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How can you manage logistics risks with software tools?

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Logistics risks are the potential threats or uncertainties that can affect the performance, efficiency, or profitability of your supply chain operations. They can arise from various sources, such as demand fluctuations, supplier disruptions, transportation delays, inventory issues, compliance regulations, or security breaches. To manage these risks effectively, you need to have a clear understanding of your logistics processes, identify and assess the potential impacts, and implement mitigation strategies. One way to do this is by using software tools that can help you monitor, analyze, and optimize your logistics activities. In this article, we will discuss how you can use software tools to manage logistics risks in four key areas: demand planning, supplier management, transportation management, and inventory management.

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Ralph Leyendecker

Managing Partner | Healthcare & Pharma
Jeferson Ferreira Braga

Coordenador de Logística | Supervisor de Logística | Gerente de Logística | Centro de Distribui??o | E-Commerce |…
Barkha Agarwal

Transporter of heavy Industrial goods |Logistic| Trailer Transportation| Best Transporter| Road Transporter| TEDEX…

1 Demand planning

Demand planning is the process of forecasting the future demand for your products or services, based on historical data, market trends, customer preferences, and other factors. It helps you align your production, procurement, and distribution plans with your customer needs and expectations. However, demand planning can also be affected by various risks, such as demand volatility, inaccurate forecasts, changing customer behavior, or unexpected events. To manage these risks, you need software tools that can help you collect and analyze data from multiple sources, generate accurate and timely forecasts, adjust your plans based on real-time feedback, and communicate your demand plans to your stakeholders. Some examples of software tools that can help you with demand planning are demand forecasting software, demand sensing software, and demand orchestration software.

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Jeferson Ferreira Braga

Coordenador de Logística | Supervisor de Logística | Gerente de Logística | Centro de Distribui??o | E-Commerce | Inventário | Control Tower | SAP | Transporte e Distribui??o | Produ??o |
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Sistemas de Gerenciamento de Riscos (ERM): Implemente sistemas de ERM dedicados que permitam a identifica??o, avalia??o e monitoramento contínuo dos riscos logísticos. Esses sistemas podem fornecer uma vis?o holística dos riscos em toda a cadeia de suprimentos. Monitoramento em Tempo Real: Utilize ferramentas de monitoramento em tempo real, como sistemas de rastreamento por GPS e sensores IoT, para acompanhar o movimento de mercadorias. Isso ajuda na identifica??o imediata de desvios ou problemas que possam representar riscos. Análise Preditiva: Fa?a uso de análise preditiva por meio de algoritmos avan?ados para identificar padr?es e antecipar potenciais riscos logísticos.

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Barkha Agarwal

Transporter of heavy Industrial goods |Logistic| Trailer Transportation| Best Transporter| Road Transporter| TEDEX Speaker | IIM Nagpur| IIM Ahembdabad| Member of BNI Indore|AITWA|AIMTC
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Managing logistics risks with software tools involves leveraging technology to identify, assess, mitigate, and monitor potential risks throughout the supply chain.Software tools facilitate the development of mitigation plans by providing collaboration capabilities and workflow automation. Users can create action plans, assign tasks, and track progress in real-time. Enhanced visibility into the supply chain is crucial for managing risks effectively. Logistics software provides real-time tracking of shipments, inventory levels, and transportation routes. By monitoring key performance indicators (KPIs) and implementing predictive analytics, organizations can proactively identify potential disruptions and take preventive measures.

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Sultan Alkaabi

Operations Manager| PhD, Logistics
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Logistics risks can be effectively managed with the aid of software tools designed to streamline operations, enhance visibility, and mitigate potential disruptions. These tools often include supply chain management systems, transportation management systems, and predictive analytics software. By leveraging real-time data, these tools can identify potential bottlenecks, optimize routes, anticipate inventory shortages, and even forecast potential disruptions such as weather events or supplier issues.

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2 Supplier management

Supplier management is the process of selecting, evaluating, and collaborating with your suppliers, who provide you with the raw materials, components, or services that you need for your logistics operations. It helps you ensure the quality, availability, and cost-effectiveness of your inputs. However, supplier management can also be exposed to various risks, such as supplier failure, supplier non-compliance, supplier fraud, or supplier conflict. To manage these risks, you need software tools that can help you monitor and assess your supplier performance, track and verify your supplier compliance, detect and prevent supplier fraud, and resolve and prevent supplier disputes. Some examples of software tools that can help you with supplier management are supplier relationship management software, supplier risk management software, and supplier collaboration software.

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3 Transportation management

Transportation management is the process of planning, executing, and controlling the movement of your goods or services from the point of origin to the point of consumption. It helps you optimize the speed, reliability, and cost of your deliveries. However, transportation management can also be subject to various risks, such as transportation delays, transportation damages, transportation accidents, or transportation theft. To manage these risks, you need software tools that can help you plan and optimize your transportation routes, track and trace your shipments, monitor and control your transportation conditions, and secure and protect your cargo. Some examples of software tools that can help you with transportation management are transportation management software, transportation visibility software, and transportation security software.

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Ralph Leyendecker

Managing Partner | Healthcare & Pharma
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In the early 2000 it was quite common that companies were home-growing their TMS systems. The make or buy; or dependance vs independence question was mostly answered with make in order to stay flexible for updates and changing demands. However nowadays the market environment looks different. Vendors have evolved into the age of AI and are uniquely skilled to provide supply chain tools with predictive and proactive intervention skills. In addition modules can be conveniently added in a suite of tools to ensure full end to end visibility and capability to better control cost to serve and maximizing ROI. Today’s answer is in my opinion is: buy.

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4 Inventory management

Inventory management is the process of managing the quantity, location, and condition of your goods or services that are stored or ready for sale. It helps you balance the supply and demand of your products or services, reduce the inventory costs, and improve the customer satisfaction. However, inventory management can also be challenged by various risks, such as inventory obsolescence, inventory shrinkage, inventory misplacement, or inventory spoilage. To manage these risks, you need software tools that can help you forecast and replenish your inventory levels, track and audit your inventory movements, locate and organize your inventory items, and maintain and preserve your inventory quality. Some examples of software tools that can help you with inventory management are inventory management software, inventory tracking software, and inventory maintenance software.

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5 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?

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Apeksha Garg (GITAM Research Scholar)

Head of Skilling VCJ Foundation | Tedx Speaker | 10 years in International Business| Logistics Supply Chain Management | Research Scholar|Book Writing Consultant
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1. Use supply chain visibility software like Transparency-One to track and monitor your supply chain for potential risks. 2. Employ risk assessment tools such as Riskmethods that help identify, assess, and mitigate potential logistics risks. 3. Implement transportation management systems (TMS) like Oracle Transportation Management to optimize logistics operations and reduce risks. 4. Utilize inventory management software like Fishbowl Inventory to prevent stockouts and minimize inventory-related risks. 5. Employ warehouse management systems (WMS) like Manhattan Associates' WMS to streamline warehouse operations and reduce logistics risks. 6. Use route optimization software such as Descartes Route Planning Software to optimize delivery .

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How can you manage logistics risks with software tools?

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5

1 Demand planning

2 Supplier management

3 Transportation management

4 Inventory management

5 Here’s what else to consider

Logistics Management

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How can you manage logistics risks with software tools?

1

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1 Demand planning

2 Supplier management

3 Transportation management

4 Inventory management

5 Here’s what else to consider

Logistics Management

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