What does supply chain visibility mean for your business? Going by the definition, supply chain visibility is all about knowing where inventory is at any given time, and how well parts, components or products in transit can be tracked as they move from the manufacturer to their final destination. The ultimate goal of supply chain visibility is to improve and strengthen the supply chain by making information readily available to all stakeholders. This would enable a quick response to any errors or changes in the SCM. It means that the demand can be reshaped, and supply redirected whenever, and however, it is necessary to do so. Gone are the days when a handful of specialists and a proper enterprise resource planning (ERP) system could make sure that products are manufactured and delivered efficiently to customers. Globalization, rising competition, and the growing market complexities have broadened the difficulty for companies to keeps tabs on their ever-expanding supplier networks. Gaining supply chain visibility is a challenging task, but also more critical today than ever before.
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Importance of Supply Chain Visibility
The rising complexity of SCM
Several companies today operate on a global scale and use the various modes of logistics and shipping to serve their customers. In this case, having a good supply chain visibility is essential to track the supplier network activity accurately and manage SCM efficiently. But even if your company may not have to deal with the global demand and supply, there is a good chance for your supply chain to become extensive and complex. Proper communication and the ability to make quick and informed decisions could be a challenge. In this case, the best solution to boost supply chain visibility may be to invest in a cloud technology that is capable of managing big data or working with a logistics company that specializes in transportation management.
Meeting customer demand
Today, customers have more options than ever before. This puts them at liberty to demand more. Modern customers expect shorter cycle times and will be less tolerant of late deliveries or mistakes. To meet such high demands, companies need a transparent, more efficient supply chain, and a better flow of data and information. A system that provides a comprehensive supply chain visibility will help create better consistency in identifying SKUs, measuring units, and enforcing timelines.
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Compliance with regulatory demands
Supply chain visibility tools help companies track the constantly changing landscape of government regulations and compliance. This is especially useful for companies that operate on a global scale in managing the complexity of trade agreements and government tariffs. Furthermore, companies can better anticipate and respond to new regulations in the industry and in terms of transportation used.
To make the most out of supply chain visibility, proper information-sharing, analysis, collaboration, and decision-making are vital. Companies must have a team that can dissect information, communicate with suppliers and business partners, and model different outcomes. This analytical approach to data will not only improve your supply chain performance today; it will help companies to anticipate the future.