Supply Chain Visibility Investment Proposal
Supply Chain Visibility Investment Proposal
A Financing Proposal and Improving and Renewing Business Processes (In the Field of
Institutional Affiliation
Student's Name
Instructor's Name
Course Name
Date
APA
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Preface
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Table of Contents
Abstract......................................................................................................................................................4
Introduction...............................................................................................................................................5
Literature Review......................................................................................................................................6
Methodology............................................................................................................................................10
Nijhof-Wassink's Supply Chain Visibility.........................................................................................12
Findings....................................................................................................................................................16
Investments Required..........................................................................................................................16
Order of Priority in the Investment Projects.....................................................................................19
The Long-Term and Short-Term Effects of the Investment............................................................21
Short-term effects of R&D investment...........................................................................................21
Short-term effects of IT infrastructure investment.......................................................................21
Long-term effects of R&D investment...........................................................................................21
Long-term effects of IT infrastructure investment.......................................................................22
Long-term effects of the latest technology investment..................................................................22
Potential Risks and their Associated Mitigation Strategies..................................................................22
Conclusion................................................................................................................................................23
References................................................................................................................................................24
Appendices...............................................................................................................................................25
Interviews: Questions and Answers...................................................................................................25
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Abstract
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Introduction
broad global presence. It is among the largest logistics service providers in the Netherlands,
offering transport services, storage, and distribution of goods to businesses in various industries.
specializing in the transportation of dry and liquid bulk goods for producers and suppliers in the
chemical and animal feed industries (Nijhof-Wassink, 2023). It operates intermodally by road,
water, and rail. The company uses standalone visibility solutions to manage all its supply chain
visibility processes, leading to delayed deliveries and high operation costs. Nijhof-Wassink's
current supply chain visibility relies on traditional SCM software that lacks real-time data,
undermining the organization's ability to track and monitor the entire supply chain process from
end to end. This results in delays in delivery, lack of transparency, and poor customer service.
This project aims to research the expected revenue if Nijhof-Wassink installs a better supply
chain visibility software. My main question is, "What will be the increase in revenue if Nijhof-
Wassink installs a better supply chain visibility software?" The following five SMART-
1. Specific: What are the specific features and capabilities of the current supply chain
2. Measurable: How much revenue does Nijhof-Wassink generate from its logistics
3. Achievable: What is the best supply chain visibility software available in the market?
4. Relevant: What are the key drivers and trends in the logistics industry that suggest the
5. Time-bound: What is the timeline for implementing better supply chain visibility
In the subsequent section, I will discuss previous studies regarding the essence of state-
of-the-art technology in supply chain visibility, and it helps logistic companies improve their
revenue. I will also discuss the state of the SCM software market. After reviewing the literature,
I will discuss the method used in this project, the findings, the possible investments, and
Literature Review
Supply chain visibility is among the most critical factors influencing logistic companies'
success. Today, most logistics companies strive to gain a competitive edge against their
competitors in a complex and dynamic business environment. Kalaiarasan et al. (2022) claim
that efficient and effective supply chain visibility can significantly help logistics companies
enhance their performance. However, most logistics companies use outdated technology to
achieve visibility in their supply chain, leading to delayed product delivery. The authors suggest
logistics companies should use the latest technology to enhance their supply chain visibility.
According to Pundir et al. (2019), the latest technology can help logistics companies
enhance their supply chain visibility. The researchers state that the internet of things (IoT) can
transform "dark, unintelligent & silo assets" into "illuminated, smart and connected assets." This
implies that logistics companies can collect information from every supply section and utilize it
to improve their supply chain visibility through IoT solutions. Another study by Moshoord et al.
