RL - Manufacturing

Becoming a Proactive Supply Chain Organization

Issue link: https://resources.axway.com/i/990590

Contents of this Issue


Page 4 of 5

axway.com 5 so you can detect and correct malfunctions in real time. And by tracking and analyzing interactions and policy violations over time, both IT and business managers can adaptively streamline automated processes and direct human resources where they're needed most. As a result, DSO can be reduced by three to seven days, significantly improving your company's working capital. 3PL shipment life cycles The challenge Third-party logistics (3PLs) typically specialize in transportation, warehousing and integrated operation services that they customize according to their customers' needs. Since 3PLs' mission is to deliver goods damage-free, accurately, on time, fast and cost-efficiently, they are equally in the business of moving information. The challenge is to turn their customer-facing IT systems into a competitive advantage. 3PLs with markets spanning various vertical industries must support a wide range of information formats and protocols that transmit at hyper speed, in order to make sure a shipper's products reach their destinations in compliance with SLAs. Any type of issue or disruption between the shipper's information systems and those of the 3PL can have a material impact on the customer relationship. The solution 3PLs with operational intelligence and proactive insight into the information flows of their customers gain a competitive advantage. No one wants to learn from their customers that an inventory request has not been processed as promised. It's bad for the customer, and bad for the 3PL's business and brand. With a 360-degree view into IT applications spanning complex data integration and back-end applications, 3PLs are able to detect data issues before they have a business impact. For example, a 3PL with the operational intelligence to proactively detect that a specific order volume is 30 percent lower than the norm can potentially help their customer avoid late or lost orders and minimize special handling fees. The benefit 3PLs that embrace the power of proactive insight, and that understand that the flow of data within the supply chain is just as important as the flow of goods, will be the ones to come out on top. They will be able to reduce operations costs by minimizing the time IT spends investigating and researching issues, and in the process, maximize IT focus on revenue-generating projects. Other types of use cases Operational intelligence has helped many organizations become proactive and gain greater command and control — from S&OP to sourcing, procurement and manufacturing; to return for repair or replacement (RMA), inbound and outbound logistics, new product and promotion management, and supplier scorecard management. This table details more examples. Industry/use case Event/challenge Business impact Cpg order management One of your company's largest retailers is currently ordering 20 percent less of product XYZ than the average order volume for that time of day Loss of revenue Logistics reconciliation in healthcare manufacturing The EPC shipment from your CMO does not reconcile with the receiving 3PL pick-up event Regulatory non-compliance Supplier scorecard – 3pl performance monitoring Instead of letting your supplier measure your performance and then manually double- checking their accuracy, provide your own evaluation metrics in a dashboard the supplier can access in real time, leveraging transparency as a competitive advantage Operational efficiency, positive customer experience, revenue Post-sales supply chain Use smart operational intelligence analytics to optimize your post sales supply chain processes, such as transportation order management, service chain triage, retention/ remorse returns and services part inventory carrying Elimination of unnecessary and costly same-day and next-business-day shipments, truck roll avoidance, and remorse returns — potentially saving millions of dollars

Articles in this issue

Links on this page

view archives of RL - Manufacturing - Becoming a Proactive Supply Chain Organization