Do you remember, say 20 years ago, when we thought of supply chains as a linear process — receive parts or raw materials from suppliers, manufacture or assemble a product, then ship it via a carrier to customers?
While the basic principles still apply, we all know supply chains really operate as networks that more closely resemble spider webs. Inputs from an array of suppliers — often working with multiple tiers of suppliers themselves — feed complex manufacturing, assembly, and packaging operations that then distribute through multiple logistics service providers, carriers, and customers. All of these partners can be connected via a network platform, or what I call a Supply Chain Operating Network.
The benefit of this network approach is that trading partners can actively collaborate to increase efficiency, reduce costs, and create more scalable operations.
To explore the value proposition of Supply Chain Operating Networks for transportation, I moderated a webinar conversation with Rachelle Yeingst, Senior Director of Product Management at e2open, and Alex Mihailenco, VP, Carrier Network & Customer Operations at Shippeo.
Better Together
I began the discussion by asking Rachelle to explain what advantages a transportation management system (TMS) incorporated into a network has over a standalone TMS.
She compared the “network effect” to something we’re all familiar with — ordering a ride from Uber. The Uber app seamlessly connects us to a network of drivers to secure a ride to our destination. Similarly, a networked TMS connects shipments to a community of carriers to move products to customers.
Without that network, we’d rely on multiple individual connections or manual processes (phone calls, emails, portals, etc.) to find carriers. Put another way, it’s the difference between making one connection to an entire network versus potentially hundreds of one-to-one connections.
Rachelle also highlighted the connectivity advantages during shipment execution. With many partners involved — logistics service providers, carriers, ports, and customers — the network enables continuous visibility in a many-to-many model, automatically making information available to all relevant parties.
Network Visibility
Building on Rachelle’s comments, I asked Alex to expand on the role of the network in providing visibility.
Alex explained that a visibility platform within a network can act as an “invisible core collector,” gathering, aggregating, and analyzing data to turn it into actionable information. The number of data sources it connects to — across enterprise systems, carriers, ports, shipping lines, and service providers — far exceeds what a single system like a TMS can access.
“With each new source added, the power of the network grows exponentially,” he noted.
Alex emphasized that the real value lies in the sophistication of data analytics capabilities that transform raw data into actionable intelligence for each partner. “This is the critical component that completes the network and makes it really powerful.”
He described the symbiotic relationship between a TMS and a visibility provider: the TMS is the brain of operations, while the visibility platform serves as the eyes and ears. For example, a TMS may plan shipments across hundreds of items, while the visibility provider tracks which items are in which containers, on which vessels, when they will dock, and when they will be available for pickup.
The result is improved efficiency, better visibility, and ultimately greater customer satisfaction — impacting both the top and bottom line.
Data Analytics
I next asked Rachelle how companies are using this data to improve performance. She explained that companies use analytics to establish benchmarks and performance indicators that support better decision-making. For example, they might compare average port-to-port transit times and on-time performance across ocean carriers when making sourcing decisions. They can also benchmark against industry averages to evaluate performance.
Another example: aggregated network data can reveal the impact of disruptions affecting carriers or regions — even if those disruptions haven’t yet impacted your own operations — enabling better preparation for future events.
Managing Onboarding
Ease of carrier onboarding is a clear advantage of a transportation network. But with wide variability in carrier size and technological maturity, how do you manage connectivity and data transmission?
Alex noted that flexibility and data quality are key.
On flexibility, he explained that practices and technological sophistication vary widely across geographies and industries. Realistically, about 50% of carriers can be onboarded automatically. For the rest, “white glove” support is often required to ensure proper connectivity.
While there are many ways to collect data — some easier but less detailed — the priority is depth, such as milestones, geofencing, and other tracking capabilities that provide richer insights. This requires more sophisticated integrations, but results in more complete and valuable data.
At the same time, Alex noted that they continuously monitor and compare data from all sources to identify disruptions and anomalies, ensuring that data quality is both embedded and continuously managed across the network.
The Power of the Network
The power of the network goes well beyond visibility and analytics to transform transportation processes.
Rachelle shared several examples of how customers are realizing value, and Alex highlighted how connectivity and visibility drive better business outcomes.
For all of their insights and advice on those topics and more, I encourage you to watch the full webinar — and then continue the conversation with your own comments and questions.