(2021) established that advanced and effective technologies such as the [Link] 9 software
tools can help logistics companies enhance the visibility of their supply chains and improve their
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predictive capabilities. The authors argue that supply chain visibility directly impacts customer
satisfaction and loyalty. They state that companies with efficient supply chain visibility have
Moreover, Gligor (2016) builds on Fisher's (1997) work and delves into the association
between a company's environmental features and its level of supply chain fit (SCF). The author's
findings show a negative association between environmental uncertainty and SCF. This suggests
that with the increase in environmental uncertainty, transport, and logistics companies find it
increasingly difficult to correspond a product's supply and demand features with its supply chain
design features. Gligor (2016) argues that the introduction of supply chain agility as a capability
accompanied by the latest technology can help companies alleviate the negative association
between aspects of environmental uncertainty and SCF. Moreover, Gligor discusses the complex
relationship between SCF, supply chain agility, and financial performance. The author concludes
companies can generate substantial financial benefits if they combine supply chain agility with
Additionally, Katsaliaki et al. (2021) examine the literature on supply chain disruptions
published in important journals since 2001. The authors identify and examine important studies
on the topic. They synthesize information about the types of disruptions, their effect on supply
chains, and elasticity approaches in supply chain design and recovery tactics. Moreover,
Katsaliaki et al. (2021) examine the most famous modeling approaches on the topic and provide
examples and IT tools that improve elasticity and diminish disruption dangers. The authors offer
valuable insights, such as using state-of-the-art technology and better supply chain visibility
software for transport and logistics companies seeking to mitigate supply chain disruptions.
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Furthermore, Singagerda et al. (2022) suggest that supply chain visibility, flexibility, and
supplier relationship positively and significantly influence business performance. This implies
that businesses with efficient and effective visibility into their supply chains operate flexibly,
have better relationships with their suppliers, and perform better than others. The authors employ
a quantitative research method. They gathered data from 120 logistics firms in Tangerang
through an online questionnaire. They used simple random sampling techniques to select
samples during the study and analyzed the data through structural equation modeling and
SmartPLS. This research suggests that transport and logistics companies should improve supply
chain visibility, flexibility, and supplier development to improve their business performance. The
authors conclude that transport and logistics companies such as Nijhof-Wassink can use these
findings to steer strategic decision-making. For instance, they can invest in technology to
On the other hand, multiple organizations and researchers have authored and published
numerous reports regarding the SCM software market. [Link] (2022) states that the global
Logistics and SCM software market was approximately 14 billion US dollars in 2019. The
researchers project the amount to increase significantly at a Compound Annual Growth Rate
(CAGR) of 10% from 2020 to 2028. They attribute this rapid growth to the growing demand for
efficient and effective supply chain management solutions in numerous industries, such as
transport and logistics, retail, manufacturing, and healthcare. [Link] (2022) also profiles
major players, including Oracle, Fishbowl Inventory, Tipalti, SAP, Aptean, Epicor, Syncron
International, IFS AB, Appian, Axway, and Magaya Corporation. The report states that the
increasing adoption of cloud-based logistics and supply chain management software solutions
will significantly control the market. This is because cloud-based solutions provide more
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flexibility, scalability, and cost-effectiveness. [Link] (2022) adds that the growing demand
for real-time visibility into the supply chain will also play a key role in the market. This is
because real-time visibility is critical for transport and logistics companies to make informed
decisions and improve their operations. Moreover, stakeholders believe the increasing
complexity of global supply chains will drive demand. This is because the growing complexity
requires businesses to have better visibility into their supply chains to supervise risk and
optimize operations.
The findings of [Link] (2022) are supported by Market Reports World (2023), which
claims the global supply chain visibility software market size is growing exponentially. Studies
project that it will reach USD 4.8 billion by 2028. Market Reports World (2023) also reveals that
the exponential growth is driven by various factors, such as rising demand for real-time
and strict compliance with rules and regulations. The article adds that various studies project that
the cloud-based sector will dominate the market due to its multiple advantages. The advantages
include scalability, cost-efficiency, security, flexibility, and scalability. The article states that the
transportation and logistics industry will dominate the market because it needs efficient and
effective tracking and supervising of shipments. The findings of the reports and journal articles
reviewed in this section supported my claim that Nijhof-Wassink will experience a substantial
change in its overall performance if it improves its supply chain visibility by adopting the latest
technology. The reports about the supply chain management (SCM) software market suggest that
more transport and logistics companies are beginning to acknowledge the significance of the
latest technology. The reports also suggest that the demand for better SCM software will likely
Methodology
The project had six milestones that were completed within twelve weeks. I completed the
first milestone within the first two weeks of the project duration. The first milestone was the
review of relevant literature and transport and logistics industry reports. I reviewed scholarly
articles that research the impact of the latest technology on the financial performance of transport
and logistics companies. I also reviewed articles that discuss how transport and logistics
companies can leverage state-of-the-art technology, such as the latest supply chain management
software, to enhance their supply chain visibility. Moreover, I reviewed reports and articles
discussing the current state of the SCM software market and future projections regarding demand
and supply. Completing this first milestone helped me justify and prove the significance of this
The second milestone was the identification of the current state, challenges, and
complete this milestone; I completed it in week 5. This milestone involved multiple activities,
including reviewing the company's annual reports about its supply chain visibility, interviewing
relevant stakeholders, conducting surveys, and interviewing transport and logistics experts in the
Netherlands. I got a chance to interview two experts regarding the potential increase in revenue if
Nijhof-Wassink improves its supply chain visibility. The experts are employees at Alvarez &
Marsal and Anderson MacGyver, transport & logistics consulting firms in the Netherlands. I
conducted the interviews through phone calls. The questions and answers are attached in the
appendix. Moreover, I interviewed the feed logistics managing director, chemical logistics
managing director, and the SCM operators, among other primary stakeholders at Nijhof-
Wassink. This milestone helped me identify the issues facing the company's supply chain
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visibility and the stakeholders' attitude toward the significance of technology in Nijhof-Wassink's
overall performance.
