The supply chain is the invisible backbone that powers modern industries. Every sector relies on a delicate chain of interconnected processes to deliver goods in optimal shape to customers. Electronification has made it easier to monitor supply chains and their logistics, but this doesn’t mean it’s an easy task.
Research shows that data analysis and IoT devices are two of the top technological priorities of supply chain professionals. This isn’t an accident, since both of these technological processes come together to give stakeholders increased visibility into the supply chain.
Whether forecasting demand or planning production cycles, data is at the heart of modern supply chains. Here are three types of data that are essential for optimal visibility.
Condition-Related
Data
The supply chain’s primary task is ensuring the efficient movement of goods from manufacturers to consumers. There are a few stages that goods have to go through before they can reach the consumer. Typically manufacturers ship goods in bulk to a distribution center or a wholesaler who then distributes them to the consumer in smaller shipments.
Throughout this process, the conditions in which goods are stored change. When transporting sensitive goods like precision electronics or perishable items like food, condition-related data helps stakeholders gain maximum visibility into supply chain logistics.
For instance, a truck carrying a shipment of produce might suffer from a cold chain malfunction, which puts the integrity of the product in jeopardy. Sensors attached to the shipment relay temperature, humidity, shock, and other data to control centers that can react to changing logistical conditions quickly.
Condition-related threshold violations then trigger alerts that notify relevant stakeholders, and damages are mitigated. Damage doesn’t just occur when goods are in transit. Often, storage conditions at the manufacturer’s facility are to blame for damages.
Incorrect storage handling, improper ventilation, and other flaws in logistics are identified by IoT enabled condition monitoring sensors. When paired with data analysis techniques, firms can spot trends that cost them money. For instance, a storage facility might be reporting an increased number of temperature violations over time. These issues can be fixed before they become serious and cause damage to goods.
Every industry, from precision electronics to food, to construction benefits from monitoring condition-related data. It’s these data that ensure the goods we consume are always in optimal shape.
Geopolitical Data
Logistics providers spend a lot of time figuring out the best route for a shipment. Typically, the best route between two places is a straight line. However, in the complex world of supply chains, a straight line is never straight.
Some of the obstacles shipments encounter are customs regulations, inspections, changing regulations, and geopolitical disturbances. For instance, a favored shipping route might be rendered unusable due to sanctions being placed on a country that lies on that route.
Changing customs regulations also put shipments in jeopardy. Most supply chain service providers maintain a ready database of geopolitical and customs events that help them create the best route. For example, each country in the European Union has separate customs regulations. By feeding these regulatory data to an algorithm, logistics providers create optimal routes that don’t jeopardize the flow of their shipments.
Condition-related data also helps inform route planning. If a shipment routinely spends excessive time in a customs shed, logistics providers map how this might affect future shipments. If a customs shed along the route lacks necessary technology, the time a shipment spends in that shed might cause damage, rendering any time saved useless.
When designing routes, logistics providers have to take weather and seasonality into account as well. A route might be great in summer but might become impassable during winter. All of these data come together to create the perfect shipping route that ensures goods are always delivered on time, in optimal condition.
Vendor Performance
Data
Supply chains these days are finely balanced thanks to agile and just-in-time manufacturing processes. Companies seek to reduce inventory storage costs and order raw materials just before they need them. They contract logistics providers just before goods need to be shipped to consumers for the same reason as well.
The only way to make this system work is to track vendor performance data. Many factors affect a vendor’s performance. Their location, resources available, and the vendor’s production cycles (if any). In short, there are many variables that manufacturers have to account for when planning production.
Evaluating logistics providers goes beyond determining who delivered goods the fastest. Were goods delivered safely and according to local regulations? The last thing manufacturers need is legal violations committed by the logistics provider blowing back on them.
Tracking vendor performance is easy via a rating system on an electronic platform. Algorithms take different variables into account and present a list of reliable suppliers and vendors. The result is a more efficient and reliable supply chain.
More Data, More
Visibility
As supply chains become longer and more complex,
data analysis offers companies the best way of gaining control over their
processes. Thanks to these three categories of data, stakeholders across supply
chains can ensure goods arrive safely and on time, every time.
