Supply chains have recently undergone many significant changes as a result of the pandemic, wars, trade sanctions, and even extreme weather events. Under these circumstances, and with the dynamic development of the e-commerce industry, it became necessary to move away from the existing business model and delivery execution methods.
Omnichannel order fulfillment and customer service strategies have become the new norm. Such a change was a major challenge for many companies that had to remodel their business processes. The evolution encompassed a wide network of trading partners and logistics operators managing supply chains. Furthermore, there was a need to develop a comprehensive approach that would foster transparency in the operational environment. It was under these circumstances that the Control Tower concept was born.
Control Towers are aggregation points for data generated by various operating systems within a logistics network. Data sources include inventory, order, and transport management systems, as well as flow tracking systems managed by various carriers. Data also comes from external sources, such as weather stations.
As emphasized by specialists at GEFCO, a leading logistics operator for the automotive industry in Europe, Control Towers are not only used for tracking flows, which are of course treated as an important source of data. The Control Tower accepts data generated by many applications and sensors operating in the operational environment. Systems used by partners in the supply chain should also provide valuable data to the system.
– Since the beginning of the pandemic, building business resilience has become one of the priorities for supply chain managers. That is why our Control Towers are based on an advanced orchestration system, including state-of-the-art transport planning and visibility functions. This makes it possible to provide early warnings about any deviations from the norm and to create backups to ensure an appropriate level of service – says Nicolas Thomas, Engineering Manager at GEFCO France.
Supply chains must become more flexible. For many years, this difficult-to-achieve goal has been a priority for many supply chain managers. However, thanks to the combination of cloud platforms, advanced IT systems, low-cost sensor devices, and ubiquitous connectivity, its implementation is becoming easier. To achieve the goal of a flexible supply chain, full visibility of processes is essential, from the production supply stage to final delivery to the customer.
Comprehensive visibility must include many trading partners and subcontractors, as well as all auxiliary operations, such as those related to handling product returns. Only through full visibility of flows will it be possible to obtain the relevant information needed to respond to alerts, notifications, and unexpected events that can occur in virtually any supply chain.
Such a gigantic amount of data can then be used by the Control Tower to understand, define, and then take an appropriate response. The Control Tower will therefore function like a central nervous system. Today, customers expect the ability to customize every product they order to their needs and fast delivery from almost any location. According to GEFCO experts, this can only be achieved if the supply chain is an integrated network of production, fulfillment, and customer service systems.
– If we compare a flexible supply chain to a living organism, the Control Tower will act as the central nervous system. In the same way that organisms are guided by “sensing and responding,” supply chains will show a similarity to this biological model of functioning. This is understandable when we look at how production has evolved from “selling what we produced” to “producing what we sell” – emphasizes Cyril Bonnin, Control Tower Manager at GEFCO France.
Source: GEFCO