Why Lack Of Essential Supply Chain Data Infrastructure Is Impeding Digitization Of Global Trade

Why Lack Of Essential Supply Chain Data Infrastructure Is Impeding Digitization Of Global Trade

Container prices are soaring. Delays are common. Demurrage and detention are at all-time highs, and the underlying issues of a poor supply chain data infrastructure have yielded less proactive visibility and limited digitization. To survive and thrive In a global marketplace that demands speed, agility, and proactive decision making, you must get your data in order.

Every activity in the supply chain from the warehouse floor to final-mile delivery generates billions of data points. Hidden within those mountains of data is exactly what every manufacturer, shipper, carrier, freight forwarder, and logistics provider wants—a sustainable productivity advantage.

Let’s take a closer look at how the lack of essential supply chain data and a poor underlying infrastructure is impeding the digitization of global trade and how embracing true digital transformation is the answer.  

Importance Of Supply Chain Digitization

“Siloed and incomplete data is limiting the visibility companies have into their supply chains,” Hans Thalbauer, managing director of supply chain and logistics at Google Cloud, said in a statement while announcing the launch of The Supply Chain Twin. This latest innovation enables customers to build a digital representation of their physical supply chain that enables them “to gain deeper insights into their operations, helping them optimize supply chain functions from sourcing and planning to distribution and logistics.”

Supply Chain Twin is the latest innovation to join the digitization movement that is revolutionizing supply chain management through a combination of technological disruptions. Big Data and analytics. Machine learning. Artificial intelligence. Unprecedented connectivity, unparalleled tracking and visibility, and real-time communications made possible by channeling data from disparate, fragmented sources through a single source of truth to ensure alignment of supply chain partners.  

All of these things combine in a supply chain ecosystem to reduce inefficiencies, lower costs, improve flexibility and boost resiliency. However, true digital transformation is not possible without access to clean, quality supply chain data.

Poor Data Quality = Garbage In, Garbage Out… and Potential Gridlock

Poor supply chain data quality renders data analytics useless, because what good is data if you cannot trust it? And that is why poor data quality is the biggest barrier to implementing digital transformation.

No one wants to hear a customer or supply chain partner say, “I shouldn’t have gaps in my data that don't show where my container is in transit.” But gaps will happen if you’re working with supply chain data that is not clean, accurate, verified and standardized. The lack of quality data  leads to many other problems as well. Here are a few:

  • Inability to accurately track the location and condition of shipments.
  • Added costs, due to an inability to identify and mitigate potential demurrage and detention.
  • Slower response times to mitigate or avoid disruptions altogether.
  • An inability to accurately gauge supply chain partner performance.
  • Struggling to accurately track and control operational costs.
  • Potential delays and fines in customs, due to inaccuracies in paperwork

A lack of data integrity also jeopardizes your brand reputation and the relationships among supply chain partners.

Even More Benefits Of Having Improved Supply Chain Data Quality

On the other hand, supply chain data that is clean, complete, accurate and standardized across all major carriers offers the following advantages:

  • Better automation – Do more with less through innovations that  drive scalability and growth.
  • Better outcomes – meeting SLAs consistently will lead to more business and greater customer satisfaction.
  • Confident decision making – in proactive planning and in response to disruptive events.
  • Decrease in total supply chain costs – including demurrage and detention fees.
  • Proactive customer service – you’ll have the answer when they ask, “Where is my shipment?
  • More throughput in operations from staff, including optimizing inventory, procurement, and transportation strategies.
  • Focus on collaboration and bigger initiatives, rather than dealing with manual processes.

Digitally Transform Your Supply Chain VIZION’s Container Tracking API

Make no mistake about it: Supply chain digital transformation is not a passing fad. It’s time to get on the technology bandwagon or be left behind to manage your supply chain by paper, emails, phone calls and spreadsheets for as long as you have customers--which probably won’t be long. Let’s also be clear: TRUE digital transformation is impossible to achieve without having access to supply chain data of the highest quality.

As a leading provider of ocean visibility solutions, VIZION’s promises of the highest quality supply chain data and easy access to it from anywhere in the world allow businesses to quickly integrate our APIs with current systems or develop new solutions on top of clean, enriched, standardized data. Having the data you need and expect will empower you to focus on actionable insights that will drive the scalability and growth of your business. Let us show you the power of our API technology. Schedule a demo today.

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