Why is a supply chain control tower important for a modern logistics business?

supply chain control tower

Gaining visibility into real-time on ground operations has become a major priority for logistics businesses. On ground situations are always changing, be it traffic, or last-minute maintenance issues, order cancellations, etc. On top of it, on-demand customer requests keep coming in. 

A central hub for all things logistics is the need of the hour. Supply chain control tower applications are helping logistics businesses stay better connected, informed, and flexible in their last-mile delivery. 

It also helps delivery companies resolve inconsistencies, take corrective actions, and improve their delivery processes. 

What is a control tower in supply chain? 

Control tower in the supply chain makes delivery processes efficient with its ability to track deliveries in real-time. It is a centralized hub that captures data during all processes of the supply chain.  

Importance of a supply chain control tower in the last-mile delivery

Last-mile delivery businesses face challenges like:

  • Difficulty in allocating jobs to riders
  • Lack of visibility
  • Speed 
  • Inefficiency 

To counter these challenges, delivery companies are depending on software solutions that can help them gain the required visibility. 

Control tower solutions reduce the risk of potential issues, provide data that can enable delivery companies to manage orders efficiently, and also increases collaboration among partners.

How does control tower software help in increasing revenue and reducing failure?

Enables dynamic route planning 

The present COVID-19 scenario has increased on-demand orders for logistics companies. With the rise in parcel volumes, it is becoming challenging to allocate unplanned on-demand orders on the go. 

A supply chain control tower application offers accurate on-ground insights and helps in assigning deliveries. It can compare ideal and executed routes, thereby providing instant alerts on delays, which reduces the chances of failed and missed deliveries. 

Reduces human dependency in decision-making 

59% of organizations cited human error as the primary factor for poor data.- Experian research on data quality, 2014. 

Solving complicated last-mile delivery problems with human assets can make the whole operation costly, time-consuming, and inefficient. Also, when the last-mile data is left to human interpretation, it increases the chances of errors.

Supply chain control tower, with predictive analytics and real-time data processing, facilitates better decision-making in the last-mile delivery. These insights can lead to cost reductions and more efficient operations. 

Monitor driver performance 

Control tower offers a complete bird’s eye view of the last-mile delivery process. You can calculate fuel consumption, vehicle speed, location, and also give delivery-time estimates. These insights help in reducing last-mile delivery costs

Resolve SLA issues quickly

A crucial component in ensuring great last-mile customer experience is issue resolution. A control tower software provides real-time notifications on events and milestones related to SLAs. These alerts help you share information and collaborate in real-time to resolve issues quickly. 

End-to-End visibility 

Companies with best-in-class visibility can deliver perfect orders to their customers 96% of the time. – Aberdeen group study

Whether you directly handle deliveries or outsource it to third-party logistics providers, it is crucial to know the delivery status. The control tower provides end-to-end visibility and control over orders, drivers, and 3PL operators. This helps in maintaining promised SLAs and enhancing the overall quality of delivery. 

Conclusion

One of the biggest challenges that delivery companies face is maintaining a competitive cost while still managing customer expectations. Data from supply chain control tower software enables them to continuously adapt their business to changing trends and save costs simultaneously. 

Locus’ control tower application provides a hawk-eye view of the complete supply chain. Its predictive alerts on delays, idle time, vehicle breakdowns, etc. offer better operational control over your on-ground resources.

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