Data Transparency: The Foundation of Modern Business
Businesses have realized unprecedented risks over the past few years.
From natural disasters including hurricanes and fires to socio-political disruptions as tariffs and trade agreements fluctuate. Most recently, COVID-19 has torn through the global economy, with the World Bank initially estimating GDP declines ranging from 1.8% to 2.5% depending on the country’s industrialization level.
As consumer demand across categories has become volatile and less historically-predictable, a consumption demand-driven approach to supply chain planning is imperative. However, geographically and technologically diverse supply chains have blockaded the possibility of agile supply chains for most companies.
Now, nearly 2,200 companies in the US are reconsidering their supply chain strategy and its dependency on the Chinese labor market - which at one time was nearly 600% less costly than Central American options. The gap has since closed to a 30% direct premium for Central American sourcing options and companies are now weighing indirect expenses in the overall supply chain strategy. Indirect expenses tend to not be sticky - they are data points which are not tied to a bill of material nor a supplier. These expenses can range from travel expenses to cost of quality, expedited air freight, and even safety stock levels.
Each of these data points tends to be captured in different systems. Systems that do not connect intercompany from supplier to customer, and often do not even connect intracompany. In the past, understanding end-to-end risks, disruptions, and true costs was an impossibility. A 2020 Sloan Management MIT study estimates data transparency can improve profitability by 2% to 10% - in some industries the equivalent of a 20% growth in revenue.
Download the full white paper to read about seven ways data transparency drives supply chain profitability.
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With so many factors changing around the supply chain function, now is the time to make sure your foundation is stable for modern times. This is important in order to continue growing responsibly and profitably. We see data transparency as the key to this. The supply chain function is at a fascinating point because we are already collecting data in meaningful ways. With an extra focus on data, its visibility, and new ways to use it, companies can continue to progress in ways that benefit businesses, employees, and customers.
CarrierDirect supports companies with their Supply Chain Insights and Data strategies. We offer several solutions including:
- Strategic Supply Chain Data Value Assessment - We assess supply chain data sources so you can use that data to make proactive decisions across your supply chain.
- Data Sciences - We use data science to help our clients improve customer insights from numerous sources including purchase history, shipment history, mode use, and other supply chain data elements.
- Predictive Supply Chain Analytics - We help you use data and insights to improve your Supply and Demand Planning and your Sales and Operations Planning as you move to a consumption-based planning model.
- Supply Chain Resilience - We help you identify key supply chain capabilities to invest in to: improve: visibility, alternative operating models, new sourcing strategies, network flexibility, and reduce overall supply chain risks.