How can you set up a logistics control tower for better supply chain management?

1 Define your objectives and scope

The first step to setting up a logistics control tower is to define your objectives and scope. What are the main goals and challenges of your supply chain? What are the key performance indicators (KPIs) and service level agreements (SLAs) that you want to measure and improve? What are the processes, functions, and stakeholders that you want to integrate and align? You need to have a clear vision and scope for your logistics control tower to ensure that it meets your business needs and expectations.

2 Choose your technology and data sources

The second step is to choose your technology and data sources. A logistics control tower relies on a robust and flexible IT infrastructure that can collect, store, process, and analyze data from various sources, such as enterprise resource planning (ERP), warehouse management system (WMS), transportation management system (TMS), GPS, sensors, and external databases. You need to select the right technology and data sources that can provide you with real-time, accurate, and comprehensive information about your supply chain activities and performance.

3 Design your dashboard and alerts

The third step is to design your dashboard and alerts. A dashboard is a visual representation of your supply chain data that can help you monitor and manage your KPIs and SLAs. You need to design your dashboard according to your objectives and scope, and use relevant and meaningful metrics, charts, graphs, and maps. You also need to set up alerts that can notify you of any deviations, disruptions, or anomalies in your supply chain, and trigger corrective actions or contingency plans.

4 Implement your analytics and optimization

The fourth step is to implement your analytics and optimization. Analytics is the process of transforming your data into insights that can help you identify patterns, trends, opportunities, and risks in your supply chain. Optimization is the process of using your insights to improve your supply chain performance and efficiency. You need to implement your analytics and optimization according to your objectives and scope, and use appropriate methods and tools, such as descriptive, predictive, and prescriptive analytics, artificial intelligence, machine learning, and simulation.

5 Establish your governance and collaboration

The fifth step is to establish your governance and collaboration. Governance is the set of rules, roles, and responsibilities that define how your logistics control tower operates and interacts with other functions and stakeholders. Collaboration is the way of sharing information, insights, and decisions among your logistics control tower team and other supply chain partners. You need to establish your governance and collaboration according to your objectives and scope, and use effective communication, coordination, and feedback mechanisms.

6 Evaluate your performance and improvement

The sixth step is to evaluate your performance and improvement. Evaluation is the process of measuring and assessing the impact and value of your logistics control tower on your supply chain management. Improvement is the process of learning from your evaluation and making adjustments and enhancements to your logistics control tower. You need to evaluate your performance and improvement according to your objectives and scope, and use regular and systematic reviews, audits, and benchmarks.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?