08/03/2022 | Press release | Distributed by Public on 08/03/2022 03:30
While the term "logistics control tower" has been in vogue for quite some time, the concept itself is often understood differently.
For some executives, it means a comprehensive set of dashboards displaying logistics metrics with data refreshes in real-time, enabling them to take data-driven decisions and prioritize actions. For others, it means a central team of employees crunching numbers, figuring out the bottle-necks in the supply chain, and taking coordinated and concerted action, while addressing priority customer requirements.
While none of these definitions are necessarily wrong, a comprehensive logistics control tower in its fullest sense has a wider scope encompassing people, processes, and a governance framework glued together by a technology layer.
To get a comprehensive understanding of how the logistics control tower has a powerful value accretive effect, it's worthwhile examining the pressing logistics imperatives that organizations need to address:
With this in mind, how do we meet these challenges head on? At Capgemini, we leverage an adaptive control tower model based on years of experience and numerous implementations for our clients across industry sectors.
Input flows into the much overlooked aspect of control tower operating model design through our Digital Global Enterprise Model (D-GEM) transformation platform and ESOAR framework (Eliminate, Standardize, Optimize, Automate, Robotize) depending on the repeatability, criticality, and business logic complexity of the process.
Once the building blocks of the basic control tower operating model design and governance has been set up, the chosen technology elements are operationalized to address critical needs such as extracting data at the optimal frequency, fusing together the information, and surfacing the actionable intelligence at the right time to create the desired business impact. This is where the sheer computing power and cost-effectiveness of cutting-edge technology elements such as micro-services and hybrid-cloud really come into their own.
What differentiates a truly adaptive control tower from a well-managed one is the seeding of machine learning algorithms in tandem with cognitive automation to provide predictive and prescriptive analytics that pre-empt supply chain events and dramatically reduce risk. Our clients have seen tangible impact across the 3 "Es" - efficiency, effectiveness, and experience, including:
For a leading Aircraft company
For a world-leading CPG company
For multiple global clients in the freight forwarding and 3PL space:
To summarize, the control tower is not an off-the shelf software that acts as a magic bullet for today's logistics challenges. There's as much to the core control tower design and operating framework as there is to the choice of technology. To enable real transformational benefits to flow into the modern day logistics processes, there's no shortcut to building a strong core operating model.
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