How to improve exception management with end-to-end supply chain visibility

It’s not a matter of if disruptions will occur in the supply chain: it’s only a matter of time until the unexpected strikes and creates an exception.

But an exception does not necessarily guarantee a late delivery. It simply means a roadblock or challenge has arisen that requires immediate attention. This is why end-to-end visibility in a supply chain is so important. The more real-time information you have on the location and condition of shipments, the more proactive you can be with exception management.

 

Immediately informing customers of any issues and the steps being taken to mitigate them will go a long way towards turning customers into brand ambassadors who will help grow your business.

 

Let’s take a closer look at shipping exceptions and the need for strong exception management in supply chains, and how a lack of end-to-end visibility can hinder those efforts. As a bonus, we offer five sure-fire ways an end-to-end visibility solution can help improve exception management in any supply chain.

 

Shipping exceptions and exception management in supply chains

 

There are plenty of reasons why delivery exceptions occur with in-transit packages. Here are a few of the most common:

1. Inaccurate shipping labels. Among the most common delivery exceptions occur when the address on a package’s label is incorrect, unclear, incomplete or undeliverable. It can take several hours or even days to track down the correct information manually
2. Missed drop-off. Even when the delivery driver shows up on time and at the correct location, an exception occurs because no one is there to sign for a package that requires a signature to complete the final-mile delivery process
3. The package goes MIA. Arguably the most severe exception, a package that goes missing for whatever reason could take days, weeks or even longer to locate
4. Inclement weather or another force majeure. Winter storms, tornadoes, flash floods, hurricanes, earthquakes and wildfires are just a few examples of the things Mother Nature can dish out that lead to delivery delays
5. Damaged packages. Sometimes it’s the shipping label that either gets knocked off or becomes illegible while in transit. Other times it is damage to the packaging itself that renders a shipment undeliverable. With the latter, a replacement should be sent out immediately
6. Official holidays. Major carriers most likely will operate with bare minimum staff, if they operate at all, on days designated as holidays or observances
7. Customs and clearance delays. International shipments often get stuck at the border due to missing documentation, labeling issues or a staffing shortage
8. Yard exceptions. Deliveries are often marked as completed because the shipment is within a certain distance of the destination, when in fact the truck is sitting at a truck stop

Lack of end-to-end visibility = exception management struggles

 

Normally exception management is tough enough. Without end-to-end visibility, it’s almost impossible to gain meaningful insights that need to be communicated to customers. The lack of real-time location and condition data in visibility solutions slows down response times and puts stakeholders in a reactive rather than proactive mindset. Having to send emails, make phone calls or interpret legacy data associated with past shipments compounds the level of complexity. An end-to-end visibility solution that does not include configurable real-time status alerts (location, temperature, humidity, shock events, light exposure and more) is of little or no use when trying to prevent:

• Destroyed shipments, such as pharmaceuticals and vaccines
• Rotten perishables, such as fruits and vegetables, dairy products and meats
• Loss of upset customers
• Fines and legal action from regulatory agencies such as the US Food and Drug Administration
• Lost revenue

Five tips to improve exception management with end-to-end visibility

 

In general, customers want their stuff when they want it, and they don’t really want to hear excuses why it will or might be late. That said, most will appreciate a heads-up when things go awry. They realise things happen that are beyond anyone’s control.

 

While it’s impossible to know exactly when and where disruptions will strike, it is possible to flag potential exceptions early. Here are five ways end-to-end visibility can help improve exception management:

• Real-time tracking functionality. Best-in-class trackers provide real-time insights, such as location and condition (temperature, humidity, light exposure, vibration, shock events, tamper detection and more)
• Configurable alerts. An end-to-end visibility solution should include robust software that focuses on showing the real-time location and condition of shipments, providing alerts if there are issues with any shipment (temperature, delays, etc)
• Single source of truth. To maximise exception management capabilities, all systems and software in an end-to-end visibility solution should be collaborative and integrated with all the parties involved: shippers, receivers, carriers, and logistics service providers
• Route optimisation. Combine data from multiple shipments and analyse patterns of damage or delays, determine root causes of problems and optimise future routes
• Send backup shipments. Early detection via end-to-end visibility provides the opportunity to send a replacement shipment, just in case the first one is indeed compromised

Take exception management to the next level with end-to-end visibility

 

Implementing in-transit end-to-end visibility will improve overall proactiveness in supply chain exception management. Tive’s proprietary multi-sensor trackers use global cellular connectivity and on-onboard sensors to provide real-time monitoring of shipments that keeps all stakeholders informed of the location, climate and integrity of their shipments. Tive’s cloud-based software platform gives stakeholders access to that information in real time and from any device. The ability to configure custom climate and temperature thresholds, along with real-time alerts that will trigger when a shipment exceeds the acceptable ranges, puts you a step ahead of the disruption and provides a powerful leg-up in exception management.

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Ready to learn more about the power of end-to-end visibility? Schedule a demo today.

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By Matt Holland, Sales Director – UK & Ireland, Tive