In a world where quantifying the tangible advantages of real-time transportation visibility can remain a challenge, supply chain logistics leaders can utilize new research to define and clarify the ROI of real-time transportation visibility platforms, making it easier to secure company support. In this latest blog, we share comprehensive insights and actionable strategies provided by Gartner®, in their report, "Build the Business Case for Investment in a Real-Time Transportation Visibility Platform.” We believe that that this will provide insight on the challenges of quantifying the tangible advantages of real-time transportation visibility, which supply chain logistics leaders can leverage to define and clarify the ROI of RTTVPs, streamlining the process of securing crucial company support.
Why invest in an RTTVP?
Investing in a Real-Time Transportation Visibility Platform (RTTVP) can significantly enhance logistics operations, enabling companies to optimize supply chain efficiency and responsiveness. However, obtaining funding for such projects can be a challenge due to the complexities of defining ROI and aligning the business case with the company's culture and goals. In this blog post, we explore key findings and offer recommendations for logistics leaders to successfully build a robust business case and secure approval for their RTTVP investments.
The below findings highlight four crucial steps in developing the business case. Logistics leaders should consistently engage with stakeholders and secure their support during the entire process.
The 4 « key findings
- Business cases for real-time transportation visibility platforms (RTTVPs) lack strength and approval if they aren’t aligned to company culture. Business cases that don’t have the depth in the evidence to support will likely not be funded.
- Building a business case to implement an RTTVP can be difficult for logistics leaders because the ROI can be difficult to quantify and the value is often in strategic benefits.
- Logistics leaders working to get approval for an RTTVP may struggle to gain stakeholder buy-in and alignment throughout the process of building the business case without a clear process.
- Business case structure and telling the story that is overlooked or lacking can lead to internal pushback or even projects not being funded. The art of storytelling and tailoring the proposal to the audience is a part of a business case process that is sometimes forgotten. «
“Take the time to conduct internal and external interviews and gather as much supporting data and stakeholder buy-in as possible.” - Carly West, Gartner®
Recommendations
As per Gartner, « logistics leaders responsible for logistics technology strategy and operations » should consider the following recommendations:
- Determine investment criteria and gather evidence to support the business case by talking with other project leaders and stakeholders. Align to the company’s culture and goals.
- Showcase the strategic value of the investment in an RTTVP by capturing all benefits, quantifiable and nonquantifiable, and assigning the benefits to all stakeholders within the supply chain.
- Demonstrate financial value of the investment in an RTTVP by identifying the key desired outcomes and benefits for real-time transportation visibility in the organization. Use this information to investigate internal opportunities for benefits, ROI and savings, along with total cost.
- Create a structured business case document by combining all analysis to communicate to stakeholders. Supplement the document with additional information, such as use cases and alternate investment analysis to further strengthen the case.
To effectively implement the key recommendations, forming a business case team is crucial. This team, comprising typically three to eight members, should include representatives from the business areas directly influenced by the initiative and those involved in its implementation. For instance, with an RTTVP, logistics resources, IT, finance, and customer service representatives are commonly involved, the willingness and availability of team members and data will influence the time and effort required to construct the business case.
“Companies could expect to realize the ROI potential after eight to 12 months, in conjunction with the maturity journey phases. Prerequisites to achieve the full ROI consist of a successful implementation of the solution as well as effective onboarding of at least 90% of carriers in the company’s network.” - Carly West, Gartner®
Conclusion
Real-time transportation visibility platforms have evolved from emerging technologies to essential pillars of modern supply chain strategy. Their significance will only increase as the market evolves and technology advances. Building a strong business case for investing in an RTTVP is essential for logistics leaders seeking to improve supply chain visibility and resilience. By aligning the business case with company culture and goals, showcasing strategic and financial value, gaining stakeholder buy-in, and employing effective storytelling techniques, logistics leaders can increase their chances of receiving approval and funding for their RTTVP initiatives. Embracing this technology and enhancing supply chain visibility is a crucial step toward future-proofing your logistics operations and ensuring sustainable growth.
“Visibility and automation were even more important during recent supply chain disruptions and will remain a key capability to help manage future supply chain distributions.” - Carly West, Gartner®
Gartner, Build the Business Case for Investment in a Real-Time Transportation Visibility Platform, Carly West, 31 October 2022
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
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