When it comes to the implementation of new technologies and operational-based improvements, business leaders entrust supply chain partners to deliver clear, incremental value in those applications. While the value of highly-visible supply chains is evident in the enablement of smoother operations, the industry has been slow to recognize its value from the belief that the return on investment (ROI) for these improvements are often long-winded and unreachable.
Visibility opens the door for companies to create connections between vendors and customers, as well as yielding viable strategies to establish trust, reduce risk, propel improvements and be proactive in the case disruptions arise.
Heightened Trust
Similar to consumers, companies want the ability to track deliveries as soon as an order is placed to know where it is and when it will arrive. An absence of visibility beyond the warehouse renders an absence of visibility within the warehouse, which hampers inner-warehouse operations and efficiencies. As a result, this can impact partner and consumer relationships.
Shebuski Says... |
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| Visibility data has the ability to revamp overall operations, keep partners and customers informed, and keep focussed on company-wide ROI. |
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Business is no longer confined to the four walls of an operation or business. Now, vendors, trading partners, customers, brokers and carriers have the tools within their infrastructures to connect at every stage of the supply chain journey, enabling them to expand their reach outside the warehouse walls.
Through automation of the digital procure-to-pay logistics cycle, businesses can be provided more assurance in knowing that digital verification is alongside them throughout the entire process. When problems surface, organizations can automatically transmit issues to an automated systematic response and escalate exceptions to a person who can manage and mitigate.
Collaboration between trading partners and vendors aids in building a more resilient supply chain that can track partners who are meeting or exceeding performance expectations, as well as vendors who are falling behind. As a result, the digital relationship not only improves communication, but also keeps partners up to speed on order statuses and delivery dates to ensure the swift arrival of any inbound products.
Reduced Risk
In the last year COVID-19, shipping disruptions and erratic weather shook up the supply chain. While these historic disruptions exposed fractures and limitations in logistics operations, more commonplace threats can also impose a variety of risks in a company’s visibility. Some of these threats include raw materials shortages, compliance violations and labor disputes. To reduce these risks and expand supply chain visibility, companies can implement the operational improvement practice known as risk mitigation.
A company can mitigate the chances of disruption to the flow of production and goods and catch problems early on by matching their available resources and abilities with the opportunities and obstacles of unknowns that may occur. With a risk mitigation plan put into practice, companies can identify vulnerabilities, diversify suppliers and more. As a result, companies are able to track losses in sales and continue to preserve their reputations. This adoption of proper risk management grants the opportunity to maintain ROI, while also increasing visibility and providing a sufficient amount of time to react.
Enhanced Efficiency
The utilization of data also plays a role in increasing visibility and boosting supply chain efficiency. Data assists in cultivating the success around an entire organization’s operations. With the help of intelligent data analytics, industry leaders are able to better manage and measure the fundamentals of warehouses, ROI and performance of supply chain partners.
Supply chain partners can stay up-to-date with high quality data, which enables all partners to make decisions in real-time and current conditions. Data also plays a key role in increasing supply chain efficiency and resilience by allowing truck drivers, warehouse managers and retailers to predict and counter any interruptions or delays. Visibility data has the ability to revamp overall operations, keep partners and customers informed, and keep focussed on company-wide ROI.
As supply chain visibility continues to grow and become a vital aspect to strategic operations for companies globally, studies have found that many companies are still lagging in implementing its practices. In fact, statistics show that 62% of companies have limited visibility of their supply chain. By overlooking the value in implementing the practices of supply chain visibility and connectivity, companies forgo the ability to assess the holistic value in their investments.
Implementing warehouse practices to increase profitability and enhance operations allows companies to reap the multitude of benefits that follow, including: lowering industry risk, improving efficiency in all operations and building trust. This knowledge and understanding of what makes a strong, efficient supply chain grants leeway for industry leaders to leverage their solutions, while also achieving success in operations.
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