This project's third milestone was the determination of the current demand for supply
chain visibility software and the identification of the best service providers in the Netherlands.
This milestone involved multiple activities, including SCM software market analysis and
classifying SCM software based on global ratings, service fees, and client feedback. It took me
two weeks to complete this milestone. I completed it in week seven. The fourth milestone was
the analysis of the approximate cost of implementing a new platform and expected revenue. This
was because my primary objective was to determine the expected revenue if Nijhof-Wassink
improves its supply chain visibility by installing new software that uses the latest technology.
The main activity involved in this milestone was financial analysis. I conducted a comprehensive
financial analysis regarding the whole transport and logistics industry in the Netherlands. I also
standalone supply chain visibility solutions to manage all its processes. This milestone helped me
determine the investment required for Nijhof-Wassink to implement a better SCM software. I
analyzed the order of priority in the investment projects using the Net Present Value (NPV)
method and a discount rate of 10%. I also conducted industry-wide research to determine the
average increase in revenue experienced by transport and logistics companies that have
implemented better SCM software in recent years. It took me two weeks to complete this
It also took me two weeks to complete the fifth milestone. I completed it in week eleven.
This project's fifth milestone was identifying and assessing potential risks and mitigation
strategies. The main activity associated with this milestone was risk analysis. I employed the risk
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mapping technique, which involves mapping out potential risks and their impact on a project or
situation. This helped me identify potential risks that could severely impact Nijhof-Wassink if it
decides to implement better SCM software. This technique also helped me develop strategies to
manage the risks I identified. The final milestone was the completion of the project report and
presentation. It took me one week to complete this project report. I completed it in week twelve.
logistics. It has a fairly complex supply chain network that involves managing the movement of
Chain Visibility system that integrates different procedures and components. As shown in figure
1, these processes include data collation, freight load matching, BI analytics and KPIs, driver
mobility access, end-to-end shipment visibility, multiple systems integration, AI/ML engine, and
The first process in the Supply Chain Visibility system is data collation. This involves
gathering information from multiple relevant sources, such as suppliers, carriers, and customers,
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and merging it into a single platform. Collecting data from multiple sources enables Nijhof-
Wassink to obtain a holistic view of its supply chain and identify any areas for improvement.
The second process is freight load matching. This involves matching freight loads with the
proper transporters and transport modes to minimize delivery times and costs and maximize
profits. Utilizing an automated system to match loads with carriers enables Nijhof-Wassink to
minimize delays and reduce costs associated with transport. The third process is BI analytics and
KPIs, which involves scrutinizing the gathered data to distinguish trends, patterns, and areas for
improvement. Moreover, this process involves using key performance indicators (KPIs) to
evaluate and track the performance of the supply chain. Analyzing data and tracking KPIs helps
Nijhof-Wassink to unceasingly enhance its supply chain processes and make data-driven and
informed decisions.
The fourth process is driver mobility access, which offers Nijhof-Wassink's drivers
access to real-time shipment information and logistics updates through their mobile devices.
