FEATURE
INCORPORATING COLD CHAIN
Technology makes supply chain visibility
and predictive analytics a reality
By Andrew Dawson, commercial director of MACMobile
Line of sight is the biggest challenge for all aspects of the supply chain, from the manufacturer to the
wholesaler, distributor and the reseller and even to the end consumer.
T
his lack of visibility and resulting lack
of control results in a number of
issues, from stock losses to pricing
inflation, uncertain availability and
increased time to market. Forecasting
and trend reporting are also all but
impossible since a complete view of the
supply chain cannot be obtained.
The ultimate goal for maximum
efficiency and visibility is an integrated
value chain where all systems
communicate seamlessly. This delivers
end-to-end insight and finally makes
predictive analytics on the supply chain
a reality.
PAPER-BASED PROCESSES
CAUSE DELAYS
Delays are arguably one of the biggest
supply chain challenges. Paper-based
processes are a significant component
of this issue. When orders, paper delivery
notes and invoices are generated,
due to lack of visibility into stock levels
available, what is ordered and what
is actually delivered may differ. This
amended on delivery.
Credit notes must be passed, or new
invoices generated, creating additional
timelines and complexities. This can
also lead to inaccurate billing, loss of
means that the invoice then needs to be
The inefficiency of processes and the reliance on paper-based processes means players in the supply chain cannot manage what is actually
being ordered and paid for.
stock, loss of income and other financial
effects. A live view of stock levels and and quantify without live or real-time programmes and incentives. This requires manufacturers. Retailers have visibility
the ability to generate an accurate information and insight. an end-to-end ecosystem to link the and only need to pay for what they
manufacturer to the consumer and the ordered and actually received. The
consumer back to the manufacturer. need for credit notes to be passed is all
invoice on delivery will mitigate these
challenges, minimise delays and improve GOVERNANCE CHALLENGES the accuracy of orders, billing and The lack of visibility into stock levels This last mile is essential to fully deliver a but eliminated. Debtors and creditors
payments received. leads to governance challenges, since transparent supply chain. can be incorporated into the eco-system
INEFFICIENCIES CAN
COST MILLIONS
there is no transparency in the process.
The ability to manage stock levels, END-TO-END VISIBILITY
for enhanced financial management.
In addition, the loop can be closed to
receipts issued and cash collected is Addressing these challenges requires include loyalty programs and activations,
The inefficiency of processes and the key, and players in the supply chain an integrated, mobility and cloud- giving full line of sight.
reliance on paper-based processes need a full view of stock in, stock out, based system that delivers the required means players in the supply chain payments collected, invoices issued and visibility across the supply chain. An distributors and retailers will be able to
cannot manage what is actually being more. Governance across all of these eco-system that delivers a direct ordering make use of intelligent dashboards to
ordered and paid for. It is impossible touchpoints is critical for a profitable platform between the distributor and interpret data against key performance
to collect the correct payment on business, which requires integrated the manufacturer, with real-time stock indicators and deliver real-time
orders if there is no visibility into what systems and line of sight across the entire levels and online ordering capability, can actionable insight. Structured reports
orders have been placed and actually supply chain from start to finish. dramatically increase efficiency at the first can be pulled at any time, and
stage. Distributors can better manage their automatic alerts can be configured
delivered. This could and often does
Armed with this data, manufacturers,
lead to significant loss. In addition, Fast- CLOSING THE LOOP stock levels, warehousing and personnel, if any exceptions occur. This enables
Moving Consumer Goods (FMCG) are A further challenge for parties in the and stock can be tracked at any point no real-time business management. Digital
easily stolen and readily convertible supply chain is the inability to influence matter where in its journey it is. transformation of the supply chain
to cash. Without visibility into orders consumer behaviour. To ensure placed and delivered it is impossible maximum success and profitability it generate clean invoices on delivery predictive analytics, enabling more agile
to know if stock is being stolen. All of is necessary to engage retailers and and deliver accurate orders to retailers and effective decision-making across
these issues are difficult to identify consumers using loyalty, rewards because they have visibility into the board.
COLD LINK AFRICA •
OCTOBER 2019
Distributors are empowered to
will also enable data to be used for
CLA
www.coldlinkafrica.co.za
33