A tight control over lead times is important in order to optimize a supply chain. Yet, while electronic inventory management started to provide transparency on stock levels back in the 70’s, tracking mobile assets only came much later. The term ‘supply chain transparency’ refers to the real-time positioning of all of a supply chain’s assets, including the mobile ones.
With operations in over 20 countries and more than 3 million loads tracked per year, Shippeo is the European leader in supply chain visibility. Each day, they use machine learning algorithms to keep track of their customers’ deliveries using real time information. In this episode of LokadTV, we are joined by Pierre Khoury, the CEO and co-founder of Shippeo, who discusses with us both the benefits and challenges of real time visibility in a supply chain.
We learn how, through the use of these machine-learning algorithms, Shippeo manages to give their customers a complete oversight of deliveries, overcoming particular elements such as road transportation, which has been considered as a black box in supply chain visibility for many years.
In addition to this, we discuss the importance of obtaining real time information for supply chain professionals to be able to better evaluate their supply chain. For example, Shippeo were able to help one of their clients in a highly valuable way when faced with the “gilets jaunes” (yellow jackets) protests that have been occurring in France.
For Lokad, the use of connected ‘IOT’ devices can improve the accuracy of lead time calculations. We investigate and evaluate how the two tools can work well together and how having a real time perspective of operations companies can make better economic decisions.
To conclude, we learn how understanding the location of stock and shipments has been used in the past to quickly anticipate problems and improve the efficiency of supply chains as a whole.
00:36 Pierre, perhaps you could tell us a little more about your background and how Shippeo came about?
01:21 What exactly is real time visibility?
02:51 Pierre, can you explain to us a little more about how your technology actually works in practice?
03:37 From a supply chain perspective why is real time visibility something we are interested in here at Lokad?
05:35 How does it compare to the approach we take to lead times?
07:02 Pierre, what are some of the technical challenges that you face from working in real time?
08:09 It seems there is so much data being collected these days. Do we really need all this data in supply chain?
09:57 Where do you draw the line in terms of the data collected?
12:46 Often, when we talk of supply chains, we talk more in terms of days rather than exact hours and minutes. Do we really need this level of granularity?
16:19 Who should be Shippeo’s main customers? Should it be the retailer or the shipping company itself?
16:57 Other than improving our understanding of lead times, why else is this interesting to Lokad? How can you see the two tools working well together?
19:43 Pierre, what is the key lesson you would like for our viewers to take from today regarding real time visibility in supply chains?