Why visibility and transparency should be a priority in the logistic industry?
Reading time4 minutes
Written onMay 18th 2020
A clear metric framework creates a common business language that both customers and service providers can leverage to be aligned toward common goals. If data hides real performance, the gap between the customer experience and the service provider’s perception will lead to frustration on both sides. Besides, the customer will define its strategies based on wrong information and the service provider will be not considered as a trusted third party anymore. Share a common and unbiased data set is key to optimize performance and ensure customer satisfaction.
A neutral expert in data management to achieve visibility and transparency
Traditionally, data in the logistics industry has always been quite fragmented. Lately, an effort to create common technology standards for digitalization and interoperability is ongoing to make the shipping sector more transparent. Transparency is the best way forward to enhance collaboration and performance among the logistic chain. Relying on a software solution independent from third-party logistics providers solve the issue of data inconsistency and provides unbiased visibility.
A data-driven supply chain to make smart decisions
Visibility helps to acknowledge network performance by geography, transport leg, hubs, freight forwarder, carriers or shipping lines. It further helps to identify logistic weak points like dependencies, recurring deviations from plan, hidden risks without appropriate prevention, etc. This set of information is key to identify the levers of performance.
Knowing the timing and precise route of every shipment makes it possible to optimize operations. Selecting shorter transit times or more reliable lanes will reduce both in-transit stocks and excess inventory buffers to streamline working capital. Detailed information enables to decrease unnecessary costs like detention and demurrages expenses and reduce CAPEX by accelerating assets rotation.
Providing visibility reduces logistic chain complexity and helps to analyze transport efficiency based on accurate and reliable data. Visibility and transparency turn the supply chain data into a powerful competitive advantage to help customers to make smart decisions.