FROM THE BLOG

How To Achieve Supply Chain Visibility For Low Cost and High Efficiency

Longer lead time, more pipeline inventory and the need to control downstream and upstream logistics have contributed to the increase in the supply chain management costs.

An effective supply chain visibility solution optimizes inbound and outbound supply processes by providing near real time visibility of orders, shipments and in-transit inventory across the global trading partner networks.

Industry Challenges in Supply Chain Visibility

An Aberdeen Group survey says that about 79 percent of large enterprises lack critical supply chain process visibility accounting for long lead times and higher inventory levels. Most of these enterprises use manual-driven processes or home grown visibility solutions.

The Challenges

  • No standard modes of data interchange between disparate systems
  • Inefficient monitoring and maintenance of data
  • High cost of integration
  • Lack of adequate technology to handle the complex structures and relationships of purchase, storage, shipments and customer service

A good supply chain solution can address the complexity of different networks based on four key visibility that are essential to provide users with consistent, reliable and timely information –

 

A good supply chain solution offers a platform to automate generation and configuration of KPIs that can improve planning and execution. These KPIs enable triggers like –

  • Purchase Orders coordination with suppliers
  • Monitoring of supplier ships
  • Expediting delayed shipments
  • Identifying stuck shipments
  • Triggering of carriers for goods after Customs clearances
  • Diverting of shipments to reduce stock-outs

Building Intelligence through Supply Chain best practices

Supply chain operations reference (SCOR) model is a cross industry process reference standard model that integrates significant business concepts like business process reengineering, benchmarking and process management into a cross functional framework. SCOR’s guidelines act as a major reference for the enterprise software vendors.
The SCOR uses five standard performance attributes to enable a supply chain to be analyzed and evaluated against competing supply chains. The key attributes include –

 

Aberdeen’s report on supply chain visibility reiterates the importance of visibility through its findings. A few key findings from companies who invested in supply chain visibility solutions are:

  • Companies experienced a 3% decrease in supply chain execution cost as a percent of revenue
  • Companies experienced a 3% decrease in total landed costs per unit handled
  • Expediting delayed shipments
  • Companies are between 19% and 42% more alert to respond to supply chain disruptions within hours

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