Supply chain management is dynamic and ever-changing. As customers need greater flexibility in ordering, producers and retailers must evolve their supply chains to keep up with customer need. To do that, supply chains need greater visibility. To achieve that, supply chains will require innovative and integrative technologies. The Internet of things will primarily be looked to in order to supply that visibility.
What is Supply Chain Visibility?
Supply chain visibility is the ability to track parts, components, and products from the manufacturer to its final destination. Ideally, it also is responsive to variations in demand. Its function is not just to record where products go, but also provides information that supports customers, removes redundancies, and improves processes.
Why is Supply Chain Visibility Important?
Here are three reasons why visibility in the supply chain is so important and why so many 3PLs work hard to ensure you have it:
Efficiency: Customers rightly expect on-time deliveries. And with e-commerce, customers definitely need shorter cycle times. Having a system that provides transparency and visibility so there are no questions and no surprises are critical. With systems like these, you can track your flow of goods at every single point of your supplier network.
Decreased Cost: Supply chain visibility delivers real-time data so you can track your product at each stage. According to a study by Supply Chain Insights LLC, 70 percent of companies with supply chain visibility saw a return on investment in 13 short months!
Reduced Risk: If there is a risk in your supplier network, this evolved supply chain will make it apparent. Having visibility and traceability in your supply chain makes identifying and adapting to risks quicker than before.
Supply Chain Visibility is critical in avoiding order errors and ensures customer satisfaction does nothing but grow. Supply chain visibility also guarantees you’re well informed about all parts of your inventory and empowers you to exceed customer expectation by improving performance and reducing errors. Having real-time data allows businesses to both be proactive with their inventory and also create contingency plans as emergencies arise, saving valuable time, money, and customer goodwill.
Be sure you are partnering with a company that employs transparency and visibility in their supply chain, like Merchandising Warehouse. By doing so, you are safeguarding product, and getting the best up-to-date information in real time so you can make the right decisions on the fly.