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 And yet, many of the most progressive platforms and software are draped over the stiff bones of outdated frameworks.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.
Transportation management was once straightforward: Order management systems grouped batches of orders into origin-destination pairs based on delivery dates, then sent order releases down to the transportation management system (TMS), which had the sole function of accepting that input and releasing the batch.
A lot has changed since then. Between global competition, high consumer demand, and the rise of multi-enterprise networks, businesses are realizing this legacy method is insufficient to handle the supply chain industry’s growing complexity.
If you need a more effective and efficient way to manage transportation in the modern supply chain, here are several do’s and don’ts to consider: