For supply chains to successfully weather (pun intended!) unexpected events, they require digital agility.
In a BCG study of more than 200 companies, digitally agile businesses achieved 1.8x higher earnings growth than digital laggards—and more than double the growth in total enterprise value. BCG also found that digitally agile companies are best situated to realize a “resiliency dividend,” by leveraging technology and digital capabilities to steer their business in real (or near-real) time to strengthen their position in the midst of a crisis.
But what does it mean to have digital agility? And how can your organization get there?
According to Peter Fretty, technology Editor at IndustryWeek, digitally agile businesses use automation to reduce cost and errors, while improving productivity and raising revenue. And when it comes to supply chains, and in particular to parcel shipping, businesses can find this agility in multi-carrier parcel management technology to rate shop across multiple carriers, improve real-time delivery visibility, monitor KPIs in real time, and ultimately position themselves to successfully weather (pun intended again!) the unexpected. Below are three features a best-of-breed multi-carrier parcel management system should have in order to help companies improve the digital agility of their supply chains:
The Latest Cloud Technology
Best-of-breed multi-carrier parcel management systems leverage state-of-the-art cloud technology. Cloud multi-carrier parcel management systems allow businesses to seamlessly connect people, processes, and third parties to their parcel shipping operations in real time, regardless of location and with minimal upfront costs and IT investment. All users can execute, track, and analyze parcel shipping processes in a single solution – improving reaction time, collaboration, and decision-making accuracy when the unexpected occurs. Furthermore, using a cloud multi-carrier parcel management system enables businesses to realize a return on investment quickly — without the hit of an initial investment and with the benefit of accelerated implementation and integration processes.
Companies that leverage digital technology have end-to-end supply chain visibility and are able to anticipate disruptions and take preemptive action to maintain KPIs. For example, multi-carrier parcel management systems with a Control Tower provide real-time information on delivery events and estimated arrival time of shipments. The system will send early warning signs when there are parcel delivery issues or “exception events,” providing customer service teams with the necessary agility to proactively trouble-shoot the exception event and communicate delivery updates to the customer. Consider too that tracking delivery exception events enables businesses to capture accurate carrier performance data – improving carrier service measurement and giving them more maneuverability in carrier contract negotiations.
Digitally agile companies have the ability to easily collect and organize their data to inform decision-making when unexpected events occur. Often, they’ll leverage best-of-breed multi-carrier parcel management systems with Business Intelligence tools to quickly address issues and improve their shipping operations. This may come in the form of identifying and adjusting improperly invoiced items relating to contractual rates, accessories, guaranteed service rebates, claims management, address correction validations or even manifested but not shipped transactions, or it may come in the form of modeling and comparing selected carrier services against actual carrier performance to find routing alternatives with lower cost implications and/or faster delivery times. Regardless of how a business leverages Business Intelligence, however, what’s important to take away is that the net result of each endeavor can be significant from an agility perspective. As stated by our V.P. of Business Intelligence, Mike Eisner, in Logistics Viewpoints, “When businesses connect the data… and then apply Business Intelligence, complex decisions and tasks get simpler.”
Prepare for Anything
Achieving digital agility is critical for companies to navigate unpredictable environments. Leveraging a cloud multi-carrier parcel management system with a Control Tower and Business Intelligence like Logistyx TME ensures businesses are prepared for anything.