Imagine planning a big party and asking your friends to help. Each person has a different job: one to pick up the cake, another to decorate, another to bring the tools. You want to make sure everything goes smoothly, but you can’t be everywhere at once.
Supply chain visibility is like having an app that shows you where each of your friends is, what they’re doing, and if they’re on schedule. You also get real-time notifications: “Sarah picked up the cake and is on her way,” “Mohammed is half way done decorating,” “Anna’s stuck in traffic but will make it.”
Supply chain visibility gives companies end-to-end transparency, improves efficiency, and reduces risk. Here’s what you need to know.
What is supply chain visibility?
Supply chain visibility (SCV) is the ability for all parties in the supply chain to access and share real-time data about the movement, status and condition of products or materials as they move from one location to the next.
SCV is at the heart of modern supply chain management as it provides end-to-end visibility of products, materials and information across the entire supply chain network – from raw material suppliers to manufacturers to end consumers – improving efficiency, reducing risk and lowering costs.
Supply chain visibility solutions enable business leaders to make data-driven decisions about their operations and then change various systems within their supply chain operations to drive better results on future, higher value projects.
How supply chain visibility works
- Data collection and integration
- Data Transmission and Communication
- Data analysis
- Visualization and Reporting
Supply chain visibility involves collecting data about a company’s various supply chain processes. It then transmits and analyzes the data for stakeholders and decision makers, often using supply chain visibility software. This process works as follows:
1. Data collection and synthesis
Sensors, scanners, Radio Frequency Identification (RFID) The devices collect real-time data about the location, temperature, humidity and other conditions of the goods during transport. This hardware Enterprise Resource Planning (ERP) It is a system that integrates data from various departments within an organization.
meanwhile, Warehouse Management System (WMS) A transportation management system (TMS) tracks inventory levels, shipping details, and transportation schedules.
2. Data transmission and communication
The cloud-based platform makes it easy to store and share data between various parties, including suppliers, shipping managers, manufacturing teams and logistics providers, providing complete visibility into supply chain operations and encouraging collaboration.
Cloud-based platforms transmit timely information about supply chain activities and supply chain disruptions, thanks to APIs (application programming interfaces) that allow different software systems and platforms to communicate with each other, even across industries.
3. Data Analysis
Supply chain leaders use advanced analytics to crunch huge amounts of data, identify patterns, and generate insights. While this can be done manually, in modern supply chains, Artificial Intelligence (AI) and Machine Learning (ML) Enhance your visibility platform. These new technologies enable you to predict trends, detect anomalies, mitigate risks, and optimize supply chain processes based on historical and real-time data.
4. Visualization and reporting
Supply chain data is reported across the company, providing complete visibility to relevant team members. Interactive dashboards provide visual representations of supply chain data, helping companies effectively monitor and manage their supply chains.
For example, automated alerts can notify businesses of potential issues, such as delays or disruptions, enabling them to respond quickly.
Why is supply chain visibility important?
There are many incentives to increase supply chain visibility. Global Supply Chain It can get very complicated as raw materials come from different continents. Shipping costs changes and customer demand changes with the seasons.
Supply chain technology can help you address these challenges by providing complete visibility. Here’s how:
Increased efficiency
Greater visibility leads to more efficient supply chain operations by reducing delays and bottlenecks, and improves collaboration among suppliers, manufacturers and distributors.
Risk Reduction
A supply chain visibility system can help you identify potential disruptions and implement contingency plans. It can also help you manage recalls and ensure regulatory compliance. danger exposure.
Cost reduction
Many businesses are looking to improve visibility as a means to reduce costs by reducing excess inventory and the associated storage costs (such as storage fees charged by carriers). Real-time visibility also helps reduce transportation costs through optimized routing and scheduling.
Increase customer satisfaction
Supply Chain Visibility Strengthen customer relationships Providing your customers with expected delivery dates and tracking information helps ensure product availability and reduces costs. out of stock.
Make informed decisions
Visibility gives you insight into how your supply chain works, including manufacturing capacity, shipping velocity, and analytical capabilities. Leverage visibility technology to find effective solutions to issues that may be impacting your business. For example, examining warehouse operations can help you hold more inventory to meet customer demand.
