Supply chain visibility is the ability to reliably track goods during transit from the origin (usually the manufacturer) to their final destination. Supply chain visibility enables shippers to improve customer service by making data readily available to supply chain stakeholders and customers.
Supply chain visibility is essential to business success because it enables companies to serve their customers better. A robust implementation of the right supply chain processes and technology improves in-transit visibility, providing real-time data for decision-making and performance improvement. The data collected from all levels of the supply chain can unearth unique insight into new solutions that can trickle upstream to benefit both customers and original equipment manufacturers.
Some other benefits include:
- Increased customer satisfaction
- Negotiation insights into costs and lead times
- Risk management
- Cost reduction
- Improved workforce efficiency
- Data-driven decisions
- Higher delivery precision
Increased visibility into the supply chain enhances operations and the ability to strategize more effectively due to an increased emphasis on transparency. A transparent work cycle translates to products arriving at their destination at the right time.
Achieving true supply chain visibility can be complex, especially in industries with tighter regulations (biotech and government procurement contracts, for instance) or complex production processes and high volatility rates, such as the semiconductor industry. The scope of operations needed to achieve visibility is broken down into three main stages:
● Order stage: the type and quantity of supplies requested.
● In-transit stage: the physical movement of the equipment and supplies.
● Invoice and audit stage: conclusion of the transaction between buyers, sellers, and contracted logistics teams.
Information can either be handled manually or automatically during each of these stages. Errors most likely occur during the tasks requiring manual input and when visibility is at its weakest. Adopting an integrated approach enables stakeholders to make informed decisions rapidly, saving time, effort, and cost.
As supply chains expand with the increase in the number of global resource providers, distribution channels, and markets, more innovation will be required to ensure that visibility remains intact over time.
Increasing end-to-end visibility within your supply chain is an ever-changing process because new technologies are introduced every day to help organizations improve their operations.
Northfield fosters continuous innovation to transform the global supply chain by providing unrivaled end-to-end global procurement, logistics, production, and supply chain management solutions.
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