How to gain Supply Chain Visibility and Efficiency
As economies around the world are changing and accepting the new normal. The modern supply chain must evolve to meet the new challenges that are growing in complexity due to several factors relating to demand and supply. Besides the need to react and adapt, supply chains should leverage emerging digital supply chain business models. Studies suggest that a supply chain business model should contain the following traits to increase efficiency and visibility:
- Connected: Having communications enabled between interconnected devices, systems and processes
- Informed: Support a range of data sources accessible in the digital world
- Smart: Integrate advanced analytics to operate real-time insights.
- Automated: Utilise automated technologies to boost productivity and lower costs.
Role of Control Tower for providing Efficiency and Supply Chain Visibility
According to a recent research paper shared by Gartner, Control Tower is described as “The aim of end-to-end supply chain visibility is to provide controlled access and transparency to accurate, timely and complete events and data transactions, content and relevant supply chain information within and across organisations and services operating supply chains.”
In simpler terms, the supply chain Control Tower is a centralised hub containing all the technology which is used for gathering and distributing information. A supply chain control tower provides the company with the capacity to assemble and estimate real-time data through the end to end supply chain. The information is then used to give the company full visibility for monitoring performance and acting on inefficiencies more quickly.
The supply chain control tower team uses four levels to detect and take necessary measures to better KPIs throughout the extended value chain, which are as follows:
Visibility: Control tower enables real-time access to information from across the end to end supply chain at the right time. During this procedure, the data elements are used to know which events need tracking, and then these components are plotted to the enterprise system. After obtaining the data from the system, it is compiled and prepared to find helpful information. Then, a dashboard is used to present the information to users, which gives a synchronised vision over the organisation and supply chain partners.
According to MPO survey,” 44% of respondents said they wanted to gain better visibility into their downstream and upstream supply chains. Even direct shipments often lack good visibility, with 43% of respondents reporting they’d like to gain more visibility into inbound shipments, and 42% seeking additional visibility into outbound shipments.”
Alerts: A well-set alert system is an essential factor to implement a strategy. Control tower will help supply chain managers to take necessary action by providing real-time alerts based on the lead times marked to all the events.
Decision-support: Predictive analytics helps supply chain control tower to predict what is going to happen next. Which allows users to carry out scenario-based analysis and understand the impact of pursuing one or more situations with the use of analytical tools. It also helps the supply chain operators to predict and measure the impact of an event which enables an appropriate response.
Autonomous: Process management allows diverse teams to support workflow capabilities to implement a practical approach to an event and workflow tool can be integrated with enterprise systems to automate various response mechanisms when started off by the control tower team.
Using a Supply Chain Control Tower to accelerate Digital's Business Benefits
- Better Visibility: Organisations can get an intense vision of the end to end supply chain, the subcontractors, suppliers, transportation carriers, third-party logistics providers, and consumers using control towers.
- Better Monitoring: Control tower also enables supply chain operators to calculate the performance on the go and work on cost-effectiveness continuously. Supply chain operators can improve supply chain competitiveness by keeping a track and trace of key enablers.
- Collaboration: Control towers can offer collaboration between supply chain executives which is the key for efficient planning, based on the alerts and notifications it will help them in better management of demand and supply issues.
- Better Insight: Human errors can be eliminated by using a control tower with automated data capture and enhanced accuracy of supply chain data analytics systems. Additionally, control towers can better judge the difference between an event and an exception in supply chain operations.
- Better Exception Handling: Control towers can advise corrective steps and “best practices” to follow, which enables the functioning of operations without incidents, this process can help the organisation in proper planning and management.
- Cost Management: Control tower will help in proper cost controlling through continuous data monitoring and tracking by enabling proper accuracy of demand forecasting and inventory management.
- Real-time tracking through collaborative information sharing: control towers serve by sharing information and collaboration in real-time, which assists supply chain operators to make informed decisions with precision and on time.
- Predictive and prescriptive decision-support: Supply chain performance analytics can be performed continuously, which enables to view not only the current incidents, but it also provides a view on the future which might affect the organisations unfavourably.
Control tower helps in cost reductions and operations with increased efficiency by providing supply chain operators with real-time data which helps them to identify the positives and negatives in the supply chain. Organisations can leverage control towers to do the same task at a faster pace and less cost than human assets, leading to cost reductions and more efficient operations.To get started click here