Why choose SAP Business Network Global Track and Trace – Analyzing impacts (3 of 7)

[Doug_DeLuca]

We are hitting our stride with this third post in the series, reaching arguably the most important aspect of SAP Business Network Global Track and Trace when it comes to procurement, supply chain, or customer service.

In the previous installments of this series covering "Why choose SAP Business Network Global Track and Trace over individual visibility platforms," we discussed the core benefits of a unified connection and synchronizing information. Here, we explore a third differentiator: "Analyze Impacts." This key capability elevates shipment tracking from visibility into real business context. 

So, when is logistics visibility not just about shipment tracking?  The answer is when you use real-time shipment tracking to make informed decisions and take action on inventory, production, and customer service. 

Logistics visibility is not just about seeing more, it’s about doing more with what you see. 

Reason #3: Analyze Impacts

For manufacturing and distribution companies in all industries, understanding the ripple effects of disruptions is crucial. Shipment delays, unforeseen events regardless of cause, or changes in demand and customer expectations can all have significant consequences on inventory management and production. Without a direct link between delivery arrival times and purchase, sales, or stock transfer orders, manufacturers risk production delays and inventory imbalances… or worse yet, stock-outs and idle production lines, leading to disappointed customers. 

On the surface, customers want best-price and fast service.  But on another level, customers also just want to know what to expect.  Whether getting your inputs in your door or getting your product out your door is the bigger risk, it is really losing site of how your customers are impacted where you may feel most exposed. 

SAP Business Network Global Track and Trace goes beyond shipment tracking by analyzing the potential impact of delays and disruptions on purchase, sales and stock transfer orders.

Analyzing the impact on the business, natively from you secure system environment, helps you to connect your core processes with what’s going on outside of your company boundaries.  No need to introduce risk, complexity, or inefficiency by sending your core business information, like purchase or sales orders, outside of your secure environment.    

Funneling shipment tracking information, synchronously from multiple sources, back to your core ERP can be essential to:

• Maintain production schedules. With SAP’s solution, you can quickly pinpoint how delays in raw material shipments affect individual purchase orders down to the line item, thereby impacting production timelines.  Gain the insight to avoid shortages and production bottlenecks.
  
  
• Optimize inventory levels. By analyzing shipment status and ETA for inbound deliveries, relative to planned or actual production and consumption from ERP, manufacturers can proactively manage inventory levels to not only mitigate potential stockouts but also minimize safety stock.  Optimal inventory levels rely on reliable inbound ETAs, else material visibility goes dark while in transit.  
  
  
• Deliver on customer promises. Fulfillment and customer service need to be efficient, agile, and integrated.  Too often these functions rely on “swivel chair” processes, bouncing between multiple systems and external portals, impairing efficiency and agility.  SAP’s solution allows manufacturers and distributers to anticipate potential delays in customer deliveries, integrated across functional areas, enabling customer service functions to natively link sales orders to shipment tracking, to proactively communicate with customers and manage expectations from a single source of truth.

For example, consider a manufacturer experiencing a delay in a critical component shipment due to unforeseen weather conditions. SAP's solution can alert both internal and external stakeholders of the delay in the context of the relevant purchase or stock transfer orders. This analysis might reveal a potential bottleneck in a specific production line, putting a key customer order at risk. Equipped with this insight, the manufacturer can proactively adjust production plans, explore alternative sourcing options, or communicate up to date expectations to their customer, mitigating passing the delay downstream in the supply chain.

The ability to analyze impacts, and put logistics visibility in the native context of business operations, transforms supply chain logistics from a reactive function to a strategic asset. Global manufacturers can move beyond simply knowing where their shipments are to understanding how disruptions might affect their entire operation. This proactive approach empowers them to make informed decisions, optimize resource allocation, and strengthen their overall resilience, for more loyal customers and a stronger brand.

Read more about how SAP customer Al Dahra integrated logistics visibility with core processes for greater supply chain orchestration. 

Next up, reason #4: Insight-to-action.  Check back here for the upcoming link or subscribe to SAP Business Network for Logistics on SAP Community.