Myth 6: Bigger Is Always Better

  • Written by admin
  • July 31, 2017

    Bigger is better. As a society, we’re exposed to this message on all sides, from the food we eat to the cars we drive to the businesses we work with.

    Unfortunately, in the case of supply chain economics, this is not always true. While manageable growth is an indicator of health for any business, the complex nature of international supply chains changes the equation. Bigger and wider reaching supply chains may be synonymous with increased opportunity, but scaling this infrastructure presents many new challenges.

     

    Supply chain executives must not make the mistake of thinking that growing their supply chain is the same thing as improving their supply chain. Bigger supply chains aren’t always better—and in many cases, they’re worse.

    The Challenge of Big

    The bigger a supply chain gets, the more exposed to inefficiency and risk it becomes. And when dealing with international supply chains, a logistics area already notoriously difficult to track, it’s no surprise few supply chain executives can truly claim to have a handle on their complete, end-to-end transportation and distribution workflows.

    There are numerous costs associated with growing supply chains which have not been optimized:

    • Increased processing fees across vendors
    • Growing shipment tracking costs
    • Unaccounted-for logistics labor costs
    • Overall process inconsistency and lack of cohesion

    The longer supply chains continue to grow without a solution to mitigate these costs, the more the inefficiencies will compound and the more value will be lost. To handle the challenges of scaling, executives need complete visibility into supply chain operations. Understanding each touchpoint in the supply chain and being able to track orders in real time is necessary to build supply chains that aren’t just big but are lean and efficient across the board.

    Big Solutions for Big Supply Chains

    To achieve the visibility necessary for optimized supply chains, businesses need not look any further than the platform offered by ChronosCloud.

    ChronosCloud is a revolutionary system for supply chain management, providing complete, end-to-end transparency of all vendor touchpoints. Data is collected from each supplier and fed back into the ChronosCloud dashboard. The ChronosCloud interface takes the unique tracking data received from each vendor and combines it into a single reference number which shows users in real-time exactly where each order is across the entire supply chain lifecycle.

    And, visibility is just the beginning: When executives can see across suppliers from end-to-end of the supply chain, the have a powerful engine for analytics. With ChronosCloud, they can identify the biggest sources of inefficiency within their growing supply chains.

    Among the benefits of ChronosCloud’s supply chain visibility and analytics platform:

    • Inventory levels and warehousing costs can be better tracked, resulting in opportunities for inventory reduction
    • Processes can be streamlined and made consistent across all vendors.
    • Benchmarking of supplier performance becomes possible across the entire supply chain
    • Wasted time at handoff points between suppliers becomes visible and actionable
    • Potential to reduce costs by consolidating shipments or shifting transit modes can be assessed.
    • Overall performance metrics are easier to track, resulting in long-term increases in customer satisfaction

    ChronosCloud and the Supply Chain

    The benefits of increased visibility apply to supply chains of any size, but they are most apparent in growing supply chains spread out across diverse international and geographic regions. ChronosCloud removes the ambiguity inherent to these supply chains and provides a powerful platform for end-to-end insight and action.

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