The importance of visibility for full supply chain automation

Visibility is the most desired goal for all companies in the transport and logistics sector, not only to have real-time information, but also to achieve supply chain automation.

In this sense, Oscar Lopez, CEO of FIELDEAS, during the second edition of FIELDEAS Talks, emphasized that achieving end-to-end visibility in the value chain goes far beyond knowing that the goods have arrived at the point in perfect condition, but it is about automating and being more efficient.

As we saw in the post “The concept of ecosystem in the digitalization of road freight transport” to achieve full visibility and automation of the supply chain, a digital ecosystem must be generated in which there is a balance between all agents, so that all parties gain, and where they do not act individually.

By generating a digital ecosystem, the entire chain can access data and make predictions automatically, allowing it to anticipate possible disruptions and provide faster and more efficient responses. Thus, when a company offers visibility to its environment, the rest of the companies that are part of it obtain the same visibility, which will allow them to automate their processes and, ultimately, become more efficient.

Benefits of supply chain automation

The word automation is indisputably linked to a long list of benefits, which are of very high value in the case of the transport and logistics sector. Thus, supply chain automation brings the following benefits:

• Better slot planning. The automation of processes within the supply chain allows logistics platforms or loading and unloading points to have real-time visibility on the arrival time of trucks, which allows automatic planning of slot management.
• Improves relationships between agents. Historically, relationships between shippers, operators and carriers were strained by a lack of information and communication. With the automation of the supply chain, this problem is solved and a constant flow of information between all the agents is achieved.
• Better customer service. By automating processes, the accuracy and speed of shipments is improved, which increases customer satisfaction, as they can also receive real-time information on the status of their shipments.
• Cost reduction. Automation can lower operating costs by reducing the need for manual labor and optimizing the use of resources.
• Increased efficiency. Automating processes allows workers to focus on higher value-added tasks. In addition, it reduces errors and time, which increases efficiency. An example of this is the streamlining of administrative processes, which would speed up invoicing times.
• Real-time visibility. As we have seen, the step prior to automation is visibility, the collection of data. But, once achieved, automation enables real-time monitoring of the supply chain, providing up-to-date data that facilitates informed decision making.

• Rapid response to market changes. Automation allows shippers to adapt more nimbly to changes in market demand, quickly adjusting production and shipments. In addition, it also allows transport companies and operators to optimize and manage their fleets and resources in an agile and automatic way.
• Sustainability. Supply chain automation also has sustainability benefits, as material and energy use is reduced in the case of route optimization.
• Predictive analytics. Beyond enabling rapid response to market changes, automation allows advanced data analysis to predict future trends and behaviors, improving planning and forecasting.
• Systems integration. Automation facilitates the integration of different systems and platforms, improving communication between different parts of the chain, which nurtures this digital ecosystem.
• Scalability. Automation allows operations to scale efficiently to meet business growth without a proportional increase in operating costs.
• Security. There is greater data protection and improved process security by reducing manual intervention. It also provides mechanisms for early detection of problems and their resolution before they become major failures.

As we can see, all these benefits are a win-win situation for all parties: shippers, operators, transport companies and even consignees. This is key for supply chain automation to be a success and work as a seamless operation.

Management by exception, the main benefit of supply chain automation

In addition to all of the above benefits, it is especially important to focus on how automation drives management by exception.

In short, management by exception is the proactive monitoring of the transportation process and is a medium to long-term process in which all processes are improved by applying technology wherever possible. In this way, the manager only has to focus on what the system alerts him to, allowing him to focus on other activities of greater value.

Thus, with the automation of the supply chain, management by exception is completely feasible and, in addition, the company will gain flexibility, efficiency and sustainability.

By obtaining data from different information sources, the system determines patterns, so that when they are not met, it is able to issue a warning signal to manage that incident. In the post “How to improve your transport operations with management by exception” we explain in more detail how management by exception is achieved in transport and logistics.

FIELDEAS Track and Trace in supply chain automation

The key tool to obtain complete supply chain visibility is to have a platform designed for it.

In this sense, the most advanced, flexible and secure Supply Chain Visibility platform on the market, FIELDEAS Track and Trace, is capable of bringing together and connecting in a single point all the technological tools that serve as a source of information for tower control, providing full visibility of operations, which subsequently leads to automation.