Who needs the added value of end-to-end supply chain visibility?
Soren Moller |
11. Aug 2020
4 minutes read
In a recent article about the development of e-commerce during Covid-19, DHL Consulting CEO Sabine Mueller, said that they saw e-commerce volumes jump 50% in multiple markets in April, with the pandemic “rewriting the rules” of online shopping. The future of online shopping will now include both business- to- consumer (B2C) and business-to-business (B2B). Anyone working in logistics can see that this huge increase in volume will demand more resources and costs, especially on last mile delivery. To be able to handle this, companies need proper supply chain visibility.
What are the challenges?
The big increase in volume raises several challenging questions for the players of the industry:
How to cope with such huge increases in demand, based on existing warehousing operations, legacy IT systems and not to mention, a traditional silo-based view on supply chain management?
B2C is one thing, but what about this “new rule” of also switching to B2B? Companies that are not prepared for the B2C increase will not at all be prepared for B2B.
Covid-19 showed everybody that predictive supply chains, from suppliers in production, to partners and service providers, did not exists when borders, warehouses and even whole countries shut down overnight. How to build resilient and predictive supply chains for new situations like this?
It is clearer than ever that the above complexity calls for overview and technical visibility in the future, to keep tight control of physical supply and demand and total costs.
Who needs end- to- end visibility?
There is no doubt that shippers are in need of more real-time information about the movement of their goods, from suppliers to end customer. This is the only way to gain control over every process along the supply chain route and handle unforeseen events.
The need for delivering products to both B2B and B2C customers in the most sustainable way will only increase the future. Therefore, it is important for shippers to use their resources in the most efficient way to meet their sustainability targets, which is not possible without visibility and a complete overview of your operations.
What about the logistics service providers?
Will they still be able to cooperate under these “new rules”, using only their own developed T&T or perhaps old TMS system? Or will they be forced to partner up with cloud platforms, that secures that LSP’s can cooperate with anybody (shippers as well as other LSP’s) and further secure their own competitiveness in the future market beyond Covid-19?
We believe in the ladder one in order for LSP´s to stay competitive and secure customer satisfaction.
Why do you need it?
End-to-end visibility is necessary if you want to be able to deliver products under all circumstances (natural disasters, political changes, pandemics) or you deliver products that are vital. You should know where the goods are geographically at all times and be able to make changes to the routes and schedules along the way. With a control tower across all of your systems can this be achieved.
The large increase in volume will also make a difference in the way goods are being stored. We will see a shift from huge regional/country warehouses to de-centralized fulfillment networks, where inventories will be located closer to the end customer. This shift will save a lot of money for the logistics business.
There are many benefits to why you should invest in an end-to-end visibility platform:
It provides extensive data on customers and suppliers, so that predictions and demand will match much easier than they do today.
The “ETE” platform will also contribute to higher fill rates on trucks due to more efficient use of resources (lower CO2) and cost reduction in last mile delivery.
As a definitive benefit for all, the opportunity of being able to connect with every player in the supply chain, no matter their existing system, have a huge effect on sustainability and profitability for the partners involved.
We offer the digital capabilities you need to achieve full supply chain visibility. MIXMOVE help companies every day to gain end-to-end advantages and higher competitiveness through our cloud based cooperative platform.