In 2020, only 10% of companies could prove that they had really achieved the true supply chain visibility record. Although 90% of the rest already have supply chains, 60% of them admitted that they didn’t use the particular technology to manage, monitor, and supervise their supply chains.
However, on the bright side, nearly 90% of the businesses polled said they had adopted a modern supply chain, though more than half of them were still struggling to manage the transition.
Supply chain visibility is indeed one of the most significant challenges in the supply chain.
The uptrend of the SCV
SCV: Supply chain visibility has become one of the most talked about topics on the net, especially in the international business community. You might have realized the complexity of the modern supply chain. There are supply chain visibility software that can be adopted in such a complex workflow. However, the adoption of the solutions can be more difficult if the particular companies delay implementing them.
Meanwhile, the client’s demands for faster and more sophisticated order fulfillment have also been rising. The strong demands have motivated the experts to come up with new strategies for moving the products from the original point to their final destination.
7 out of 10 survey participants described how the supply chains have become more complex than before.
Defining Supply chain visibility
There are tons of definitions that you could come across on the internet. However, let’s take a look at the simple explanation of the SCV. Supply Chain Visibility refers to the capability of a company to locate the products or goods at a specific position in the supply chain with good accuracy and precision of the information.
In a nutshell, the SCV could also be described as the ability to track certain order numbers in real time as the packages move through the value chain network.
For a lot of people, it might be easy to comprehend this understanding. But in reality, the procedures can be difficult and complex. In common cases, you could track the movement of goods along different transportation routes using the GPS trackers in the trucks, containers, or other vehicles. However, it does not guarantee true visibility in the end.other way around, there needs to be a solution to help you track the path of your freight through each location. Without the maximum visibility, you and your customers might experience late deliveries or even worse, lose the goods.
Ideally, the manufacturer can cover the warehouse and production site with the financing. This transformation could create opportunities to track down the goods from the raw materials to the finished goods.
The parts of the supply chain visibility
There are basically two different parts of supply chain visibility: operational visibility and partner integration visibility.
Let’s talk about operational visibility first.
Operational visibility, as the name suggests, is the capability of achieving the true SCV in your overall operations. For instance, when you are handling a particular product order, your company can locate it anywhere, anytime. In the factory, it could involve complex processes with the help of IoT technology. There will be a synchronized IT network and solutions to handle the complexity of the data.
When it comes to partner integration, one will focus on the capability of driving visibility with the partners both internally and externally. The capability is not only the visibility inside the company, but also going the extra mile to increase the viability of the supply chain partners. So, it won’t stop the tracking solutions on your own part. Successful integration will be the key to covering the value chain.
Businesses yearn for a highly visible supply chain.
How does the highly visible supply chain work in reality? You might have a sort of question. You might also be wondering how you can improve the visibility of your business supply chain.
Let’s take an easy example. A business has worked with a handful of manufacturers for different products. In a low visibility case, the business does not have accurate insights into their partner’s operations. That makes them oblivious to the delivery status. That’s why many businesses didn’t realize that their products were actually late. When it comes to this, you might be in a difficult situation trying to organize all of your partners in order to make it on time. Since the reports are not in real time, you have to work with the shipping logs. This can make it challenging for your business to make an exact estimation of when the items will arrive at the particular destination. It could affect the relationship between your company and your clients badly.
On the contrary, you will be aware of the potential risks and disruption as you have high supply chain visibility. With the high SCV solution, you are able to make use of the solutions for your company and handle the shipping situation more effectively and efficiently.
It is important that you and your partners are sharing the same IT solutions. It will be easy for you and your customers to collaborate, using the right frameworks to meet your needs and requirements.
Looking at the different cases above, one could conclude that the improved visibility is obviously important. There must be good results between reality and expectations. The disruptions could be inevitable. But both your business and your customers can mitigate or reduce the risks.
The goal of SCV
In their SCV, each company may have different objectives and goals.But with the high supply chain visibility, the main goal is to make accurate and responsible information available to all of the participants in the supply chain.
For all businesses, regardless of industry differences, supply chain visibility is the key to successful projects. One needs to know the location of the inventory at a particular time. But that’s not all. Businesses also need to know the conditions of the components, parts, products, and particular packages from their initial point to their final destination.
Contact Agistix now to conduct a quick assessment on your current supply chain visibility quality and look for areas for improvement.