Businesses in the Middle East are increasingly looking for ways to meet the challenges of today's slowing economy – in addition to managing the complexities of a global supply chain, including managing costs, just-in-time stock deliveries, efficiency and productivity, which are all key business priorities in supply-chain management. Using technology to synchronise supply chains is the key to driving profitability and enhancing value. Today more than ever, businesses need to be responsive; timely performance reports are a business requirement and it is critical to identify areas for cost reduction. Information about a shipment is nearly as important as the shipment itself. As customers become more demanding businesses of all sizes require timely and easy access to information that can help raise productivity, enable differentiation, and ultimately improve customer service.
Streamlined processes within your supply chain will enable timely and accurate data flow. The capture and analysis of data is vital for businesses that monitor the flow of goods, information and funds throughout their supply chain. Synchronisation means that you can monitor the complete supply chain, managing all information about demand, orders, purchasing, returns, distribution schedules, production planning, manufacturing, sourcing, and product design and packaging. Monitoring becomes simple when dealing with a single carrier – one point of accountability, instead of managing multiple vendors.
My advise to business leaders today is to invest in effective IT applications. It will result in maximum business value. Ideally, data can be obtained with an IT platform that can be integrated into existing automated systems. This is especially important when it comes to shipment tracking notices, as they are a direct communication tool with customers. Analysing supply chain information can help businesses reduce inventory and transportation costs, which can ultimately mean reduced lead times and faster product launches. IT can also pinpoint areas for cost reduction and improvement and help assess potential vulnerabilities.
- Uncertainty – Flexibility is the key to managing uncertainty. Different modes of transport should be available when aiming to balance speed of delivery and cost of shipments.
- Contingencies – Plans can be disrupted by a number of factors. Vehicle breakdowns and driver shortages are also risk factors and it is important to plan for contingencies. This can be done by monitoring delays, identifying hidden costs, rerouting shipments and setting appropriate expectations for customers.
- Using global networks – Global access to extensive transportation and distribution networks, customs brokerage expertise, stocking locations and insight into foreign markets are pivotal when selling goods and purchasing supplies on a global scale, in order to reduce risk.
- Complete visibility – A synchronised and fully-integrated supply chain will enable end-to-end tracking of movements whenever and wherever they may take place. With visibility and quality management services available such as supplier compliance, purchase order specification, precise delivery commitments, transportation scheduling and consolidation, warehouse management and order fulfillment, businesses will benefit from shorter delivery times, consolidated customs clearance and reduced transportation costs. In addition, a fully integrated supply chain will accelerate the flow of funds.
- Employee productivity – Another benefit of synchronising supply chains is that less time will be spent on administrative tasks. Advanced shipping applications can reduce manual data entry which means that employees have more time to focus on building relationships with customers. They may also be more motivated as menial tasks are reduced.
To conclude, integrating technology into supply chains to use information will benefit businesses and customers, providing cost savings and efficiency enhancements.
The writer is General Manager UPS (UAE)
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