Supply chains are surrounded by myths and misinformation on all sides. Those that manage their supply chains understand the value of increasing supply chain visibility, but the cost and complexity of doing so is a common sticking point for risk-averse executives.
Unfortunately, those questions are just the starting point for the many misconceptions plaguing the supply chain optimization market.
The Truth Behind Supply Chain Myths
Let’s debunk a few of the myths that hold back the typical supply chain.
Myth: Visibility Won’t Produce ROI
While it’s true that groundbreaking visibility solutions require an investment, the idea that supply chain visibility solutions won’t produce value-driving ROI is a myth.
As cutting-edge supply chain visibility platforms such as ChronosCloud prove, complete end-to-end supply chain visibility can be achieved without extensive infrastructure investments or large-scale IT integrations. A single platform integration is all it takes to unlock a wealth of supply chain data and performance metrics that support optimization and significant cost savings over time. From inventory reduction to determining optimal transportation modalities to choosing the most efficient distribution, ChronosCloud provides a clear and direct ROI for business owners.
Myth: Data Is Everything
Another common misconception supply chain logistics is that simply having more data is the answer to supply chain inefficiencies.
This is a myth.
Data collection is a necessary part of supply chain optimization, but data alone will not create a stronger supply chain. Consider the results of a 2016 study by Gatepoint Research, which showed even though 31 percent of Chief Supply Chain Officers have access to visibility data, only 16 percent actually use it.
What’s the disconnect here?
Simply put, there’s a lack of context and meaning. Executives have disparate data streams but no way to view them chronologically or collaboratively; as such, they are unable to derive meaningful insights from them.
Visibility solutions such as ChronosCloud capture data from all supply chain touchpoints and provide a single, unified platform that lays out each order from start to finish. All vendor data can be assessed as a whole with each sales order laid out from beginning to end. This allows supply chain operators to benchmark supplier performance and provides valuable performance indicator metrics necessary for supply chain health.
Myth: Supply Chains Can Be Healthy Without Visibility
Of course, many executives lack these visibility solutions, and yet still believe that their supply chains are “healthy.”
This is the biggest myth of all.
Consider GatePoint’s research that showed although 54 percent of respondents reported that they were somewhat satisfied with their supply chain visibility, only 19 percent admitted to having complete end-to-end supply chain visibility.
It’s this misunderstanding that has created so much confusion in the supply chain logistics world. Supply chain executives are aware that they don’t have complete end-to-end visibility, yet are still satisfied with their level of control.
And yet this misconception is what makes solutions such as ChronosCloud so powerful. ChronosCloud was designed by supply chain experts to be easy to use and simple to integrate with existing ERPs. ChronosCloud’s engineers do all the hard work of integration by collecting data from each touchpoint and creating a single stream of collaborative data that offers more visibility and insight into supply chain performance than any other solution available. It doesn’t replace a business’s ERP—it complements it with revenue-driving data management and visibility components.
Executives who believe that these types of solutions don’t produce a powerful ROI may never have seen them in action. And it’s these myths that prevent business owners from unlocking the full potential of their supply chains.
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