Exponential growth in global trade is creating make-or-break situations for shippers and transportation companies alike. Emerging markets and new alliances also bring challenging complexities and mandates. A supply chain that responds nimbly to the marketplace requires sharing information seamlessly, accurately and in real time with partners – wherever they are, whatever their role. This end-to-end integrated supply chain is underpinned by technology.
With trading partners scattered around the world, end-to-end visibility and traceability of inventory in transit is vital for early notice of supply chain disruptions, changes in demand and exceptions. Real-time event management is fundamental: capturing events, monitoring progress and communicating critical information instantly so the supply chain can promptly address these disruptions.
Obtaining real-time information increasingly dictates computing “on the edge” – using technologies such as bar codes, passive and active GPS-enabled radio frequency identification (RFID) tags, biometric devices and real-time location systems to track assets, people, orders, products and shipments. These technologies enable monitoring and electronic document exchange for visibility up and down the supply chain. But there are significant costs to deploying such devices and associated networks, and connecting them to enterprise systems.
Industry consolidation compounds these challenges: The “Wal-Mart effect” is driving new levels of standardization and efficiency while attempting to purge all avoidable costs. Transportation companies now offer end-to-end services. And fast-growing third-party logistics providers (3PLs) contend with obsolete homegrown applications and an inherited patchwork of disparate systems. They also must deal with myriad regional databases, a lack of standard practices and inconsistent ways of handling freight and billing for the same customer.
To secure their place at the supply chain table, these companies will need agile platforms that support visibility systems and integrated, real-time communication and information sharing among all partners.
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