Bringing Supply Chain Visibility to Platform Supply Chains (PSCs)

Platform supply chains (PSCs) 

Platform supply chains (PSCs) are the modern equivalent of a traditional supply chain. The main difference between the two are platform supply chains leverage digital platforms to connect producers, consumers, partners, and stakeholders, and they connect with other digital platforms, forming deeply interconnected networks that govern the flow of goods, services, and information creating supply chain visibility on a global scale, but they don’t start out like that. They start out just like any other supply chain, they start out just like yours. 

Platform supply chains are the manifestation of the Logistics Service Strategy (LSS), generally speaking a means by which to acquire the goods needed for production and by which to get finished goods to market.  The logistics service strategy is a representative plan, a plan that outlines how a business manages the flow of goods, information, and resources from the point of origin to the point of consumption.  The most visible supply chain examples include e-commerce sites; the e-commerce sites most familiar to us manage their logistics operations through platform supply chains with a comprehensive logistics service strategy.  While a comprehensive strategy is preferable to a representative plan, operating efficiently or at capacity requires flexibility, even though the most comprehensive strategy devolves into a representative strategy given its deprecation through disruption. 

Self-built logistics (SBL) 

Self-built logistics (SBL) refers to the practice of a firm creating and operating its own logistics operation, including warehousing, transportation, distribution, and systems. The most visible supply chain examples that being an e-commerce site leveraging any means necessary by which to acquire goods and get those goods to the consumer market. While operational costs may be relatively high at first when compared with the entire market, self-built logistics allows companies, particularly smaller, star up companies, to have the greatest flexibility and control over their logistics operations, ensuring inexpensive, economical, and efficient deliveries. 

First-party logistics (1PL) 

First-party logistics (1PL) is the simplest form of the self-built logistics model where a company manages its own logistics using its own assets. Assets such as its fleet (vehicles) or warehouses for inventory and staging delivery, first-party logistics (1PL) companies typically receive orders directly from their customers, process those orders, and ship them to the customer. 

Third-party logistics (3PL) 

Third-party logistics (3PL) is a term that has become broadly associated with various logistics operations, a catch-all phrase in both industry and academic contexts, third-party logistics is often used to encompass more than one type of logistics activity referring to multiple types of logistics operations beyond its original scope, even in scientific journals.  

This broadening stems from the evolving complexity of supply chain management and the diversity roles third-party logistics (3PL) providers play. While the core (common) definition continues refers to the outsourcing of logistics functions (e.g., transportation, warehousing, or distribution) to a third-party provider, its application in industry contexts has expanded to cover a wide range of services such as transportation management, warehousing, inventory management, freight forwarding, and supply chain consulting. These services, captioned under the banner of third-party logistics (3PL) services outsourced to specialized providers who leverage their expertise, technology, and economies of scale to optimize logistics processes, reduce costs, and improve efficiency for businesses. The expanded use of 3PL highlights its flexibility, adaptability, and ability to change under market condition, but also raise questions about precision in an industry where accuracy is critical. 

Economies of Scale  

Companies that leverage a logistics service strategy achieve economies of scale faster than those companies without a logistics service strategy, representative plan or a comprehensive strategy notwithstanding.  Success is attributed to their use of digital technologies and real-time data. 

Online platforms that aggregate brands such as Amazon and Wayfair are useful examples of platform supply chains (PSCs). Their use of supply chain management technologies and the integration of their platform supply chains with other online platforms make them much stronger than their smaller contemporaries and relatively easy to identify.  

Large e-commerce entities such as Amazon and Wayfair are relatively easy to identify; the advantage of a logistics service strategy becomes apparent.  Unmistakable how such large entities achieve long term success.  Armed with a logistics service strategy, they can detect an issue and engage resources to circumvent the issue often before the issue occurs. 

Supply Chain Visibility is the Key to Scalability  

The widely held pronouncement that "Logistics isn't a shipping problem. It's a visibility problem” highlights the fundamental challenge of supply chains and supply chain management.  

Platform supply chains understand this need for a visible supply chain, and most understand this need almost intuitively, leveraging tools and techniques that create supply chain visibility.  Platform supply chains such as Amazon and Wayfair when held to highlight as examples are ‘tuned in’ to the need to create a visible supply chain throughout their supply chains. 

The exchange of information between the institutional scale of Amazon and Wayfair and their extended supply chains rises to the level of extraordinary.  Greater visibility exemplified by the email you receive moments after receiving a package.  Information delivered by way of supply chain excellence that understands how to separate one delivery notice (yours) from the volumes of information received minute by minute on an eternal basis.   

An extraordinary number and types of transactions are exchanged between and among these platform supply chains of global scale and in near real-time.   Catalog messages, orders, confirmations, inventory transaction, shipping orders, shipping confirmations, returns, adjustments, and damaged goods reports...not to mention shipment notifications for inbound inventories, repair parts, raw materials, component parts and finished goods.  An extraordinary number and types of transactions, all coordinated within the business process and used to provide useful and timely insight.  The email received moments after a package delivery might just be the one component necessary to complete an assembly or a necessary repair in order to get the finished product out of the door and to the customer in keeping with a parts contract or supply chain agreement.  An oversimplified example to be sure and considering there’s more to it, a lot more, we’ll refer to this scalability key simply as operational visibility. 

