IntelliTrans President Discusses Moving from Reactive to Proactive Visibility into the Supply Chains 

Pulled into the digital landscape, the B2B sector is getting a taste of what it’s like to have to meet the delivery expectations set forth by large e-tailers.

Whether literally or figuratively, pretty much all organizations are in some way competing against online companies like Amazon. Its original footprint may have been squarely placed in the business-to-consumer (B2C) realm but this e-tailing giant has since spread its wings across the business-to-business (B2B) category. 

And while Amazon may not be using breakbulk rail to delivery grains to food manufacturers or delivering tankers filled with hazardous chemicals to steel producers, its influence is still being felt in these and other industrial sectors. That’s because the underlying assumption that shipments are going to be delivered quickly—and that buyers will be able to trace them as they move through the supply chain—has made its way into the industrial sector.   

After all, the same customers who are buying industrial products are also shopping online; ordering pizza and tracking the process from oven to delivery; and watching their Uber driver circle their workplaces in search of a parking spot—all right on their mobile phones. Expecting a similar experience in any setting, these customers are pulling B2B companies into the digital landscape.

Customers Demand it

The proof is in the numbers: According to a recent industry survey on the Amazon Effect, nearly 78% of professionals said their Amazon experience has raised their expectations for all deliveries, and one in four consumers said same-day delivery is very important even for household items. Nearly 40% of consumers said they expect local stores to be able to deliver household items the same day. 

Half of people surveyed say accurate ETAs are extremely important (less than 7% say they are not important). However, they also said local delivery fleets are not consistently communicating with customers on delivery status.  

The amount of time that companies have to deliver a package is also shrinking. For example, Business Insidersays the maximum amount of time considered acceptable to wait for a package is now just an average of 4.1 days (down from 5.5 days six years ago). And, Amazon Prime members expect packages nearly a day earlier than non-members. 

“As two-day shipping becomes the online shopping norm, Americans are getting more and more impatient, expecting there to be fewer and fewer days between the date they order and the time when the brown boxes and yellow envelopes start arriving,” Business Insider points out.

Impacting the Entire Supply Chain

In What All Businesses Can Learn from Amazon’s Supply Chain Effect, Sourcing Journal says that the war of faster delivery now extends across the entire supply chain. “Mills, manufacturers, and other suppliers aspire to build a sourcing matrix that provides the flexibility that is needed in today’s fast-paced marketplace with ever-growing demand,” it states. 

“Customers have enthusiastically adopted that two-day shipping mentality, bringing it from their own consumer experience into the workplace,” the publication continues. “They now want to know why they can’t get a sample in two days, why they can’t get fabric choices within the same amount of time, and why shipping in general is taking so long. This represents a marked change from the longer turnaround times previously considered standard.” 

The problem, according to Commercial Carrier Journal, is that meeting these customers’ new visibility requirements is difficult using traditional tools like electronic data interchange (EDI). But as more supply chain professionals are carrying their experiences with B2C sites like Amazon over to their work lives, demand for advanced technology and visibility tools is growing.

 “Everybody is expecting shipments to be like Amazon with complete visibility,” one 3PL leader told CCJ. “They want data and they want it yesterday. Whether it’s the Amazon Effect or another form of consumer expectation, it is a standard that we have no choice but live up to,” another shipper added.

Enlisting Help from Technology

By blending tracking data from electronic logging devices (ELDs), back-office systems, and mobile applications that carriers use to provide a central dashboard for monitoring shipments in transit, freight visibility platforms are helping to fill in those gaps. 

Online portals also go a long way in helping B2B firms “act” more like their B2C counterparts. “Even small and mid-size shippers expect transportation providers to have a self-service web portal they can use to track shipments and do other routine transactions,” CCJ adds.  

In absence of adequate time and proper management, issues like service redundancy, wasted labor, and costly missed deadlines can significantly impact a B2B company’s bottom line and customer relationships. “For instance, if a delay from one vendor on a particular fabric means losing your spot on the manufacturing line, which causes a missed delivery date to your biggest client,” Sourcing Journal states, “it’s going to have an impact on your bottom line moving forward.”

Meeting the Demands of the B2B Buyer

IntelliTrans’ Global Control Tower provides high levels of supply chain transparency; aggregates, completes, and enhances data from a variety of sources; offers visibility into and execution of different aspects of the supply chain; and generates data-driven alerts and analytics that ask deeper questions and deliver meaningful insights.

