For a company, it is crucial to have visibility and performance levers on two levels of transport: operational and tactical. In the context of the COVID-19 crisis, and especially in the management of the aftermath, this double dimension is even more important. But is it really relevant to separate these two aspects? Or is it better to use your transport data to start a virtuous circle between them?
In times of crisis, focus on operations?
When operations are seriously disrupted, the flow balance is seriously compromised and capacity is lacking, it is certainly essential to concentrate on keeping the ship afloat. Execution tools, whether TMS, tracking or collaboration platforms, have a vital role to play in this context. THE survey conducted by the consulting firm bp2r* with shippers, in order to learn lessons from the coronavirus crisis, is also rich in lessons on this point. When shippers were asked which tools were most useful to them during the crisis, tracking solutions came in second place. 53% of respondents who believe that they have been beneficial to them in better managing delays and postponements. Proof that having operational visibility is a real advantage. But, even at the height of the crisis, it was the management tools that stood out the best. Thus, 57% of respondents believe that this type of solution helped them better understand the disruptions in activity . The analytical, tactical dimension is therefore not forgotten even when the priorities may seem immediate. This is easily understood: the most critical period of a major crisis is not necessarily its peak. It is especially when the dust settles and a new paradigm takes shape that we must be wary. We know that this crisis will have lasting consequences. At best, volumes will be unbalanced for several months and operations will also take time to regain their footing. At worst, we are facing a major economic crisis likely to disrupt the transport landscape for several years.
Combining tactics and execution: the vital challenge of the future
Understanding your activity, where the disruptions have been concentrated, where the existing organization has not followed suit, is an essential prerequisite for facing the immediate future. But, above all, once the foundations have been built, you must be able to react quickly. Crises are chaotic and unpredictable times, and not just on the surface. In other words, reversals, false starts and shifts will not only disrupt the smooth running of daily operations. There is a risk of recurring and abrupt paradigm shifts. Under these conditions, shippers and carriers alike will need to be able to quickly switch from one operating plan to another, depending on the erratic evolution of supply and demand. You must be able to very quickly grasp fluctuations in activity and react accordingly by modifying the plans in place while ensuring good continuity of operations. We quickly understand that the clear separation between execution and tactics is gradually losing its meaning. Ideally, an optimal transport organization would be defined by two complementary characteristics. It would have such knowledge of itself and its market that it would be able to anticipate upheavals and would have planned alternative plans to answer them. Then, its agility would allow it to easily move from one to the other without disrupting its operation. Currently, this might sound like science fiction. But this is what we must aim for, if only to be quicker in making the necessary changes of direction – this is already a lot, it is even vital. Furthermore, the benefits to be gained from an intertwining between tactical and operational do not only exist in times of crisis. In a relatively stabilized situation, we can easily imagine more realistic applications, possible now.
Track and trace: a textbook case of operational in the service of tactics…
Let's be more concrete and take a specific example: that of track and trace. This is, in theory, a highly operational subject. We are in fact talking about reconstructing the route of an expedition from various sources. We can mention the reporting of codes corresponding to particular events (scan at departure, arrival, etc.). Data from vehicle telematics, geolocation or various sensors (IoT) are also used more and more often. This information can be used retrospectively to search for a missing product, or directly to track a shipment, possibly note a delay and notify the customer. However, it is perfectly possible to exploit this data in a slightly more advanced way, by enriching it or putting it into perspective. Typically, if we standardize and consolidate all this information feedback, we can reconstruct an exhaustive history. Delays, breakages, postponements and, of course, compliant and on-time deliveries: all this information is an immense source of potential lessons. Behind, by applying algorithms and machine learning By cross-referencing this consolidated data with other information, a company is potentially able to identify the factors involved in the event of a transport failure. From then on, it is possible to address problems in substance rather than simply reacting to them operationally. Typically, avoid delivering to customer A with carrier B from site C on Thursdays, as shipments matching this profile are most often late. Or ask recipients to change their ordering habits, as they are not adapted to the scheme in place. Here, execution fueled understanding of the organization and the ability to make tactical reorientations.
But also tactics in the service of operations
But this relationship is not one-way. Because, once you have perfectly understood the functioning of your organization, it becomes possible to bring tactics down to execution. The reconstructed history, in our example of track and trace, clearly allows us to identify thresholds in the journey of shipments beyond which we can reasonably estimate that they will be late. From then on, it becomes possible to directly assess the risk of delay and react accordingly, with both the carrier and the customer. Let us add to this the explanatory factors of the anomalies that we mentioned above. From direct risk management, we then move on to its anticipation. Before a shipment even leaves, the likelihood of a delay can be assessed by the presence or absence of generally problematic circumstances – including external factors like weather or traffic. We can even imagine an automatic reallocation system guided by AI, which would make it possible to switch the shipment in question to another scenario – for example a different carrier or even a postponement – in order to avoid the obstacle. We understand that the tactical and operational mesh are therefore perfectly complementary. We often talk about breaking down silos, in the supply chain in the broad sense and in transport in particular. Between the issues of costs, quality of service and GHG emissions; functions, supply, operations, commerce, finance and CSR; the scales, operational and tactical, but also strategic, must be no exception.
*bp2r is the originator of the Sightness solution
Learn more: www.sightness.com
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