Transparency

Hi there! and welcome back!

The last couple of blogs, you could have been following me on a trip through the wondrous world of logistical control towers. However, what I have not yet discussed, are the advantages of the control tower. Therefore, I’d like to treat one of its main advantages: providing transparency.

Today, when your company is trading all over the world, many obstacles are formed. Think for instance about the different time zones around the world. Unfortunately, this means that communication from one country to the other will be delayed. Or, if the event only occurred once, the information might even get lost. Something which you should prevent from happening at all times. This is where a control tower could aid you.

In a control tower, there will be oversight at any given time, as the control tower is basically a control center which monitors the company as a whole. This being said, it means that, when something is happening in the world, for instance, a flood, this will be seen by the control tower. Consecutively, the branches of the company which are affected can inform the other branches, so a solution to the problem can be sought immediately.

In a normal “conventional” supply chain, the flood would only be noticed in the headquarters on the next day. This lag in time might result in the fact that the reaction of the company might be too late. As we know, a late reaction can cause irreparable damage to the company. Not only in terms of client damage (they might not be able to receive their wanted products) but also in monetary terms (missed sales).

As said, in a supply chain with a control tower, the disruption will be noticed instantly. Just as in the case of the Agilent, the company introduced in my previous blogs. They were hit by a flood which affected their main suppliers. However, because they had just introduced a control tower, they were notified immediately. With this knowledge, they could start searching for alternative suppliers immediately. This action caused them to be able to keep producing their products.

Another important factor which is aided by the fact that a control tower provides transparency is inventory. Nowadays, when many companies are trying to save money, inventory is normally one of the things which are saved upon first. However, this is only possible when transparency about the inventory is present. After all, to ensure that production or sales can take place, inventory must be available at all times. Therefore, a control tower can help to locate sport where the stock is low, and trigger an action to send extra supplies to this one area.

As can be seen, the transparency which is provided by a control tower can be absolutely vital for a modern-day supply chain. Therefore, if you are a business owner, I would definitely recommend you to start with having a control tower. Hope to see you in my next blog!

See Y’All!