Control Tower – Outsourcing

What is the control tower?

We increasingly hear about the “control tower” concept as a way to improve logistics quality and performance in the supply chain. Think of it as a central control station through which information on all freight movements must go (including management of all types of problems), within a supply chain.

Who is it meant for?

This concept applies especially – but not exclusively – to companies whose business directly depends on a global supply chain, and for which most of the logistics and customs activities are based on an outsourcing service agreement with a partner.

What is it used for?

The control tower allows different links in the supply chain (internal/external, international and other strategic links) to oversee movements in “real time” and share the right information with the right people at the right time.

A control tower is a centralized information hub supported by an organization and effective and appropriate tools.

Its advantages

The control tower’s main role is to consolidate data and information from different sources. Although its scope is at times limited to managing point-to-point transport, it can also cover the entire chain, from the purchase of raw materials from suppliers to the delivery of finished products to the client.

The most important benefit of using a control tower is its transparency, which allows for better planning, easier decision-making (e.g. assignment of carriers, loading ports), monitoring of events and exceptions along the way (e.g. delays, goods left on the dock), as well as tracking the performance of logistics partners.

The data generated helps establish increasingly sophisticated and relevant dashboards and performance indicators.

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