Logistics: The Power of Pareto with Globe SD-WAN
When Italian economist Vilfredo Pareto published his now-famous thesis in his seminal paper Cours d'économie politique, little did he know the impact the Pareto principle would have on the world today.
Popularized in professional circles by Richard Koch’s The 80/20 Principle, the law of the vital few emerged from the observation that several occurring phenomena—from wealth possession to crop yield—roughly follow a particular power law distribution given a set of parameters. And when distilled, this distribution illustrates that roughly 20% of one’s inputs disproportionately produce 80% of one’s results.
Just like in business, it is only when enterprises cull unnecessary tasks that they become free to focus on their core competencies and ultimately yield maximum gains. As Koch stated, “Strive for excellence in few things, rather than good performance in many.” But in our multi-channel world, this adage has now become even more challenging to follow.
Take logistics, for example. In an industry where an efficient process should be as good as the finished product itself, operating firms must learn to innovate ahead of its competitors, yet maintain a balance of always aiming for efficiency.
Just a look at DHL’s latest ventures would be enough proof. Though as a global leader in logistics it keeps launching cutting-edge technologies to outperform its Asian competitors, DHL never loses sight of its vision. As the company “shapes the future of logistics”—whether by reducing its carbon footprint or improving its e-commerce logistics—efficiency remains a top priority for DHL.
It is true that balancing new technologies with existing efficiencies is easier said than done, especially if your enterprise wants to follow Pareto distribution in using its resources.
However, who said you cannot hit two birds with one stone? Through Globe SD-WAN, logistics firms can definitely have both.
Less fuss on business processes will lead to grander results, especially with a cloud-based technology that provides a customizable network management system. Logistics companies can take advantage of SD-WAN’s ability to maximize network bandwidth by rerouting traffic, assigning bandwidth capability to the right kind of activities, and much more:
- Plug-and-play configuration of connectivity set-up for new branches
- Easy integration of new sites to existing private corporate networks
- Self-managed configuration and network monitoring portal
With all of these benefits, Globe SD-WAN can work hand in hand with the Pareto principle to help the logistics industry flourish. But how exactly can enterprises apply it?
Easy and effective efficiency
Here is a quick scenario: say a logistics company wants to upgrade its Enterprise Resource Planning (ERP) system to a more flexible, comprehensive, and cloud-based platform. On top of that, the enterprise’s top management wants the upgrade to be completed in less than 12 months with minimal disruption to existing branch operations.
The conundrum is that they have a hundred sites across the country. In previous implementations, rolling out an upgraded system would entail deploying network engineers to all branches. How then could the firm deploy this new ERP system effectively and efficiently, without a single engineer leaving the headquarters?
This is where a cutting-edge tool, such as Globe SD-WAN, comes into play. Instead of allotting unnecessary resources (whether engineers on the field or unnecessary travel time to sites), logistics enterprises can easily apply the Pareto principle as they use SD-WAN. The tool can easily enable them to implement upgraded ERP systems through its intelligent features and processes:
Intelligent traffic routing
When implementing a new ERP system, real-time updates have to be run across all logistics sites when possible. To ensure that the heavy bandwidth traffic from normal operations does not clash with these updates, an intelligent traffic router will ensure that the systems can refresh updates on schedule without disrupting day-to-day operations.
Segment bandwidth consumption
As most businesses heavy on operations can attest, connectivity through private and cloud-based services are necessary to quickly and seamlessly deliver quality output. With Globe SD-WAN, firms can custom-control their bandwidth management; they can set the correct bandwidth allocation for mission-critical activities and have enhanced visibility, thanks to a flexible network set-up.
Software as a scalable solution
With increased fulfillment comes the expansion of an empire. Logistics, after all, depends highly on a firm’s delivery capacity. In this sense, utilizing Globe SD-WAN means using a software application that scales at the level the firm does—all self-managed through an easy-to-use portal.
The ERP roll-out scenario clearly shows that Globe SD-WAN goes hand in hand with the Pareto principle: Scalable software enables the expansion for several sites, segmented bandwidth consumption ensures seamless connectivity, and intelligent traffic rerouting guarantees a snappy user experience once the new ERP system is deployed to all branches.
Overall, a tool like SD-WAN will not just innovate a logistic enterprise’s internal processes, but will also ensure that a business optimizes for efficiency in the long run.
Here are the SD-WAN offers your enterprise can explore to achieve the same:
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|SD-WAN PRODUCT VARIANTS|
For businesses that have existing Globe IP-VPN service, direct internet/Business DSL, or third-party internet available in their sites
For businesses with HQ and multi-site branches with existing Globe IP-VPN service that are expanding to areas that only have Globe Business DSL available
For businesses with multi-site branches that DO NOT have existing Globe IP-VPN service. All sites have available Globe Business DSL facilities in common
For businesses that require point-to-point IP-VPN connection in areas that only have Globe Business DSL available
The power of Pareto
In this hyperactive day and age, striking the balance between innovation and optimization, new technology and Pareto efficiency, are more crucial than ever. With Globe SD-WAN, logistics companies can now have a comprehensive solution that provides all of these and more. By using software-defined technology that enables these companies to focus on their core competencies, they can ensure that they thrive efficiently and innovatively in the long run.
With Globe Business, companies can rest easy, knowing that we stay ahead of the curve as much as they do—always refining our products to keep them competitive in their industries. After all, being early adopters of the cutting edge takes ambition, and Globe Business is the perfect partner to fuel that drive.
Interested to learn more about our products and solutions? Arrange a consultation with a Globe Business Advisor today.
Reh, F. John. "Pareto's Principle: How the 80/20 Rule Can Help Improve Performance." The Balance Careers. Last modified April 12, 2018. https://www.thebalancecareers.com/pareto-s-principle-the-80-20-rule-2275148.
"DHL Asia-Pacific Innovation Centre Incubates Future Logistics Technology." ComputerWeekly.com. Last modified March 8, 2016. https://www.computerweekly.com/news/4500278143/DHL-Asia-Pacific-Innovation-Centre-incubates-future-logistics-technology
"Pareto Principle." Wikipedia. Last modified June 15, 2018. https://en.wikipedia.org/wiki/Pareto_principle.
"Understanding the Pareto Principle (The 80/20 Rule)." BetterExplained. Accessed June 2, 2018. https://betterexplained.com/articles/understanding-the-pareto-principle-the-8020-rule.
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