Picture yourself stuck in a traffic jam between fellow luxury cars and glass trucks. In today’s logistics world this would not be a pretty sight.
Suddenly you would realize that 1 out of 3 trucks is empty and the rest is only loaded to 60-70% of its capacity. If these trucks and trailers were to be really made of glass the cause of our sufferings would be instantly made visible.
Combining order flows to fill trucks could change our lives:
- It would substantially reduce our commuting time.
- Instantly lighten up our day and lower our level of traffic aggression
- In addition we would save a lot of money on logistics
- Most importantly, society would enjoy a greener planet
Logistics Control Towers emerge everywhere
Companies are currently implementing Control Towers right across the logistics landscape. A platform is growing where information about various flows of goods converges and is analyzed so that the freight flows can be optimized. This will have a huge impact on both our environment, economy and mood.
Prerequisites for a Logistics Control Tower
The mechanism behind Logistics Control Towers is to optimize order planning and centralize logistics planning and reduce the number of empty miles of transport resources. Control Towers are also increasingly used as Cross Chain Control Centers (4C) in order to combine several product flows from multiple companies by order consolidation.
Four important prerequisites need to be met:
1. Operate Logistics at a Global Level
Unfortunately many companies still plan their logistics at the very end of their local supply chain. As a result supply chain planners are only focused on logistics orders leaving their own facility. They pay no attention, or simply lack the tools, to benefit from potential consolidation advantages by combining shipment volumes with other facilities. Local planning of logistics exposes companies to a real risk of sub-optimization.
The way to go is to centralize logistics planning by accumulating local planning to a higher (enterprise) Control Tower level. Several delivery plans can run simultaneously and the impact of planning changes is immediately visible. Transportation will start with full loads as always, but the average distance between the first and the last delivery reduces.
On estimate, 10% efficiency increases can easily be reached by reducing empty mileage
2. Execute the Supply Chain with Collaboration
3. Build Trust among your Partners in your Control Tower Network
4. Implement Fair Share Mechanisms
Start building your Logistics Control Tower now
Imagine your glass trucks filled to its optimal capacity, not encountering any traffic jams and delivering always on time. Wouldn’t that be something… For sure this is utopic. Still huge steps can be made by joining forces through Logistic Control Towers.
Want to start improving your Control Tower? Download our Control Tower Checklist below.
Inspired by and content derived from: Supply Chain Movement, Control Towers are emerging Everywhere, Marcel te Lindert.