A recent report from the solution provider ShippyPro focused on the present state of the e-logistics market globally, indicated an astonishing statistic. Only 7% of supply chains are able to support real time decision making. They also state that 95% of supply chains require very short reaction times due to the speed at which they operate. (e-Commerce & Logistics Trends 2024)

At Ti, we have been highlighting for many years the necessity for accurate and timely data flows throughout logistics operations. The reducing costs of the technology platforms capable of supporting these goals should provide the necessary ingredients to do so. And yet…   

This still seems to be a challenge.

Online retail operations have resulted in an explosion of delivery data as every parcel carrier can provide a track and trace capability.  Knowing when your shipment is due to arrive is obviously a great benefit of the online shopping experience. But nifty track and trace for online impulse purchases is not supply chain visibility. It is only the last part of an often complex choreography required to get products manufactured and then distributed across the globe.

Which brings us back to the 7% mentioned earlier.

Every player in a typical supply chain has data relating to their operations. These data are held in a variety of systems. Some are old, some are not quite so old, and some have only recently been implemented. The data held in them will vary in quality and quantity. It is safe to say that all of the systems now operating have been introduced after networking became a ‘thing’ back in the early 1990’s and have the capability to exchange data with other systems. So, the real challenge is how fast can the data be shared, and can the recipient make sense of it.

All of the technology necessary to make this happen is commercially available but is there the desire and vision to make this happen. That obviously varies by organisation, but it must be in the commercial interest of any company to know what’s happening within their operations at any time.

The conventional approach to exchanging data and information between companies is via a mechanism called an Application Programming Interface (API). Indeed, it is probably possible to construct a supply chain visibility platform comprised primarily of API’s, coordinated by some form of generative AI platform responsible to qualifying and directing the data flows, alerting the appropriate parties to any anomalies or disruptions.

This seems to be the obvious destination where most, if not all, of the logistics and supply chain technology platforms will converge.

So, in summary, APIs offer a powerful solution for enhancing supply chain efficiency and visibility. By connecting diverse systems, APIs enable seamless data exchange, real-time tracking, and automated processes.

Key benefits include:

  • Improved Visibility: Real-time tracking of shipments and inventory levels.
  • Enhanced Collaboration: Facilitated communication and data sharing between stakeholders.
  • Increased Efficiency: Automation of tasks and streamlined processes.
  • Enhanced Decision-Making: Data-driven insights for better decision-making.
  • Improved Customer Experience: Faster delivery times and accurate tracking information.

However, implementing APIs requires careful consideration of security risks and integration challenges. By addressing these concerns and following best practices, businesses can harness the power of APIs to optimise their supply chains and gain a competitive edge.

Author: Ken Lyon

Source: Ti Insight / Foundation for Future Supply Chain

You must be logged in to post comments