Supply Chains Prioritize Visibility

(ThomasNet – Ilya Leybovich)

The increasing complexity of the global supply chain presents numerous cost and performance challenges. New reports highlight the importance of improving visibility along distribution lines to help meet the rapidly shifting landscape of supply chain management.

As global supply chains become more complicated, they create longer lead times for moving supplies and increase the amount of inventory in the pipeline. As a result, supply chain management costs tend to rise, making it a priority for suppliers to reduce expenses by trimming excess inventory and providing rapid resolutions to disruptions in the supply network. New research indicates that supply chain visibility is a crucial but often-overlooked factor in making these types of operational improvements.

According to a December report from the Aberdeen Group titled Supply Chain Visibility Excellence, 57% of global supply chain companies considered visibility a high priority for improvement, and 28% considered it a medium priority. “Best-in-Class” suppliers were 31% more likely than other firms to gain visibility into international outbound shipments and 47% more likely for international inbound shipments.

Visibility – the ability to obtain relevant data on purchased materials within a transportation network and on outbound goods as they are manufactured, stored or shipped – is quickly becoming a critical aspect of controlling supply chain flow, especially as global sourcing grows more complex. But many companies on both the supplier and receiver side are struggling to implement visibility improvements. Read more here.