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Standalone supply chain systems offer efficient processes for their respective functional area, but businesses can find additional value with connected systems. A connected system is one that combines the silos of warehousing and transportation to share data and create a supply chain with the goal of establishing a seamless process to better replicate and compete with the ‘Amazon Effect’ and the increased focus on cost reduction that comes with it.
Utilizing an ERP with integrated Transportation Management and Extended Warehouse Management allows for newfound synergies to minimize resource downtime and maximize space utilization. Pain points that are highlighted in this paper and can be reduced through a connected system are: the picking process, load staging, and scheduling dock times. A connected supply chain aims to remove the guesswork from when a load is arriving or departing, as well as where it needs to be docked or staged.
The modern supply chain has been evolving with consumer expectations, which are a moving target as companies find innovative ways to better the experience. The ‘Amazon Effect’ has far-reaching implications beyond supply chain efficiency – it also raises customer expectations1. Customers want, and now expect, more when they place an order for an item – whether it is a T-shirt or a washing machine. The following are important:
- Optimize resource utilization
- Increase perfect order performance
- Decrease detention costs
To accomplish these, today’s supply chain is more linked than ever before, with the ambitious goal of minimizing downtime, maximizing space, and maintaining a high level of customer satisfaction through the entirety of the process by finding efficiencies between silos. The question is how a company can solve this communication and information gap between different silos of their business? Companies are faced with investing in technology to better connect silos of their supply chain, or they risk falling behind the trend and losing customers due to increased costs and decreased visibility.
1 Panko, R. “How Amazon Prime is Shifting Consumer Expectations.” Retail Learning. Sep 2019.
What you will take out of this.
A connected system shares data with the goal of establishing a seamless process to better replicate and compete with the ‘Amazon Effect’ and the increased focus on cost reduction that comes with it.
Would you like to know more about a connected supply chain and how you can make your systems work together to enhance their capabilities? Please fill out the form below to download your copy of the white paper.