By Jett McCandless, project44
As many as 90% of retail executives believe mastering logistics is a critical element in achieving success with today’s on-demand economy. They’re right.
Retail supply chains infused with multimodal visibility have an unrivaled competitive advantage. Supply chain visibility can no longer be considered a “nice to have” feature. It is essential to effectively serve today’s connected, informed consumer. Despite the tremendous value, supply chain visibility is still misunderstood. My goal is to clear up a few of those misunderstandings. Let’s take a closer look:
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How Should Retailers Define Supply Chain Visibility?
The first step in harnessing supply chain visibility is to understand the true meaning of end-to-end visibility. As defined by Gartner, it is “A capability that provides controlled access and transparency to accurate, timely and complete plans, events and data within and across organizations and services.”
Supply chain visibility is about retrieving usable supply chain data as information is exchanged between different systems. The most crucial aspect to achieve visibility is the architectural setup — how a retailer’s company and systems are connected to the retailer’s business partners and networks.
Why Do Retailers Struggle To Achieve True End-To-End Visibility?
Improving supply chain visibility has been a long-time priority for retailers for decades without much success. Why? Most of the blame falls on a lack of integrated systems.
For example, 75% of shippers report their visibility tool is not integrated with their operating system. A lack of integration limits their ability to prevent stockouts, meet ever-evolving consumer demands and keep suppliers and carriers compliant. Additionally, only 39% of shippers use visibility systems to capture data that can lead to educated and dynamic decision-making.
Most systems that share data across supply chain and transportation networks are still managed through legacy and pre-Internet processes including manual spreadsheets, email/phone calls, FTP, web site scraping or point-to-point electronic data interchange (EDI). As a result, the exchange of information, along with rules that facilitate the data transfer, are not sophisticated enough to achieve end-to-end visibility. Instead of a true network-centric view, those systems deliver incomplete and out-of-date visibility, at best.
Over $5 billion was estimated to be invested across supply chain companies last year alone to help solve for the uncertainties in today’s supply chain. Those investments will be pointless unless companies lay the foundation of a digital backbone to overcome the current connectivity gaps caused by legacy technology.
How Can Retailers Create Supply Chain Visibility?
End-to-end visibility empowers retailers to prevent stockouts and meet ever-evolving consumer demands. With 33% of U.S. consumers blaming retailers for stockouts, retailers cannot afford to have a fragmented view of their supply chain. Customer loyalty and brand reputations are at stake.
A networked approach where all transportation partners (including suppliers and carriers) are on the same informational page allows retailers to make informed decisions and compete with the likes of Amazon and Alibaba.
Retailers should look for solutions addressing the connections that enable access to accurate, timely and comprehensive data. Unlike EDI or legacy systems, Application Programming Interfaces (APIs) serve as a modern middleware solution that deliver a comprehensive view.
Never assume a single solution can provide true visibility across supply chain transactions or transportation modes. End-to-end visibility extends beyond traditional truckload tracking and requires the entire freight transaction set.
Supply Chain Visibility Is A Retailer’s Competitive Weapon
To remain a competitive player in today’s market, retailers require an arsenal of on-demand insights across the entire spectrum of supply networks and freight transactions. By adopting a single API-based network solution that also offers a suite of freight services, companies can speed up visibility and offer superior service. Ultimately with a modern, multimodal (think: Truckload, Rail, Intermodal) connectivity system, retailers can increase internal efficiencies and profits while growing customer satisfaction and brand loyalty.
Jett McCandless is CEO of project44, a revolutionary enterprise SaaS platform connecting every aspect of the global supply chain through on-demand visibility. McCandless has nearly two decades of experience in transportation and logistics, and has actively invested in, and advised, a number of industry start-ups from idea stages to expansion. To learn more, visit www.p-44.com.
