With market fluctuations, the impact external factors have had on our supply chains in recent years has been severe.
As such, there’s never been a better time for businesses to make sure their supply chains are as resilient as possible.
The uncertainty and volatility of our evolving society has highlighted the need for a robust structure to be implemented. In recent years we’ve seen petrol shortages in the UK, business closures throughout the pandemic and labour shortages, proving there is fragility within our supply chains. Couple this with a Gartner study which found that 63% of 164 supply chain experts expect a loss of revenue due to exposure to uncertainty, and it is clear our supply chains must be more adaptable and better prepared for extreme global scenarios.
A mixture of technology advancements and visibility through real-time data should provide a perfect recipe for this much needed resilience. But how can we make this a reality?
Making resilient supply chains
Positively, supply chain resilience is something organisations are looking to improve. Capgemini’s ‘Fast Forward’ report found that more than 57% of organisations are increasing their investments to enhance the resiliency of their supply chains, and that, for many organisations (62%), increasing their supply chain resiliency is a key priority.
But where should companies start on their journey? I believe the first place is visibility.
High quality supply chains thrive on a deep understanding of the flow of raw materials and goods and visibility is at the core of this concept. Despite this, only 6% of logistics companies claim full visibility over their operations.
Change here is vital but business leaders must first understand the key aspects of visibility in the journey to more resilient supply chains. These include:
- Customer satisfaction: Trust between suppliers and customers is damaged when supply chain issues are present. Visibility allows better transparency with customers.
- Improved decision making and optimisation: Decisions informed on accurate and timely data enable true business agility and visibility increases the quality and volume of data and insights.
- The early detection of issues and effective risk management: Visibility allows organisations to promptly identify potential disruptions or issues at various points in the supply chain and take proactive measures to stop them.
Visibility is a foundational element of the modern, resilient and efficient supply chain. And while it can enable better performance, its potential is much broader with quality insights driving better decision making as well as better partnerships with customers and stakeholders.
Real-time data and its strength
Data is a powerful asset for business leaders and teams for decision making. Timely, accurate data provides businesses with a competitive advantage and so must also be used within the complex, fast-paced world of supply chains.
When coupled with innovative technologies, this data can transcend traditional boundaries and expectations. For example, inventory levels can be adjusted dynamically to re-route shipments into unforeseen events (such as the weather or traffic). The impact of such extends beyond operational efficiency. When thinking about this use case, not only does real-time data mean unexpected disruptions can be avoided, but it also means workforce time doesn’t have to be wasted due to more accurate and effective schedules.
Real-time data can also help organisations ensure compliance with regulatory requirements throughout the supply chain including export and import requirements, environmental regulations and worker safety rules. By understanding exactly what is going on in your supply chain at all times, compliance issues can be fixed before they become a problem.
Solving the visibility gap
The absence of end-to-end visibility, or the ‘visibility gap’, within the supply chain is hiding significant economic costs from businesses. Ultimately, this means they can’t squeeze margins by improving inefficiency or reducing the cost of disruption. Yet, organisations no longer need to grapple with the visibility gap in their supply chains. Innovative solutions to address strategic gaps in data, technology and visibility exist, organisations just need to make the most of them.
While there are still challenges standing in the way, such as determining the types of data to collect, grappling with the multitude of elements in play, and translating insights into actionable steps, advanced robots can help by offering a solution to improve accuracy.
The journey ahead
A lot of work needs to be done to make our supply chains truly resilient. Reflecting on the factors which have affected our supply chain in the past is a good starting point in understanding what must change going forward. Within this reflection, it is vital organisations don’t de-prioritise improving supply chain visibility through real-time data. Doing so means they won’t be able to get truly resilient and effective supply chains and will likely fall foul to the continued economic uncertainty we face.
About the Author
Oana Jinga is Chief Commercial and Product Officer and Co-Founder at Dexory. Dexory develops robotics and AI logistics solutions to drive better business decisions. Through our DexoryView platform we automate data collection and build real time fed digital twin technology that unlocks insights across all levels of warehouse operations.
