The supply chain today has grown to be a complex affair. The coming of age of global markets, with businesses and suppliers servicing locations across the globe, has made the strengthening of supply chains a pressing necessity. The repercussion of unmanaged supply chains with a lack of visibility can be chaotic. E-commerce behemoths like Amazon and technologies like the Internet of Things have shown the extent to which visibility can be achieved in supply chains and how it reflects on streamlining business operations. If you look at the current trends of doing business, one thing is clear – the evolution of supply chains with innovative new technologies is pivotal to business operations today.
What is Supply Chain Visibility?
To understand why the pressing need for supply chain visibility must be acknowledged and embraced, let’s begin by deciphering what it stands for. Supply chain visibility means knowing where your inventory is at all times. This refers to the ability to track goods, components, products, as they make their way from the manufacturer to the end consumer. The goal of greater visibility is to optimize and streamline supply chain efficiency to the extent that it can respond to a change in demand, almost in real-time. Besides, it helps maintain a record of where different products are shipped, helps collect valuable data on consumer demand and consumption pattern, eliminate redundancies, and improve the efficiency of other processes.
Four Reasons Why Supply Chain Visibility is Crucial to Business Operations
Achieving optimal supply chain visibility can help improve the robustness of business operations. Here’s how:
A clear and immediate benefit of improved supply chain visibility is that real-time insights on where a product or component is at all times during the transit stage. This can help businesses reduce the cost of operations. Understanding lifecycles, inventory requirements, and other metrics can help with better management of logistics. Besides, it places businesses in a better position to count potential risks and respond to issues as they emerge. Thus, better supply chain visibility results in a higher return on investment in about a year. automation,
Better Customer Experience
Customers today expect better, speedier service from businesses, irrespective of the vertical they’re operating in. This has resulted in the creation of a highly competitive marketplace with shorter delivery-cycles and lesser tolerance for delays and mistakes. A transparent supply chain, supported by a well-managed flow of information, can help businesses cope with these pressures a whole lot more efficiently. Without a single view system that is used to consistently track goods, identify SKUs, and enforce timelines, any supply chain can crumble under this kind of pressure.
The entire supply chain management (SCM) system is fraught with risks, which, if come to pass, can have detrimental effects on a business’s health. Mitigating these risks is something every business owner wishes upon. Supply chain visibility delivers on this wish by helping you identify risks long before they pose a potential threat. For example, inventory shortages can be countered with supply chain visibility, helping you to zero-in on defaulting or late suppliers, giving you a vantage point to take corrective measures before such shortages start impacting business operations. Every mitigated risk results in improved efficiency of operations, a better quality of goods, greater brand loyalty, and, ultimately, higher returns.
Effective Regulatory Compliance
Irrespective of the industry vertical you operate in, you’re bound to have experienced the tightening noose of government regulations around supply chain logistics. With the coming in of road safety and environmental protection regulations, even domestic SCM has become increasingly challenging. And if your products are exported, the process is further complicated by varying tariffs, trade agreements, government regulations, and so on.
In such a scenario, supply chain visibility can prove to be a wise investment that can be leveraged to work in compliance with existing regulations, anticipate new ones to avoid sanctions and fines, operate efficiently, and gain a competitive edge in the market.
Information sharing, data gathering, analytics, and collaborative decision making are the future of business operations anywhere in the world. Supply chain visibility gives you the knowledge that can be leveraged to take precise, measured actions.
FarEye is empowering businesses across the globe to optimize logistics operations, reduce costs and drastically shrink delivery turn-around-time. Signup for a quick demo here to understand how we can help your business enhance core logistics processes.