Creating a visible supply chain  

Operational Visibility provides supply chain visibility by way of insight. Insight into performance trends, operational bottlenecks, and opportunities for improvement based on transactional and historical data.  Tools like the email in the previous example to status reports, to full blown Operational Visibility Control Towers facilitate the automated communication between platform supply chains stakeholders (e.g., shippers, carriers, warehouses) for improved collaboration.  First by ensuring proper alignment between the parties and second, by enabling the parties to share real-time data. Data that leads to faster notification, faster acknowledgement, and faster response times, increased overall velocity, and leading to productivity gains.  

Aggregate Supply Chain Visibility  

Operational visibility and subsequent control are best achieved through a combination of aggregated transactional data and historical data.  Data, for aggregation, are garnered from multiple sources (e.g., TMS, WMS, ERP systems, transactional systems and carrier networks). Aggregation data, received through API, AS2, cloud storage device integration, events, file exchange through FTP, HTTP, or queuing webhooks, and other mechanisms provide views of orders, shipments, invoices, inventories, and operations.  Aggregate data, which includes critical tracking events and key data elements is used to improve operational supply chain visibility and deliver a measure of control, particularly important when things go sideways.  The data in its entirety can is used for purposes of traceability, generating messaging up and downstream, and for answering questions like, “Where’s my Stuff.” 

Choosing a provider - Carrier Recommendations Engine

A Carrier Recommendation for a shipper might require a relatively large data pool.  A large data pool typically available within the shippers platform, supply chain, or environment.  A large data pool is used in order to provide high quantity predictions through predictive analytics (AI).  Predictions enabled by aggregated transactional and historical shipment-level data used to deliver an analysis of routes, costs, and regional efficiencies made possible by predictive analytics (AI) delivering carrier recommendations and alternatives in near real time. Accuracy is enhanced by combining data, real time and historical, from multiple sources results in a single source of truth which delivers recommendations based on data-driven user selected confidence levels.  

Choosing a Route - Routing Recommendations Engine

What about the other side of the shipper carrier relationship? How about a recommendation engine for carriers that uses predictive ETA and confidence scores to guide tender acceptance decisions across various partners and routes? A Load Tender Recommendation in similar fashion would also require a large data pool and predictive analytics (AI) acting on an aggregate of real time and historical data, from multiple sources, in combination.  Normalized, synthesized data forming a single source of truth that delivers route recommendations based on user selected confidence and criteria.  The next logical question being, can your Logistics Service Strategy (LSS) make use of a routing recommendation? 

Is Your Platform Supply Chain Visible?  

Whether a representative or comprehensive logistics service strategy exists within your company, whether you’ve achieved economies of scale, whether you are an SBL (Self-built logistics) operator, operate as a 1PL(First-party logistics), or whether an expanded use of 3PL highlights your adaptation to the market; pause here for a moment.  

Recall, “Companies that leverage a logistics service strategy achieve economies of scale faster than those companies without a logistics service strategy”…their success, attributed to an advanced use of an aggregation of timely and historical data and digital technologies. 

How PartnerLinQ is Shaping Supply Chain Visibility with Platform Supply Chain Visibility Solutions

PartnerLinQ is shaping how platform supply chains of any size respond to change and disruption through a new approach to Platform Supply Chains (PCS).  One that enables a clear and comprehensive view of supply chains for any stakeholder. Stakeholders including producers, shippers, carriers, and warehouses, whether counted among self-built logistics (SBL), first-party logistics (1PL), third-party logistics (3PL) operators or providers will find our approach truly unique.   

PartnerLinQ is Shaping Platform Supply Chains (PCS) beginning with prebuilt, industry specific reusable composable architecture components that increase project velocity and decrease waste, reduce cost, and eliminate redundancies while adding data consolidated from multiple sources and AI infused intelligent data application and planning tools.  This is an adaptive model, a unified cloud native platform of infinite scale that engages quickly, includes configuration and modification, delivers full scale digital supply chain solutions in weeks. 

A visible supply chain is essential for effective decision-making and the PartnerLinQ platform consolidates, normalizes and harmonizes data from various sources from the point of interaction making critical information accessible for making informed decisions and optimizing supply chain operations which translates into better utilization and an improved bottom line. 

Supply chain visibility enhances responsiveness especially in a volatile global market, the ability to see and respond to changes in real-time is crucial for survival. PartnerLinQ's solutions provide real-time insights into various aspects of supply chain operations, including inventory levels, logistics movements, and order fulfillment status, enabling organizations to optimize efficiency, mitigate risks, and enhance customer satisfaction. 

A visible supply chain leads to improved performance by providing a clear and reliable snapshot of activity 24 x 7. Real time data that delivers insight and makes it possible for organizations to respond faster to disruptions and opportunities, both of which lead to reduced costs, streamlined operations, and enhanced efficiencies, which appeals to our human tendency to always want more. 

Ready to see your supply chain in full view? Request a demo and experience visibility like never before.