix Broken Supply Chains
As technology and the accessibility of real-time information have improved dramatically over the years, the freight and logistics industry has become fixated on the importance of data, tracking and dashboards when it comes to having more visibility and improving decision making across their supply chains. However, while access to data certainly provides more information about what is taking place behind the scenes, the reality is that, in many cases, companies’ ability to make sense of the data and translate it into action hasn’t kept pace. As a result, despite having more information at their fingertips than ever, delays and inefficiencies still occur.
At the core of this issue is that visibility alone isn’t enough. For example, while companies may be able to see that multiple shipments from the same facility are late, knowing this information is only half of the battle. Visibility is obviously important, but without operational, structural and decision-making expertise in place, poorly orchestrated supply chains will continue to function at suboptimal levels.
More Data ≠ Better Outcomes
As visibility data took the freight and logistics industry by storm in recent years, many companies suddenly became aware of blind spots in their own supply chains and opted to make investments in data and technology to overcome them. These blind spots and shortcomings became magnified during the pandemic, when customer spending on goods increased since they were unable to travel. With increased spending came heightened expectations for fast shipping and visibility into the process at every step, and companies were expected to rise to the challenge or risk losing business to competitors.
Today, there is no shortage of data or technology promising to solve for companies’ inefficiencies by providing end-to-end tracking, real-time data feeds and predictive ETAs for shipments. However, while visibility was sold to companies as the solution to their supply chain complexities and customer demands, data and information alone do not solve for them.
Reasons for this include:
• Confusion among teams: Giving teams access to more data without clear direction and areas of focus can become overwhelming and make it difficult to know what to prioritize.
• Siloed information: Data that exists across multiple platforms and sources makes it challenging to see the full picture and take action.
• Unclear next steps: Data may make it easier to quickly identify where an issue exists, but when multiple teams are involved, lack of clarity or communication about what should happen next often leads to lack of action altogether.
• Lack of ownership: In order for data to be valuable, decisions need to be made quickly to address issues before they become larger problems. Having priorities and processes in place to define clear ownership of the next steps that need to occur when specific issues are identified is critical to avoid decision latency.
• Process fragmentation: In addition to data living in siloes, different teams and partners often utilize different systems and workflows that don’t always align. In these instances, visibility tools often sit on top of problematic processes rather than fixing them. At the end of the day, companies can’t expect transformation if underlying inefficiencies aren’t addressed as well.
• Execution gaps: Proper execution requires precise planning, preparation and flexibility with regards to transportation, warehousing, labor and more to address unexpected issues. For example, if a shipment is delayed, having knowledge of the delay is useless in trying to get it back on track if capacity isn’t available for transport.
The Missing Piece
In order for companies to truly benefit from data and visibility tools, they need to focus on structural changes and new processes for taking action once issues are identified. This entails coordinated decision making, aligned workflows, understood priorities, clear owners of next steps and responsive execution across all teams involved. Beyond dashboards, teams need integrated systems that provide a shared, real-time view of performance and quickly identify gaps or risks. Adding automated, rule-based decision making can also help clarify next steps across teams, while AI-driven triggers can automatically respond to pre-defined conditions, reducing manual effort and easing the burden on internal teams.
The companies who benefit most from visibility tools emphasize action over information, making sure that their internal processes and teams are aligned in addition to having the right tools in place. This also entails clearly defining and prioritizing exceptions rather than reacting to every individual notification they receive. By designing their processes for adaptability, teams can effectively create the bridge between execution and insight, define clear action and ownership across teams, and build a solid foundation to scale their operations as they grow.
If your supply chain could benefit from assistance with streamlining communications and operations to make the most of your data, our experts would love to help. Click here to get the conversation started.
