The Supply Chain Control Tower

There has been a new concept introduced in the supply chain arena – the supply chain control tower. This may just be something new but it has been said to have brought a lot of good things to the supply chain circles.

The supply chain management system is responsible for gathering and collecting data and other needed information from all elements and aspects of the supply chain. If a company has a control tower, then it is capable of predicting the consequences of a problem or an issue that might occur within the supply chain circles.

That is why the control tower concept has been getting a buzz among major global manufacturers. A lot are asking about what could this control tower do – its benefits, effect and impact on the supply chain grounds.

The control tower idea is mainly about bringing detailed information to the right person at just the right moment or time. With the control tower, improved business performance delivery is manifested due as real-time information and decision making are done effectively.

According the experts, the goals and objectives of supply chain control tower program can be divided into two major categories:

  • An overall visibility in the supply chain distribution – the control tower has the ability to detect major performance indicators throughout the entire supply chain extension. The supply chain control tower is capable of providing real-time insight from inventories to part shortages and even to late shipments. With that, the tower can see through the overall performance and liabilities of the entire extension of the supply chain, helping the company or manufacturer to act and give solutions to whatever problems seen.
  • Problem management and resolution – once detailed information has been gathered and established, the attention and the focus of the company shift to managing and solving whatever problems and issues detected and identified. Because of the supply chain control tower, different teams in different areas of the company are being signaled and alerted to potential problems through an a certain framework wherein those teams are required to make immediate resolutions and actions to solve the identified critical issues and problems. This ability of the control tower enables the teams to have information and detail barter with external partners and take corrective actions before effects and to other harmful results will occur.

According to research, companies and manufacturers using the control tower concept showcased the following characteristics:

  • Have personnel or employee capable of managing and handling critical and difficult relationships, 6 times better, throughout the end-to-end supply chain.
  • Are able to make profit optimized supply and do demand matching twice than other companies that do not have a supply chain control tower.
  • Have personnel or employees capable of viewing supply chains as linked processes at a holistic level.
  • Are 13 times able to create, develop and manage various supply chain operational scenarios compared to their peers who have no supply chain control tower.

With the coordinating and managing characteristics of the supply chain control tower when it comes to the flow of goods and information, along with its capability to provide reports on performance and exceptions, any company or manufacturer can be one step ahead from its peers.

 

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