Over the past 25 years, companies have been using the supply chain as a competitive tool. The most successful manufacturers, distributors, retailers, and logistics providers leverage superior supply chain management practices to distinguish and elevate their brands. Most of them have done so by investing billions of dollars into home-grown systems to implement these practices, as off-the-shelf software has typically failed to meet requirements.
Today’s supply chain is incredibly demanding. No matter what sector you’re in, you’re likely up against thin margins alongside pressures to reliably and cost-effectively deliver both regular and rush orders on-time and in-full under strict time windows.
Due to a long-standing tradition of batch-processing, businesses are constantly losing money by unnecessarily rushing regular orders that are bundled with the expedite. Most Transportation Management systems (TMSs) run up against this inefficiency because they can’t control individual orders. Here’s how the order-centric TMS is challenging and revolutionizing that paradigm.
The supply chain is always evolving, but since the advent of the Internet, its transformation has been unique, its challenges unprecedented. With e-commerce came greater market demands and competitive pressures. And as businesses adapted to these new realities, expanding their reach abroad and forming multi-enterprise networks, they found that managing these new opportunities introduced its own set of unprecedented challenges and complexities.
While the industry has coped so far by slowly modernizing and upgrading the various components of the old Transportation Management System (TMS) framework, we have reached a point in which this framework is no longer viable. By continuing to maintain it, businesses risk stagnating future progress. The Order-Centric TMS was built for the modern supply chain; it moves beyond the conventional model to provide unprecedented levels of flexibility and dynamism.
It’s often been said that business process changes precede technology and software. Companies would first define their frameworks and then seek out software to support those established practices. However, much has changed in the 21st century. The rapid evolution of supply chain software and technology has transformed the industry landscape into a far more complex, fast-paced, demanding, global, and networked ecosystem. To keep up with these changes and to seize upon new opportunities, practitioners have begun shifting their approach to acquiring and implementing emerging supply chain software and technology. Rather than apply new technologies and other innovations to existing frameworks, successful and far-sighted practitioners are increasingly thinking about what new possibilities these innovations hold and how their use might help them pivot to more effective processes.
While today’s supply chain is exceedingly complex, one’s approach to managing it need not be. Unfortunately, as tools and so-called best practices evolve, they often propagate silos, redundancies, and failure points in the supply chain, further complicating it.
When thinking about rigidity in the supply chain, it’s common to call out the usual suspects – ahem, spreadsheets – that are routinely blamed for making management less flexible. Less noticeable, however, are the historical boundaries that restrict even the most modern, cloud-based, digital solutions.
Cloud and SaaS technologies have made extraordinary strides toward breaking the systemic and spatial boundaries that otherwise limit effective, networked collaboration. And yet, many of the most progressive platforms and software are draped over the stiff bones of outdated frameworks.
The modern supply chain is capable of so much more than these constricting scaffoldings allow. Here are a few of the secret places where silos and rigidity linger.
The Gartner Supply Chain Executive conference continues to evolve in both scale and content. This recent one, as Gartner noted, was the biggest one to date. So much so, that Gartner will now be converting the supply chain summit to its larger symposium format starting in 2020.
For seasoned attendees who might recall when this used to be the AMR Research Supply Chain Executive conference, it may feel strange to venture anywhere other than Phoenix in May. But if this event was a testament of what’s to come, Orlando 2020 will be something to look forward to.
The world of e-commerce is about to change completely. The United States has indicated intent to withdraw from the Universal Postal Union due to the way the global inter-economy postal tariffs work. These have distorted postal rates so it is cheaper today to ship from China to parts of the US, than within the US itself. This is about to change now, and will redefine competition and competitiveness in e-commerce.