Executive Briefings

End-to-End View Drives Savings in Labor, Freight and Working Capital

Analyst Insight: End-to-end supply-chain visibility is one of the top five pain points facing executives in modern global supply chains. It allows supply-chain trading partners to visualize, share, collaborate and manage every aspect of supply chain processes, from raw materials to end customers. While businesses put resources towards improving supply-chain visibility, they find it is difficult to attain without connection to a value network that fosters sharing among stakeholders and good, quality information. Simply put, for a business to sustain growth in the current volatile business environment, executives need end-to-end supply-chain visibility to gain insights into activities they don’t control. - Cindi Hane, vice president of product management, Elemica

End-to-End View Drives Savings in Labor, Freight and Working Capital

Gartner defines end-to-end supply chain visibility (E2E) as "controlled access and transparency to accurate, timely and complete events and data - transactions, content, and relevant supply-chain information - within and across organizations and services operating supply chains." E2E helps organizations to lower working capital, increase customer satisfaction and capture new business opportunities.

Companies want the same conveniences they get from mobile apps — i.e., the ability to order a taxi and watch it arrive while on their phone. They want the same visibility for their shipments. Today’s technology allows all stakeholders to share a single network, connecting and collaborating on supply-chain activities from one end of the enterprise to the other. Each trading partner has access to information generated through the network in order to gain visibility to all aspects of production, procurement, transportation and distribution. With the proper information, executives can make qualified decisions that drive improvements in the business.

Gaining end-to-end visibility across transportation processes can deliver 6 percent or more in transportation savings, remove the equivalent of 15 people from operating costs by improving productivity, and reduce the cash-to-cash cycle by four days or more. How does this happen?

Labor Savings:
• Automated booking improves productivity and quality of logistics team’s activities
• Site resources are optimized with carrier appointments
• Real-time visibility and proof of delivery eliminates tracking activities and dispute resolution
• Freight cost management eliminates post-audits and disputes
• Access to data in single system eliminates data gathering and streamlines analysis

Freight Cost Savings:
• Automation and visibility reduce errors on shipment data and allow for proactive management to reduce expedited costs
• Time slot management dramatically reduces detention charges at load/unload locations
• Collaborating on accessorials improves accuracy, allows for passing charges to customers, reduces disputes

C2C Improvements:
• Automated shipment confirmations from logistics service providers (LSPs) reduces days of inventory by speeding up PGI
• Time slot management reduces mean lead time and variation, which reduces inventory levels
• Better in-transit inventory visibility throughout long supply chains promotes optimized inventory practices, reducing days of inventory
• Multi-party shipments are more prone to delays in pick-ups at hand-off points. Visibility allows more proactive management of these shipments. Reduces DSO.
• Proof of delivery (POD) is required before customer approves invoice. Authenticated POD reduces DSO.
• Can negotiate better terms with (some) carriers because of electronic approval and payment — lowers disputes and decreases variability of their DSO. Increases DPO.

End-to-end supply chain visibility is a key to becoming a demand-driven enterprise. Enterprises gain significant benefits by collaborating with their supply-chain trading partners through supply-chain operating networks. According to industry analyst group Gartner, end-to-end supply chain visibility will increase by 50 percent by 2018.

The Outlook

The future of E2E involves the Internet of Things and the connected universe. Connected devices need a conduit for communication so that information can be funneled in, analyzed, utilized and put to work. A supply chain operating network provides the connected visibility for trading partners to manage their information, to analyze the data and bring relevant information to the forefront or have an autonomous reaction. This information is data-rich and insight-poor without the proper tools. The supply-chain operating network takes information and delivers it in such a way that trading partners can make fast, smart and intelligence choices.

Gartner defines end-to-end supply chain visibility (E2E) as "controlled access and transparency to accurate, timely and complete events and data - transactions, content, and relevant supply-chain information - within and across organizations and services operating supply chains." E2E helps organizations to lower working capital, increase customer satisfaction and capture new business opportunities.

Companies want the same conveniences they get from mobile apps — i.e., the ability to order a taxi and watch it arrive while on their phone. They want the same visibility for their shipments. Today’s technology allows all stakeholders to share a single network, connecting and collaborating on supply-chain activities from one end of the enterprise to the other. Each trading partner has access to information generated through the network in order to gain visibility to all aspects of production, procurement, transportation and distribution. With the proper information, executives can make qualified decisions that drive improvements in the business.

Gaining end-to-end visibility across transportation processes can deliver 6 percent or more in transportation savings, remove the equivalent of 15 people from operating costs by improving productivity, and reduce the cash-to-cash cycle by four days or more. How does this happen?

Labor Savings:
• Automated booking improves productivity and quality of logistics team’s activities
• Site resources are optimized with carrier appointments
• Real-time visibility and proof of delivery eliminates tracking activities and dispute resolution
• Freight cost management eliminates post-audits and disputes
• Access to data in single system eliminates data gathering and streamlines analysis

Freight Cost Savings:
• Automation and visibility reduce errors on shipment data and allow for proactive management to reduce expedited costs
• Time slot management dramatically reduces detention charges at load/unload locations
• Collaborating on accessorials improves accuracy, allows for passing charges to customers, reduces disputes

C2C Improvements:
• Automated shipment confirmations from logistics service providers (LSPs) reduces days of inventory by speeding up PGI
• Time slot management reduces mean lead time and variation, which reduces inventory levels
• Better in-transit inventory visibility throughout long supply chains promotes optimized inventory practices, reducing days of inventory
• Multi-party shipments are more prone to delays in pick-ups at hand-off points. Visibility allows more proactive management of these shipments. Reduces DSO.
• Proof of delivery (POD) is required before customer approves invoice. Authenticated POD reduces DSO.
• Can negotiate better terms with (some) carriers because of electronic approval and payment — lowers disputes and decreases variability of their DSO. Increases DPO.

End-to-end supply chain visibility is a key to becoming a demand-driven enterprise. Enterprises gain significant benefits by collaborating with their supply-chain trading partners through supply-chain operating networks. According to industry analyst group Gartner, end-to-end supply chain visibility will increase by 50 percent by 2018.

The Outlook

The future of E2E involves the Internet of Things and the connected universe. Connected devices need a conduit for communication so that information can be funneled in, analyzed, utilized and put to work. A supply chain operating network provides the connected visibility for trading partners to manage their information, to analyze the data and bring relevant information to the forefront or have an autonomous reaction. This information is data-rich and insight-poor without the proper tools. The supply-chain operating network takes information and delivers it in such a way that trading partners can make fast, smart and intelligence choices.

End-to-End View Drives Savings in Labor, Freight and Working Capital