In the contemporary world, real-time information is crucial in a dynamic market because it gives transporters the visibility they need to navigate supply chain interruptions.
What do we talk about when we say Real-time visibility in Logistics or Supply Chain?
Real-time visibility in the supply chain refers to tracking and monitoring the movement of goods/materials as they move through the various stages of the supply chain. This can be achieved through the use of various technologies such as RFID (radio-frequency identification) tags, GPS (global positioning system) tracking, and sensor-based monitoring systems.
To achieve real-time transportation visibility in the supply chain, companies typically need to invest in the necessary technologies and infrastructure, as well as establish processes and systems for collecting and analyzing data. Additionally, they may need to work closely with partners and suppliers to ensure that they are able to access the necessary data and track the movement of goods throughout the supply chain.
Traditional vs Modern Supply Chain Management
All processes that tend to turn raw materials into final commodities are typically included in supply chain management (SCM). It comprises the purposeful simplification of a company’s supply-side procedures in order to increase customer value and obtain a competitive advantage in the market.
Traditional supply chains solely pay attention to production and distribution, whereas modern (digital) supply chains pay attention to customers’ demands and work to increase the value of the goods they receive from manufacturers.
The businesses involved in the contemporary (digital) supply chain add value to the end product for the customer by improving real-time information availability in the supply chain. Contrarily, the conventional supply chain lacks such tactics to raise the value of the final product.
New-Age Technology Trends Shaping Next-Gen Supply Chains and Logistics Tracking
Modern SCM incorporates contemporary tactics and technologies while conventional SCM uses outdated techniques. Some of the major technologies used by modern SCM-
Internet of Things (IoT)
The technology that connects objects without a lot of human intervention is known as the Internet of Things (IoT). Future IoT deployments are anticipated to boost connectivity speed and lower overall costs by giving users access to real-time information availability in the supply chain.
Artificial Intelligence (AI) and Cloud Computing
Big data is produced by supply chains, and cloud-based AI transforms that data into insights. Companies are adopting these technologies to analyze full-cycle supply chain management, execution, predictive, and data analysis.
Robotic Process Automation
Robot use is anticipated to increase significantly over the next five years, particularly in supply chain processes that involve low-value, potentially hazardous, or high-risk duties. Applications for robotic technology include last-mile delivery, automated vehicles including drones, trucks, and trains, as well as storage and retrieval systems (ASRS).
Blockchain
It is one of the technologies that have the potential to enhance transparency and real-time visibility in supply chain operations. Since it creates an irreversible record of transactions, blockchain technology is well suited to tracking the provenance of goods and fostering trust in shared supplier information.
Issues Caused Due to Lack of Real-Time Visibility in Supply Chain & Logistics
Real-time transportation visibility capabilities have revolutionized the way businesses carry out logistical operations. Organizations that do not make use of this cutting-edge technology are experiencing serious difficulties. Lack of real-time visibility into delivery activities causes inefficiencies across the SCM-
Client Churn
Every firm should be aware of its customer churn rate because it has an impact on overall success. The rate of customer attrition is increased by the lack of real-time transportation visibility. This is due to the fact that contemporary clients demand end-to-end delivery transparency and will only stay engaged with companies who keep their commitment to give correct information along with on-time orders.
Rising Overhead Expenses
It’s crucial to monitor any potential problems in the supply chain that can result in needless wastages, whether it’s via reducing fuel use or reducing product damage. The only solution that enables managers to be informed of all changes that take place throughout the supply chain is real-time visibility. Poor visibility can cause errors, increase the risk of theft, and even products to get damaged while in transportation.
Inaccurate Data
Planning, allocating, and tracking deliveries as well as assessing the performance of delivery workers are all made easier with real-time insight. Setting benchmarks for deliveries is a crucial KPI in order to comprehend and plan for future requirements and to make sure that the delivery process runs properly.