By leveraging tracking information, the Global Control Tower provides analytics that measures key performance indicators (KPIs) like fleet cycle time, origin/destination dwell time, lane and hauler performance, back orders, freight spend, load optimization, and more. With their rate, equipment, lease, tracking, and invoice data in a central repository that’s accessible 24/7, companies can position themselves for success in any market conditions. 

A technology that originated in the 1960s has come of age in the transportation realm, where GPS tracking is being used across myriad different modes and routes.

A worldwide radio-navigation system originally designed for the U. S. military, global positioning system (GPS) tracking has come a long way since NASA scientists and the U.S. Navy began tinkering around with satellite-based tracking in the mid-1960s. That work spilled over into the 1970s, when the Department of Defense (DoD) launched its first Navigation System with Timing and Ranging (NAVSTAR) satellite. 

As the technology evolved, the number of use cases for it proliferated. “Today, GPS is a multi-use, space-based radio navigation system owned by the U.S. Government and operated by the U.S. Air Force to meet national defense, homeland security, civil, commercial, and scientific needs,” NASA explains.

Planes, Trains, Automobiles

Used in the smartwatch that tracks the number of steps you take in any given day and the special dog collar that keeps you updated on your pet’s location, GPS technology has had a profound impact on the transportation sector. Using a network of satellites orbiting the earth, GPS tracking devices can figure out precise locations of pretty much anything that they’re attached to—trucks, planes, trains, and ships included.  

“As timing and sticking to a schedule are crucial to any fleet’s ability to maximize profits,” Fleet Equipmentmagazine states, “many fleets are turning to software solutions to ensure increased driver accountability, including by using real-time GPS tracking devices.” 

Here are six ways GPS tracking helps improve the overall safety, efficiency, and accountability of global transportation networks: 

• Gives drivers autonomy. They can use it to take more ownership over their jobs; gain clarity of tasks and results; and self-correct and improve without the need for micromanagement. “Even well-intentioned drivers may discover that there are areas of improvement that could make them more productive,” Fleet Equipment Armed with this information, companies can work to improve driver training methods, reward their safest drivers, and address problematic driving behaviors. 

• Creates high levels of accountability. Using GPS tracking systems, drivers, carriers, and shippers can verify on-time arrival at customer sites. This helps to eliminate the reporting and logging burden, both for employee and employer. It also creates a virtual “paper trail” for future verification purposes. 

• Makes transportation very transparent. The ability to track trailers, as well as other commercial vehicles reduces the chances of unauthorized use, theft, and promotes better utilization of assets. “Tracking provides peace of mind by being able to locate the exact position of a trailer at any given time,” Sarang Pharate notes in 5 Key Things You Should Know About Trailer Tracking Solutions.“It also enhances operational efficiency, as you can update the shippers about a trailer’s location if they ask for it.” 

• Helps you optimize routes. No company can afford to waste time, fuel, or manhours in today’s competitive business environment, yet that’s exactly what can happen when transportation routes aren’t optimized. Some GPS tracking solutions come with route optimization tools that you can use to plan out efficient routes and identify opportunities to further streamline once the route is completed,according to Samsara.   

• Improves overall fleet security. GPS vehicle tracking also helps enhance fleet security. “If a vehicle goes missing, a GPS tracker can help you locate and recover the stolen or misplaced asset faster,” Samsara points out, noting that some GPS truck tracking systems allow you to set alerts if a vehicle is used during off-hours, or if an asset leaves a pre-designated area. 

• Puts more hours in the day. With a GPS tracking system, fleet managers can identify potential traffic hold-ups and reroute accordingly, reducing time spent in traffic jams. A good GPS fleet tracking system also delivers detailed reports that fleet owners can use to make data-based decisions for their operation (for example, whether or not to use a specific route in the future, or when to bring a vehicle into the shop for a repair).

Tracking the World’s Transportation Fleets

IntelliTrans’ Global Control Tower provides high levels of supply chain transparency; aggregates, completes, and enhances data from a variety of sources; offers visibility into and execution of different aspects of the supply chain; and generates data-driven alerts and analytics that ask deeper questions and deliver meaningful insights.

By leveraging tracking information, the Global Control Tower provides analytics that measures key performance indicators (KPIs) like fleet cycle time, origin/destination dwell time, lane and hauler performance, back orders, freight spend, load optimization, and more. With their rate, equipment, lease, tracking, and invoice data in a central repository that’s accessible 24/7, companies can position themselves for success in any market conditions. 

With the global pandemic impacting supply chains worldwide, more organizations are taking introspective looks at their own global networks and taking steps to make them more resilient and enduring.

