Supply chain visibility is proving to be an important focus area that counters the risks associated with uncertainty and volatile natural, economic, and business conditions. The key question is: how can organizations gain this visibility, predict potential risks, and effectively reduce and manage disruptions to avoid lost sales and revenue?
This whitepaper depicts a supply chain visibility framework that organizations should focus on for identifying, analyzing, and managing supply chain risks. Supply chain elements include timeliness, quality, network, material/inventory, capacity, financial, demand and customer. The significance of an element of visibility varies depending on the nature of the supply chain.
Organizations should leverage technology to enhance visibility into the network, capacity, and demand, and thereby mitigate supply chain risks. This helps to gain control over the network, track and manage supplier capacity, being prepared for demand variability, build a responsive supply chain.
Once organizations achieve greater visibility, the supply chain operations improve drastically. The benefits include: product pull to drive sales, proactive risk detection and mitigation, reduced supply chain cost, better margins, increased net working capital, improved service levels, and enhanced customer satisfaction.
Unlocking the potential of digital forces such as social media, Big Data, analytics and GIS will offer organizations new and innovative ways to rethink the supply chain. By introducing new digital capabilities across supply chain operations and collaborating with business partners and customers, organizations can gain a competitive edge and effectively mitigate risks to become more profitable. While digital ‘add-ons’ may work in the short-term, we believe the future will require organizations to completely reimagine their supply chains to generate more value.