Super important wish for 2023 which will save you funds, nerves, and man hours.

So the new year is already here. I wish all my connections and subscribers to reap all of the benefits this year will provide.

But I also have a Super important wish for all my connections for the year 2023, and it's: do not invest in digital solutions because of just following the trend.

Please do not rush to judge me; I know the media is full of the opposite opinion. So please read below, as this information can save your organization many funds.

When I started my business, I was fully drawn in by all the technological solutions in the industry. I quickly became an advocate of the digital wave and thought that those solutions would solve many issues in the industry. But frankly, I was disappointed in the following years. Because talking with companies who are using those solutions, I've started hearing the following stories.

I will share a few of them with you to prevent you from making some of the mistakes.

About visibility platforms.

Very few visibility providers can't provide 100 % accurate data; it's happening because no one gets accurate data. We all know the saying that sh… in, sh.. out means you will get inaccurate data about your shipment in some cases. And I believe that inaccurate visibility is worst than having no visibility in some cases. I already see fists up of many such providers; do not judge me, it's only my opinion, but I have the right to say this because I have been in Logistics operations for more than 10 years, so I'm familiar with visibility issues.

Why I'm saying that?

Because we all know that accurate pickup and drop-off are the most critical parts of the logistics process, as no one want's delayed shipments. But when the data is inaccurate, I might look at the screen where my car or ship is shown, which says that it will arrive on time, and think, oh, it's just great, and forget it. And now, think for a moment if the data is inaccurate and the truck is not here, but my factory will run out of materials in a day, and I will not be able to order it in time.

Tragedy, yes? I heard a few such stories, and plenty of such stories worldwide exist. If I hadn't any visibility tool, I would call the operator and ask to check if it would arrive on time, and I would do this for all my shipments. But now, when I have this tool, I might become lazy, and this can conclude risks of delays in stockouts of crucial materials.

Having visibility is cool, but please note that there is no one-fit solution for all operations. And if you get one, do not have dreams of leaving this process out of control. Moreover, when choosing a platform, look for those platforms that connect other dots altogether because, in such a way, you will get better ROI, and those who use the solution will be happier, as they will get some real benefits instead of seeing a nice ship on the screen, which eventually becomes tiresome to watch.

About TMS and ERPS.

Last year I talked with a company owner who procured a custom-made ERP and TMS solution for his business. Nevertheless, it's a business with 10-15 employees, they have spent a big coin for one such solution.

Do you think it will pay off?

The guy or gal who sold this solution pitched the idea that it will pay off when you grow, as you need fewer employees. This statement is partially true because using the same thinking, you could buy a brand-new Mercedes GL for your brand-new business, saying that it's needed to impress future customers. In contrast, the same job can be done, and the same results can be achieved with the Volkswagen Caddy.

And there are many similar stories of getting the wrong solutions, overpaying, or getting the thing you have yet to expect. I will only bother you with some of them.

I want to say that digital is essential, but not all solutions are good or finished, and a solution that fits one business might not fit yours. So before investing in such solutions, do a complete process audit, understand which solution will be best for your current situation, and, most importantly, find a source outside help that could help you; this will save you many funds, person-hours, and serves. And lastly, ads in journals about one or another solution in famous journals are not always trustworthy.

Keep tuned in for the next issue of #thelogisticsnewsletter.

About the Author:

Thomas Ananjevas is a supply chain professional with 15 years of experience purchasing and selling Logistic services and building a supply chain from scratch. He founded a consulting, training, and staffing company that works exclusively with the logistics industry. Tomas is helping logistics companies implement the necessary changes to ensure business growth and continuity. You can set up a time to talk with Thomas about possible synergies by clicking?here.