Increased complexity and multi-party nature of suppliers have caused longer lead times, more pipeline inventory, and obsession with logistics at executive and C levels. It tends to force supply chain management (SCM) to lose money by paying too many big salaries.
Growth in times of change
The need to optimize customer service frequently has prioritized visibility of the supply chain process. Visibility of insights and transparency of activities can make outcomes relevant to supply chain targets.
With big companies going global, there is a requirement to control rising operational pressures. Companies are on the lookout to find ways to be cost-effective while being surrounded by a high number of changes in customer demands.
Demand for SCM visibility stems from:
- Expansion across borders
- Segmentation by-product, customer, geography and much more
- Need for optimizing the number of trading partners, suppliers, logistics service providers, etc.
- Managing huge inventories at various stages in the supply chain
- Reducing supply chain execution costs
- Improving timeliness by managing inbound and outbound-inventory functions
How implementation of visibility helps businesses grow
- Ability to track and trace inventory in both, inbound as well as outbound supply chains
- Budgeting the transportation section by bidding
- Compliance with trade laws
- Archived data for future planning
- Enhanced production planning and shipment acceleration
- Compartmentalizing customers into various types, nature, and channels based on the data analyzed
- Check on global conditions to predict and assuage negative impact
- Meticulous customer service by improving accuracy in order fulfillment
- Improved networking by evaluating the current network of suppliers
As supply chain visibility grows more complex, predictive visibility becomes an important aspect. Technology helps achieve accuracy and decisions backed by coherent data.
Flexible access to data can help deal with events before they turn into problems. That will help companies identify the source of problems and prevent them by prompting the corrective strategies.
With advanced prescriptive analytics perceived to be going mainstream, SCM visibility will become particulate in nature throughout the industry. It will help establish a direct contact between shippers and companies for access to knowledge on details like how shipment dates might impact manufacturing processes.
While visibility is the “big demand”, cloud platforms can help companies gain it and adapt to changes with a what-and-why approach. This form of technological modernization has not only enabled companies to gather and process big data; it has got them to avoid coding person-hours and use it for analyses, which is a better bet due to improved visibility.
Solutions can help gather information by observing impact of variable demand on the supply chain planning process. Smooth collaboration between traders can be achieved if all partners have access to the same knowledge base through software. But the unchanging fact remains that traders who network through supply chain still require one-to-one, one-to-many, and many-to-many communication setups.