If it wasn’t evident before, it is clearer than ever that the world is interconnected. In the wake of the pandemic, supply chain disruptions affected nearly every country. These events to a great extent were unavoidable. However, moving forward, the lessons learned from these events are noteworthy. And three of the biggest ones involved the need for businesses to invest more in their supply chain logistics and management. Specifically, advancing supply chain intelligence, visibility, and sustainability are directions all companies should pursue. It’s through these efforts that a competitive advantage will be maintained and future successes realized.
Defining Supply Chain Intelligence
While several definitions of supply chain intelligence exist, Fratogo take a more general perspective. In essence, supply chain intelligence involves the process of integrating vast supply chain data and information to enhance the entire network. Such intelligence is utilized for collaborative planning, monitoring, measuring, and analyzing all supply chain processes and interactions. It includes the use of artificial intelligence, machine learning, predictive analytics, and Big Data. Through the use of these technologies, insights about the intricacies of supply chain logistics can be gained. And, from these insights, new solutions and strategies can be proposed. At Fratogo, we realize optimizing logistics requires deep knowledge, and cultivating supply chain intelligence is essential in a globally connected logistics environment.
Leveraging Visibility to Gain Intelligence
The primary challenge in the pursuit of supply chain intelligence is access to the data and information required. This is where supply chain visibility comes into play. Being able to make the entire supply chain transparent through greater visibility permits opportunities to collect new data. A key effort in this regard involves investments in specific hardware that collects such data. Remote sensors and IoT devices are becoming the norm in this regard, allowing logistics companies to better “see” their supply chains. By staying abreast of the latest in these technologies, Fratogo is committed to greater supply chain visibility. These types of digital developments help create smart enterprises where Big Data is readily accessible. Thus, the more visible your supply chain becomes, the more data you enjoy to drive supply chain intelligence.
Linking Intelligence to Supply Chain Sustainability
Once better visibility is in place, and expanded supply chain intelligence is gained, sustainability benefits soon follow. Though it may not be evident at first, these benefits underpin sustainability in major ways. They can be used to define ways to become more efficient and to reduce waste. For example, did you know that 14% of the world’s food supply is lost during harvest and distribution? This costs about $400 billion annually in lost food products. However, by employing supply chain intelligence to these systems, food waste can be reduced, resulting in greater sustainability. At the same time, intelligence regarding logistics can improve efficiencies by using real-time data. Anomalies can be detected quickly and corrected, and synchronized planning can be pursued to realize better results. This is how intelligence, visibility, and sustainability are linked within supply chain networks.
The Triple Bottom Line in Today’s Logistics
In a recent survey of large corporations, nearly 60% reported that supply chain visibility was a priority issue for the coming year. The reason for this not only involved the recent woes involving global logistics. Instead, most cited a need to utilize supply chain intelligence to a greater extent to remain competitive. The use of Big Data, AI, machine learning, and even automation offer potential advantages for companies. Similarly, so does improved sustainability practices that result from the use of supply chain intelligence. In an effort to pursue this logistics triple threat, companies are also turning more and more to third-party logistics (3PL) providers like Fratogo. Their experience, expertise, and negotiation leverage offer numerous benefits. And a commitment to advancing supply chain intelligence, visibility, and sustainability further encourages the use of these providers. For tomorrow’s leaders, supply chain intelligence is a must, as is the visibility and sustainability associated with it.