Deanna Kaufman, vice president of Körber Supply Chain, addresses some of the biggest issues affecting supply chains today: data integration, people assets, cost reduction and the carbon footprint.

Many shippers are accustomed to thinking about data from an enterprise resource planning (ERP) perspective, drawing on the contents of huge data lakes and distribution systems. Often, though, they suffer from a lack of connectivity of such systems, causing data to become isolated within disparate functions like transportation, financial and order management. Only when it’s all linked together are they able to make optimal use of the information on hand. “At end of the day,” says Kaufman, “you need full integration so you can turn data into power.”

Data, she adds, “is only as good as you can turn it into actionable intelligence.” In the process, for example, shippers can decide whether a particular SKU is profitable, or identify an opportunity to shift to a cheaper mode of transportation.

Technology can play a key role in managing data, but humans are still needed to understand it and interpret the results, Kaufman says. Supply chain and transportation analysts are necessary for determining the actions that will help improve outcomes, and optimize operations generally. The goal, she says, is “the free flow of data, building connectivity internally and with supply chain partners.”

Shippers today have the opportunity to reduce transportation costs at the same time they’re improving their results with carriers, Kaufman says. During the height of the COVID-19 pandemic, pricing power rested mostly with carriers. More recently, it has begun to shift in favor of shippers, or at least achieve a better balance of power between the two. 

Kaufman says it’s important for shippers to discover how they can optimize modes. That might involve bringing a regional carrier into the mix, mitigating the risk of supply chain disruption by diversifying service partners. “Look at every tool you can in a competitive bid situation to reduce total cost,” she says.