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Supply Chain Visibility Investment Proposal

The document presents a financing proposal aimed at improving supply chain visibility for Nijhof-Wassink, a logistics company in the Netherlands. It outlines the current challenges faced due to outdated software, discusses the potential benefits of adopting advanced technology, and analyzes the financial implications of such investments. The project includes a literature review, methodology, findings on investment priorities, and risk mitigation strategies to enhance operational efficiency and revenue.

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Elias Ojuok
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0% found this document useful (0 votes)
15 views29 pages

Supply Chain Visibility Investment Proposal

The document presents a financing proposal aimed at improving supply chain visibility for Nijhof-Wassink, a logistics company in the Netherlands. It outlines the current challenges faced due to outdated software, discusses the potential benefits of adopting advanced technology, and analyzes the financial implications of such investments. The project includes a literature review, methodology, findings on investment priorities, and risk mitigation strategies to enhance operational efficiency and revenue.

Uploaded by

Elias Ojuok
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1

A Financing Proposal and Improving and Renewing Business Processes (In the Field of

Logistics, Purchasing, or Facilities)

Institutional Affiliation

Student's Name

Instructor's Name

Course Name

Date

APA
2

Preface
3

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
4

Abstract
5

Introduction

Nijhof-Wassink is a logistics services company headquartered in the Netherlands with a

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.

Nijhof-Wassink's raison d'être is to be an efficient and innovative logistics service provider

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-

formulated sub-questions support this main question:

1. Specific: What are the specific features and capabilities of the current supply chain

visibility software used by Nijhof-Wassink?

2. Measurable: How much revenue does Nijhof-Wassink generate from its logistics

operations using the current supply chain visibility software?

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

need for better supply chain visibility software?


6

5. Time-bound: What is the timeline for implementing better supply chain visibility

software and realizing the projected increase in revenue?

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

conclusions and recommendations based on the findings.

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
7

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

more sales and revenue than others.

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

the latest technology.

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.
8

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

enhance supply chain visibility or establish closer supplier relationships.

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
9

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

visibility, enhanced operational effectiveness, decreased costs, improved customer satisfaction,

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

increase in the coming years.


10

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

project and its benefits to Nijhof-Wassink.

The second milestone was the identification of the current state, challenges, and

limitations of Nijhof-Wassink's supply chain visibility software. It took me three weeks to

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
11

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

analyzed Nijhof-Wassink's financial statements to determine the financial impacts of using

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

milestone. I completed it in week nine.

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
12

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.

Nijhof-Wassink's Supply Chain Visibility

Nijhof-Wassink is a transport and logistics company specializing in chemical and feed

logistics. It has a fairly complex supply chain network that involves managing the movement of

goods from suppliers to customers. Nijhof-Wassink has implemented a comprehensive Supply

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

open exchange platform.

Figure 1: Nijhof-Wassink's supply chain visibility components and processes

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,
13

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

status of shipments from origin to destination. End-to-end visibility provides tracking

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

management systems (TMS), warehouse management systems (WMS), and customer

relationship management (CRM) systems. This enables the company to establish a seamless and
14

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.

As shown in figure 2, the process diagram of Nijhof-Wassink's Supply Chain Visibility

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
15

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.

Nijhof-Wassink's traditional SCM software is an on-premise software system installed on

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

costs, is more flexible, has better integration, and improved security.

Figure 2: Nijhof-Wassink's supply chain visibility


16

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-

Wassink's ex-employee. He stated that Nijhof-Wassink has a comprehensive supply chain

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

As stated in the introduction, my primary objective is to determine the expected revenue

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.
17

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;

it will not cause significant disruption during installation.


18

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

subscriptions for the first financial year to be $148,000.


19

Monthly subscriptions = $30,000 (The company has five users in five countries) (Nijhof-

Wassink, 2023).

Customization = $30,000

Data migration = $15,000

Upgrades = $3,000

Maintenance = $2,000

Hardware = $40,000

Training of Staff = $28,000

The TOC for the subsequent four years will be the total costs of upgrades, maintenance, and

monthly subscriptions.

TOC for each of the subsequent four years:

Monthly subscription = $30,000

Upgrade = $3,000

Maintenance = $2,000

Total = $35,000

Order of Priority in the Investment Projects

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
20

next five years. According to Zoominfo (2023), Nijhof-Wassink's total revenue for the 2022

financial year was $330 million.

The figures used in this analysis were approximated through extensive research, financial

analysis, and consultation.

NPV = C0 + C1 / (1 + r)1 + C2 / (1 + r)2 + … + Cn / (1 + r) n

Where:

C0 is the initial cash flow.

C1, C2, …, and Cn are the cash flows in each financial year.

r is the discount rate.

n is the number of years.

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 +

$150,000 / (1.1)5 = $561,418

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

dollars) for five years.

NPV = -$148,000 + $9,900,000 / (1.1)1 + $9,900,000 / (1.1)2 + $9,900,000 / (1.1)3 + $9,900,000

/ (1.1)4 + $9,900,000 / (1.1)5 = $37,380,789.


21

Based on the results of the above calculations, Project B has a higher NPV than Project A. This

implies that Project B should be prioritized over Project A.

The Long-Term and Short-Term Effects of the Investment

Short-term effects of R&D investment

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,

resulting in increased market share and revenue.

Short-term effects of IT infrastructure investment

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.

Long-term effects of R&D investment

First, Nijhof-Wassink may gain a sustainable competitive advantage as this project's

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.
22

Long-term effects of IT infrastructure investment

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.

Long-term effects of the latest technology investment

Generally, investing in the software will increase efficiency and enhance competitiveness

since the Oracle SCM software will improve operational efficiency, reducing operating costs and

increasing revenue in the long term.

Potential Risks and their Associated Mitigation Strategies

Risk Recommended Mitigation Strategy

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

operations. implementation. The company also engage

with Oracle to ensure that any issues are

resolved before going live.

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.

corruption. It should also create a backup plan in case of

data loss or corruption.

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
23

low user adoption rates and potential that employees are comfortable with the new

disruptions to supply chain operations. software. The executive should also engage

with employees to understand their concerns

and address any issues that may arise.

Conclusion
24

References
25

Appendices

Interviews: Questions and Answers

Interview 1: Employee at Alvarez & Marsal

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?

I have not worked at Nijhof-Wassink.

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

technology. Additionally, implementing the latest supply chain visibility software is

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

improving their supply chain visibility platform?


26

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

and increase revenue?

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

operation costs. Additionally, by providing customers with real-time tracking

information, businesses can improve customer satisfaction and loyalty, increasing

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

percentage increase in revenue?

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

system. Additionally, as supply chain visibility becomes more widespread, it may

become more difficult for businesses to differentiate themselves from their competitors.
27

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

implementing a supply chain visibility platform.

Interview 2: Employee at Anderson MacGyver

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

efficiency, better inventory management, increased customer satisfaction, reduced lead

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

supply chain visibility?

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

decisions and respond to changes in the supply chain quickly.

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

improving their supply chain visibility platform?

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

and increase revenue?

An efficient supply chain visibility software can help logistics businesses reduce costs

and improve revenue by improving inventory management, reducing lead times,

optimizing transportation routes, reducing stock-outs and overstocking, enhancing

collaboration with suppliers and partners, and improving customer satisfaction.

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

percentage increase in revenue?

TNT Express increased revenue by improving its supply chain visibility. Implementing a

new supply chain visibility software reduced transportation costs, improved delivery

times, and increased customer satisfaction, resulting in an 8% increase in revenue.

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

generally expect to see ROI at most 24 months after implementation.

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