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Reducing logistics costs via a pull-based, vertically integrated supply chain

Neil Hamilton, VP, business development, Thingstream, says the combination of IoT and vertically integrated order processes can achieve a leaner supply chain and ultimately say goodbye to the phrase, ‘out of stock’.

Here’s how to get started:

The traditional supply chain model often used in retail distribution is outdated and broken. Although it works most of the time, it doesn’t work sufficiently well. Customers want more and they want it now. Businesses’ inability to meet expectation can leave customers waiting or worse, going elsewhere.

Instead of the supply chain starting with the manufacturer as it has for decades, now it needs to be flipped on its head with the end-customer triggering the process at the point of order, and each stage of the process pulling from its respective supplier. Such a pull-based system can solve the problems of understocking and overstocking, ensuring that only what is ordered is built and shipped.

It’s a simple enough idea, but implementation might not be so easy. Before tackling the technicalities of vertical integration, every part of the supply chain has to be on board, which won’t happen unless it can be proven to be worth the time, effort and cost of changing processes. For all parts of the chain except the consumer, this means a lot of data collection, flow mapping and analysis. An arduous task for humans, but a piece of cake for a computer or a network of intelligent devices.

Read the rest of the article on IoT Now Transport

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