Supply chains are becoming increasingly complex, especially on an international level. It can also be difficult to gain visibility into supply chains and to gain data when working with multiple external logistics service providers. A supply chain control tower offers companies the possibility to collect and evaluate real-time data in the end-to-end supply chain using, among other things, Cloud data. In this blog we will tell you more about the different types of logistics control towers.
What is a Control Tower?
A Control Tower is a central hub of information within the links of your supply chain. The Control Tower keeps an overview of all logistics flows and information from this central point. Think of goods, data, trade secrets and money. The aim is to integrate all activities, systems and processes in a logical continuous flow based on the customer’s data. Through this integration, the Control Tower can find risks or opportunities on time. In this way, companies can optimize in the long term, set up collaborations and integrate with chain partners, in order to ultimately help customers better.
Logistics Control Tower
The Logistics Control Tower focuses on transport between the links in the chain. This form of a Control Tower is mainly done by a 4PL (Fourth party logistics provider). In order to guarantee the best cooperation and functionalities, neutral mediating takes place between the transporting and loading parties in the chain. The Logistics Control Tower provides insight into the delivered logistics performance using KPI reports and cost analyses. An additional advantage is that a lot of time is saved on selecting carriers and continuously monitoring current transport orders.
Supply Chain Control Tower
A Supply Chain Control Tower looks further than just transport between the links in a chain. From this position, we also look at the optimal stock, the location of this stock and the agreements made between suppliers, producers and buyers. A Supply Chain Control Tower is usually set up by the main link in the chain. This is because these controls contain business-sensitive information that should not be shared with third parties. The advantages of this type of Control Tower are that the stocks and cash flows within a supply chain are made clear and transparent. This allows for a faster response to unexpected questions and disruptions.
Cross Chain Control Tower
Finally, there is also a Cross Chain Control Tower. This connects multiple supply chains with each other, allowing carriers to develop a logistics strategy together. This final Control Tower depends on the joint objective that is set. When the goal has been set and the strategic process has been completed, the logistics coordination is transferred to a 4PL. The latter then takes care of the design and execution of the logistics activities. This Control Tower system bundles all available information to provide insight into multiple supply chains.
Our logistics consultants are specialized in optimizing packaging processes. During a consultancy process, we take an independent look at the various parts of your company’s supply chain. In addition, we produce a KPI report based on our proven Value-at-Risk method. This way you maintain control of your logistics processes and optimize the processes.
Are you looking for a solution for your logistics challenge? Or do you have logistics knowledge that you want to use? Get in touch!