The ROI Behind Freight Visibility

Introduction

Global supply chain visibility has become an extremely hot topic in recent years. In Descartes’ 2021 survey of transportation and logistics professionals, it was rated the #1 capability needed for successful transportation management.

To improve financial and service KPIs, companies must have a way to view, analyze, and communicate multimodal and visibility data in real-time. Thanks to emerging technologies, the ability to get much more granular visibility is now a reality. However, companies often grapple with how to measure its value and justify the financial investment. In this eBook, we explore the trends and challenges driving visibility adoption today, and outline how to:

• Identify the greatest areas of payback in your operations
• Extend value to partners and customers
• Ensure you get maximum coverage and compliance from your carrier
• Assess the capabilities of freight visibility solutions

We also share examples of our customers’ success that can be applied to your operations.

Today's Business Climate

Today’s business climate is extremely challenging. Market drivers such as the Amazon effect and finding optimal carrier relationships are putting more pressure on supply chains than ever before. As competitors raise service and performance levels, effective visibility tools are crucial to meet evolving customer expectations.

Fragmented Systems and Processes

Offering end-to-end delivery to your customers requires providing and managing numerous modes, which makes gaining visibility even more challenging. The carriers all have different formats, processes, and systems, which increases the difficulty. There is still significant room for improvement when it comes to addressing visibility challenges. Companies using suppliers to ship directly to their end customers still exchange emails and spreadsheets to get visibility on the orders shipped.

The lack of visibility has measurable impacts on supply chain performance in multiple areas. While customer service may be the most obvious area affected, others like detention fees, dock congestion, and carrier relations are also influenced by poor visibility.

Visibility Adoption Trends & Challenges

The Amazon effect is expanding into the B2B arena.

Streamline Inventory Inbound Deliveries

Having good data facilitates your inbound deliveries. Knowing in advance that shipments are going to be late allows you to reschedule on the fly to help with proper pacing and avoid dock congestion. This results in more efficient dock and warehouse operations, which can reduce detention costs.

The Value of Visibility

• Deliver on customer expectations: Live visibility data can help notify customer service of potentially late deliveries, allowing proactive management of customer expectations.
• Reduce inefficient tracking costs: Visibility solutions give employees access to shipment status at their fingertips, streamlining the tracking process.
• Lower detention costs: Visibility to potential issues ahead of a late delivery allows warehouses to better prepare and reduce delays at the receiving dock.
• Minimize chargebacks: Customers are imposing greater demands with tighter delivery windows. Leveraging real-time visibility can help reset expected appointments to avoid late deliveries.

Visibility creates value for teams, business units, and operations throughout an organization.

Gain a Competitive Advantage

Maintaining customer service excellence is a top priority for companies like BASF. Customer demand drove them to seek an automated tracking solution that provided real-time updates.

Visibility Payback - A Better Customer Experience

A global manufacturer of agricultural products improved their customer experience by integrating Descartes MacroPoint with their transportation management system. Results included streamlined track and trace and a single system of record.

Live Visibility Data for Financial KPIs

• Detention costs: Customers saved up to 25% in detention costs with real-time visibility.
• Tracking costs: Labor savings with tracking shipments resulted in significant cost reductions.
• Labor costs: Proactive notification dramatically reduced customer escalations and frustration.

Visibility Payback - Significant Savings

Steelcase implemented Descartes MacroPoint to enhance shipment visibility, leading to improved customer service and reduced penalties.

Fewer Production Delays

A global automotive manufacturer moved to manage-by-exception tracking, minimizing production downtime with proactive measures against late deliveries.

Streamline Inbound Deliveries

Real-time visibility enabled a national retailer to manage inbound inventory better, providing proactive customer service and increasing satisfaction.

Ensure Compliance from Carriers

Organizational alignment between shippers, carriers, and visibility network providers is crucial for maximizing the value of visibility solutions. Key factors include ensuring compliance from carriers, having metrics for resource analysis, and fostering a strong carrier commitment.

Conclusion

Alignment across the supply chain is required to realize the full value of visibility solutions, helping businesses manage their supply chains more effectively.