Complete Supply Chain Visibility is an Investment, But the Returns are Worth it
Many companies today outsource some aspects of their manufacturing operations to third-party specialists to realize cost advantages and to open new markets. The result is a very sophisticated, multi-tier, global and multi-enterprise supply network that includes distribution centers, 3PLs, contrac...
Many companies today outsource some aspects of their manufacturing operations to third-party specialists to realize cost advantages and to open new markets. The result is a very sophisticated, multi-tier, global and multi-enterprise supply network that includes distribution centers, 3PLs, contract manufacturers, suppliers and the like. This outsourcing creates supply chain visibility challenges especially when considering how the product is showing up in the hands of the end user. Has my packaging protected the product? Has the product been over packaged resulting in additional costs and environmental waste? Is product being damaged from mishandling that is invisible to me with all the handover points?
Solutions to provide this visibility may include condition monitoring of the product. This type of monitoring allows users to be more predictive and proactive to understand if theres an impending problem and how to solve problems before they occur. Visibility results in less impact on your business and improved cash flow.
The earlier and more frequently you begin using visibility systems preferably at the very beginning of the supply chain the better youll be able to avert supply chain disruptions, reduce the need for excess inventory, and limit substandard supply chain performance.
When looking at visibility related to damage, ShockWatch looks at the low hanging fruit and determines where efficiencies can be addressed. We see real numbers in areas like damage and loss claims, system downtime, or costs to repair or replace product. Adding these up, can help you determine where immediate cost savings can be found.
For more information send an inquiry directly to ShockWatch
Assessing the Total Cost of Damage
Compartmentalization is one of the biggest hurdles to saving money and increasing efficiency throughout an organization. There’s a naïve belief in organizations that if each department operates efficiently, the overall organization will be efficient too. While this is true to a degree, it overlooks the ways decisions in one business unit affect outcomes in another.
Developing a Risk Management Program
Multiple types of monitoring devices are available to ensure shippers have the data they need at a price they can afford. For example, electronic data loggers monitor a range of impact thresholds, the direction and duration of impacts, and their G-force, along with the event’s GPS coordinates and time of occurrence. Some options record thousands of shipments and can generate trend reports that span months to years.
Supply Chain Conditions May Damage Even Rugged Consumer Electronics
A cell phone, dropped from ear height, can experience an impact of up to 1,000 Gs. Even though that phone, like other consumer electronics, is designed to withstand a certain level of impact, it still can be damaged. During shipping, even though devices such as cell phones, laptops, televisions, headphones, video game controllers, etc. are protectively packaged, they are still at risk from supply chain mishaps. The damage from these events may go unnoticed, however, unless a package shows visible signs of damage – a crushed corner, for example.
Minimizing Unsalable Product
For the customer, receiving goods with dings, dents or temperature issues may indicate serious problems in the supplier’s logistics organization. Even when there is no actual product damage, the appearance of damaged packaging makes buyers question the reliability of the product and the commitment of the manufacturer to develop and deliver products that meet agreed-upon standards.