Supply Chain Situational Awareness: Project Approaches to Unlocking Value
As companies look to achieve live supply chain situational awareness (SCSA), three project approaches to deliver a solution and business value are emerging:
- In-house project approach – Best of breed solutions and partners for a project managed internally
- Led by IT team with support from line of business users
- Requires heavy system integration
- Multi-vendor approach for core capabilities
- Outsourced project approach – Vendor managed services program
- Led by 4PL, consulting group, or system integrator
- Little to no control over solution roadmap and ongoing innovation
- Stand-alone managed services are expensive
- Hybrid project approach – Live SCSA via common operating picture (COP)
- Led by Project team of cross-functional stakeholders
- Drives company to think globally, operate regionally, focus on value
- IoT and data agnostic for rapid and affordable insight activation and continual innovation
The merits of this hybrid approach offer global supply chain leaders the control of building a COP without high initial build cost or the ongoing overhead for maintaining the solution and data. The hybrid approach also provides the simplicity and continued solution improvement of outsourcing with lower long-tail recurring cost.
Supply Chain leaders who select the hybrid approach do so because they DO NOT want to take on the project and financial risk associated with an in-house solution, nor do they want the overhead of supporting the solution long-term. The level of effort required with an in-house solution is significant and not readily apparent at the outset. Additionally, supply chain global data quality problems cannot be solved by in-house resources. In many cases, early adopters have attempted an in-house solution prior to considering the Hybrid approach, and therefore have a crisp ability to see and appreciate the unique value delivered by the live situational awareness via a COP.
It is important for global supply chain leaders to consider what will occur later in the journey. The level of effort, time, resources, and cost can be high. Data quality and data timeliness are continual challenges requiring focus. Long term actionable insight innovation is a must. These decisions are not easy given the ever-changing dynamics of the RTM and visibility marketplace and the rapid pace of innovation.
TransVoyant has the benefit of supporting live SCSA for world-class customers. As such, we have learned what works and what does not. If you would like to discuss our customer experience or review the value associated with SCSA, please request to be contacted here.