Offering the drivers access to real-time information enables Nijhof-Wassink to inform them of
any fluctuations or problems that may influence their delivery times. The fifth process is end-to-
end shipment visibility, which involves granting relevant stakeholders real-time visibility into the
information, delivery times, and delays or issues. Granting stakeholders, especially customers,
real-time visibility into their shipments helps Nijhof-Wassink improve customer satisfaction and
diminish the risk of misplaced or spoiled shipments. The sixth process is multiple systems
integration. This process involves integrating multiple systems, which include transportation
relationship management (CRM) systems. This enables the company to establish a seamless and
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efficient supply chain process. Integrating multiple systems also enables Nijhof-Wassink to
streamline its supply chain processes and minimize the risk of errors or delays.
The seventh component of Nijhof-Wassink's supply chain visibility is the AI/ML engine.
This component involves using artificial intelligence (AI) and machine learning (ML) algorithms
to analyze data and recognize patterns and insights that can help the company optimize the
supply chain. The AI and ML algorithms enable Nijhof-Wassink to pinpoint improvement areas
and make data-driven decisions to increase efficiency and decrease costs. The final process is the
open exchange platform, which involves creating an open platform where suppliers, carriers, and
customers can exchange information and collaborate on the supply chain process. Creating the
open platform has helped Nijhof-Wassink improve communication and collaboration among
stakeholders in the supply chain. This helps the company maintain transparency and uphold
accountability to diminish the risk of errors and delays. Nijhof-Wassink's Supply Chain
Management (SCM) software is at the center of all these processes and components. Nijhof-
Wassink uses traditional SCM software that stores data locally at the company's headquarters.
The software is an essential component of the supply chain visibility system, as it allows the
company to administer and optimize its supply chain processes. The company also uses it to
integrate processes and components, manage inventory, optimize logistics, and track shipments.
diagram starts with data collation, followed by freight load matching, BI analytics and KPIs,
driver mobility access, end-to-end shipment visibility, multiple systems integration, AI/ML
engine, and open exchange platform. The SCM software is located at the center of the processes
and components. The boxes represent the processes and components, and the arrows connect
them to indicate the flow of data and information. In the process diagram of Nijhof-Wassink's
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Supply Chain Visibility, the traditional SCM software is integrated as a part of the multiple
systems integration process. It is connected to all other systems through data integration and
APIs.
the company's servers. The firm's IT staff internally handles the software's updates and
maintenance. However, Nijhof-Wassink's traditional SCM software has limited scalability, high
maintenance costs, inflexibility, and various security concerns compared to cloud-based SCM
solutions. Nijhof-Wassink can improve its supply chain visibility by implementing cloud-based
SCM software such as Oracle SCM Cloud, which is more scalable, have lower maintenance
Findings
I established that more than half of the businesses in the transport and logistics industry
and other industries have adopted logistics and SCM software in the last two years (Gartner,
2023). Gartner claims that other companies that had already adopted the logistics and SCM
software are implementing the latest technology to enable them to remain competitive given the
stiff competition. From the interviews and surveys, I learned that Nijhof-Wassink would likely
experience increased revenue if it improved its supply chain visibility by implementing better
logistics and SCM software. One of the transport and logistics experts I interviewed is Nijhof-
visibility system, but it is unreliable because it uses logistics and SCM based on outdated
technology. He added that this limits the company's real-time visibility and data analytics,
making it challenging to make informed decisions and quickly respond to supply chain changes.
Investments Required
if Nijhof-Wassink improves its supply chain visibility by installing new software that uses the
latest technology. The investment required for this project is research and development (R&D)
investment. I researched extensively to understand current market trends and identify gaps in
Nijhof-Wassink's supply chain visibility. Given this project's scope and primary goal, I also
accounted for the potential investments required for purchasing, installing, and implementing the
new software. The investments include technology investment for the new software and
infrastructure investment, since Nijhof-Wassink will have to develop and improve its current
infrastructure to support the new software. The two investments fall under capital investment.
