When considering a real-time transportation visibility (RTTV) platform to manage their supply chain, CEOs and CFOs are interested in one key piece of information: return on investment (ROI.) They want answers on what their company can expect in the form of payback from investing in an RTTV platform.
As the largest visibility platform, project44 helps the world’s leading brands increase supply chain resiliency, agility, and efficiencies – resulting in both short-term and long-term financial benefits. For example, companies can expect improvements in labor and network efficiency within the first year. Later gains involving planning and optimization efficiency occur as a company learns to leverage the platform to its full extent.
Here are 5 ways a Real-Time Visibility platform provides payback.
Savings on Office Staff
Using an RTTV enables a company to automate shipment status information and alerts – eliminating the need for office personnel to make check calls and send emails. We see a 30-40% decrease in manual track and trace activities, freeing up office staff for other duties.
Reduced Demurrage Charges
Demurrage charges for containers can pile up quickly, especially for ocean shippers when they are blind to delays occurring at congested ports. By having advanced notification of delivery delays, a company can take steps to avoid the charges that terminals place on parked shipments. On average, companies using the project44 platform experience a 20-40% decrease in demurrage fees.
Reduced Detention Charges
By having visibility on in-transit shipments, shippers can avoid detention charges that receiving companies or motor carriers assess when a truck is held up at pickup or delivery. project44 typically saves companies between 10-20% on detention charges.
Reduced IT Headcount
Because the RTTV provides a single connection for automated communication with multiple parties, a company removes the need for special-information technology staff to manage integrations with disparate systems. Typically, project44 customers see a 25% reduction in transportation-related IT headcount.
Inventory Reductions
As companies leverage shipment visibility to orchestrate inventory flow in the supply chain pipeline, they can make better inventory planning decisions. Having an accurate picture of delivery performance and replenishment lead times enables companies to lower both safety and cycle stock levels. project44 data shows companies using real-time transportation visibility see a 1-5% reduction in inventory.
Overall Supply Chain Savings
Using RTTV can help companies improve delivery performance to reduce lead-time variability and optimize inventory. As companies begin to leverage real-time, high-fidelity data and employ process automation, they can lower the scope of their supply chain spend. As a result, they can cut costs for transportation, distribution centers, inventory, and supply chain administrative overhead.
Those bottom-line savings reductions are more than enough to justify a RTTV. But there are top-line benefits as well. Improved orchestration of the end-to-end supply chain leads to greater product availability at the right location to increase potential sales.
