Uncovering the Limitations of Software-Only Supply Chain Visibility
Software-only supply chain visibility vendors have taken a hit in the first year post the pandemic. Their revenue drop is primarily from “churn”, or the lack of renewal of their services, suggesting that customers are not seeing the benefit of supply chain visibility from software-only solutions. Let’s explore some of the challenges of software-only supply chain visibility solutions.
Software-only Visibility Solutions
Software-only visibility solutions provide the last known location and estimated time of arrival (ETA) of shipments. They depend on the vendors in the supply chain to provide updates through API integrations or manual input to the software-only visibility solutions.
This information, while important, lacks the depth and context regarding the physical state of the goods being transported. Additional consideration should be given to the following:
Dependency on External Data Sources: Software-only solutions rely heavily on external data sources such as carrier updates, GPS data, and manual inputs. This dependence can lead to delays and inaccuracies in tracking information if these sources are not up-to-date or reliable. You can have the best AI and ML available but if the data is not accurate, it is unreliable.
Limited Hardware Integration: Software-only solutions may struggle to integrate seamlessly with hardware devices like sensors and RFID tags. This can result in incomplete or inconsistent visibility, especially in situations where precise tracking is essential.
Inaccurate Location Tracking: Without the support of hardware sensors, software-based tracking can suffer from inaccuracies in location tracking, especially in remote areas with poor GPS reception. This can lead to misinformed decisions and potential delays.
Lack of visibility to each carton, crate, or container: These days, shipments are often more than one item. Software-only visibility solutions limit visibility to the “shipment” as a whole, but what if one of the items is left on the dock, or mishandled?
Lack of Real-Time Data: Software-only solutions often provide data with a delay, making it challenging to make real-time decisions. In time-sensitive industries like logistics, this delay can have significant consequences.
Limited Environmental Monitoring: These solutions may not offer comprehensive environmental monitoring capabilities. Monitoring factors like temperature, humidity, or shock may be crucial for certain industries like sensitive machinery, medical devices, pharmaceuticals, or food, and software-only solutions may fall short in this regard.
Security Concerns: Software-only systems provided limited visibility to theft and/or hijacking events.
In summary, while software-only shipment visibility solutions offer advantages in terms of ease of implementation and cost savings, they also come with several limitations, including reliance on external data sources, potential inaccuracies, and challenges in real-time tracking and condition monitoring.
Sensor-enabled Visibility Solutions
Sensor-enabled hardware solutions offer several advantages over software-only solutions for supply chain visibility and security. They are as follows:
Shipment Security: Sensor-enabled hardware solutions can be used to monitor the physical condition of shipments. This includes temperature, humidity, shock, and tilt sensors that detect if a shipment is mishandled or exposed to extreme temperatures. Proximity sensors also provide additional security by monitoring each carton, pallet, or crate and will send an alert for items that are stolen, tampered with, or become separated during transit. This data can be used to ensure product safety and quality and identify problems in the supply chain, such as theft, missing items, or product damage.
Real-Time Visibility: Sensor-enabled hardware solutions allow businesses to access real-time data about their supply chain. This data can be used to monitor the location and condition of goods, as well as the performance of suppliers. When monitoring a complete shipment, sensor-enabled solutions ensure that all the items arrive together. This real-time visibility helps businesses be more agile and responsive to changes in the market. In addition, physical location information provides actual departure and arrival times. It allows businesses to use this data to make better decisions about their supply chain, such as re-routing orders or adjusting production schedules.
Environmental Monitoring: Sensor-enabled hardware can monitor environmental conditions such as temperature, humidity, and shock. This is crucial for industries like semiconductor production equipment, medical imaging systems, pharmaceuticals, and food, where maintaining specific environmental conditions is critical. By detecting issues like shocks, tilts, or other anomalies in real time, businesses can take proactive measures to prevent damage to their assets. This reduces maintenance costs and downtime.
Data-driven Insights: The data collected by sensors can be analyzed to gain valuable insights into supply chain performance. This information can be used for process optimization, cost reduction, and strategic decision-making.
Customizable Solutions: Sensor-enabled hardware solutions can be tailored to the specific needs of different industries and businesses. This flexibility ensures that the technology aligns with unique requirements.
Regulatory Compliance: Many industries have strict regulations regarding transporting and storing goods. Sensor-enabled solutions help in ensuring compliance with these regulations, reducing the risk of fines or penalties.
Competitive Advantage: Implementing sensor-enabled hardware can provide a competitive edge by offering superior asset tracking and security, leading to improved customer satisfaction and trust.
Conclusion
Sensor-enabled hardware solutions offer several advantages over software-only solutions in terms of supply chain visibility and management. They provide businesses with real-time data, enable them to monitor the physical condition of shipments and help them reduce costs. These advantages make sensor-enabled hardware solutions an invaluable tool for businesses looking to improve their supply chain visibility and efficiency.