Why Wholesale Distribution Should Be Driving Interoperability Across the Supply Chain
Agility, resilience, sustainability, and efficiency: these are the goals of the modern supply chain. But ever-increasing levels of complexity and ongoing supply chain instability make actualizing these ideals a significant challenge. Now more than ever, supply chain stakeholders need to work closely together to maximize efficiency and future-proof their ecosystems.
For wholesale distributors in particular, a key accelerator in this process will be supply chain interoperability. Interoperability refers to the seamless sharing of information between stakeholders in a supply chain network. It’s achieved by integrating independent, dispersed data networks and systems so that information flows freely between them with full end-to-end visibility. In an interoperable supply chain, stakeholders can collaborate more effectively and maximize efficiency throughout the order lifecycle.
For wholesale distributors, who often sit at the center of intricate supply chain ecosystems, driving interoperability is critical for operational success.
Here’s why wholesale distributors should be driving a shift to interoperability across their networks.
Streamlining Operations and Enhancing Efficiency
Interoperability streamlines operations by seamlessly connecting systems and stakeholders across the supply chain.
The end-to-end visibility that an interoperable ecosystem delivers makes process automation possible for order fulfillment, replenishment, and demand forecasting. Through process automation, wholesale distributors and their partners can improve speed, accuracy, and labor optimization by reducing manual processes and the potential for human error.
Real-Time Data Exchange
Interoperability means full transparency across the network. Connecting ERPs, OMSs and other systems means everyone has optics of inventory levels and locations, order statuses, shipment tracking, and other key data. This drives faster decision-making and more rapid response times, so potential issues can be resolved before they become a problem for the business.
Standardized Communication Protocols
Interoperability means everyone is talking the same language — digitally speaking, that is. Connecting EDIs, APIs, and web services allows for the free flow of information between suppliers, customers, and logistics partners throughout the order lifecycle, eliminating data inconsistencies and improving overall ecosystem efficiency.
Improving Visibility and Transparency
Data silos, niche priorities, and a lack of agreement on core challenges in the supply chain can often send interdependent stakeholders pulling in opposite directions. Interoperability has the potential to collate all stakeholders’ data into a single point of truth, pulling everyone into margin-optimizing alignment.
The kind of end-to-end visibility interoperability delivers means that disruptions up- or downstream no longer come as a surprise: information is centralized, accurate, and updated in real-time. If congestion at the port of Vancouver is holding up your supplier’s latest shipment, you’ll have enough notice to pivot and find other ways to fulfill your customers’ orders without them going to another supplier.
Enhanced visibility reduces costs, delays and waste. A granular overview makes complex logistics planning much easier. With full visibility into your suppliers’ inventory levels and locations, you’ll be able to plan more effectively, forecast more accurately, and optimize your own daily stock management process to avoid stagnant stock and shortages.
Enhancing Collaboration and Partnership
In the context of the high-stakes, pressurized supply chain ecosystem, trust is an incredibly important currency.
Interoperability fosters closer collaboration between stakeholders, building trust, reducing the potential for disputes or conflicts and, when they do arise, expediting resolution.
- Real-Time Demand Sharing: Real-time demand sharing means nobody in the ecosystem misses a potential sale. When a retailer experiences a surge in demand for a particular product, for example, they can quickly communicate their adjusted inventory needs to suppliers, who can then adjust their production and delivery schedules accordingly.
- Collaborative Planning: Sharing sales forecasts, market trends and customer insights between partners allows everyone to align, plan, and optimize according to the greater ecosystem’s projected demand.
- Faster Problem Resolution: Real-time visibility means more eyes on the lookout for potential issues. Bottlenecks and roadblocks are spotted before or as they arise, with all relevant stakeholders notified instantly and all hands on deck to resolve the issue as quickly as possible. This minimizes the impact on customers and allows wholesale distributors to deliver a better customer experience.
- Cross-Functional Collaboration: Building interoperable networks facilitates deeper cross-functional collaboration between departments, entities, and trading partners, allowing for swift problem-solving and the delivery of higher-quality services. If there’s an issue with a product, the manufacturer, distributor and retailer can easily collaborate on a solution. Conversely, stakeholders can work together to develop tailored, innovative solutions and services for customers.
- Increased Customer Satisfaction: With interoperable order tracking, customers have full visibility of their orders from placement to delivery. The greater the transparency in this process, the greater the customer’s confidence.
The sharing of customer insights and data regarding needs and preferences across the supply chain means the ecosystem can also deliver strategic, personalized recommendations and services.
Enabling Innovation and Adaptability
Interoperability creates a strong foundation for innovation and agility in the supply chain. Implementing interoperable networks requires a standardization of interfaces, systems, and data exchange formats, which makes it far easier to integrate new, exciting technologies into the ecosystem. AI, the Internet of Things (IoT), and blockchain are just a few of the incoming supply chain technologies which are set to become the standard over the next five years, radically transforming the way the industry does business. Wholesale distributors, in particular, should be primed and ready to implement this tech, or else risk falling behind.
The Future of Wholesale Distribution Is Connected
Interoperability is a strategic initiative that is fast becoming a make-or-break variable for wholesale distributors. To stay ahead of the seismic shifts and continued global supply chain instability in B2B markets, wholesale distributors should be driving their supply chain ecosystems toward full interoperability. End-to-end visibility, close collaboration, increased customer satisfaction, and across-the-board cost savings are no longer nice-to-haves, but rather matters of survival.
But it doesn’t have to happen all at once. With Blue Yonder’s suite of SaaS-native, augmentative order management microservices, you can start working toward interoperability, one strategic move at a time. Composable, modular, and infinitely scalable, Blue Yonder’s B2B commerce solutions give you the flexibility you need to adapt and thrive in the increasingly complex modern supply chain.
Speak to a Blue Yonder expert today to find out more.