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After extensively researching the supply chain visibility software market and Nijhof-
Wassink's supply chain, I established that Oracle SCM Cloud is the best candidate for this
project. Although Oracle SCM Cloud is more expensive than other software available in the
market, it is better than most. One of its advantages over other software is that it eliminates the
necessity for one-time software license purchase and substantial technical resources for software
maintenance, significantly reducing costs. It also has a higher return on investment (ROI) since it
enhances productivity, efficiency, and customer satisfaction. Additionally, Oracle SCM Cloud
allows its clients to leverage various cloud-based innovations such as artificial intelligence,
machine learning, IoT, and blockchain. Finally, I chose Oracle SCM Cloud for this project
because it has faster implementation since it uses configured templates and automated processes;
Figure 3: Replacing Nijhof-Wassink's traditional SCM software with Oracle SCM Cloud supply
chain visibility
According to Finances Online (2023), Oracle SCM has four pricing plans: Planning
Central, Demand Management, Sales & Operations Planning, and Supply Planning. The
Planning Central pricing plan is most suitable for Nijhof-Wassink. It can support up to 10 users
and costs USD 500 per user monthly. I further researched the software to determine the total cost
of ownership (TCO). TOC of Oracle SCM includes customization, data migration, training of
employees, hardware, maintenance, and upgrades. I used Oracle's online calculator to calculate
the potential TCO for Nijhof-Wassink. The calculator approximated the TCO plus the monthly
Monthly subscriptions = $30,000 (The company has five users in five countries) (Nijhof-
Wassink, 2023).
Customization = $30,000
Upgrades = $3,000
Maintenance = $2,000
Hardware = $40,000
The TOC for the subsequent four years will be the total costs of upgrades, maintenance, and
monthly subscriptions.
Upgrade = $3,000
Maintenance = $2,000
Total = $35,000
I analyzed the order of priority in the investment projects using the Net Present Value
(NPV) method and a discount rate of 10%. I also conducted industry-wide research and
established that Nijhof-Wassink would experience approximately a 3% revenue increase for the
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next five years. According to Zoominfo (2023), Nijhof-Wassink's total revenue for the 2022
The figures used in this analysis were approximated through extensive research, financial
Where:
C1, C2, …, and Cn are the cash flows in each financial year.
Project A (R&D): The research cost $7200, and its expected annual cash flow is $150,000 for
five years.
NPV = -$7200 + $150,000 / (1.1)1 + $150,000 / (1.1)2 + $150,000 / (1.1)3 + $150,000 / (1.1)4 +
Project B: Installation and implementation of Oracle SCM Cloud Software: The initial
investment cost will be $148,000, and the expected cash flow is 9,900,000 (3% of 330 million
Based on the results of the above calculations, Project B has a higher NPV than Project A. This
First, Nijhof-Wassink will experience increased operational costs. This is because R&D
investment requires substantial financial resources, which may increase operating costs in the
short term. Secondly, the company will experience delayed ROI. Since the research findings will
take time to implement, the benefits may not be realized in the short term, and revenue growth
may be delayed. Thirdly, the firm may experience an improved market position. This is because
the success of the research will lead to enhanced services and better customer satisfaction,
First, the company will experience improved operational efficiency since Oracle SCM
and the new IT infrastructure will enable the company to share data in real-time and enhance
operational efficiency. Secondly, the investment will lead to improved customer experience and
satisfaction.
success may improve customer satisfaction and efficiency, giving the company a competitive
advantage in the long term. Additionally, the company will experience an enhanced brand
reputation, leading to increased customer loyalty and revenue growth in the long term.
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First, the investment will improve the company's scalability, allowing it to handle
increased demand and grow its revenue in the long term. Secondly, this investment may lead to
reduced operational costs, which may improve profitability in the long term.
Generally, investing in the software will increase efficiency and enhance competitiveness
since the Oracle SCM software will improve operational efficiency, reducing operating costs and
Integration risk: Oracle SCM Cloud may fail Nijhof-Wassink must conduct thorough
to integrate well with existing systems, testing and ensure that Oracle SCM Cloud is
causing disruptions to supply chain fully integrated with existing systems before
Data migration risk: The migration of data The company should conduct thorough testing
from the traditional SCM software to Oracle and ensure that all data is successfully
SCM Cloud may lead to data loss or migrated to the new system before going live.