The supply chain visibility challenge
Although supply chain visibility has many benefits, the digital transformation of supply chain monitoring also has drawbacks.
Data Silos
They may struggle to integrate data from different systems and organizations, resulting in data silos (isolated data storage that is not accessible to other systems), hindering the flow of information across their supply chain and making it difficult to achieve a unified view of their operations.
Data Accuracy and Quality
Ensuring the accuracy, timeliness, and completeness of an organization’s data can be difficult. Inaccurate or outdated data (e.g., incorrect Stock Levels or product location can influence decision-making and reduce the effectiveness of visibility initiatives.
Privacy and Security
Protecting confidential information from unauthorized access and cyber threats is essential, as a data leak can have serious repercussions for your company and its stakeholders. This could happen, for example, if a contractor gains access to digital supply chain data, or if a remote working employee accidentally downloads it onto a shared computer.
Tips for improving supply chain visibility
Improving supply chain visibility can significantly improve operational efficiency and responsiveness. Complete visibility allows you to track products across your global supply chain and respond to issues in a timely manner. Here are five ways to improve supply chain visibility:
Introducing advanced technology
Advanced technology can provide real-time data on the location and condition of goods. For example, Internet of Things (IoT) sensors can monitor temperature, humidity and other environmental factors to ensure sensitive products meet required conditions. RFID and GPS tracking allow precise monitoring of inventory and shipments, reducing the chance of loss or delays.
Integrate your supply chain management system
Integrated supply chain management systems, such as ERP, warehouse management systems, and transportation management systems, can centralize data from different parts of the supply chain. These systems facilitate communication and data sharing between suppliers, manufacturers, distributors, and retailers. Integration with cloud-based digital platforms further enhances data accessibility and collaboration.
Leveraging data analytics and AI
Big data analytics and AI can help crunch vast amounts of supply chain data to identify patterns, predict trends, and optimize operations. Machine learning algorithms can forecast demand, detect anomalies, and suggest improvements to supply chain processes. These technologies enable you to make more informed decisions and proactively address potential issues.
Enhance collaboration and communication
To get the most out of digital supply chain visibility tools, foster communication and collaboration among all the different stakeholders in your organization. Establish clear channels for information exchange to keep teams aligned and aware of potential issues. Collaboration platforms and tools, such as shared dashboards and real-time messaging systems, facilitate coordination and faster response times.
Supply Chain Visibility Trends
Here’s how supply chain visibility will impact your industry:
Sustainability and Ethical Sourcing
As sustainability and ethical sourcing within the supply chain gains attention, consumers and regulators are increasingly demanding insight into the environmental and social impact of products. Supply chain visibility tools can track the sourcing of materials, monitor compliance with labor standards, and measure the carbon footprint of transportation and production processes. Greater visibility in these areas can help companies adhere to ethical practices and meet sustainability goals, providing a competitive advantage.
Increasing adoption of AI and machine learning
AI and machine learning are becoming essential for increasing supply chain visibility. These technologies enable predictive analytics that can forecast demand, optimize inventory levels, and anticipate potential disruptions.
Digital Twin for optimal supply chain modelling
A digital twin is a virtual replica of a physical supply chain that allows you to simulate, analyze, and optimize supply chain operations in a virtual environment. Digital twins help you manage supply chain components, identify bottlenecks, and test the impact of potential changes before implementing them in the real world.
Real-time Data Integration
IoT devices can be used to precisely monitor and manage shipments, reducing delays and losses. For example, parameters such as temperature, humidity and shock can be monitored, which is essential for the transportation of perishable or sensitive goods.
Supply Chain Visibility FAQs
How do you build supply chain visibility?
Build supply chain visibility and integrate advanced technology, real-time data analytics, and collaborative communication systems to ensure end-to-end transparency and efficient information sharing among all stakeholders.
What are some examples of supply chain visibility?
One example of supply chain visibility is the use of IoT sensors, GPS tracking, and specialized software to monitor the real-time location and condition of goods throughout the transportation process.
What is supply chain visibility software?
Supply chain visibility software is a digital tool that provides real-time tracking and comprehensive data analytics of inventory, shipments, and supply chain activities, enhancing transparency and decision-making across the supply chain.
