Global Logistics and Supply Chain Strategies - October 2008 - (Page 42)

sion to ship air is an exception that becomes more of a permanent procedure.” The end-to-end visibility information can be good, but it is not free. Data quality management is the key success factor in a visibility implementation. Aberdeen reports that less than 10 percent of all visibility implementations have data quality rates greater than 90 percent. That means that only 1 in 10 companies is regularly using and getting value from their visibility solution. “The reason most visibility implementations fail is not investing in data quality,” says Pieri. “We do not allow that to happen.” Armed with quality visibility data, Pieri enumerates the uses that it provides. An importer or exporter is able to: • Monitor supplier ship windows • Send triggers to pick up goods • Identify bottlenecks and resolve delivery issues • Expedite promotional or “hot goods” • Monitor transit through customs • Divert inventory or support DC bypass strategies • Help DCs plan inbound receipts • Automate the POD delivery process • Collect foundation data to scorecard trading partners The visibility module can be configured to a customer’s specific business problem because data can be pulled from hundreds of connections already set up with carriers, logistics providers and customs brokers, or from a company’s specific trading partners. For example, Apple uses the Management Dynamics visibility module to monitor its suppliers. GlaxoSmithKline uses it for visibility with over 70 of its trading partners. “Many users want visibility to their suppliers, but all want to monitor in-transit shipments, especially the handoffs between modes and the passage through Customs,” says Pieri. specific need just for one or two, or they can implement them as a stack. “The value is greater when they come together because of touch points throughout the supply chain,” says Pieri. “The visibility network connects with hundreds of logistics companies, so it also allows the user to send the booking requests. The visibility network also allows the user to collect invoices from carriers to do freight audits and to provide a database for future planning. TMS and visibility work closely together.” Many companies start with supply chain visibility because it provides an invaluable baseline of information to understand a company’s own network and how it connects with service providers, Pieri says. Visibility also helps clarify key inventory planning assumptions and distribution requirements. “A company can confirm transit times by mode of service as well as analyze distribution requirements and identify premium ocean freight services to offset all or part of current airfreight,” he says. “Often the deciManaging Global Supply Chains Once a good transportation plan is defined for airfreight and ocean freight, the Management Dynamics TMS manages the contracted rates, performs routing and carrier selection and audits the freight bills. By centralizing this solution, companies can work off of an approved vendor list, always use the latest and best rate, see the impact of forward-filed charges, compare services side by side to find the best combination of cost and service and fully audit freight bills 42 OCTOBER 2008

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Global Logistics and Supply Chain Strategies - October 2008 Contents Editorial GL&SCS Exclusive Fastforward Up Front The Top Story In the Driver's Seat Think Inside the Box Recipe for Success NITL Preview Opinion Industry Voices

Global Logistics and Supply Chain Strategies - October 2008

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