{"id":12154,"date":"2024-09-19T08:56:19","date_gmt":"2024-09-19T15:56:19","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=12154"},"modified":"2024-09-19T08:56:19","modified_gmt":"2024-09-19T15:56:19","slug":"how-process-intelligence-transforms-logistics-operations","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2024\/09\/how-process-intelligence-transforms-logistics-operations","title":{"rendered":"How Process Intelligence Transforms Logistics Operations"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;12155&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Today\u2019s supply chain management landscape is rapidly evolving. Businesses face immense pressure to optimize operations, enhance customer service and reduce costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, companies turn to logistics providers. Logistic companies \u2014 whether 3PL or 4PL \u2014 have the expertise to ensure that inbound and outbound delivery operations run smoothly.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Challenges in the Current State<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Despite these strengths, logistics providers face several challenges that impact both customers and internal teams, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Manual effort:<\/b><span style=\"font-weight: 400;\"> Significant time is spent manually generating customer reports using spreadsheets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of transparency:<\/b><span style=\"font-weight: 400;\"> Potential delays are often discovered too late. This leads to customer frustrations and missed opportunities for proactive and collaborative solutions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Scalability: <\/b><span style=\"font-weight: 400;\">If a logistics provider wants to expand business, the ability to guarantee meeting SLAs is crucial. Large accounts will not tolerate less than stellar performance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost pressures:<\/b><span style=\"font-weight: 400;\"> Large accounts can negotiate low rates. Logistics providers need to ensure that these are still profitable.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a result, 3PLs and 4PLs need efficient, scalable enterprise solutions. These should address both current inefficiencies and future growth ambitions.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Unprecedented Visibility through an Intelligent Control Tower<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The concept of a Control Tower is not new to logistics. However, many do not offer the insights that logistics providers \u2014 or their customers \u2014 actually need for <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2020\/01\/how-to-improve-outcome-based-continuous-improvement\" rel=\"noopener\"><span style=\"font-weight: 400;\">continuous improvement<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A true Control Tower requires granular process performance indicators and real time data. This is because your process reality is different to your process design. This difference is where you will unlock efficiency and cost savings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Process intelligence is a transformative approach to the concept of a Control Tower that uses log-data and algorithms to provide insights into ongoing business processes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This technology can significantly enhance decision-making. It offers a clear picture of what is actually happening within key processes. This allows logistic providers to identify strengths and pinpoint areas for improvement by analyzing process fluidity and variations, allowing them to optimize operations more effectively.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">You Don\u2019t Know Your Processes As Well As You Think<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">This may sound like a provocative statement. Nonetheless, this is true for almost every business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consider a process like preparing a pallet for shipping. You understand what <\/span><i><span style=\"font-weight: 400;\">should <\/span><\/i><span style=\"font-weight: 400;\">happen, but not necessarily what <\/span><i><span style=\"font-weight: 400;\">will <\/span><\/i><span style=\"font-weight: 400;\">happen.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Illuminating the gap between the theory and practice is what process intelligence is about.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every process has its own \u201chappy path\u201d \u2014 each step of the process happens perfectly. However, through discovery, you will find hundreds, possibly thousands, of variations. These non-compliant journeys impact efficiency, productivity and profitability.<\/span>[\/vc_column_text][vc_column_text]<\/p>\n<div class=\"wistia_responsive_padding\" style=\"padding: 50% 0 0 0; position: relative;\">\n<div class=\"wistia_responsive_wrapper\" style=\"height: 100%; left: 0; position: absolute; top: 0; width: 100%;\"><iframe loading=\"lazy\" class=\"wistia_embed\" src=\"\/\/fast.wistia.net\/embed\/iframe\/9k1m1czfcj?videoFoam=true\" name=\"wistia_embed\" width=\"100%\" height=\"100%\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><\/iframe><\/div>\n<\/div>\n<p><script><\/script>[\/vc_column_text][vc_column_text]<span style=\"font-weight: 400;\">The video clip above illustrates the time-lapse of a pallet moving through the shipment preparation process, with each dot representing an individual pallet. While the designed process appears linear, once it is executed in a live environment, it often evolves into a process with loops, rework and skipped steps.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On occasion, these deviations are due to one-off orders that did not follow the correct process steps. More often than not, you will find patterns of bottlenecks that you were not aware of. These deviations, though not accounted for in the designed process, can inadvertently become the standard.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every non-compliant journey within the process can lead to profit leaks, and when these deviations occur at scale, they can generate losses that are difficult to identify and address.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We call this visualization \u201cprocess discovery.\u201d It offers valuable insights into how your processes are working. But this is just the first step in process optimization.