VISIBILITY AND CONTROL
technologyreview
See it now,
THE UNCERTAINTY PRINCIPLE IN QUANtum physics says, in essence, that you cannot
know with precision both the location of a
particle and its momentum at the same time.
The better you measure one, the less you know
about the other.
For a very long time, the much larger-scale
world of physical logistics has had its own
uncertainty issues. Knowing where goods
are—with a supplier, in the DC, or en route to
a customer—and whether they’re moving on
schedule remains a key goal of those managing their companies’ physical distribution networks. So, too, is the ability to intervene when
those shipments go awry.
As supply chains become more complex and global businesses come under
increased pressure to keep inventories lean while still providing good customer
service, these capabilities become ever more important.
Fortunately, managers today have increasingly better access to tools that give them
both visibility across their supply chains and the capability to control the movement
of those goods. Much of the innovation in this area has come from companies that
specialize in visibility software—whether traditional installed software or Web-based applications delivered on demand. But software developers no longer have the
market to themselves. Other types of companies, including material handling equipment suppliers and third-party logistics service providers, have gotten into the game,
offering tools designed to keep close tabs on inventory, wherever it may be.
and save
Supply chain visibility isn’t just about
improving customer service. It can also
save you a lot of money.
INSIDE OR OUT?
Where a shipper turns for visibility tools depends in large part on the particular
need it wants to address. A supply chain executive will likely want a global view,
while a DC supervisor wants to see what’s coming in the door, what’s on the shelves,
what’s moving through the system, and what’s heading out the door.
