In recent years, companies throughout the supply chain have been focusing on improving visibility and efficiency to reduce costs and enhance the customer experience. However, they have encountered a common obstacle: friction. Friction refers to the factors within supply chain operations that slow down processes, cause delays, and lead to errors. It encompasses the elements that make the jobs of supply chain professionals more challenging than necessary.
On a daily basis, friction manifests as manual tasks, inefficient workflows, and high levels of human effort. As companies strive to optimize operations and prepare for the future in a challenging market, this friction hinders their ability to turn their supply chains from cost centers into revenue generators.
Supply chain professionals often face obstacles due to outdated and disconnected systems that were designed for a different era. These systems are rigid and fragmented, leading to multiple screens and isolated activities. To address these issues, teams often resort to using complex spreadsheets to integrate technology, which only creates further complications.
Friction has a significant impact on visibility, transportation execution, facility management, and last-mile logistics within the supply chain. Manual track and trace processes, for instance, consume time and energy while providing limited insights into shipments. This leads to challenges in providing accurate estimated times of arrival and real-time visibility into a shipment’s status and location.
Transportation execution is also affected by friction, as issues such as damaged cargo and fines can impact the bottom line and customer relationships. Lack of actionable data further exacerbates the challenges in making informed decisions regarding carrier performance and optimizing transportation routes.
Facility management experiences significant friction due to manual processes, paper documentation, and inefficient operations within yards and terminals. These issues result in high overhead costs and delays, particularly in appointment scheduling and trailer prioritization.
To overcome these obstacles, companies need to adopt a modern and innovative approach to supply chain management. By implementing AI and workflow automation to eliminate unnecessary friction from outdated processes, teams can achieve high-velocity supply chain operations. Project44 offers a high-velocity supply chain solution through its Movement platform, which focuses on enhancing visibility, machine learning, and connectivity.
By digitizing and modernizing supply chain operations, companies can not only achieve key goals such as revenue growth and cost reduction but also attract the next generation of talent to the industry. Embracing technology-forward solutions will make supply chain professions more appealing and competitive in the market.
