Despite technological advancements, shippers often lack real-time insights into their cargo status, while terminal operators struggle to balance operational demands with transparency. This disconnect leads to inefficiencies, delays, increased costs, and overall supply chain disruptions, causing frustration among all stakeholders.
The report identifies key factors contributing to this communication divide, such as poor system interoperability, underutilized technology, reliance on manual processes, and misaligned priorities between terminals and shippers. Although digital tools exist to enhance visibility, they are often not fully leveraged, and the lack of standardized data formats and integrated platforms prevents seamless information exchange. This fragmentation results in reactive problem-solving rather than proactive decision-making, limiting the industry’s ability to optimize logistics operations.
Visibility alone is not enough; it must be integrated with robust execution systems that enable actionable insights and operational improvements. The industry should adopt a more strategic approach, encouraging players to prioritize real-time connectivity, fully utilize existing technologies, standardize data-sharing protocols, and foster collaboration across the supply chain. Key recommendations include assessing current technology capabilities, optimizing the use of digital tools, integrating critical systems like Terminal Operating Systems (TOS), Port Community Systems (PCS), and Transportation Management Systems (TMS), and deploying AI-driven solutions for predictive analytics and automation.
By shifting from reactive communication to a proactive, interconnected ecosystem, the industry can bridge the visibility gap and establish a more resilient, efficient, and transparent supply chain. The report positions communication and data-sharing as fundamental pillars of supply chain optimization, urging stakeholders to break down silos and embrace a digital transformation strategy that goes beyond isolated technological investments.
“The data must be reliable, communicated via the right protocol, delivered on time, and sometimes transmitted to outside parties with no contractual relationship.”
The main inputs and contributions are:
- The costly impact of supply chain disruptions, which are estimated to cost organizations an average of $184 million annually. These disruptions stem from various causes, including natural disasters, worker strikes, and global issues like the COVID-19 pandemic. The report emphasizes the importance of building an agile and resilient global logistics ecosystem to mitigate these impacts, with visibility being a crucial aspect.
- While most terminals claim to offer transparency, a majority of shippers report inadequate access to real-time data. Poor system interoperability, data silos, and a lack of automated alerts contribute to manual data sharing, delays, and inefficiencies, making visibility a systemic issue rather than just a technological one.
- Both terminals and shippers fail to fully leverage their existing technologies. The report indicates that 55% of terminal operators and 64% of shippers use only 60-75% of their systems’ capabilities. This underutilization stems from inadequate training, lack of awareness, and resistance to change. Without proper knowledge and adoption strategies, even the most advanced digital tools fail to deliver their intended value.
- A major obstacle in the industry is the lack of integration between critical systems such as TOS, PCS, and TMS. The fragmented nature of these systems results in inefficiencies and hinders real-time visibility.
- Achieving seamless communication requires standardized data formats and clear access protocols, ensuring smooth interoperability and more reliable information exchange between stakeholders.
- Automated alerts play a crucial role in improving visibility, enabling proactive decision-making rather than reactive responses. However, 62% of shippers report not receiving automated notifications regarding cargo status, delays, or customs clearance, leading to operational inefficiencies and unexpected bottlenecks in the supply chain.
- Beyond technology, effective change management is necessary to address resistance to new systems. By fostering a culture of adaptability and trust, stakeholders can ensure smoother transitions to digitalized operations and enhanced cooperation across the supply chain.
- Strategic actions to bridge the communication divide are driven by (1) terminals and shippers’ assessment of current technology capabilities and maximize the potential of existing systems; (2) deploy proven digital solutions, including IoT and cloud-based platforms, should be deployed to improve real-time tracking and decision-making; (3) integrate key systems as TOS, YMS and TMS to eliminate data silos, while visibility tools should be connected with execution platforms to generate actionable insights; and (4) fostering a culture of collaboration and structured change management is vital for long-term success.
- Artificial Intelligence and unified execution visibility platforms present significant opportunities for optimizing terminal operations, predicting disruptions, and enhancing customer satisfaction.
- AI-driven solutions can improve interoperability, automate data exchange, and provide predictive analytics to streamline decision-making. Unified platforms act as a single source of truth for all supply chain participants, ensuring transparency, efficiency, and resilience in a rapidly evolving industry.
“Terminal operators may think they have visibility because they can see what’s going on internally, but this isn’t getting translated down the supply chain, which is where the biggest problem is.”
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