What’s Wrong With the State of Supply Chain Visibility?
Indicators That Supply Chains Need Visibility Improvement
- Increased rate of late or missed deliveries. More late deliveries will lead to failures to fulfill guarantees, opening the doors to even higher freight spend per package.
- Poor customer service ratings. As deliveries fall by the wayside, customer service will suffer.
- Higher freight spend. Carriers, while still accountable for some late or missed problems, will also charge higher rates for shippers that have inaccurate delivery data or fail to meet pickup schedules.
- Lack of accountability among your carriers. A lack of accountability will lead to abuse of your dock schedule and even may lead to unauthorized, unnecessary accessorial and surcharges.
- Poor dock management practices. Poor dock management will create bottlenecks in order fulfillment.
- Reactive fulfillment strategies. Responsive strategies lead to higher inventory carrying costs, including the risk of “out of stocks.”
- Not using dropshipping, cross-docking, and just-in-time fulfillment models. Not using fulfillment models that eliminate the physical inventory in your warehouse will result in money on the proverbial table, frustrated customers, and higher stress on your facilities and workers.
How to Ensure Better Visibility Within Your Organization
- Implement real-time data collection sources and solutions that exist on the market today.
- Upgrade your TMS.
- Use advanced TMS enterprise visibility functions that integrate real-time visibility data to understand shipping activities at a moment’s notice.
- Take advantage of EDI or API based carrier onboarding processes.
- Aggregate data with self-reporting systems and automated reports.
- Use advanced analytics to understand supply chain activities.
- Deploy automated alerts and dashboards to reduce management stress.
- Centralize all communications within the TMS.
- Work with an enterprise transportation management platform provider who can bring best-in-class data flows and resource leverage for your freight team.