4 Signs You Need a Control Tower

Does it seem like everyone is talking about control towers? These software solutions don’t really control the supply chain, but they do connect and create real-time visibility among different supply chain functions, as well as among partners in the broader network. By increasing awareness and collaboration, control towers support continuous improvements in end-to-end supply chain performance.   

It’s pretty obvious why these capabilities are growing in importance as supply chains become larger, more complex and more subject to disruptions. But what’s surprising is the rapid growth of control towers. While the market size for control towers was $8.34 billion in 2023, it’s projected to grow to $32.14 billion by 2030, reflecting an annual growth rate of 21.3%.  

Just about every company seems to be exploring control towers — and just about every software provider seems to offer one. But does your organization really need a control tower? And, if so, how do you choose one? 
 

Let’s Begin with a Self-Assessment. 

As a Modern 4PL, Redwood works with leading logistics teams every day. Most of our work involves the use of advanced technology to optimize supply chains, including the application of control towers. Based on our in-depth technology expertise, and our hands-on experience working with hundreds of customers, there are four signs you need a control tower. 

 Today, most logistics teams across all industries face more frequent, ongoing disruptions — from order volatility and labor shortages to blocked shipping lanes and weather-related crises. If that describes your supply chain, then a control tower can help by sensing disruptions at the earliest opportunity, when the scale and cost of a resolution are much lower. Control towers can often recommend specific solutions, like a new transportation route or an alternate carrier, all without human intervention. Powered by artificial intelligence (AI), they exceed the ability of humans to consider real-time data from across the supply chain, identify exceptions, and manage them effectively. If you’re experiencing daily or weekly disruptions, it’s time to embrace control tower technology. 

The more partners you have, including suppliers and customers, the greater the probability that something will go wrong across all those moving parts. Control towers enable visibility, awareness, and orchestration across the extended supply chain network. When something goes wrong at one node — like a missed inbound delivery from a supplier — a top-tier control tower ensures everyone is aware of the problem, so end-to-end plans can be re-aligned accordingly. Again, control towers can often work autonomously to define new downstream plans and even execute them. 

Most logistics operations are supported by disparate, often siloed technology systems that don’t communicate with each other in real time. Now amplify that problematic “disconnect” across all the partners in the supply chain network. Control towers create real-time digital connectivity across the supply chain, delivering benefits like increased awareness — but they also drive a shared focus on cost control, delivery reliability, and other key performance metrics. Lots of logistics teams are focusing on digital transformation internally, but the ultimate benefit comes from creating real-time connectivity with partners. Control towers help enable that.  

Control towers function as digital managers that ensure everything is aligned across the supply chain, 100% of the time, to achieve delivery milestones. They detect exceptions and anomalies, even subtle ones, that can interfere with your best-laid delivery plans. They track the status of shipments and orders across the end-to-end supply chain, sharing updates with internal stakeholders as well as customers — which serves to increase customers’ trust and confidence in you. In today’s hyper-competitive world, most organizations can’t afford to disappoint their customers by missing a delivery target. Think of a control tower as an insurance policy that guarantees your products will get to the right location, at the right time, at the right cost. 
 

Okay, You Need a Control Tower.  How Do You Choose One?  

If your supply chain has more than one of these characteristics, then a supply chain control tower is a sound investment. Now it’s time to select the right one. 

This is the tricky part, because not all control towers are created equal. The optimal solution is going to vary based on your business model, the characteristics of your products, the size and scope of your supply chain network, your performance objectives and pain points, and your future growth plans. For example, if your partner network changes dynamically, then you’ll need a control tower solution that’s designed for scalability and extensibility. If you’re experiencing frequent disruptions that are eroding your profit margins, then rapid implementation is going to be essential. 

At Redwood, we get it. You may not want to invest in the specialized in-house IT resources that would be required to intelligently choose and successfully launch a control tower solution across your network. That’s where we come in.  

Redwood is a full-service 4PL that understands your complex supply chain needs, as well as the range of control tower software that’s available. We have relationships with just about every major software provider, and can quickly match your needs to a cost-effective, advanced control tower that offers the “just right” footprint, features, and functionality. 

Stop worrying whether you’re behind the curve when it comes to leveraging a supply chain control tower.  

Reach out to Redwood and find out why everyone’s talking about control towers — and how we can put one to work for you.