When you’re laser-focused on keeping customers happy and keeping last mile costs in check, it can be easy to lose sight of what’s happening upstream in the supply chain. Which means that there’s always the chance that your customer is going to get a late shipment of parts because you were working with a new vendor for transportation in the first mile and your 30 day lead time was largely eaten up by 15 days of compliance and administrivia.
This is just an example, but it’s far from a lofty hypothetical. In point of fact, 73% of procurement leaders see manual data exchange as a major challenge and bottleneck in keeping the supply chain moving smoothly—which just speaks to how easily and how often upstream processes in your logistics operations can slip through the cracks of digitization and cause issues elsewhere. It’s how your supply chain winds up “stuck before it starts.”
Integration, connectivity, and visibility are the keys to dealing with these kinds of challenges. And we doubt you’d easily find anyone who is against any of those three concepts in theory—but when it comes time to put theory into practice, it can be tough to justify investments in what feel like abstract concepts.
But we’re here to tell you that the impact of prioritizing visibility in logistics is anything but abstract. In fact, it can be a powerful first step towards boosting productivity in your logistics operations as a whole.
Here’s why that is, and how to make it work for your business in practice.
Before we dig into the power of visibility, let’s talk a little bit about the ways that logistics leaders can boost productivity right now. Every organization is different, and you’ll be in the best position to diagnose productivity issues within your own four walls—but there are a few common areas where we often see room for improvement:
If there’s a connecting thread among all of the ways to boost logistics productivity, it’s the power of connecting disparate processes and gaining visibility across functions. One of the most powerful examples of this is connecting the first mile, middle mile, and last mile of the supply chain.
By default, most businesses treat these functions as separate and manage them in separate silos, in spite of the fact that they all fundamentally comprise a single, continuous whole. The result is exactly the kind of slow, often manual data sharing that we’ve been decrying. But when you’re able to flip that paradigm on its head and connect these disparate parts of the supply chain, you can put yourself in a position to turn visibility into productivity across the board.
What does that look like in practice? It starts with technology.
Specifically, it starts with technology that’s designed to make it intuitive to get the information you need at the exact moment that you need it. For a delivery management solution, this would mean leveraging software that centralizes delivery data in an at-a-glance dashboard that can make it obvious what’s happening across your entire delivery network.
From there, you can integrate data from the first and middle miles so that the information you need to prevent slowdowns and turn up potential disruptions can be accessed just as quickly and intuitively.
This might involve giving first and middle mile drivers the ability to document deliveries in a way that directly sends data back to the delivery management system—or the use of APIs to automate data transfers so that each function can see what’s happening across the supply chain. But once it’s in place, you can more accurately schedule deliveries and spot potential delays, which feeds into smarter and more efficient management of every phase of the fulfillment process.
When you’ve got the first mile, middle mile, and last mile connected in the way that we’ve been describing, you’ll have achieved something at least closely resembling real logistics visibility.
The question then becomes, how exactly does that translate into the kinds of logistics productivity improvements that we sketched out above?
Here’s a quick rundown of how that happens:
These can be powerful productivity boosts—as long as you lay a strong visibility foundation. Making that happen comes down to leveraging the right technology in the right way. In other words, deploying delivery management software and other logistics solutions that put you in a position to ensure end-to-end visibility.
We haven’t talked much about emerging technology like AI in this piece, but that’s got to be top of mind for anything thinking about a new technology deployment. Some of these areas are changing so quickly that it’s hard to keep up, and it can be tough to guess what the future's going to hold for logistics technology.
The good news is this: visibility never goes obsolete. As you potentially add more AI-based capabilities to your supply chain overall, you’ll never be disappointed that you prioritized data visibility across the board—and you’ll never be disappointed that you partnered with a technology vendor who could make that happen. That’s exactly who you’ll want to have around as the technology landscape changes and you seek to improve your operations.