Supply chain visibility is important to stakeholders involved in the shipment of goods. It gives them the means to make plans and adjust if an unforeseen event impacts a schedule. However, visibility relies on effective information exchange, which is challenging for various reasons. Digital standards provide a way for forwaerability of supply chain visibiliinteroperability to solutions so partners can track and trace container cargo, reports DCSA.
What is supply chain visibility?
Supply chains are complex, involving many companies and many links as components and goods are moved from their points of origin to their destinations. The multiple parties involved need visibility into shipments’ whereabouts and progress. If something happens, such as poor weather or an unexpected event, and it alters the schedule, everyone involved needs to know. They will need to act to minimize the impact of the change along the line.
That means they need supply chain visibility. Without it, they lack control and are limited in what they can do to mitigate shipping disruption and its impacts.DCSA surveyed** North American logistics decision-makers in shipper organizations to gauge the importance of visibility in container shipping. Respondents confirmed this is key to deciding which carrier they will use. Over 80% used multiple suppliers for ocean transport and 69% reported varying satisfaction levels with different shipping suppliers. Over 70% of the survey’s participants said they would likely switch to a carrier that offered high schedule reliability, guaranteed arrival times proactive communication around exceptions, and better responsiveness.
Shipper organizations also said container shipping should emulate more digitally advanced industries such as airlines, banking, e-commerce, and hotels, all of which provide a superior customer experience as a baseline rather than as an exception to the rule. **DCSA survey of North American shippers; survey respondents comprised professionals involved in a broad range of supply chain management functions.
What are the visibility challenges in global supply chains?
Around 90% of traded goods are carried by sea, so addressing visibility challenges in container shipping can go a long way to improving visibility in global supply chains overall. Yet, if we consider a shipment’s journey, we find that a container is lost from view until it arrives at certain points. Multimodal transport chains often appear as ‘black boxes’, so it is difficult for cargo owners to track and trace shipments and adjust their plans if they need to.
The data that supply chain partners need to track and trace containers that are being shipped tend not to be aligned or digitized for end-to-end supply chain visibility. Instead, information is often exchanged through channels of communication that are not ideal for collaboration, such as faxes, telephone calls, and text messages. Some information is sent by email or through online portals but even that doesn’t often conform to a consistent standard. All of which means receiving, interpreting, formatting, and sending information involves unnecessary manual work.
There are, of course, supply chain visibility solutions for digital information sharing, however, these are currently overlaid on unstandardized data. Supply chain partners may use different solutions from one another and find they can’t then communicate. They may have to implement multiple platforms to exchange information with the many stakeholders they do business with.
The US Federal Maritime Commission (FMC) launched the Maritime Transportation Data Initiative (MTDI) because of data quality and communication issues. It held sessions with industry stakeholders and concluded there is no system in place to ensure changes to shipping information are consistently and accurately conveyed. The problem is a lack of consensus around how to best convey timely updates and who is responsible for that communication.
How can we improve supply chain visibility in container shipping?
To improve supply chain visibility in container shipping, stakeholders need interoperable technology solutions. Digitalisation can help speed up information exchange but to make it fully efficient, and to improve the customer experience, the industry needs a foundation for its digital information.
That foundation is digital standards. Standardization bridges the digital gap, enabling the different supply chain visibility solutions to communicate with each other so that partners don’t need to implement multiple platforms. As container shipping modernizes and digitalizes, it needs a way to send and receive data machine-to-machine in formats that everyone can understand and use. Then, shippers, carriers, and all other supply chain stakeholders will have visibility into the whereabouts of containers being shipped and their status throughout.
Real-time supply chain visibility solutions: DCSA’s Track & Trace
DCSA’s digital standards are designed to enable a common technology foundation so stakeholders in the shipping industry can efficiently and seamlessly exchange digital information. The standards provide the means to harmonize terminology, processes, and definitions, smoothing the path for industry players that are digitizing to become more effective and sustainable and to provide and receive a better customer experience.
For supply chain visibility, DCSA has made track and trace standards available for carriers, shippers, and others, supporting all identified events when data is exchanged across five phases of pre-shipment, pre-ocean, ocean, post-ocean, and post-shipment. Track and trace is agnostic when it comes to supply chain solutions and thereby supports interoperability of systems regardless of which platforms are used by partners exchanging information.
End-to-end supply chain visibility solutions: empowering the future of container shipping success
Resilient supply chains must be visible supply chains. Without visibility into where shipments are at any given time, cargo owners struggle to manage disruption or unforeseen changes. A unified approach, and industry collaboration, are required to achieve the end-to-end supply chain visibility the industry needs. Digital standards, pioneered by DCSA and its carrier partners are designed to deliver this unified approach, aligning data definitions and driving interoperability of supply chain visibility solutions.
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Source: DCSA
