Real-time visibility of freight is a must-have today. Companies that have this insight no longer want anything else. Descartes lists five reasons that demonstrate the gigantic potential of real-time freight visibility.
Customer service on the rise
Those who want to retain customers invest in service. Companies pull out all the stops to serve their customers in the best possible way. Yet less often they look at how the entire process affects customer service. Real-time visibility of freight may seem mainly useful for you as a seller, but this information is actually also very valuable for your end customer. After all, if you know exactly when a delivery will arrive, you can proactively inform customers about it. In addition, you are better able to safeguard agreements with customers. After all, you can switch faster if the transport goes differently than planned.
Reducing problems
Being able to switch faster also allows you to reduce problems. Suppose a number of containers with foodstuffs are on their way to the port of Rotterdam. Real-time visibility of cargo also gives you real-time visibility of the container’s temperature. If it turns out to be out of order, you know immediately and can order a new cargo immediately. Without that real-time information, you only discover on arrival at the port that the contents of the entire container are unusable. You understand that the impact then is much greater. If you yourself are aware of any problems in time, you can also inform other stakeholders early. Which brings us straight to the next advantage.
Optimising processes
The supply chain naturally consists of a chain of links that all affect each other. Process disruptions in one link have an impact on all the links that follow. We have clearly experienced this over the past two years. The earlier you have insight into unforeseen or unexpected circumstances, the faster you can change gears and the earlier you inform the rest of the chain. All parties can plan better as a result. Think of emptying containers at the port, planning the follow-up transport by truck and unloading those trucks at the distribution centre. All these activities require manpower. If you know exactly when a ship arrives at the port, you can plan tightly. Thus, real-time visibility of cargo ensures that the entire supply chain is optimised.
More accurate stock management
A good balance between supply and demand is essential for a profitable business model. You don’t want ’empty shelves’, but neither do you want unnecessary stock. Companies with no visibility of transport do not dare to take risks and often keep larger stocks than necessary. This costs money. If you know exactly where your delivery is and when it will arrive, you can manage your stocks more accurately. What if it turns out that a delivery is then delayed anyway? In that case, you check whether that delivery is essential to the production process. If production threatens to grind to a halt, you can always fly in a buffer. This will prevent a delayed delivery from harming your market position.
Cost reduction
Between the lines, you read that real-time visibility of freight brings a lot of efficiency. The big advantage of this is cost reduction. For instance, because you can schedule employees exactly when they are needed. But also because you can better inform customers and other stakeholders. The business case is quickly made in this respect. The investment required to have real-time visibility will be recouped in no time through efficiency in all your processes. And once the investment is recouped, those cost savings are fine to offset fluctuating container prices. In short: real-time cargo visibility is no longer a nice-to-have but a must-have.
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Descartes offers a range of options for more real-time visibility within your transport processes.
For all info:
www.descartes.com
Shana van de Peer
Public relations & marketing communications specialist
+32 38 000 600
svandepeer@descartes.com
