As any supply chain professional will tell you, managing various day-to-day operations and keeping track of everything going on in the supply chain are among the most difficult parts of the job. These tasks, combined with the increasing levels of complexity and risk that modern supply chains have had to go through, has made tracing exactly what’s going on even more difficult than it had been in the past. For these reasons, many high-end supply chain organizations are investing their money into visibility solutions to get a better handle on their supply chains.
Why is visibility so important?
The most critical part of running any supply chain is ensuring you are making the best possible decisions quickly. For any organization to make clear rational choices, a vast quantity of information is needed. This kind of information can only be accessed by specific visibility solutions which can help pinpoint where inefficiencies are occurring in any transport of goods. Some of the key advantages that visibility solutions bring include:
Less risk
According to McKinsey, organizations that have implemented digital dashboards for their supply chain visibility needs were twice as likely to have avoided the supply chain issues that plagued the industry in the early months of 2022. This reduction in risk is due to the fact that organizations with end-to-end supply chains can easily determine where there is likely to be risk, or identify problem areas and work quickly to avoid them.
Higher levels of proactivity
The ideal supply chain should be proactive to risk and change rather than reactive. Having increased visibility means that your organization will be able to see issues from a lot farther off, or better understand the inefficiencies that may have existed in your supply chain for a long time without oversight. At the end of the day, visibility is all about information, and the data that you can gain from investing in a visibility solution can rapidly add value to your efforts for a more proactive and long-term sustainable supply chain.
Reduced costs
Ultimately, visibility boils down into long-term operational efficiency. The ability to make more effective strategies across your supply chain can help reduce costs associated with product sitting in one place too long, inefficient transit routes, or loss due to risk. With greater visibility also comes better reporting on risk, which can be used to help convince your insurers you deserve better rates. A well-implemented visibility solution with organizational backup can help to deliver a strong ROI for any organization involved in mid-to-large scale logistical operations.
Visibility solutions are critical for any organization looking to make a positive impact on its supply chain. Having a clear picture of what is going on across your network at all times, and using that data to create informed plans is invaluable for your business.
