The world is getting smaller, well, the figurative business world is. Globalization is increasing dependence on logistics and supply chain management technologies to avoid losing competitive edge in a highly competitive marketplace.
Opting to work with logistics and supply chain management solution providers, with specialists on staff trained to customize and provide support for the powerful softwares available, can enhance the ROI of the initial software investment.
Technologies for supply chain and logistics sectors are evolving constantly; having employees trained up-to-the-minute can be expensive to house on-staff.
Contracting software specialists from the same company that your business made the initial software purchase from can make the transition to a new, updated system much easier.
A recent study from Capgemini Consulting analyzed the way companies worldwide are leveraging software and personnel providers for their logistics needs. The 17th Annual 3PL Study revealed shippers are placing more importance on logistics providers as a key source of supply chain innovation and risk mitigation.
Breakdown of the study
The analysis of logistics consultants worldwide found 65 percent of shipper respondents have increased their use of contracted logistics specialists. Shippers are looking to partner in order to offer support for driving supply chain management and innovation, while simultaneously mitigating industry risk.
As the relationship between shippers and supply chain and order management specialists evolves over time, shippers are discovering the many benefits of the partnerships and investing more in the relationship. As a result, value and competitive differentiation in the shipping industry is being driven by new solutions, such as IBM Sterling Transportation Management.
Dan Albright, vice president at Capgemini Consulting, explained how innovation can be fostered through closer relationships with provider partnerships and implementing greater transparency throughout the supply chain process.
"Shippers commonly engage with [their software providers] on a very tactical level only, so their partners lack any real visibility or insight into their organization and its challenges," Albright said. "It takes truly collaborative, strategic relationships among all partners involved to develop the kinds of disruptive innovations it will take to solve the challenges facing today's supply chains."
To combat this problem, software giants like IBM are constantly updating their solutions to increase visibility across multiple channels, globally and domestically. The IBM® Sterling Global Inventory Visibility component of their Sterling Order Management suite is a unique, highly advanced program designed to increase inventory and location information for both the internal employees and the consumers.
With this industry-leading program, a customer buying a product from a website will be able to order the product with on-time delivery, whether there is one left in a warehouse in Milwaukee, or a hundred of the product at warehouses across the nation. On the internal side, companies will get real time data about product locations, transportation and supply levels. The program will also give valuable insights into customer demand, so you never miss out on a product sale.
To gain more valuable insight about how to keep your logistics, supply chain and order management up to the latest industry standards, please enjoy our complimentary eBook below.