“Shippers place a premium on being able to do this,” says Klappich, who points out that Gartner’s research identifies visibility as a prime investment area for companies over the next three years. “This second generation proved that there was value in transparency,” says Klappich.įast-forward to 2011 and the next generation of vendors has folded into its solutions the experiences of its predecessors and shippers’ demand for good visibility across the entire supply chain. Focused on specific, best-of-breed solutions, these firms developed TMS-centric solutions that could track shipments, provide alerts, and help clients achieve visibility, both domestically and internationally.
“Most shippers, coming off of the Y2K events, had technology-hype fatigue and were cautious about emerging technologies.”īy the mid-2000s, a new generation of supply chain vendors were on the scene, ready to help shippers achieve UPS-like visibility. “There were a few vendors with nice technical solutions, but there wasn’t a market for those products yet,” says Klappich. However, it would be a few years before such solutions would find their way into the typical shipper’s operations. “Shipments were tracked and monitored automatically using technology,” he explains, “with alerts sent out to the stakeholders as the item was in transit and ultimately delivered.” UPS and FedEx tracking methods were prime examples of the concept in action, says Klappich. Over time, says Klappich, event management and transparency were merged into a single industry term called “visibility” which focused primarily on shipment and order statuses. “People started talking about visibility and event management and the need for better transparency regarding what was going on in the supply chain.” “In 2000, everyone was looking for the next, great supply chain technology that was going to solve world hunger and provide world peace,” recalls Dwight Klappich, research vice president for Gartner. Shippers trying to wrap their arms around visibility should start by taking a step back to look at how the concept originated. Over the next few pages we’ll help shippers better define what visibility is, explain how it can be achieved through technology and good tracking processes, and then see what visibility looks like in action. “When you achieve good supply chain visibility,” says Wilcox, “you gain consistent control over your operations and processes.” For example, shippers can obtain information about finished goods availability (What’s in the pipeline right now? What goods are in transit? Which shipments cleared customs?) from trading partners, and then use that data to ensure that customer demand is being met, and not exceeded.
When executed properly, supply chain visibility will also come into play on a day-to-day basis. “That gives the company a starting point, and puts it in a much better position to deal with the catastrophic scenario.” “With solid visibility made possible by technology, that company could query all of its shipments by bill of lading number to figure out which shipments are already in transit, and which are sitting in port,” explains Shanton Wilcox, a principal in Capgemini Consulting’s supply chain management practice. Without that “window” into its transportation operations, the company would be left to guess as to when-if ever-the goods would make it to the U.S. Through accurate visibility, that company can quickly tell how its shipments will be affected and adjust accordingly. The company whose supply chain extends across various continents, for example, can find its transportation modes literally halted overnight by events like erupting volcanoes, tsunamis, and political unrest. Visibility comes into play across many supply chain scenarios, whether they’re localized or global in nature. Logistics Management - September 2011 Issue - Brought to you by:
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