An organization’s ability to absorb stress, recover critical functionality, and thrive in uncertain circumstances, resilience has become a token buzzword for companies whose supply chains couldn’t quite withstand the rigors of the pandemic. More specifically, supply chain resilience allows organizations to maintain relative balance between supply and demand without sacrificing profitability or customer satisfaction, regardless of what’s going on in their markets or economies.    

Resilience is also being used to describe companies that were prepared for the disruption that ensued, and that are now well positioned within their respective industries. Regardless of which end of the spectrum your company landed on, supply chain resiliency is probably being mentioned frequently in the boardroom, on the manufacturing floor, out in the warehouse, and across your transportation networks right now.   

Credit the global pandemic with making resiliency the supply chain term of the year. “In the midst of the Covid-19 crisis, we have become painfully aware of the fragility of supply chains, health care, and other critical systems,” HBR points out in A Guide to Building a More Resilient Business. 

“Many leaders have announced the intention to build back their businesses more resiliently, but not many know how to do so,” the publication continues. “Few business schools teach resilience, and today’s managerial toolkit is dominated by financial performance management. As a result, very few companies are able to explicitly design for, measure, and manage resilience.”

Adapting to the “New Normal”

Developing and sustaining supply chain resilience can be difficult even under “normal” circumstances. When you add the multitudes of factors beyond your control to the mix (e.g., a global pandemic, economic downturn, shifting customer preferences, etc.)—not to mention the unknowns lurking around the next corner, ready to disrupt businesses without warning—it can feel like you’re fighting a losing battle. 

In some cases, traditional supply chain metrics, processes, and mechanics are to blame for the level of disruption inflicted by events like COVID. “Prior to the COVID-19 pandemic, supply chain resiliency had become an important issue due to disruptive natural disasters and geopolitical disputes, especially tariffs and trade wars,” Resilinc points out. “Despite the growing likelihood and severity of supply chain disruption, the primary metric companies traditionally used to evaluate suppliers is lower cost, not the impact of disruption on both cost and revenue.” 

The good news is that there are ways to strengthen and add resiliency to existing supply chains even if those networks didn’t fare well during the pandemic. In 6 Strategies for a More Resilient Supply Chain, Gartner’s Sarah Hippold discusses change priorities for supply chain leaders, most of whom are focused on balancing cost and operational efficiency with greater resilience.

Just 21% of Supply Chains are “Highly Resilient”

According to Gartner, just 21% of companies currently have what they consider to be “highly resilient networks,” which are characterized by good visibility and the agility to shift sourcing, manufacturing, and distribution activities around fairly rapidly. More than half of its survey respondents expect to be highly resilient within two to three years. 

“Most supply chain leaders recognize that becoming more resilient is a necessity in the current environment,” said Gartner’s Geraint John. “However, measures such as alternative factories, dual sourcing, and more generous safety stocks go against the well-versed philosophy of lean supply chains that has prevailed in recent decades.” 

The research firm sees inventory and capacity buffers; more diverse manufacturing networks; the use of multi-sourcing and near-shoring; harmonized platforms (i.e., the use of one common vehicle platform to make a variety of different car models); and partnership ecosystems as some of the best strategies for companies seeking more resilience right now. 

“The COVID-19 crisis has shown the need to have a diversified approach to sourcing. At the same time, however, collaboration with strategic raw material suppliers and external service partners is also vital to ensure better preparedness and resilience for the future,” Hippold points out. “For companies without the scale to support multiple locations on their own, strong relationships with contract manufacturers and global 3PLs can be vital in diversifying production and distribution to different countries.” 

To gain high levels of visibility across these complex networks, more companies are turning to supply chain platforms that enable effective collaboration and data-sharing while leveraging digital tools. By using technology to map out supply networks before disruption occurs, for example, companies not only gain better visibility into their supply chain structures, but they can also avoid-last minute scrambling that ensues when disruption strikes. “They know exactly which suppliers, sites, parts, and products are at risk,” HBR states, “which allows them to put themselves first in line to secure constrained inventory and capacity at alternate sites.”

Supporting the Resilient Supply Chain

IntelliTrans’ Global Control Tower provides high levels of supply chain transparency; aggregates, completes, and enhances data from a variety of sources; offers visibility into and execution of different aspects of the supply chain; and generates data-driven alerts and analytics that ask deeper questions and deliver meaningful insights.

By leveraging tracking information, the Global Control Tower provides analytics that measures key performance indicators (KPIs) like fleet cycle time, origin/destination dwell time, lane and hauler performance, back orders, freight spend, load optimization, and more. With their rate, equipment, lease, tracking, and invoice data in a central repository that’s accessible 24/7, companies can position themselves for success in any market conditions.