User adoption risk: The company's employees Mitigation strategy: Nijhof-Wassink must
may resist Oracle SCM Cloud, resulting in offer sufficient training and support to ensure
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low user adoption rates and potential that employees are comfortable with the new
disruptions to supply chain operations. software. The executive should also engage
Conclusion
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References
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Appendices
1. In your opinion, what are the main benefits of supply chain visibility?
In my opinion, the main benefits of supply chain visibility are improved efficiency,
reduced costs, and better decision-making. With supply chain visibility, logistics
companies can track their inventory levels, monitor the movement of goods, and identify
bottlenecks in their supply chain processes. This enables them to optimize their
operations and reduce waste, leading to cost savings and improved profitability.
2. Have you worked at Nijhof-Wassink? If so, what was your experience with its supply
chain visibility?
3. What challenges may a logistics company face when implementing a new supply chain
visibility software?
Data integration is one of the main challenges logistics companies may face when
implementing a new supply chain visibility software. Integrating data from multiple
sources and ensuring that it is accurate and up-to-date can be complex. Additionally,
there may be resistance from employees who are not used to working with new
associated with high costs, which can be a barrier for smaller logistics companies.
4. What are the key performance indicators (KPIs) businesses should measure after
Some key performance indicators (KPIs) that businesses should measure after improving
their supply chain visibility include on-time delivery rates, inventory turnover, and order
fulfillment time.
5. How can efficient supply chain visibility software help logistics businesses reduce costs
An efficient supply chain visibility software can help logistics companies reduce costs
and increase revenue in several ways. By improving visibility into their supply chain
processes, the companies can optimize their operations and reduce waste, reducing
revenue.
6. Do you know of any transport and logistics companies based in the Netherlands that
increased revenue by improving their supply chain visibility? If yes, what was their
I am aware of several transport and logistics companies based in the Netherlands that
increased revenue by improving their supply chain visibility. However, I cannot provide
specific names and percentages since most of them are our clients.
7. What are some of the risks associated with scaling up supply chain visibility?
Some risks associated with scaling up supply chain visibility include data security
concerns, increased complexity, and the need for additional resources to manage the
become more difficult for businesses to differentiate themselves from their competitors.
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8. How long do businesses typically see a return on investment (ROI) from a supply chain
visibility platform?
The time it takes for companies to see a return on investment (ROI) from a supply chain
visibility platform can vary depending on various factors, including the size of the
business, the complexity of the supply chain, and the level of investment in the platform.
However, in my experience, most businesses begin to see an ROI within 12-18 months of
1. In your opinion, what are the main benefits of supply chain visibility?
In my opinion, the main benefits of supply chain visibility include improved operational
times, enhanced collaboration with suppliers and partners, and better risk management.
2. Have you worked at Nijhof-Wassink before? If so, what was your experience with its
Yes, I have worked at Nijhof-Wassink before, and while their supply chain visibility
system was functional, it did use outdated technology. There were limitations in terms of
real-time visibility and data analytics, which made it challenging to make informed
3. What challenges may a logistics company face when implementing a new supply chain
visibility software?
A logistics company may face challenges when implementing a new supply chain
visibility software, including resistance from employees who are used to working with
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legacy systems, data quality issues, integration with existing systems, high
implementation costs, and the need for ongoing maintenance and support.
4. What are the key performance indicators (KPIs) businesses should measure after
Key performance indicators (KPIs) that businesses should measure after improving their
supply chain visibility platform include on-time delivery, order fulfillment rate, inventory
turnover rate, lead time, order cycle time, supply chain cost as a percentage of sales, and
customer satisfaction.
5. How can efficient supply chain visibility software help logistics businesses reduce costs
An efficient supply chain visibility software can help logistics businesses reduce costs
6. Do you know of any transport and logistics companies based in the Netherlands that
increased revenue by improving their supply chain visibility? If yes, what was their
TNT Express increased revenue by improving its supply chain visibility. Implementing a
new supply chain visibility software reduced transportation costs, improved delivery
7. What are some of the risks associated with scaling up supply chain visibility?
Some risks associated with scaling up supply chain visibility include increased
complexity and data volume, potential data breaches and cyber-attacks, higher
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implementation costs, and the need for additional resources to manage and maintain the
system.
8. How long do businesses typically see a return on investment (ROI) from a supply chain
visibility platform?
The time it takes for businesses to see a return on investment (ROI) from a supply chain
visibility platform can vary depending on factors such as the size of the company, the
complexity of the supply chain, and the level of investment. However, businesses