When we consider the supply chain, it involves a plethora of different technologies, like database and inventory software, IoT for connected vehicles in the transportation phase, use of sensors for materials that are temperature and climate-sensitive, and so on. This is what we call a supply chain control tower. It means incorporating the latest technologies in the supply chain and migrating the existing business functions to the cloud network for more efficiency and productivity.
Although several businesses have adopted control tower solutions for their supply chain, a knowledge gap exists. As a result, it can lead to failed technology adoption if the business executives and stakeholders wait to enact it. We have prepared a comprehensive guide on how a control tower works, its types and benefits, and other concepts.
What is a supply chain control tower, and how does it work?
You have seen control towers at military check posts, airports, and several such places. These towers help people to keep an eye on a larger ground which isn’t possible from zero-level land. The same concept is applied to a control tower in the supply chain business. It provides deeper insights into different datasets, business key performance metrics, and information flow. It also provides insights into the internal and external threats and vulnerabilities that can be defined as inevitable and unforeseen.
With the help of intelligent and AI-based supply chain software, a business can leverage access to more datasets and know about the external and internal influencing factors determining the pace and quality of supply chain operations at different phases.
What are the types of supply chain control towers?
Businesses can adopt three major types of supply chain control towers. These are:
- Transportation and logistics control towers: These provide deeper insights into the transportation and logistics phase of the supply chain, thereby enabling businesses to optimize the routes, enhance delivery performance, and fulfill orders faster than comprehended.
- Inventory control towers: From the name itself, you can understand these are needed to gain expertise on the inventories and stocks of the supply chain business. Here, the AI-based supply chain software shows the entire inventory list, the items left in stock, and the probable time when the order should be placed to again fill the inventory.
- Supply assurance control towers: These are required to control and assess quality assurance across the supply chain and ensure the operations are being performed expectedly. You must understand that this specific tower type is more about quality control and not based on operational control.
How can a supply chain control tower benefit a business?
The primary benefit of incorporating a control tower in the supply chain is that it will help in gaining more insights into the business performance. It also provides knowledge to business executives about the areas that need to be looked upon to deal with future threats and vulnerabilities.
Conclusion
Every business should invest in implementing the supply chain control tower to make their operations future-proof and leverage data to enhance business performance and productivity.