Supply Chain Visibility

What is SCV?

SCV is knowing all suppliers and third parties across the supply chain and being able to track products from source to destination (CIPS, 2024).

In a supply chain, visibility means knowing where raw materials, parts, and products are as they move from supplier to manufacturer to warehouse to store. It’s like tracking your online order but on a bigger scale.

Why is SCV important?

SCV is important because it enhances and accelerates supply chain operations. By providing a clear view of every stage—from suppliers to customers—SCV enables better decision-making, reduces delays, and helps identify and address issues quickly, ensuring a smoother and more efficient supply chain.

Here’s why it matters:

• Spot Problems Early: If there’s a delay or issue, you can see it immediately and fix it before it becomes a bigger problem.
• Improve Efficiency: Knowing the exact location of everything helps to streamline processes, reduce waste and costs, and ultimately increase profits.
• Build Trust: Customers want to know where their products come from and when they’ll arrive. Clear visibility helps you provide this information and ensure timely delivery.
• Stay Compliant: Good visibility helps you to stay compliant, avoid fines, and maintain a good reputation.
• Managing Risk: Understanding all tiers of your supply chain and the suppliers involved at each tier provides visibility to effectively manage risks in your supply chains.

What is real-time SCV

Real-time supply chain visibility gives you the opportunity to understand where everything is in your supply chain at any given moment. It’s like having a live map of all your suppliers, products, parts, and shipments as they move from place to place.

SCV is not just about tracking goods; it also involves measuring supplier performance. For instance, you can evaluate metrics like on-time delivery rates, quality of goods, and responsiveness to issues. This visibility allows you to identify underperforming suppliers and address problems proactively. With these insights, you can make informed decisions about supplier relationships and optimise your supply chain strategy effectively.

So, why does this matter?

• Quick Problem Solving and alerts: If something goes wrong like a shipment is delayed or lost, you’ll know right away. This lets you mitigate against any issues, saving time and money. You are also more aware of problems with suppliers.
• Better Planning: With real-time information, you can plan more accurately. You’ll know when supplies will arrive and can schedule production more effectively.
• Cost Savings: Knowing where your goods are helps avoid extra costs. You can reduce the need for emergency shipments or last-minute changes that often cost more.
• Improved Customer Satisfaction: Customers love to know when their order will arrive. With real-time tracking, you can keep them updated, which builds trust and keeps them happy.
• Increased Efficiency: Real-time data helps you identify inefficiencies in your supply chain. If a route is consistently slow or a supplier is always late, you can address these issues to streamline operations.
• Enhanced Collaboration: Sharing real-time information with your partners, like suppliers and logistics providers, allows everyone to work better together. This leads to smoother operations and better relationships.
• Risk Management: By knowing what’s happening in your supply chain at all times, you can identify and mitigate risks sooner. This could be anything from natural disasters to political instability affecting your routes and suppliers.

How does it work? Real-time visibility often uses technology like GPS tracking, sensors, and data analytics. These tools gather information and show it on a dashboard, so you have all the details in one place. You can also use technology to alert you to problems with suppliers in your supply chain.

How to measure SCV

To measure SCV, you must be able to see and manage information easily at every step of your supply chain. This means keeping track of real-time data about your suppliers. Start by putting supplier information—like inventory levels, production schedules, and shipment statuses—into your supply chain system.

You can use technology like GPS, RFID, and IoT sensors to track where materials are and their status as they move from suppliers to your warehouses or production sites. Communication systems, including platforms and software, enable constant communication between you and your suppliers, ensuring prompt updates or issue resolutions. All this data shows on a central dashboard, giving you real-time updates and analytics. This helps you monitor performance, spot delays, and predict problems. The system can also send alerts for significant issues like shipment delays or inventory shortages.

Effective supply chain visibility also relies on accurate inventory tracking and forecasting. Tracking inventory ensures you’re aware of stock levels and locations, helping you avoid stockouts or overstocking. Forecasting uses past data and market trends to predict future demand, helping you adjust inventory levels. Combining this data with forecasting, you can better align supply with demand, leading to more informed decisions and quicker responses. Real-time visibility into inventory and forecasts helps you to identify trends and react to changes, reducing waste, optimising processes, and enhancing overall supply chain performance.

How to improve SCV

Improving SCV is essential for efficient and responsive operations. It involves having a clear, real-time view of your entire supply chain, from suppliers to customers. Improved visibility allows you to manage inventory, track shipments, and forecast demand more accurately. Here are some practical steps to help get you started:

• Integrate Systems: Connect your supply chain systems so they share data seamlessly. This means linking your inventory, production, and shipment systems.
• Use Real-Time Tracking: Implement technologies like GPS, RFID, and IoT sensors to monitor the location and status of goods in real time.
• Centralise Data: Gather all your data in one central dashboard. This will help you see everything at a glance and spot issues more easily.
• Improve Communication: Ensure regular updates and clear communication with suppliers and partners. Use tools that enable quick and effective information exchange.
• Automate Alerts: Set up automated alerts for key issues like delays or inventory shortages. This helps you react quickly to problems.
• Enhance Forecasting: Use historical data and market trends to better predict future demand. This helps align your inventory levels with what’s likely to be needed.
• Track Performance: Monitor key metrics and performance indicators to assess the performance of your supply chain and identify areas for improvement.
• Invest in Training: Ensure your team knows how to use the tools and technologies you’ve implemented. Training helps them make the most of these resources.
• Regular Reviews: Periodically review your SCV processes and systems. Look for new technologies or methods that can further improve visibility.