Many multinational corporations face a common challenge: global supply chains often operate as black boxes, with limited visibility into in-transit goods and unpredictable landed costs that obscure financial planning. NCR Corporation, a global technology leader, confronted these same obstacles before embarking on a strategic transformation.
This article examines how NCR developed robust landed cost analysis capabilities to achieve transparent supply chain management, offering valuable insights for enterprises navigating similar complexities.
NCR's Global Supply Chain Overview
As a multinational technology company, NCR operates an extensive supply chain network spanning multiple continents. This complex ecosystem involves intricate procurement processes, manufacturing operations, international logistics, and distribution channels. The company recognized that real-time shipment visibility and accurate landed cost calculations were essential for optimizing resource allocation and making data-driven decisions.
Key Drivers for Implementing Shipment Visibility
NCR identified three primary factors motivating its supply chain visibility initiative:
- Cost Reduction Pressures: Intensifying market competition necessitated improved expense management, particularly in controlling transportation costs, tariffs, and insurance fees through enhanced supply chain transparency.
- Operational Efficiency Needs: Traditional supply chain management suffered from information delays and communication gaps. Real-time shipment tracking enabled quicker problem resolution and process optimization.
- Customer Service Enhancement: Increasing customer expectations for delivery accuracy and predictability required better shipment status monitoring and proactive communication capabilities.
A Three-Phase Implementation Strategy
NCR executed its supply chain visibility project through a structured approach:
Phase 1: Requirements Analysis & System Selection
The company conducted comprehensive operational assessments to define specific visibility needs before evaluating market solutions. Selection criteria emphasized system functionality, integration capabilities, and cost-effectiveness.
Phase 2: Implementation & Data Integration
NCR collaborated with its technology provider to customize and deploy the visibility platform, establishing seamless connections with existing ERP and transportation management systems for automated data exchange.
Phase 3: Testing & Deployment
Rigorous testing ensured system reliability and data accuracy before enterprise-wide rollout. Extensive employee training promoted effective platform utilization across business units.
Measurable Business Outcomes
The visibility initiative delivered significant operational improvements:
- Reduced Landed Costs: Enhanced transparency enabled optimized shipping routes, minimized cargo delays, and better cost control across the supply chain.
- Improved Inventory Turnover: Real-time shipment data allowed more precise inventory positioning and production planning, reducing excess stock.
- Enhanced Customer Satisfaction: Proactive shipment status updates and accurate delivery predictions strengthened client relationships.
- Data-Driven Decision Making: Advanced analytics capabilities supported strategic planning through historical trend analysis and predictive modeling.
Building Landed Cost Analysis Capabilities
NCR's experience demonstrates that developing robust landed cost analysis requires:
- Selecting visibility solutions that balance functionality with integration flexibility
- Establishing automated data flows between supply chain systems
- Investing in comprehensive user training programs
- Continuously refining processes to adapt to evolving market conditions
By transforming supply chain opacity into actionable intelligence, enterprises can achieve substantial cost savings, operational efficiencies, and competitive advantages in global markets.