Advantages of Supply Chain Visibility

As a supply chain becomes more complex, it requires new and modern ways to better manage the different processes involved. One of the most important features a resilient supply chain has is visibility.

Supply chain visibility is the ability of businesses to track their inventory and supply chains. It allows them to see and monitor the status of all materials, goods, and services throughout the supply chain.

Supply chain visibility helps companies understand where the products are and how they move from point A to point B. This ensures that products are delivered safely and on time, to the right destination.

A business may encounter issues during the transport and delivery of goods. The inability to track the location of the shipment or see its status can result in delayed solutions. Worse, the problem will be left unresolved.

Supply chain visibility, therefore, allows companies to make proactive actions and informed decisions on many critical aspects of the supply chain. Further, supply chain visibility helps manage risk, reduce cost, and boost customer satisfaction.

There are several methods on how to improve supply chain visibility. One of the best ways is through freight management software. An ideal freight management software allows a business to deal with supply chain visibility issues and ensure a clear understanding of the shipment’s location and status at any given time.

What is Supply Chain Visibility?

Supply chain visibility is a key benefit of freight management systems that companies can use to improve their bottom lines. It allows organisations to plan, track, and manage the supply chain effectively. This will allow companies to maximize efficiencies in their supply chains and reduce costs.

There are several advantages of supply chain visibility.

  • Enhanced planning – When you know what products are needed at any given time, it is easier to plan and order accordingly. This allows for faster delivery times and less wasted resources.
  • Better forecasting and easier order management – Once you have visibility into your inventory levels, you can predict how much product will be needed in the future based on past sales trends and customer demand. If this is the case, it will also be easier to manage orders. The system will automatically update orders as they are received, so you don’t have to manually enter them into your system.
  • Less risk – Real-time, end-to-end supply chain visibility protects your business from errors and unexpected problems. Since supply chain visibility helps identify areas of failure or inefficiency, the organization can proactively find solutions to resolve issues.
  • Cost savings – Ensuring cost-effectiveness is crucial to supply chain management. Supply chain visibility boosts productivity and improves efficiency, which minimises cost across all supply chain operations.
  • Improved customer service – The ability to track and monitor shipments not only benefits you but also your customers. You can prevent problems, or resolve them quickly. Supply chain visibility improves communication with customers, with the business being able to update them on product availability, shipment status, or any issues that concern orders.

Supply Chain Visibility Issues

Supply chain visibility has its own set of challenges. The biggest supply chain visibility issues involve data and information. Tracking products through the networks of organisations is a challenge, especially if companies use different software packages rather than multi-carrier software.

Information should be in the right format and place. It needs to be real-time to be actionable. Data should also be available across all departments involved—from supply chain managers to salespeople.

Complex supply chains deal with a great amount of data. The ability to comb through data and identify which is relevant and helpful is critical. Depending on the data you accumulate, you can make smarter business decisions and track trends over time.

Examples of Supply Chain Visibility

Let’s take a look at some of the popular real-world examples of supply chain visibility.

Walmart is one of the largest retailers in the world. Its business model is built on efficient shipping and distribution. The company has invested heavily in its supply chain management systems, allowing the track of products at every step of their journey—from manufacturer to store shelves.

This level of detail helps Walmart ensure that its products are delivered quickly and in good condition each time they’re shipped out. It ensures stock lines are never empty because of delayed delivery or unavailable item. Shipping and delivery are monitored and tracked, giving the company visibility of its supply chain.

Another real-life example of supply chain visibility involves a leading appliance manufacturer. This company utilises a system that provides real-time visibility and precise monitoring of numerous pieces of heavy equipment found across their different factories.

The digital visibility platform improves the tracking of inventory, enhances warehouse efficiency, and minimises cost.

Supply chain visibility in these examples benefits the company and leads to one thing: competitive advantage. Efficient management of the supply chain through visibility results in cost savings, better customer experience, and greater profitability for the organisation.

How to Improve Supply Chain Visibility

When there is no visibility into the business’s supply chain, it would be difficult for anyone—from suppliers and customers alike—to know the next steps or determine actions when things go wrong.

There are several ways that companies can take on how to improve supply chain visibility.

Use Modern Technology

Using technology can help monitor the whereabouts of your products, reducing the risk of theft or loss through theft, accidental damage, and other issues. Some of the best technology for supply chain visibility include freight management software, multi-carrier software, mobile apps, beacon devices, and RFID tags.

You can also use an electronic communications system (ECS). An ECS allows companies to send messages among themselves easily without having to use paper mailings or faxes regularly. It makes real-time tracking of shipments easier and more secure.

Improve Workflow

This starts with your team. An efficient and robust workflow gives birth to productivity, allowing the team to make informed decisions without compromising visibility. Do not focus on just one aspect of the supply chain. Provide training opportunities and resources to help employees specialise and improve across each level.

Build Relationships With Suppliers

In today’s global economy, businesses have to rely on their suppliers for the production and delivery of materials or finished goods. If a supplier fails to deliver products on time or even at all, it can be devastating for a business’s reputation.

Good suppliers can optimise their processes to ensure supply chain visibility and reduce costs for you while delivering quality products.

Cario Provides Supply Chain Visibility

Supply chain visibility provides businesses with the ability to fully understand the movements of their products. It also allows them to take action on issues as they arise, which can save time and money.

While supply chain visibility is generally a complex process, it does not have to be for you. Cario, an advanced freight management platform, automates your logistics and transportation system. It makes freight simpler, more cost-efficient, and more transparent.

One of the main features of Cario is visibility of your distribution across multiple carriers. You can monitor your deliveries by exceptions, and customers can self-serve with branded track and trace. Cario also provides access to real-time freight data and analytics, allowing you to make data-driven decisions.

Learn how to improve supply chain visibility and improve profitability with Cario. Talk to us today and discover more.