Myth 2: Mistaking Functional For Healthy

  • Written by admin
  • June 20, 2017

    One of the most pervasive myths in the world of business is that when it comes to supply chains, functional equals optimal.

    Original equipment manufacturers (OEMs) tend to look at their supply network, see working processes, and assume the result is adequate. However, a passable supply chain and a healthy one are quite different: A working supply chain does a job; a best-in-class supply chain drives continuous value for its company.

    Supply Chains Can Create Significant Logistics Risks

    This disconnect is due, in part, to the inherent lack of visibility of the modern supply chain. When inventory is shipped overseas to regional partners for distribution, multiple touchpoints are created for each inventory item that must be accounted for. Each partner in the chain will have different standards of quality for receiving, handling, and shipping goods. Without supply chain visibility, businesses can't guarantee that each of these parties will maintain the parent organization's standards, which often results in disparate networks filled with complexity and logistics inefficiency.

    Traditional supply chain optimizations can't account for these touchpoints and offer no way to handle the sea of data that the modern process produces. Each partner associated with manufacturing, transportation, and distribution all produce unique tracking data for inventory that must be managed to guarantee on-time fulfillment and shipping accuracy. Therefore, a lack of visibility translates to a lack of efficiency; without ways to assess the integrity of the supply chain as one cohesive unit, it can't be considered "healthy."

    The ChronosCloud Advantage

    Executives who think outside of the box in their approach to optimization can easily differentiate themselves and produce significant competitive advantages for their businesses.

    Enter ChronosCloud: A cloud-based, end-to-end supply chain management platform that shines a light on complex distribution, supply, and manufacturing networks and supports an internal culture of information availability and transparency. ChronosCloud gathers essential manufacturing, shipping, and inventory data from each partner in the supply chain and integrates it within an easy-to-use framework that gives users more insight into supply chain operations than ever before.

    End-to-End Visibility

    The secret behind ChronosCloud is the end-to-end touchpoint visibility. Instead of requiring managers to know each carrier and warehousing partner and input a number unique to that provider, ChronosCloud allows each shipment to be tracked by reference to the sales order—the only piece of information that the OEM and its customer really care about.

    Consolidating information supports operational efficiency by making all steps clear and available to all users of the system. This visibility reduces the complexity of the supply chain and eliminates errors. And when problems arise, there is less backtracking needed—all interactions and touchpoints are documented in the software, making issue resolution simple.

    Expose Inefficiencies?

    Far from just being a way to monitor the supply chain, ChronosCloud exposes each step of the process and makes it easy to identify where inefficiencies are occurring. This allows users to identify the least efficient touchpoints of their supply chains, remove those steps if possible, and redevelop their infrastructure in leaner and more efficient ways.

    These types of data-driven insights support sustainability, reduce redundancy, and provide a clear view of operations to cut down on costs. For overworked executives, tired of dealing with the headaches of disparate and error-prone supply chains, there’s no better solution on the market.

    Bring Your Supply Chain to Life

    Functional does not equal efficient. The supply chain, from inventory management to transportation logistics, contains numerous opportunities for value-driving optimization. Therefore, even efficient chains cannot be considered healthy—unless a business’s supply chain is clear, efficient, and powered by data, it will always perform worse than supply chains driven by information availability. Executives seeking maximum competitive advantage in their supply chains must understand the value of visibility and where to adapt their infrastructure to move beyond their competitors.

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