Shipping processes have come a long way from their days of operational opacity, which were fraught with anxiety, clouded understanding of product provenance, and blind hope that the shipment would arrive safely. Sometimes, it could take days or weeks before a shipper is informed of any situation during shipping. Exceptions were commonplace and highly challenging to handle.

With the advent of tools offering reasonable visibility, shippers can now monitor their cargo in almost real-time. Today, 81% of companies consider visibility as a critical aspect of their supply chain, especially in risk management during logistics and shipping operations. Visibility is not just a requirement, but a powerful tool that has enabled supply chains to mitigate risks, optimize the shipping experience, work seamlessly with stakeholders, and improve the throughput of the entire process. It has significantly enhanced the security of the shipping operations.

Challenges Logistics and Shipping Operations Faced Before Gaining Visibility

Prior to visibility, the logistics process was free-for-all. The risks were exponentially higher than many logistics and supply chain professionals could imagine today. Imagine transporting cargo across dangerous regions interspersed with pirates and other geopolitical issues without knowing whether or not the shipment will make it through. That was a day in the life of many shippers. It was this way for three major reasons:

1. Lack of Data or Information

Tracking shipments requires data and ample information. This includes the location, destination, route, and all information about possible disruptions. Disruptions may be due to traffic, politically intense areas, or insecurity. Without data, there is no way of knowing the situation of the shipments.

2. Siloed Information Systems

Imagine a situation where one stakeholder has a piece of vital information but has no way of communicating with another stakeholder. Many times, this was not intentional. The stakeholders just had no way of informing the other party. For instance, a shipper sends out raw materials to a particular factory, but a crisis breaks out at the destination factory, and the receiver cannot inform the originating shipper or vessel carrying the cargo. This could lead to all sorts of problems for the supply chain.

3. Inefficient Communication and Collaboration

Communication is critical to any supply chain operation, but what happens when stakeholders communicate poorly? It could be for any number of reasons, including poor data standardization. A shipper might mean 100 miles, but a receiver translates it to mean 100 kilometers. That simple mistake can create a serious crisis for the supply chain on a large enough issue.

What Logistics and Supply Chain Operations Usually Look Like After Enhancing Visibility

80% of companies experienced increased customer satisfaction after implementing end-to-end visibility across their supply chain and shipping operations, while 71% witnessed an overall increase in performance. Visibility has helped many shippers streamline their logistics operations.

1. Improved Decision Making

Shippers can now make decisions based on more information. This makes these decisions more relevant, accurate, and faster than before, leading to increased throughput and seamless shipping operations.

2. Enhanced Efficiency and Productivity

With visibility, shippers can accomplish more with less. For instance, consider route optimization, telematics, and real-time or ocean-tracking solutions. The supply chain can find the shortest possible routes, minimizing fuel usage and reducing shipping time. It can also keep tabs on every aspect of the shipping situation seamlessly, greatly reducing the risks that used to be associated with it.

3. Increased Transparency and Accountability

Visibility in shipping operations has allowed the supply chain to enjoy more transparency and accountability from its stakeholders. Through visibility, supply chains have enjoyed a 35% cost reduction and 27% reduced lead times in their shipping processes.

Tactics for Achieving Enhanced Visibility In Logistics and Shipping Operations

Despite how critical visibility is to the supply chain and its shipping operation, 69% of supply chains still report poor visibility in their logistics and shipping operations. Another report suggests that only 6% of supply chains report complete visibility across their operations. So, how can more supply chains and shippers enjoy enhanced visibility?

1. Leveraging Data

These will help expose shippers to more information. With visualization tools, they can understand it clearly, thus allowing for more informed planning and decision-making.
2. Building Resilience Through Tracking

Tracking allows for effective monitoring throughout the shipping process. That way, the business can easily identify problems or bottlenecks and take proactive steps to mitigate them.
3. Holistic Approach

It is one thing to track a particular shipping process but for more efficient results, it is important to track the entire shipping operation across multiple modes. This way, all stakeholders are better prepared and there are no surprises

The Role of Open Track in Enhancing Visibility

OpenTrack provides your shipping operations with simple, smart, fast, and accurate data, enhancing your ability to maximize them and increase the throughput. In a shipping and supply chain landscape faced with all manner of supply chain disruptions, your shipping operations can leverage the OpenTrack suite of solutions to stay one step ahead through enhanced visibility. Book a demo to get started.

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