4 Tips for Achieving Supply Chain Visibility

With the rise of technology like track and trace shipping, modern consumers have become accustomed to knowing exactly where their order is at all times. Food delivery apps, for example, provide customers with real-time updates about where their meal is from start to finish, including the time their order is received, once the food starts being prepared and the location of their delivery driver.

The logistics industry needs to have the same frame of mind. Customers have come to expect the same real-time visibility in supply chains, and it’s only become more important in recent years.

One of the main reasons visibility needs to be a top priority is that cargo theft has been on the rise since the pandemic. In the first quarter of 2024, an estimated $154.6 million worth of goods were stolen, and cargo theft incidents were up more than 46% compared to the year before. Compounding these concerns is the heightened risk of cybersecurity threats.

Here are four tips to help logistics professionals achieve supply chain visibility:

1. Invest in the Right Technology.

Supply chain visibility isn’t possible without transparency and communication. Using an application programming interface (API) helps bridge the gap between key stakeholders like shippers, carriers, and third-party logistics providers (3PLs). By integrating data from various sources, such as transportation and warehouse management systems, carrier systems and GPS devices, APIs enable logistics professionals to track and coordinate shipments in real-time. When a carrier updates the system, that information is immediately rerouted to the customer to keep them in the loop.

Some carriers are even using APIs to combat cargo theft. The technology can monitor factors like temperature and light in the loads themselves, flagging when there’s a sudden change that may indicate a truck door was opened unexpectedly.

Electronic Bills of Lading (eBOLs) are another key technical advancement enabling greater supply chain visibility. Paper-based BOLs are susceptible to human errors and processing delays and can sometimes be lost altogether. eBOLs, on the other hand, create a full standardized electronic integration from quote to invoice, automating and streamlining the entire BOL process. They ensure accurate data about shipment status, location and documentation is transmitted to all necessary parties in real-time – even before the package is picked up by a carrier. This improved data quality between shippers and carriers then enables automation of manual processes, ultimately saving companies time and money.

Companies can even use automation to enhance real-time communication. For example, customer service teams might employ Artificial Intelligence (AI) and natural language processing (NLP) technologies to respond directly to emails requesting pricing quotes or pull track-and-trace data on a shipment’s whereabouts faster than a human could. By automating these tasks, employees are able to spend more time focused on core business items like generating sales.

2. Choose the Right Partner.

The reality is that many industry professionals still rely on traditional, manual ways of operating. There are hundreds of thousands of carriers not connected through APIs, and shippers don’t have the capacity to connect and manually track each one. That’s why it’s equally important to choose the right partner, in addition to investing in your own company’s digital transformation.

For example, the carrier with the lowest price isn’t necessarily the best option if it limits their capabilities or reliability. Even if they offer the lowest price upfront, choosing a carrier with a track record of delivery issues or delays will take a major toll on your customer relationships. Shippers need to consider all the costs associated throughout the supply chain cost, including the impact of lost sales due to service, preferred vendor placements due to poor service and low-quality dashboards, and charges and fines for missing required appointment dates.

Choosing a carrier with real-time visibility enables shippers to quickly and proactively address potential issues, mitigating the cost-of-service failures. Working with a 3PL is a great strategy to help you find the right carrier to suit your needs. Smaller companies that don’t have the capital to invest in technologies like API and eBOLs themselves, for example, should seek a partner who can leverage advanced technology on their behalf. Some 3PLs offer solutions that use Artificial Intelligence (AI) to run reference numbers for partners without APIs. Your partners are an extension of your business, so it’s important to choose wisely.

3. Educate Your Team About Security Risks and Protocols.

It's important to pair digital transformation efforts with internal education around security. With the rise of cyberattacks on supply chain companies, organizations should provide resources on how to identify issues like phishing attacks and data breaches. Cybersecurity also needs to be an integral part of your company’s culture. It should be considered best practice to question suspicious behavior. Establish a process for forwarding fishy emails to the IT team and reward employees for being cautious so they feel empowered to identify scams.

Companies may have all the proper safeguards and training in place, but success ultimately comes down to the individual employee and their confidence in questioning bad actors. Test your employees’ knowledge and identify possible cybersecurity gaps by simulating an attack with a fake company-wide scam email. If employees engage with the email, you’ll know they’re vulnerable to phishing attacks and may require more training on the subject.

4. Maintain Data Integrity.

Collecting and maintaining quality data enables teams to not only report on shipment locations and statuses seamlessly, but to also anticipate possible delays and supply chain snags. Pallet-level tracking is becoming especially prevalent with high-value products, so using tools like shipping indicators and GPS location can help companies collect the right information. Additionally, devices that track truck temperature, airflow, fuel in the reefer unit, and light are important for not only monitoring the location of the shipment, but to ensure nothing goes awry during transportation. Leveraging API connectivity also gives shippers the ability to track all information about their shipments into their TMS without manual work.

True visibility goes beyond when a shipment is dispatched and where it is in transit. Customers need access to transparent, accurate data around every part of the supply chain, from ensuring invoices match their initial pricing quote to knowing exactly who received their delivery. Encouraging technology adoption, collaborating with knowledgeable partners and arming stakeholders with the knowledge to fight cargo theft and fraud are the first steps toward achieving a comprehensive view of the supply chain – and giving your customers peace of mind.