Supply chain visibility (SCV) is the ability of parts, components or products in transit to be tracked from the manufacturer to their final destination. The primary objective of SCV is to improve the availability of data to stakeholders and customers alike, ultimately strengthening and improving the supply chain.
Because needs differ from one organization to another, no one-size-fits-all solution exists. A sound SCV action plan should be built around demand, resources, efficiency and competitive advantage. Below we’ll run through five steps to improve visibility across your global network.
Thanks to technology it has become easier to know where inventory is at a given moment, but we all know who’s using that technology: those clumsy, error-prone humans.
In this article, we have a few thoughts on how a few simple steps can provide a roadmap of how to improve supply chain visibility that will help you and your customers.
Benefits of supply chain visibility solutions
Before we get into the nitty-gritty details of improving visibility, let’s first understand the benefits of logistics tracking and supply chain solutions.
Manage Capital
Understanding the exact amount of inventory you have—whether it’s in a warehouse, on a ship, at the port, or waiting to be transported from the factory—gives you clarity on where your money is invested. With this knowledge, you can make more informed financial decisions. It really is that straightforward.
Customer Engagement/Relationship
Customers are a lot like parents of teenagers: they appreciate having no surprises. When a customer calls to inquire about the status or location of their product, you’ll be equipped to provide them with accurate information.
Time Management
Have you ever noticed how much faster tasks get completed when they are monitored? The same principle applies to shipping and delivery. When parties know that their progress is being tracked, they are more likely to work efficiently to meet deadlines.
Strategies to improve the visibility of your supply chain system
Now let’s get to the heart of the article, and explore the various strategies that will improve the overall performance of the system.
Identify the Key Pain Point
What is the main challenge that could be resolved through better visibility? To answer this, dive deep—consult with internal teams and key vendors to pinpoint the trouble spots. Identify the most pressing issue, and then take it a step further by investigating the specific processes, technologies, or solutions that could provide the highest ROI for your business.
For many manufacturing and distribution companies, inventory management emerges as a top concern, but that might not hold true for your organization. Conduct thorough research, analyze the data, and determine which area should be your starting point.
Define your expectations
Once you know your destination, it’s time to develop a strategy. Start by asking a few questions to your team.
What SCV benefits can we leverage?
Should we prioritize faster time-to-market over risk management?
What are our customers’ goals, and how can we support them in achieving those objectives?
Use the insights from these discussions to craft your strategies and assign roles accordingly. Set clear deadlines for your goals.
Keep a close eye on progress by staying in touch with your team. Are there tools or technologies that could make their work more efficient? If so, explore acquiring them to help reach your objectives.
Break the Chain, Build a Network
While we’re discussing creating supply chain visibility (SCV), the final result won’t resemble a traditional chain—it will look more like a network. Achieving true visibility requires collaboration with your vendors.
Start by engaging with those whose roles have the most significant impact on your bottom line. Approach these conversations in the spirit of collaboration, aiming for mutual benefits. This approach epitomizes the concept of a ‘win-win’ situation.
Once you’ve met with your key vendors, extend the dialogue to others in your network. Discuss how SCV can be integrated across all your partnerships. This requires trust and a willingness to share crucial information, but the outcome will be a more resilient and transparent network.
Invest in Good Technology
Now that your SCV action plan is in place, it’s time to invest in the right technology. You’ll need a robust system that can manage your supply chain’s data needs. There are many supply chain management solutions available, catering to different budgets.
The key is to avoid getting more than you need—but don’t settle for less, either. Use the data you’ve gathered to guide your decision-making process. Consider your pain points, goals, and unique requirements, and remember that no single solution fits all.
Here are some additional tips:
Are there upgrades or add-ons that can enhance your SCV?
Implement track-and-trace systems, RFID technology, or smart sensors to improve efficiency and visibility.
Focus on the needs of your organization, your customers, and your partners.Prioritize according to your resources and implement changes incrementally.
Measure Results & Look for Continuous Improvement
Improvement is impossible without measurement. Define the key performance indicators (KPIs) that align with your goals, and ensure your systems are equipped to track and report these metrics. Regular scorecards will keep you and your partners informed, and open lines of communication will help you identify areas for further enhancement.
Also Read, What is the Role of Logistics in the Supply Chain?
Conclusion
By deploying technology, utilizing data analytics, and encouraging open communication, businesses can gain better control over their operations and respond swiftly to market changes.
A transparent supply chain ultimately leads to greater resilience, reduced risks, and a competitive edge in today’s dynamic market. Prioritizing visibility is a strategic move that pays off in terms of customer satisfaction and long-term success.
When you hire lading logistics, you can be free of the various hassles that are related to risk management in the supply chain. Irrespective of your business, our professional team will complete the supply requirement with ease.