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Understanding Your Processes<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Process intelligence leverages predictive and <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2023\/11\/introducing-miny-generative-ai-in-qad-process-intelligence\" rel=\"noopener\"><span style=\"font-weight: 400;\">generative AI<\/span><\/a><span style=\"font-weight: 400;\"> in three key steps to help you understand and improve your processes. These are:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Process discovery<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Process monitoring<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Process enhancement<\/span><\/li>\n<\/ol>\n<p><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/qad-process-intelligence\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Process Intelligence<\/span><\/a><span style=\"font-weight: 400;\"> offers a multi-level capability framework designed to provide real-time insights and predictive analytics. Identifying anomalies and addressing potential issues before they escalate enables logistics companies to transition from a reactive to a predictive mode of operation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Put simply, you follow this journey:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reactive:<\/b><span style=\"font-weight: 400;\"> Where did the issues occur that resulted in the problem?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Proactive:<\/b><span style=\"font-weight: 400;\"> How are my processes currently performing?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Predictive: <\/b><span style=\"font-weight: 400;\">What is the predicted outcome for unit X?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Preventative:<\/b><span style=\"font-weight: 400;\"> I will take this action to avoid challenge Y, with unit X.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">We start by analyzing your processes. Once this is complete, you are able to leverage data-driven process improvements.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Benefits of Process Intelligence<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Proactive operations:<\/b><span style=\"font-weight: 400;\"> Logistics providers can anticipate potential challenges and take preventive action. This shifts the mindset of customer operation teams to being proactive instead of reactive.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Predictive capabilities:<\/b><span style=\"font-weight: 400;\"> By predicting outcomes based on real-time data, logistics providers can make more informed decisions. This reduces costly errors and improves service levels.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Efficiency gains:<\/b><span style=\"font-weight: 400;\"> With process intelligence you can automate data analyzing and reporting. This frees up valuable time to focus on strategic initiatives rather than manual tasks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customer dashboards:<\/b><span style=\"font-weight: 400;\"> Personalized live dashboards give customers visibility into the status of their own orders and shipments. This allows them to understand the exact status of shipments, cutting down WISMO \u2014 \u201cWhere is my order?\u201d \u2014 calls.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">How Process Intelligence Delivers ROI for Logistics Providers<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Process Intelligence delivers a clear return on investment by addressing current inefficiencies and unlocking new value. Some of the key benefits include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Human efficiency:<\/b><span style=\"font-weight: 400;\"> Process intelligence automates manual processes. For example, your teams can generate customer reports in minutes, not days.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Penalty fee reduction:<\/b><span style=\"font-weight: 400;\"> Logistics providers can reduce costly penalties by minimizing delays.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Root cause analysis: <\/b><span style=\"font-weight: 400;\">Customers are quick to blame logistics providers if something goes wrong. But at times, the customer is the cause of bottlenecks. Process intelligence enables you to identify the underlying cause. As a result, logistics providers can be more effective in defending against penalties with the power of actual data.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Competitive advantage:<\/b><span style=\"font-weight: 400;\"> Process intelligence control towers enhance a logistics provider&#8217;s ability to demonstrate value to prospective clients. Increased efficiency also improves customer retention.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Savings on expedited orders:<\/b><span style=\"font-weight: 400;\"> It is more cost-effective to prevent delays than rectify them. 4PLs, in particular, need to reduce the need for expensive last-minute expedited shipments.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Logistics providers live in a world where:\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Customer expectations are rising<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Operations are increasingly complex<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profits are being squeezed<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Process intelligence gives visibility into what is happening now, and what will happen next. Logistics providers can leverage these real-time, granular insights to make data-driven decisions. This transforms business operations and boosts customer satisfaction. The result is increased operational efficiency, and a stronger, more competitive business.<\/span><\/p>\n<p><b>To see how QAD Process Intelligence can revolutionize your logistics operations, please contact us <\/b><a target=\"_blank\" href=\"https:\/\/www.qad.com\/about\/contact\" rel=\"noopener\"><b>here<\/b><\/a><b>.<\/b>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;12155&#8243; img_size=&#8221;full&#8221;][vc_column_text]Today\u2019s supply chain management landscape is rapidly evolving. Businesses face immense pressure to optimize operations, enhance customer service and reduce costs. As a result, companies turn to logistics providers. Logistic companies \u2014 whether 3PL or 4PL \u2014 have the expertise to ensure that inbound and outbound delivery operations run smoothly.\u00a0 Challenges in the [&hellip;]<\/p>\n","protected":false},"author":64,"featured_media":12155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,2045],"tags":[93,3034,2751,2828,118,1171],"class_list":["post-12154","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-supply-chain-trends","tag-logistics","tag-logistics-operations","tag-process-intelligence","tag-process-mining","tag-supply-chain-management","tag-supply-chain-visibility"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Process Intelligence Transforms Logistics Operations | QAD Blog<\/title>\n<meta name=\"description\" content=\"Logistics 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