Chances are you are not addressing the underlying problems in your supply chain. Instead, you may be too busy putting out one fire after another and not actually getting to the root of the issue.

These fires, also known as proximate problems in supply chains, are the immediate and observable disruptions that block the smooth flow of goods and services, such as product shortages, delivery delays, quality defects, or increased costs. While they demand immediate attention, they are typically symptoms of deeper-rooted issues.

Meanwhile, underlying problems in supply chains are often the hidden root causes that drive the proximate issues. These problems are often systemic and require a more in-depth analysis to uncover. Examples include poor demand forecasting, inefficient supply chain networks, lack of visibility, inadequate risk management, and operational inefficiencies. Addressing these underlying issues is crucial for creating a resilient and efficient supply chain.

Distinguishing between proximate and underlying problems is extremely important in supply chain management. By focusing solely on immediate issues, organizations may find themselves in a perpetual cycle of firefighting, without addressing the core causes of the disruptions. Conversely, ignoring proximate problems while delving deep into underlying issues can lead to operational challenges. A balanced approach that involves addressing both proximate and underlying problems is essential for building a robust and sustainable supply chain.

Not Just More Visibility – Product-Level Visibility

But to be able to distinguish between proximate and underlying problems, visibility is required. However, while supply chain visibility is important to help address problems within supply chains, not all visibility is created equal. “It’s nice to know where a container is, but really, what we’re looking at is, what does it mean when we say a container is at this point or arriving at this point at a certain time? Visibility [is looking into] the context of that data point — or that change in data point — and the underlying product that sits within the container: what that means for the purchase order or sales order that’s tied to it,” 3rdwave’s Chief Technology Officer, Josh Blinick said during a webcast.

Indeed, while supply chain stakeholders usually refer to insights on a container’s whereabouts when describing supply chain visibility, 3rdwave’s experience with purchasing, sales, inventory, and transportation has helped create a new definition of enhanced visibility that explains how 3rdwave helps customers.

By enhancing visibility, businesses can achieve greater operational efficiency, reduce costs, and improve customer satisfaction. It allows for real-time monitoring of key performance indicators, enabling organizations to identify deviations from expected performance and take corrective actions promptly. Additionally, enhanced visibility fosters a culture of transparency and accountability, empowering employees to make informed decisions and contribute to overall organizational success.

3rdwave’s product-level visibility in their trade compliance software solution does just that by considering the need for accuracy and contextual understanding in navigating the global trade landscape and using real-time data to support those goals for automated trade compliance and transportation.

Solutions and Strategies

All the technologies in the world are worthless if an importer does not have all of its “ducks in a row” with Product Master Data before goods start moving. The only thing that visibility is likely to do is provide a stark reminder of how overlooked item-level details can stop a supply chain in its tracks.

Basically, the Product Master Database (PMD) serves as the “Genesis File” for a vast array of import activities. Because PMD contains item-level details on things like description, country of origin, harmonized tariff schedule (HTS) number, product testing, and various Partner Government Agency (PGA) requirements, it is going to have a material impact on subsequent functions like purchase order management, coordination with vendors and forwarders, and ultimately, U.S. customs clearance.

A disciplined approach to Product Master Data ensures a “global information supply chain” that parallels the physical supply chain.   The combination of the complete and accurate information supply chain combined with end-to-end supply chain visibility, is a powerful one-two punch.

Leveraging the Power of AI

3rdwave has embraced AI in its solutions, but it also continues to monitor developments and their impacts on visibility to understand and provide even more detailed insights, such as more informed estimated arrival and departure dates.

“It’s amazing when you start looking at the five or six different layers of updates on a single point of arrival at a node or departure from a port. What do these dates mean, and then how do you use these dates within the system to measure performance or enable alerting when things don’t go according to plan,” Blinick said.

The Right Partner & A Disciplined Approach = Success

Understanding and solving proximate and underlying problems within supply chains can be accomplished with a disciplined approach to product master data. In turn, the product master data is the basis for 3rdwave’s product-level visibility, allowing shippers to receive real-time alerts and integrated ocean vessel and terminal messages.

To learn more, contact 3rdwave to schedule a demo.

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