Visibility : A Necessity for Logistics Service Provider

by Amit Maheshwari on 2011-03-05

One of the major factors affecting the effective functioning of a Logistics Service Provider (LSP) is lack of visibility or comprehensive view of the business operations. This lack of visibility greatly impairs the growth of the business as the management does not have access to the complete picture.
Logistics network consists of complex layers of communication and coordination. A LSP has to keep pace with the ever-expanding market needs, delivering enhanced value-added services. The various operations of an LSP are inter-dependent and as such it is very much crucial for the information to flow from one operational area to another giving the LSP a clear picture of their functioning. As the business grows and becomes more complicated, it is becoming increasingly crucial for LSPs to have a comprehensive view of their operations in order to gain a firm control. Visibility therefore is the key for LSPs to achieve control over their operations and attain growth in business.
Visibility means access to accurate, timely information throughout the organization, clients and networks, allowing LSPs to make decisions quickly and with more accuracy. Visibility allows LSP to streamline their operations and optimize the efficiency of the work forces helping them to gain a competitive advantage. However in order to achieve the desired level of visibility into their organizations, the LSPs need to evolve processes using sophisticated Information Technology (IT) systems, that would cover the operations, branches and the entire organization within its ambit.
Operational Visibility helps an LSP to work proactively and avoid situations which would cause delays or break in their operations. It also facilitates the flow of information between the various departments like warehousing, transportation, freight forwarding and Customs clearance operations and ensures their smooth functioning. For example information flows from the Customs clearing department to the freight forwarding department notifying them as soon as the shipment is processed in the Customs, who then proceed with their operations. The accounting department has visibility of the operations and can initiate the payment realization process without any delay. The operations can also monitor whether payments have been realized for completed shipments and ensure the credit worthiness of the client before accepting further shipments.

Real time branch visibility is necessary in order to manage their functioning efficiently. Often the management is dependent on the branch for information on its working, which could be inaccurate or insufficient to act upon. With real-time information across branches, the management has direct access to accurate information that gives it a clear view of the functioning of the branches. This makes it possible for the organization to improve their functioning and standardize its operations across branches and thus achieving greater efficiency. It also gives greater control in terms of monitoring the performance of the branches and optimizing the resources.		 freight forwarding
Visibility across the organization enhances its functioning as people at all levels have access to everyday and crucial information. There is a flow of information across departments, the managers are aware of the happenings within their department and the management can keep tabs on the entire organization across the branches. This helps the individuals as well as the management to perform their tasks efficiently.
Communication Visibility helps in correlating and analyzing real-time information, leading to informed decision making by the management. The performance of the various operational centers can be tuned to achieve enhanced co-ordination between them. Visibility can help an LSP in significantly reducing errors and delays and take measures to uphold regulatory standards.

As mentioned earlier, visibility becomes highly improbable without the aid of a sophisticated IT system. Only such a system with its in-built tools and checks and balances can provide across-the-board visibility. A sophisticated IT system can help cover the entire processes of the operations within an organization across branches, facilitating the flow of data automatically from one operational area to another providing visibility to everyone. It makes possible the availability of real-time data from the lowest level employee to the top management. It also provides a variety of reporting systems like dig in and drill through reports that make possible to co-relate and analyze data.
LSPs can benefit significantly from real-time visibility, which enables them to gain maximum business value by leveraging this complete, accurate and real-time picture to improve company performance, achieve sustainable advantage and drive sustainable growth. Real-time and micro-level view is needed to perform the critical functions of monitor, notify, simulate, control and measure. This capability will become increasingly important as organizations evolve and grow. Visibility enables new levels of operating efficiency, service capabilities, and profitability.

 


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