Because now businesses have more competition than ever before, they need to be careful and seek new ways to make their processes more profitable. And because of this aspect, supply chain management has become vital for companies, as this helps the general public access all kinds of goods, from clothes to material construction or food. The complexity in supply chain networks has led to the need of creating new solutions to handle the demands, and this is why supply chain control towers have appeared. A control tower is vital for a business, as it represents a centralized platform that offers end-to-end visibility of the supply chain so that companies can make the right decisions and correct any mistake that can be present. The best advantage control towers have brought is that they transform all company processes into streamlined and efficient operations.
Here is everything you need to know about supply chain control towers and their importance to businesses.
What is a supply chain control tower?
A supply chain control tower is a central hub that gathers all the available data about a company from everywhere, be it from suppliers, partners or customers. This means businesses will have a single platform to see all the activities from the supply chain area, which is greatly beneficial, as in this way, they will not miss information or changes that can appear. A control tower logistics will also allow companies to stay connected with the partners within the supply chain and have the smoothest services. As it centralizes data from several sources and systems, control towers enable real-time tracking and give important insights to increase supply chain performance. They usually incorporate advanced technologies, like machine learning, artificial technologies and predictive analytics, to optimize operations. With the help of this innovative solution, companies have better visibility in managing their logistics, can respond faster to the changes that can appear or have better communication and coordination between the departments of a business.
Why do businesses need a supply chain control tower?
From the first time they appeared, control towers represented a game-changer for all businesses. And the greatest benefit this brought is that it improved a company’s operational efficiency. With the data collected, businesses are able to identify the inefficiencies they have in their processes and make more informed decisions. Also, control towers help organizations minimize their costs by reducing wastage and optimizing inventory. This will only bring benefits because it leads to higher profits and improved cash flow management. Also, with it, departments can communicate better, be a team with a common purpose, and ensure that everyone works together to accomplish the goals of a business. Not to mention that this technology gives better internal and external transparency so that customers, employees or suppliers will all be up to date with the action and operations of a company. This will only bring advantages because if customers see how a business operates, they will be more tempted to try products and services.
Although control towers are beneficial in all logistics, there are also some areas where they are indispensable. For example, they are very needed in chemicals transport, as this field is a complex area responsible for adopting special requirements and conditions so that a company can transport some chemicals, and in which drivers also need special certifications.
What are the implementations of the supply chain control tower?
There are many implementations that a supply chain control tower (SCCT) brings, but the most important of them are represented by:
- Identify a company’s goals: A control tower will help businesses identify their goals, as before they adopt this alternative, they need to define their objectives in the supply chain management operations.
- Choose the suitable technology: A business must opt for the right technologies to implement a SCCT. They should be flexible and scalable and analyze the data in real time. Also, they must be integrated seamlessly with the other existing infrastructure from a company’s IT processes.
- Data Integration is vital for integrating control towers in supply chain management. Data must be collected from several sources, like logistics, providers, suppliers, and other areas important to a business. The data always needs to provide real-time visibility to make operations better.
- Improve the processes and workflow: With the implementation of the supply chain control towers, businesses will be able to manage the changes and alerts that might appear in the supply chain management, leading to improved processes.
- Training management: The implementation of the SCCT also needs to ensure that training is provided so that the logistics control tower employees can deal with all the situations that might appear. Workers need to be trained so that they will know how to manage the technology and automation that is present in this area.
- Continuous improvement: As this is not a one-time action, companies need to constantly monitor the performance of the systems and identify all the areas that can be improved in the supply chain logistics. If organizations ensure that they consider all these aspects, they will have continuous improvements that will optimize their operations and greatly reduce costs in the processes.
Implementing the supply chain control tower needs careful planning, opting for the right technologies, data integration, training and continuous improvement to increase all the operations.
The integration of the supply chain control towers has really revolutionized the way in which a company makes its operations. These systems have brought plenty of advantages to the supply chain, as with their help, companies are more informed and can make better decisions. If businesses embrace these technologies, they will create a competitive benefit over the competition, which is vital in an ever-changing marketplace. With the help of SCCT, businesses can achieve their goals with better accuracy and at a greater speed, which is essential for a company to thrive.