Increasing visibility on your supply chain can do wonders for your business. In this article we’ll cover the importance of supply chain visibility and the effects it can have on your business.
Monitoring your finances becomes increasingly difficult as new sources of debits and credits work their way into your life. Sure, it’s simple enough with a single checking account. But, as time marches on, we begin to add savings accounts, car payments, utility bills, securities portfolios, gym memberships, etc. Managing these can get messy, and at times overwhelming. Wouldn’t it be wonderful if all this data could be centralized and easily accessible? Well, this same thought applies to supply chain management, and when information in stored in this fashion, it is described as highly visible. Far more complex than managing finances alone, logistic providers of supply chain management services have a reputation to uphold, and their ability to survive and thrive hinders on performance.
Supply Chain Visibility
Increasing visibility on your supply chain can do wonders for your business: decreasing errors, improving efficiencies, and all the while boosting profits. Transportation logistics, in particular, requires an abundance of coordination. While working with a network of resources, including, but not limited to partners, suppliers, customers, facilities, drivers, and security personnel, maintaining a high level of coordination is imperative.
On-time deliveries and Reduced Lead Times
Arguably the bread and butter of logistics, ensuring that shipments reach their destination in a timely and predictable fashion, is essential. Increasing visibility throughout the supply chain is amongst the best practices to accomplish this, facilitating full transparency among the previously mentioned network of resources. This means that suppliers have confidence in their ability to deliver their promises to the customer, and customers have peace of mind while following the transportation of newly purchased products from beginning to end.
Suppliers can see the history of shipments that went smoothly, which routes take the least amount of time, and overall, the ability to optimize scheduling. Additionally, the data collected through highly visible supply chains enable suppliers to forecast more accurately and minimize excess inventory costs.
Supply Chain Visibility Equals Reduced Costs
Another result of decreased errors, due to increased visibility, is a reduction of operating expenses. By running a more efficient operation, suppliers are able to minimize overhead costs. This means less gas, man hours, and red tape, all stemming from increased customer satisfaction and on-time deliveries.
Nonetheless, mistakes happen. Suppliers everywhere know that anything that can go wrong, will go wrong (eventually). Implementing a highly visible supply chain is simply not enough. Perhaps the most critical aspect of increased visibility, and what separates elite service providers from the rest of the pack, is the improved reaction time that it allows suppliers in today’s rapidly paced business environment.
The implementation of a system with advanced error notification functionality keeps overall processes on track. When an error is detected, procedures enacted to alert key stakeholders and/or decision makers in the supply chain are administered. Leveraging the benefits of increased visibility, these individuals can utilize their tools to take the proper steps, and guarantee a speedy remedy of the situation. This mitigates potentially devastating issues, increases operational flexibility, and reduces the number of errors moving forward.
Elevate Your Business With Increased Supply Chain Visibility
Top of the line suppliers are fast, adaptable and utilize their supply chain visibility to leverage their inventory and organizational networks. What steps have you taken to enhance yours? Have you embraced performance management tools that will elevate your business? With the Expak Logistics supply chain solution, the result is better workflow visibility, reduction or elimination of errors and, most importantly, freedom and peace of mind for our clients to focus their efforts on their core business.