Your default browser language is set to . Browse this site in another language: Continue color Created with Sketch.

Reports and Whitepaper

Read logistics-related industry reports, & sector-specific important-export guides here.

View all resources
  • Newsletter subscription (View Sample)
  • Get a sales representative to contact me
  • I agree to the  Terms and Privacy Notice
ALSO WORTH READING

Understanding the necessity of a supply chain control tower

A streamlined supply chain with end-to-end visibility is essential in an increasingly complex business landscape.
A streamlined supply chain with end-to-end visibility is essential in an increasingly complex business landscape.
18 October 2024 •

In the fast-paced world of e-commerce, the age-old mantra of “customer is king” is wholly applicable. Consumer demands are constantly shifting and shaping the strategies and operations of businesses worldwide. Beyond fulfilling the traditional promise to provide good products or services, technological advancements and innovation give this mantra a whole new meaning.

With evolving customer demands and higher standards, supply chains become increasingly complex. Businesses require a bird’s-eye view of their networks to manage performance, compelling them to adopt sophisticated solutions that appeal to customers and enhance their experience to drive revenue.

This is where the concept of a Supply Chain Control Tower (SCCT) comes into play. Similar to a physical control tower, an SCCT is a digital platform that offers end-to-end visibility and control over the supply chain. Through software analyzing data of a business’ upstream and downstream activity, an SCCT acts as a centralized viewpoint that streamlines the way the movement of goods is managed.

As with most innovative solutions, SCCTs have their advantages. Integrating data from various sources, a SCCT provides real-time insights and facilitates proactive decision-making. Enhancing coordination impacts every level of the supply chain—from procurement and production to distribution and customer service. With SCCTs, businesses have minimized disruptions and optimized performance.

A report from Accenture revealed that businesses could increase revenue, reduce logistics costs by 3-5 percent, and raise labor efficiency by 10-20 percent by incorporating SCCTs into their operations.

Quick, quicker, quickest: keeping up with the world of quick commerce

Quick commerce, characterized by the ultra-fast delivery of goods, has seen explosive growth in recent years. Nespresso Singapore, for example, offers same-day delivery for their products, while Shopee Singapore provides users with a guaranteed next-day delivery (NDD) option.

The emergence of quick commerce can be traced through several key developments and trends, including the rapid growth of e-commerce and technological advancements. This was further accelerated by the onset of the Covid-19 pandemic, which heightened the demand for rapid delivery services.

This shift has resulted in consumers expecting instant deliveries. These expectations place immense pressure on businesses to streamline their logistics for faster deliveries and create more resilient supply chains.

SCCTs could be the perfect solution as they enable companies to monitor every aspect of operations in real time.
SCCTs could be the perfect solution as they enable companies to monitor every aspect of operations in real time.

Using event pipelines and predictive analytics, businesses can identify likely bottlenecks, such as operational delays or quality issues. Moreover, they are better prepared to remedy any possible disruptions promptly with actionable insights. For instance, if a key supplier faces a production delay, the SCCT can alert the business and prompt it to find alternative suppliers or reroute shipments.

As faster deliveries become the new norm, failure on a business’ part to rise in tandem with these standards may result in frustration and dissatisfaction among consumers. In 2023, Singapore-based e-commerce company, MDADA, faced a significant backlash due to delivery delays. Over 50 complaints were lodged against the company regarding late deliveries, with some customers accusing the company of being fraudulent.

As markets become increasingly saturated and consumers are given the autonomy to choose from endless options, businesses that are the most efficient and promise fast deliveries stand out, while others will face detrimental effects. The use of an SCCT to keep up with ever-increasing speeds and changes is inevitable.

Going the extra mile: creating a frictionless customer experience

While fast deliveries are undeniably desirable for customers, businesses are constantly in the ‘rat race’ to achieve more visibility among consumers in a hyper-competitive business environment and digital age. This has led to more sales channels and consumers are now engaging with brands through online stores, brick-and-mortar stores, mobile apps, social media and more. In several Asia Pacific countries, UNIQLO’s customers can browse and purchase their products online, use a mobile app for exclusive deals and updates, and choose to pick up their orders at nearby stores or have them delivered to their homes.

As businesses bid goodbye to linear customer journeys and the traditional single-channel retail model, they must shift their focus from one sole channel to a myriad of digital and physical touchpoints.
As businesses bid goodbye to linear customer journeys and the traditional single-channel retail model, they must shift their focus from one sole channel to a myriad of digital and physical touchpoints.

Businesses today have to overcome the challenge of creating a seamless cross-channel experience. Unilever, a global consumer goods company, has 12,000 containers on 1,500 ships of raw materials, packaging and finished goods being transported via ocean freight at any given time. While businesses with operations at such a large scale may appear to call for a highly complex solution, using a control tower in circumstances like these can aid in ensuring a comprehensive and efficient logistic process. Using features like real-time inventory tracking enables synchronization of operations across all channels, regardless of where a purchase is made.

Unilever’s Virtual Ocean Control Tower seamlessly connects all parties and stakeholders in the supply chain through a real-time electronic data interchange information flow, providing data on the status of each shipment at each stage of its journey. From the point of departure to when it reaches the distributor, store or factory, this data is constantly updated. Having data with this level of accuracy means that businesses can manage their inventory easily and offer hybrid transactions and services, such as Buy Online, Pick-up In Store, which involves online purchases with in-person pickup. When inventory data is accurate and up-to-date, customers can enjoy a hassle-free experience with no disappointment of a wasted trip to a physical store when items are out of stock, greater convenience and more robust customer support.

This level of integration across business channels has become indispensable in creating a smooth user journey that furthers customer satisfaction and echoes the need for the adoption of SCCTs.

Harnessing data for strategic decision making

As businesses look ahead, an SCCT is a game-changer in providing visibility and a wealth of insights. By collecting and analyzing data from various sources in real-time, including suppliers, distributors, transportation networks, and customer interactions, an SCCT can identify trends, inefficiencies, and opportunities for improvement. For example, tracking sales data and inventory levels allows businesses to predict stock shortages and adjust procurement strategies accordingly.

Predictive analytics capabilities of an SCCT enable businesses to anticipate market demand and adjust operations proactively. Businesses can be alerted when networks are vulnerable to disruptions or potential shortages, allowing them to react by intervening and invoking alternatives. During the Covid-19 pandemic, Pfizer’s control tower technologies played a role in resolving vaccine supply challenges. To transport vaccines that had to be kept at extremely low temperatures to maintain their efficacy, shippers had GPS-enabled temperature monitoring devices to ensure that shipments could be managed proactively.

By leveraging historical data and real-time inputs, businesses can create accurate demand forecasts, reducing the risk of overstocking or stockouts. This optimization empowers supply chain managers to better plan production schedules, staffing, and allocate resources. For instance, a retailer can use SCCT insights to boost production of a trending product before peak seasons, ensuring they meet customer demand without excess inventory. Comparison of suppliers and distributors using data from SCCTs can also allow businesses to identify best practices and areas for improvement. In essence, a SCCT equips businesses with the ability to make informed decisions and refine their supply chain strategies to ensure competitiveness.

Looking ahead, adopting a SCCT is no longer a luxury but a necessity. In times like this, SCCTs provide the agility, visibility, and integration required to meet the demands of consumers. As consumer expectations continue to rise, businesses that invest in these advanced solutions will be better positioned to thrive and grow. The future of retail belongs to those who can deliver not just products, but exceptional experiences—and supply chain control towers are the key to making that future a reality.


RELATED TOPICS
RELATED TOPICS