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Making the move to customer-centric or outside-in focused value chains

October 31, 2019

Supply chain thought leaders have been evangelizing the move to customer-centric or outside-in focused value chains for several years, and progressive businesses have listened. More and more enterprises are seeking methods to improve On-Time, In-Full (OTIF) capabilities and service levels to ensure customers receive their product as expected, improving customer satisfaction and increasing revenue.

While many organisations are seeking to drive OTIF improvements in the supply chain, they often don’t know how to get started or where to invest. Taking an enterprise-centric approach doesn’t provide visibility, communication, and collaboration between trading partners and yields marginal improvements at best.

So, what can organisations do to improve on-time and in-full as a key measure of customer service?

  • First, define the data you need, who owns the data, and what system it resides in. Generally, this involves multi-party transactions and data elements. The source of these data points will depend on party role (supplier, manufacturer, carrier, etc.) and should include concepts such as the following:
    • requested and confirmed quantities
    • requested, confirmed / negotiated, and scheduled delivery date
    • tender request and response dates
    • shipment and deliver date
    • shipment quantity
  • Second, ensure you are connecting to your trading partners in an efficient and scalable way. Comprehensive multi-enterprise business networks (MEBNs) provide a means to both capture data and to collaborate. Additionally, they can provide real-time alerts across on-time (OT) and in-full (IF) processes for both your inbound and outbound supply chain. Examples of this include the following:
    • tender response date differing from tender request date
    • quantities shipped from the advance shipping notice (ASN) differing form quantities from the purchase order
    • actual delivery date from the Proof of Delivery (PoD) differing from the confirmed or negotiated delivery date

Alerts, capturing order differences, provide all players with the necessary visibility to discrepancies and delays throughout the life-cycle of the order. This allows for adjustments to be implemented, as needed, and provides a “single version of the truth” to the entire value chain.

  • Third, measure OT, IF and OTIF for each individual shipment, as well as, all shipments over a sustained period of time. This will reveal deviations, how often they occur, and from what source. This level of awareness creates better communication and intelligence, giving trading partners the opportunity to implement proactive OTIF improvements together.

Depending on the size of your organisation and the initial implementation, it may be beneficial to start with two or three steps in the process and gradually expand from source to delivery.

Understanding the scope and scale of your business is critical to success. Capturing the needed data from numerous suppliers, manufacturing locations, and carriers is a challenge. To do this efficiently, organisations should consider implementing a multi-enterprise business network (MEBN) that allows all trading partners to share real-time data and provide end-to-end visibility across the value chain for both collaboration and intelligence - creating actionable insights, seamless execution and satisfied customers!

Learn more about how a multi-enterprise business network can help your optimise your supply chain.

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