DISRUPTION [ INSIGHT ]
by Tracey Ortiz Director, Product Management, SPS Commerce tortiz@spscommerce.com | 781-535-8489
Future-Proof Your Supply Chain: Why Real-Time Monitoring Matters
Imagine turning the chaos of supply management into a master plan, where every mile, shipment, and dollar is tracked in real time—allowing you to stay ahead of potential disruptions before they even happen.
continuous movement and stability in the supply chain. This proactive approach, supported by technology, allows businesses to mitigate risks before they escalate, keeping the supply chain running smoothly through both predictable and unforeseen challenges. Transitioning to real-time supply chain monitoring comes with challenges, but the long-term benefits make it worth it. There is an initial financial commitment when transitioning to real- time supply chain monitoring due to the costs of technology, training programs, data encryption and system integrations. However, these investments are essential to overcome challenges such as employee resistance to new tools, the risk of costly disruptions, and ensuring data security. The long-term savings are clear. Studies consistently show that AI-driven route optimization reduces fuel consumption by 10% to 20%—just one of many strategic cost-saving measures logistics companies can leverage. Real-time monitoring not only safeguards against current disruptions but also positions businesses to lead in an evolving market. This approach turns every mile, every shipment, and every dollar into a strategic advantage. n
• Easier compliance and reporting. Stay up to date with regulatory changes and simplify audits and compliance checks through automated solutions. • Streamlined cost management. Real- time monitoring of KPIs enables quick decisions to reduce costs, preventing missed opportunities and delays. • Enhanced partner collaboration. Sharing real-time data with partners ensures everyone is aligned, reducing mistakes and strengthening relationships. Real-time supply chain monitoring works by continuously collecting and analyzing data from various sources within the supply chain using advanced technologies. For example, companies can use real-time data to reroute shipments during weather-related events, avoiding delays and maintaining service levels. Beyond immediate disruptions, real- time monitoring supports long-term resilience. It allows logistics companies to identify potential bottlenecks early, whether from weather, strikes, or operational inefficiencies, enabling timely adjustments that ensure
That’s the power of real-time supply chain monitoring, which combines technologies such as AI, IoT sensors, and cloud computing to track and analyze data as it’s generated. Unlike traditional methods that offer insights only after the fact, real- time monitoring lets logistics leaders make adjustments on the fly, address inefficiencies, and respond to disruptions as they arise. With rising costs and unpredictable global disruptions, this capability is no longer a luxury. Remaining competitive means logistics businesses must prioritize real-time performance monitoring as they look to, and plan for, the future. With up-to-the-minute data, businesses can make decisions faster and more accurately. From route optimization to inventory management, more data helps companies pinpoint issues before they escalate. Here’s a breakdown of the key benefits: • Advanced operational efficiency. Real- time tracking helps identify inefficiencies, optimize routes, and improve customer satisfaction with instant updates.
24 Inbound Logistics • February 2025
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