Delayed Deliveries
The supply chain is under the scrutiny of many parties. Confusion and turmoil can result from a lack of real-time transportation visibility because it is nearly hard for the stakeholders to locate the shipment. The delivery of the order is delayed in the absence of precise information regarding the location of the vehicle, the performance of the driver, the ETA, and on-ground activities.
Components of Supply Chain Visibility
Data-collecting operations used to increase supply chain visibility span a range of activities. Some of the common data gathered in real-time visibility include the following:
- Order status- Operational efficiency is ensured by real-time awareness of transporting goods across the supply chain because the business is able to plan for the distributors’ delivery of its products.
- Reviewing records- This covers a variety of compliance and regulatory data for the entire supply chain. This is essential to ensuring that corporate operations are carried out legally.
- Shipping information- This also offers current information on the delivery of items. The information can be instantly shared with any interested parties using supply chain visibility (SCV) software.
Major Steps to Ensure Real-Time Visibility
Decision-makers want advanced management solutions and data analytics technologies that can transform real-time reports into actionable knowledge to support modifications or future goals in order to create an integrated, real-time supply chain. Here are a few steps to ensure real-time visibility-
Integrate systems- You can build a connected supply chain that operates at optimal efficiency and breaks down silos by connecting your people, applications, robots, and information. A holistic perspective of all the activities involved and how they are operating both independently and in relation to one another is provided by proper integration.
Closely collaborate with stakeholders- Transparency between suppliers, distributors, and retailers is increased when information is shared within your network of stakeholders. This makes it simpler to keep tabs on their contributions and to record any problems that might affect the delivery of the finished product.
Map operations- Your comprehension of the overall process execution can be aided by outlining the specific phases that make up a process and the connections between each step. By doing this, bottlenecks or unnecessary actions that are creating delays can also be found. Once the inefficiencies have been identified, you can map and simulate a different, better process.
Make use of data- The data from the real-time visibility in supply chain can help you understand how well your operations are performing. You can decide where and how operations need to be enhanced by doing an analysis of the data gathered from supply chain activities.
Top 5 Crucial Benefits of Supply Chain Visibility
All the benefits of increased supply chain visibility result in better workflow and higher earnings. Visibility also enables organizations to lower prices for clients. Let’s examine a couple of additional significant advantages of real-time visibility in the supply chain –
Mitigate Disruptions
Running a real-time visibility in supply chain with a solid foundation in data analysis and communication will reduce the possibility of obstacles and produce remarkable results. The likelihood that disruptions would cause issues is decreased if you are aware of where they might occur beforehand.
Enable Agility
With visibility, you can stay ahead of all the challenges that come with running a supply chain and make the necessary adjustments to increase productivity under any conditions. Having the ability to be flexible is one of the key aims and advantages of supply chain visibility.
Delightful Customer Experiences
Consumers nowadays are more technologically savvy and well-equipped than ever before. They anticipate better and quicker delivery from companies in all industries. Businesses have acknowledged the value of making logistics operations client-centric because customer happiness is the ultimate goal for firms.
Effective Adherence to Regulations
Government regulations must always be followed in order for operations to run smoothly. Real-time transportation visibility enables businesses to manage their operations appropriately due to the variety of legislation relating to transportation, environmental protection, and road safety.
Results Driven by Data
You can access a lot of supply chain data if you have visibility into every part of your supply chain. With the aid of technology processing of this data and the analysis of an expert consultant, shippers can make swift, informed decisions that will improve the success of their supply chains.
Embracing Digitalization for End-To-End Supply Chain Visibility
In conclusion, having real-time supply chain visibility is invaluable because it prepares you for the future by giving you a proactive mindset. Supply chains have traditionally been constructed with an emphasis on logistics. However, the industry as a whole has changed due to the growth of digital supply chain networks. The secret to improvement has always been to analyze the flow of commodities as they enter and exit factories or warehouses.
Being an industry leader, Axestrack is redefining the future of supply chain and logistics by streamlining the overall business operations. We help forward-thinking businesses that want to speed up processes by saving costs and surviving the downturn. In order to provide end-to-end visibility, we tend to integrate precise data and processes together onto a single, unified platform.
