Importance of supply chain visibility In 2024: What it is and why it matters
The Covid-19 pandemic threw global supply chains into disarray, catching organizations off guard. One major culprit? The lack of supply chain visibility. Imagine trying to navigate a maze blindfolded – that’s essentially what many companies faced as they struggled to anticipate demand and manage disruptions.
Picture this: shelves emptied of toilet paper while warehouses overflowed with unsold goods. That was just the tip of the iceberg. Lockdowns and travel restrictions turned supply routes into obstacle courses. Factories sat idle, unable to produce, while trucks queued at closed borders.
The result? Chaos. Product shortages, delayed deliveries, and soaring costs became the norm. The economic fallout was staggering, with trillions lost globally.
But amidst the turmoil lies a lesson: the importance of supply chain visibility. Companies are now racing to invest in technologies that offer real-time insights into their supply networks. Because in a world where disruptions can strike at any moment, seeing clearly is the key to survival.
Even today, as businesses try to bounce back from the setback, gaining end-to-end supply chain visibility on the movement of their freight remains a challenge.
While supply chain visibility could mean different things to different stakeholders, fundamentally it implies having access to real-time information on the movement of all your freight. It is the ability to trace and track every single element of your supply chain easily. Naturally, this level of sophistication is not easy to achieve. However, modern-day solutions have made it possible to a great extent.
What does Supply Chain Visibility mean?
Supply chain visibility refers to the ability to track and monitor products, materials, and information as they move through the various stages of a supply chain, from the sourcing of raw materials to the delivery of the final product to the end consumer. It involves gathering and analyzing real-time data and information about the movement, location, and status of goods, as well as the processes and activities involved in their production and transportation.
The goal of achieving supply chain visibility is to have a clear and accurate understanding of the entire supply chain network, enabling organizations to make informed decisions, optimize operations, and respond effectively to disruptions or changes in demand. It allows companies to have greater control and transparency over their supply chain, leading to improved efficiency, reduced costs, enhanced customer service, and increased overall supply chain performance.
Why Supply Chain Visibility is Crucial
When you have end-to-end visibility on the functioning of your supply chain network, every time something goes wrong, you’re well equipped to identify and resolve the issue. It puts you in a position where you can easily address unforeseen problems and offers you a certain level of flexibility.
Due to the complexity of supply chains, a major issue with supply chain visibility is being able to access all the relevant information at one place in a format that facilitates easy understanding. True clarity can be achieved only when each person in the organization or every stakeholder involved in the chain has access to the same set of information.
This is where the modern-day shipment tracking solutions step in. These systems allow you to track all your shipments in real-time on a single dashboard. They automatically notify you every time your freight achieves a milestone in its journey and even alert you regarding possible delays.
We observed that when coronavirus hit the industry, many of our clients rapidly extended our shipment tracking module to their companies in other geographies. This seldom highlights the importance of high supply chain visibility especially in the times of a crisis and how certain tools can be used to enhance visibility.
Enhancing Operational Efficiency
With supply chain visibility, businesses gain real-time insights into their inventory, production, and transportation processes. This allows them to optimize operations, streamline workflows, and reduce inefficiencies. By identifying bottlenecks and areas for improvement, businesses can enhance their operational efficiency and deliver products or services more effectively and thus, ultimately boost your profitability.
Improving Risk Management
Supply chain disruptions, such as natural disasters, political instability, or supplier issues, can significantly impact businesses. By having visibility into the entire supply chain, companies can proactively identify potential risks and develop contingency plans. This helps mitigate the impact of disruptions, minimize downtime, and maintain customer satisfaction.
Fostering Transparency and Trust
Supply chain visibility acts as a bridge between businesses and their customers, fostering trust and transparency. By providing real-time information on order status, delivery dates, and product availability, businesses can keep customers informed and manage expectations effectively. This transparency builds trust and enhances the customer experience, leading to increased satisfaction. Satisfied customers are more likely to become loyal patrons and recommend the business to others, ultimately driving sales and revenue growth.
Additionally, supply chain visibility facilitates collaboration and communication across the entire supply chain ecosystem. Sharing real-time data allows businesses to work seamlessly with suppliers, manufacturers, distributors, and retailers. This collaborative approach strengthens relationships with partners, fosters better anticipation of demand fluctuations, and enables a swift response to market changes. In essence, supply chain visibility creates a win-win situation, building trust with customers and optimizing operations through enhanced collaboration.
