A few years ago, if you asked a business owner how important it was to track their internal supply chain in real-time, they would have looked at you as crazy. “What’s that?” they would say. But nowadays, with the advent of big data and the Internet of Things, businesses can’t afford to track their supply chains in real-time. We will discuss the importance of tracking your internal supply chain in real-time and how it can help optimize your business processes.
1. Help Optimize Your Business Processes
If you run a manufacturing or production business, you know that there are many moving parts. There are raw materials that need to be processed, transportation and distribution to be managed, and orders to be fulfilled.
It can be challenging to keep track of all these moving parts and ensure that everything runs smoothly. That is where real-time tracking comes in. By tracking each step of the unit’s journey, you can gain insights into where bottlenecks are occurring and take steps to optimize your process. It is imperative in today’s climate of increasing competition and shorter product life cycles.
2. Provide Insights into Order Statuses
Another way that real-time tracking can help optimize your business is by providing insights into order statuses. It is vital to offer products or services that have extended lead times. By tracking the progress of each order in real-time, you can keep your customers updated on the status of their order and avoid any potential delays. This transparency can go a long way in building trust with your customers and ensuring their satisfaction.
3. Help You Reduce Costs
According to a study by Boston Consulting Group, real-time tracking can help businesses save up to 5% of their total costs. That is because real-time tracking provides visibility into all aspects of the supply chain, which can help businesses identify areas where they are wasting money.
For example, suppose you are transporting perishable raw materials. In that case, you can use real-time tracking to monitor the temperature of the transportation container and take steps to ensure that the goods do not spoil.
It can also help you avoid errors and mistakes when manual processes are used. For example, if you manually track inventory levels, there is a greater chance of error. It can lead to overstocking or under stocking, which can both be costly. By tracking inventory levels in real-time, you can avoid these errors and save money.
4. Improve Customer Satisfaction
Real-time tracking can improve customer satisfaction by providing transparency and visibility into their order status. As we mentioned before, this can help avoid delays and build trust with your customers.
A recent study by Bain & Company found that companies that provide real-time tracking information to their customers experience a 10% increase in customer satisfaction. That is because customers appreciate the ability to track their order and know exactly when it will be delivered.
In today’s competitive landscape, satisfied customers are more critical than ever. In addition, real-time tracking can help you avoid errors and mistakes that can lead to customer dissatisfaction.
5. Help You Make Better Decisions
Tracking your internal supply chain in real-time can help you make better decisions. With the correct data, you can identify trends and patterns that can help you improve your process and make your business more efficient. For example, if you notice that a particular type of product is selling well in a specific region, you can adjust your production accordingly to meet the demand. This level of insight was not possible a few years ago.
6. Improve Efficiency
Tracking your internal supply chain in real-time can improve efficiency because it allows you to identify and solve problems in near-real time. For example, if a machine in your manufacturing process breaks down, you can quickly identify the problem and take steps to fix it. It helps avoid downtime and keeps your business running smoothly.
7. Increase Profits
In fact, according to the same study, 78 per cent of respondents said that real-time tracking helped them avoid delays. In addition, businesses can use real-time tracking to make better decisions that can improve efficiency and reduce costs. It can help you optimize your process, reduce costs, and improve customer satisfaction. All of these factors can lead to higher sales and increased profits.
8. Provide a Competitive Advantage
In today’s business world, businesses need to do everything they can to gain an edge over their competitors. The ability to track your internal supply chain in real-time can provide you with a significant competitive advantage. By having visibility into every step of the manufacturing process, you can optimize your processes to ensure that each unit is produced efficiently.
In addition, by tracking orders in real-time, you can be sure that you always have the most up-to-date information on hand and can make informed decisions about where to allocate your resources. All of these factors can give you a competitive advantage in the market.
9. Improve Sustainability
Tracking your internal supply chain in real-time can help you make your business more sustainable. It allows you to identify areas where you are wasting resources and make changes to improve your process.
For example, suppose you are transporting perishable raw materials. In that case, you can use real-time tracking to monitor the temperature of the transportation container and take steps to ensure that the goods do not spoil. It can help you avoid food waste and reduce your carbon footprint.
In addition, by tracking orders in real-time, you can avoid stock outs and ensure that customers always receive their products on time.
10. It’s the Future
Experts believe that tracking your internal supply chain in real-time is the future of manufacturing. As the world becomes more connected, businesses will need to be able to track their supply chains in real-time to stay ahead of the competition. As more businesses adopt real-time tracking, it will become the new standard in the industry. If you want to stay ahead of the curve, you need to track your internal supply chain.
Let’s Get Started with Entrance Software Consultants
The increasing importance of tracking your internal supply chain in real-time is evident. With the advent of big data and the Internet of Things, the ability to track in real-time will only become more critical. If you’re not already doing so, now is the time to start. The benefits are too great to ignore.
Entrance Software Consultants provide software development services to assist with your internal tracking. Contact us today to learn more about how we can help you get started.