Seamless Integration Ensures Timely, Cost-Effective, Shipping: Making Planning Play Nice with Execution

Recently, Tom Moore, CEO of ProvisionAi, and Jake Barr, former P&G executive and CEO/Principal at BlueWorld Supply Chain Consulting, discussed how supply chain management faces challenges in bridging the gap between planning and execution, siloed systems, and real-time intelligence. To meet these challenges, it is important that technology considers realistic constraints and unpredictable events, adopts a more connected and intelligent supply chain architecture, and analyzes data holistically to manage constraints. Technology has the potential to revolutionize transportation management through automation, data-driven decision-making, and cross-process improvements, leading to significant cost savings and productivity gains.

 

Tom and Jake discussed optimizing truck loads for efficiency and sustainability, emphasizing the need for a step change in the supply chain industry. Tom highlighted the benefits of reducing trucks on the road, while Jake stressed the importance of adopting a more agile and data-driven approach. They also discussed the potential of blockchain technology to transform the supply chain industry, with Tom emphasizing the importance of addressing the global driver shortage and Jake sharing his experience working with Tom and the Provision AI team.

 

The key insights from the discussion include:

  • Supply chain planning systems often ignore realistic constraints, leading to siloed operations and excess transportation costs. These silos are both operational and systematic. The number one silo is the planning department, which fills replenishment orders once inventory is depleted without checking to see if the warehouse has enough space.

  • Preferred carriers are often not used—The transportation manager sees 24 shipments one day but only three the next. He must get 24 trucks to ship orders, so he will contact any carrier, not just his preferred carriers, to get the capacity he needs, which can raise transportation costs. Because of the imbalance of transportation workflows, trailers wait to be unloaded, which may take days, affecting customer service.

  • Current systems and solutions, many designed decades ago, are insufficient for managing complex supply chain operations. A more integrated approach is needed. Different systems don’t talk to each other.

  • Planners need to recognize that there is a gap. They develop plans without considering constraints, such as warehouse space, dock doors, available labor, trucks/drivers, lead times, inventory levels, warehouse open/closed, and more.

  • Closing the gap requires people at multiple levels in the organization. Transportation and warehousing departments don’t have that much influence in creating a coordinated supply chain. It requires higher-level executives to understand there is a problem and want to do something about it.

  • Bridging the gap between supply chain planning and execution with technology is the solution to optimize logistics and maintain customer service. When planning and execution are integrated, shippers can make more intelligent and strategic decisions. To address this gap, constraints based on operational reality and cost barriers must be recognized. ProvisionAi’s LevelLoad pulls together data from various sources, optimizes and prioritizes shipments, and maintains customer service, ensuring cost-effective and efficient logistics management.

To view the full LinkedIn Live Event, visit: https://www.linkedin.com/events/7175 491015569481728/comments/  

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