Trends Driving the Need for Enhanced Visibility
A clear view of your supply chain visibility is no longer a luxury, it has become a necessity. Several powerful trends are converging to create a perfect storm, pushing businesses to prioritize enhanced visibility.
Technological Advancements
The rise of innovative technologies like the Internet of Things (IoT), cloud computing, and big data analytics is revolutionizing supply chain management. These advancements allow for real-time data collection from sensors embedded in goods, vehicles, and warehouses. This data stream provides unparalleled visibility into the location, status, and condition of your shipments throughout their journey.
Globalization and Complex Supply Chains
Supply chains have now extended across continents in the globalized marketplace, frequently comprising several manufacturers, distributors, and suppliers. Because of this intricacy, tracking products and identifying possible interruptions are difficult. Enhanced visibility through real-time data helps businesses identify bottlenecks, anticipate delays, and manage potential issues before they snowball into more complex problems.
Consumer Demand for Transparency
Today’s consumers are increasingly demanding transparency throughout the product lifecycle. They want to know where their products come from, how they are made, and how they are being transported. Businesses that can provide real-time tracking information and demonstrate ethical sourcing practices gain a competitive advantage by building trust and customer loyalty.
Best Practices for Implementing Supply Chain Visibility
Achieving a clear and comprehensive view of your supply chain is no longer a choice but a strategic necessity to stay ahead in the game. And having the best practices ready at the back of your hand can help guide your path towards implementing supply chain visibility.
Integrating Advanced Technologies
Leading this journey is the strategic integration of cutting-edge technologies. The Internet of Things (IoT) plays a crucial role. Embedded sensors in goods, vehicles, and warehouses can produce a constant flow of data in real time. This data offers an unmatched level of detail, covering location, status, and environmental conditions. Platforms for cloud computing provide a scalable and safe way to store, manage, and analyze this enormous volume of data. Then, using business intelligence (BI) technologies, this data is transformed into insights that can be put to use, enabling companies to maximize their operations and make sound decisions.
Visibility tools like GoComet’s GoTrack offers real-time shipment tracking, giving businesses a powerful edge. They can optimize routes, proactively address delays, and keep customers informed, leading to smoother logistics and happier customers.
Collaborating with Stakeholders
Building strong relationships and fostering open communication with all stakeholders throughout the supply chain is of prime importance. This includes suppliers, manufacturers, distributors, logistics providers, and even your customers. Encouraging collaboration and exchanging relevant information facilitate a comprehensive understanding of the full supply chain ecosystem. Early detection of possible interruptions is made possible by this cooperative approach, which enables all stakeholders to work together in the execution of backup plans and risk mitigation. In addition to enhancing relationships with your partners and building a more resilient supply chain, regular communication also promotes transparency and trust.
Continuous Monitoring and Adaptation
The search for an enhanced supply chain visibility is not a one-time venture. It’s an ongoing process that necessitates continuous monitoring and adaptation. As your business evolves, your supply chain will likely adapt as well. New technologies emerge, customer demands shift, and market dynamics can fluctuate. Regularly reviewing and evaluating your visibility tools and processes is essential. Staying up to date with the latest advancements in technology and adapting your approach accordingly allows you to maintain a clear and dynamic view of your supply chain, ensuring it remains optimized and adaptable in the face of change.
Conclusion
Supply chain visibility is now a strategic requirement, and not just a distinction. The pandemic in 2020 has brought to light how crucial it is to have an accurate and thorough understanding of your whole supply chain network. Improved visibility enables companies to better manage interruptions, streamline processes, and forge closer bonds with the stakeholders.
The good news is that achieving this level of visibility is no longer a distant dream. The road to a supply chain that is really transparent can be guided by best practices and contemporary technologies. Gaining a strong advantage in the dynamic marketplace can be achieved by the integration of cutting-edge solutions, promoting teamwork, and consistently modifying your strategy.
At GoComet, we help businesses improve their supply chain operations. Our solutions, such as GoTrack, offer real-time shipment tracking and valuable insights to enhance efficiency. Know how we helped Kodak by providing real time time tracking solutions and enhancing their operational efficiency.