Written by
David Koke
Head of Marketing

Beacon’s supply chain visibility and collaboration platform empowers organizations to achieve more efficient, reliable and sustainable supply chains.

In this article

Supply Chain Glossary
Guides
Published: 
November 21, 2024

Building Connected Supply Chains

Building a connected supply chain goes hand in hand with supply chain digitalization. One of the great benefits of technology is that it can make data accessible to everyone who needs it. In doing so, you can empower the actors in your supply chain to work together more efficiently and effectively.

What is a connected supply chain? 

Supply chains are connected by nature, comprising a network of suppliers, freight forwarders, carriers, customs brokers, hauliers and warehouses working together to move goods around the world. Despite this inherent interdependence, the term connected supply chain refers specifically to the seamless flow of data and information between these actors.

A connected supply chain ensures that real-time tracking updates, documents, and crucial operational insights move effortlessly between stakeholders. Rather than relying on disjointed communications and siloed data, a connected supply chain leverages technology to align all participants, fostering transparency and coordination at every step.

Benefits of connected supply chains 

A connected supply chain extends visibility beyond the walls of your organization, enabling supply chain partners to monitor goods in real-time and get ahead of potential issues. Whether it’s a factory tracking inbound raw materials or a warehouse preparing to receive shipments, having accurate and timely data improves operational planning and decision-making.

By ensuring that every participant has access to the information they need—such as estimated times of arrival (ETAs), shipment status updates, and critical documentation—connected supply chains eliminate a lot of the admin that is typically required to communicate and respond to issues. This makes it easier for everyone to manage their respective responsibilities and act quickly on new information. 

Barriers to supply chain connectivity 

While the advantages are clear, building a fully connected supply chain is not without challenges.

Supply chains often involve a disparate set of actors, from small suppliers to multinational logistics providers. The sheer number of stakeholders, each using different systems and processes, can make achieving connectivity a daunting task.

This has caused the supply chain sector to lag behind others in the adoption of digital technologies with many businesses still relying on operationally intensive manual processes to manage the flow of goods.

How to improve supply chain connectivity 

Despite the challenges, supply chain connectivity is very much an achievable goal. 

Cloud-based visibility platforms (like ours) are increasingly releasing features that address the various challenges of supply chain collaboration and make adoption easier. Think of these tools as Google Docs for your supply chain, allowing multiple stakeholders to share updates, documents, and data in real-time. With a common interface accessible to all relevant supply chain stakeholders via their web browser, these tools don’t require complex integrations or IT support to get started. 

It’s also important to remember that not everything needs to change at once. Start with areas that have obvious benefits for you and your partners such as setting up automated, shared freight tracking dashboards that eliminate unnecessary back and forth. Once the benefits start to be felt, it will be easier to convince partners of the value of related features. The result will be a positive evolution in the way you work with the other actors in your supply chain.

Key features of connected supply chain solutions

There's plenty of tech that can help accelerate your journey towards a more connected supply chain. Before starting your software search, it's a good practice to generate a list of problems so you can identify the solution best aligned to your needs.

If connectivity is a top priority, there are three essential features you should look out for:

Shareable dashboards

Data sharing is central to supply chain connectivity and you want a solution that provides easy and secure tools for collaborating with your partners without any complex set up or integration. Beacon, for example, lets you created Live Boards and invite third party collaborators who can access their dashboards by bookmarking a URL in their browser. You can adjust permissions to reflect the desired level of access and control you want to give collaborators.

Document management

Logistics document management can get unruly, fast. Storing and sharing documents directly alongside the latest order and shipment details means you'll never have to go hunting for documents in your inbox again and your shipments won't be delayed because of missing paperwork.

Workflow automation

The point of a connected supply chain is that it reduces the friction of working with all the actors in your supply chain. A good solution should replace a lot of the manual touch points you have with partners to manage the flow of goods. For example, you shouldn't have to use carrier tracking portals, update tracking spreadsheets, email inbound shipment information to warehouses or send a reminder to your supplier to confirm a cargo ready date.