An Increase in Visibility Yields a Decrease in Risk. Every Time.
You will receive no dispute from supply chain management companies in regards to in-transit visibility. A collective agreement showcases a heightened efficiency derived from a transparent and responsive supply chain model.
Taking this into consideration, how can communication and supply chain visibility further increase? By continuing to evolve with new technologies and ground breaking innovations, of course. Fully digitized supply chains are not quite realities for most companies, but this poses no threat to the current technologies organizations have begun integrating into their systems. Mediocre forecasting can show the impending age of automation on the horizon. It is in a company’s best interest to integrate automation and digitization when and where it can.
The Internet of Things (IoT) is one of the implementations, primarily focused on in this article, offering complete visibility and predictive solutions that function to decrease the risk involved in logistics.
According to a recent white paper written in regards to visibility and the IoT, “IoT-[enables] supply chain managers to shift from reactive to proactive. Armed with up-to-the-minute information on location and condition, they can now more effectively limit major downstream impacts to their company when shipments are delayed. With real-time-in-transit visibility, companies can slash the amount of theft and damage of high-value goods in motion.” [Supply Chain Brain White Paper, IoT Visibility Reduces Risk, Plain and Simple]
We have seen scaled predicators of this technology unveil itself as video doorbells installed in homes - now this same principle can be applied to your cargo. The direct impact of lost cargo oftentimes far outweighs the cost of replacement because you must take into consideration production interruption, decreased customer confidence, added labor costs, red tape, and wasted time. All these problematic issues compound into a proverbial iceberg, slowly but steadily revealing issue after issue after issue.
What exactly are we talking about here? Sensor data. An industry buzz worthy term from the big data category. The real underlying issue though – too much data, too fast. While we impatiently await the synergistic software applications capable of handling tracking tag data, for now it will require platforms fully suited for massive amounts of information.
We will see a rise in IoT implementation as companies progressively adopt programs equipped to decipher and organize “real-time” data. This integration will inevitably improve supply chain visibility and predictive analysis, thus decreasing risks, thefts, and unwarranted fees.
If you have any questions about digitalization and how it can positively affect your end-to-end supply chain, feel free to reach out to us today for a brief consultation.