By Sender Shamiss
Are you ready for a Big Picture conversation about the productivity of your company’s operations? Settle in. It’s just us here and it’s time to get serious about what you don’t know about your own supply chain.
First question: who is in control of your supply chain? It’s working, somehow and someway. Materials from suppliers arrive. Check. Deliveries to end consumers are done. Check.
What about overall visibility? Do you have access to information about upstream and downstream risks that could put your brand in jeopardy? Are your operations as efficient as they should be?
Yes, we said it. Efficiency. (Read: efficiency=time and time=money).
So, the real question at hand is this: are the appropriate controls in place to ensure visibility and maximum efficiency across the forward and reverse supply chain? Or, is there a better, and more efficient, way to do it?
One of the highest priorities for enterprises is maintaining precise control over supply chain operations from source-to-end consumers. If you aren’t building in efficiencies that help you stay ahead of the competition, create profit, and ensure the brand's reputation, you’re in their rearview mirror.
According to KPMG's Manufacturing Outlook study, if you are scratching your head about now, you are not alone. In fact, 43 percent of corporations had "limited or no visibility" into their supply chain, the study revealed.
In a globalized world of eCommerce, omni-channel fulfillment and social media connectivity -- and the evolving risks this environment creates -- control is even more critical to ensure shareholder value.
Fortunately, this kind of oversight is possible, thanks to the maturation of numerous new supply chain management technologies. Look at the advancements made over the past several years in these examples:
- The Internet of Things (IoT) allows real-time insight into assets, products and consumers.
- Artificial intelligence is now being used to analyze and act on the petabytes of data pouring in from the IoT.
- Blockchain will be used to streamline transactions and further chain of custody capabilities.
- Robotics is coming into its own with technology that is capable of safely interacting with human staff, while increasing productivity.
Used together or separately, these — and other — technologies are reducing supply chain risk, streamlining operations and increasing supply chain efficiency. They make it easier for companies to have oversight and control over their supply chain activities. And, yes, reduce costs. Check.
The problem is knowing you need oversight and obtaining it are two different things. Supply chain leaders must become objective about what they know about their operations – and what they don’t.
There may be a myriad of available technologies to throw at a broken supply chain, but it’s not about Band Aids. It’s about real-time product management solutions that make the system work smarter and faster and cheaper.
In an Industry Week article, KPMG analyst Rob Barrett made a valid point. “If you’re struggling with supply chain visibility and lack the information you need to inform your decision-making and process execution, step back and see if you have the right supply chain architecture in place.”
He added: having the appropriate system in place “will provide you with measurable benefits today” and tomorrow as “your business model evolves and needs change.”
Analyze your weak points and discover the answer to this looming question: Where will increased visibility and control deliver the greatest bottom line results?
We might suggest that reducing risk (by knowing if your suppliers are compliant with worker protection regulations), and cutting costs (by better managing your e-commerce returns), is a great place to start.
Your best option is to look for a viable forward or reverse supply chain technology to help you gain the control you need.
Sender Shamiss is the president and CEO of goTRG, the first end-to-end Business Solution & SaaS for Omni-Channel & Supply Chain. goTRG is a leader in the implementation and execution of Omni-Channel and Supply Chain solutions. Our innovative R1 technology powers every touch, movement and decision for the world's largest companies resulting in superior net margins, controls and sell-through.
With new technologies coming at you from all sides, it’s time to get the low-down on high tech in supply chain operations. Article originally sourced from LinkedIn: https://goo.gl/FQFGwL
