What is Logistics?
“Logistics is about delivering the right product to the right customer in the right amount, in the right condition, at the right place, at the right time, and at the right cost (the 7 Rs),”.
Previously, different duties were assigned to distinct departments, but now they are all assigned to the same department and report to the same person, as seen below.
What is Logistics Management?
“Logistics management is concerned with the efficient and effective administration of day-to-day activities in the production of completed goods and services for the firm.”
What is Supply Chain?
“The supply chain is a network of companies that are involved in the many processes and activities that generate value in the form of products and services in the hands of the end customer, through upstream and downstream links.”
In the trucking industry, end-to-end supply chain visibility is a prominent subject. It’s understandable: you can’t assess or improve something you can’t see.
Many companies struggle with supply chain management because it demands so much tracking and visibility. The supply chain for even the smallest of enterprises may be incredibly long and complicated, comprising several suppliers and procedures. It is absolutely vital to observe what is going on in the planning, sourcing, building, delivering, and returning stages in order to properly run one’s firm.
Many firms struggle to gain end-to-end visibility across the whole supply chain, despite an increasing trend toward investing in technology and experienced staff. There is certainly a need for it, but in today’s competitive global world, responding as swiftly as necessary to all supply chain events that may have an influence on customer experience and profitability is tough.
But, by definition, what is end-to-end supply chain visibility? Why is outstanding overall visibility so vital, and how can one’s firm focus more on it? Let’s have a look at what we’ve got.
What does it mean to have visibility across the whole supply chain?
The end-to-end process in the supply chain is referred to as end-to-end (also known as E2E) in supply chain management. It encompasses the complete process, beginning with the acquisition of materials from suppliers and concluding with the delivery of the product to the customer. Data logging and condition monitoring are required to follow the process, and the obtained data must be analysed.
- End-to-end supply chains will, in most cases, follow this formula:
- Inventory control and procurement
- Finance
- Operations logistics and planning
- Quality
- Customer service and sales
When we consider E2E supply chain visibility, we see that it is a must for organisations to interact, solve problems, and give support to partners and customers.
In addition to visibility, understanding supply chain cooperation is critical, as it is the primary means of gaining visibility throughout your supply chain. The act of having a collaborative multi-tier supply chain planning and management system is known as supply chain cooperation. Collaboration is a solution for acquiring greater information into the ordering process, inventory in motion or at rest, supply chain challenges or hazards, and stand-alone supply chain analytics for the sake of visibility. Collaboration is also beneficial in the management of supply chain events. Simply said, increased visibility of your supply chain necessitates coordination across the appropriate teams, warehouses, suppliers, and stakeholders.
Downstream vs. upstream
In many circumstances, companies are exclusively concerned with downstream visibility. Because downstream visibility focuses mostly on consumers, which should be a top goal, this is the case. The notion that a company should exclusively focus on downstream visibility, on the other hand, is harmful and narrows the company’s focus. It’s also an antiquated approach to supply chain visibility.
Downstream visibility is a complete understanding of how one’s products flow down the supply chain to the customer. Downstream refers to all of the steps that go into getting a finished product from the warehouse to the customer. The term “upstream visibility” refers to a complete awareness of how all of the elements required to manufacture a product are flowing through the supply chain. It entails all of the steps, activities, and motions required to bring each component together to form the final result.
End-to-end supply chain visibility is achieved by combining downstream and upstream visibility.
If you put too much emphasis on downstream, you risk not acquiring the parts you need to complete your final product. Consider this: How are you going to get your specialised product into the hands of your consumers if you can’t even develop it? As a result, E2E supply chain visibility requires upstream visibility.
What are the advantages of having visibility into the E2E supply chain?
Better visibility in the context of your end-to-end supply chain has a number of advantages:
- Shipper’s customer service has improved.
- Overall, the customer experience has been increased and improved.
- Controlling costs through inventory management in motion
- Status tracking and updates that are as near to real-time as feasible
- There are less interruptions.
- Improved risk management
- Better order error prevention
- Customer retention is improved, and mistakes are reduced.
- A better understanding of business functions
- OEMs will have a better understanding of demand.
- Possibilities and possibilities for better planning
- Improved reporting
- Potential for tangibly analysing data
What’s keeping end-to-end supply chain visibility from becoming a reality?
Unfortunately, supply chain visibility is not a top concern for many firms on a global basis. Only 6% of organisations reported having end-to-end supply chain visibility, according to Geodis’ Supply Chain Worldwide Survey study. That number hasn’t moved significantly in the couple years since the report’s publication.
There are a few different approaches to focusing on both upstream and downstream visibility. To begin, offer your procurement department access to all relevant data so that they can provide accurate insight into all supply chain concerns.
The majority of supply chain interruptions occur below the first tier, where visibility is limited. Make it a top goal to gain visibility into both your first-tier and sub-tier suppliers. This necessitates a positive relationship with your first-tier provider.
Examine the primary logistics hubs via which your materials and completed products pass. Are any evident bottlenecks present, and is your supply chain management staff aware of any events that might jeopardise your supply chain? You must be able to counteract any dangers in real time.
The next step is to examine your own distribution hubs and warehouses. To adequately monitor your suppliers, check as many sites as necessary. It can assist if you have effective communication strategies and solid connections with your internal stakeholders. Those who frequent those sites will be the first to notice any problems or possible problems. You may then collaborate to test actions and solutions to avoid problems.