Key Insights To Propel Your Supply Chain Visibility Success
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Based on the poll we conducted, we know many of you are interested in the latest trends impacting shipment and supply chain. In response, this article will dive deep into the critical topic of supply chain visibility.
The significance of supply chain visibility cannot be overstated. In recent years, we have witnessed a paradigm shift towards data-driven decision making, where real-time transparency has become the new imperative.
At the same time, the increasing complexity of global supply chains has exposed vulnerabilities, underscoring the need for greater visibility. This prompts the question - what are the latest trends shaping the supply chain visibility landscape, and how can organizations leverage these insights to optimize their operations?
In this article, we will reflect on 10+ key statistics and industry findings that shed light on the current state of supply chain visibility. You will learn what these numbers mean for supply chain professionals and the level of expectation and preparedness needed to place transparency at the forefront of your supply chain strategy.
What is Supply Chain Visibility?
In the modern business landscape, supply chain visibility has emerged as a critical priority for C-suite leaders. A lack of end-to-end transparency can have massive consequences, leading to messy operations, dissatisfied customers, and high capital costs.
On the other hand, over 50% of supply chain leaders agree that visibility is their top strategic focus. Achieving full supply chain visibility means being able to easily retrieve information about the whereabouts of an order at any given time. This allows for timely remediation of issues like delivery delays or exceptions, so that the needs of both internal operations and external parties can be fulfilled.
Overall, the key components for supply chain visibility are as follows:
1. Real-time, shared data tracking: Having visibility into real-time data across the supply chain network, including distributors, logistics providers, carriers, and end customers. This enables quick identification and response to disruptions, bottlenecks or sudden changes in supply and demand.
2. End-to-end understanding of the supply chain: Comprehensive visibility into the entire supply chain, from raw materials to final delivery, enables managers to anticipate and mitigate risks, optimize workflows, and make data-driven decisions. A supply chain manager may look into:
3. Proactive issue resolution: With real-time visibility, managers can quickly identify and address issues before they escalate. Customers can also be notified near real-time if any delivery issues occur.
4. Enhanced decision-making: The insights gained from supply chain visibility enable more informed strategic decisions that can drive cost savings, improve customer services, and increase overall operational efficiency.
Challenges of Full Supply Chain Visibility
While the benefits of supply chain visibility are established, attaining true end-to-end visibility comes with significant challenges:
Data integration
Consider the sheer number of stakeholders involved in the supply chain: Suppliers, logistics providers, distributors, and customers. Then, each one has its own system, processes and priorities involved. This leaves a significant undertaking for businesses to align the stakeholders and get everyone on the same page.
Besides, the multi-modal transportation (land, air, and sea) compounds the difficulty of data coordination. As goods are sourced from one part of the world, manufactured in another, and then transported through multiple different modes before reaching the final destination, the complexity of the supply chain ecosystem grows exponentially.
Technical adoption
Many organizations still rely on legacy systems and disparate databases, making it difficult to consolidate supply chain data. The lack of technical integration and standardization creates data silos that hinder end-to-end visibility.
Communicating dynamic changes
Then comes the unexpected disruptions and inherently unpredictable nature of logistics, which makes relaying up-to-date shipment status and estimated times of arrival (ETAs) to customers challenging. The globalization of supply chains has increased the complexity and number of touchpoints involved, making it harder to communicate changes across multiple timezones and languages.
Security and compliance concerns
Sharing sensitive supply chain data across organizational boundaries raises valid concerns about data privacy, intellectual property, and regulatory compliance. Businesses must invest in advanced security features and comply with various regulations such as GDPR, SOC 2, HIPAA, PCI-DSS, and industry standards like ISO 27001, to address these issues and build trust among supply chain partners.
Key Insights About Supply Chain Visibility Success
With supply chain visibility frequently discussed in the headlines, you may have some questions about investing in visibility-enhancing technologies: Is the technology step up worth it? Is now the right time to make the move?
To answer these questions, let's look at the latest statistics to understand the current state of the supply chain visibility discussion.
The Business Case for Visibility
The data is clear: Companies with optimized, visible supply chains enjoy substantial financial and operational benefits.
5% Reduction in Supply Chain Costs = Double Net Profits
According to a study by the Logistics Bureau, a mere 5% reduction in supply chain costs can double a company's net profits. This underscores the significant financial impact of improved supply chain visibility and optimization.
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Optimized, Visible Supply Chains are Clear Competitive Advantages
A study by Invesp found that 79% of companies with highly visible and well-performing supply chains were able to outpace their industry's average revenue growth. The study also revealed that businesses with optimized supply chains enjoy substantial operational benefits, including 15% lower supply chain costs, less than 50% of inventory holdings, and 3 times faster cash-to-cash cycles.
The Existing Visibility Gap
Despite the benefits of supply chain visibility, the reality is that most companies struggle with a significant lack of transparency throughout their operations.
COVID-19 Pandemic Exposes the Risks of Poor Visibility
As of 2021, supply chain disruptions cost organizations an average of $184 million per year globally. The COVID-19 pandemic exposed the vulnerabilities of many supply chains, leading to unprecedented levels of disruption. Enhanced supply chain visibility enables companies to better predict, prepare for, and respond to potential disruptions, mitigating these substantial costs.
Only 6% of Supply Chains are Equipped with Full Visibility
Yet, the majority of businesses struggle with a lack of end-to-end transparency in their supply chains. Only 6% of companies report having full supply chain visibility, while a staggering 69% have poor visibility, according to research by Zippia.
Adoption of Supply Chain Visibility Technologies is Rather Low
Supply chain management has undergone a transformative shift as businesses recognize the critical role of technology in driving efficiency and cost savings. Advanced visibility solutions, real-time tracking, can help lead to end-to-end supply chain visibility that one has never seen before.
According to research by Michigan Tech, while 63% of companies do not currently use any technology to monitor supply chain performance, 81% believe that advanced analytics will be critical for reducing costs and improving efficiency.
The Managerial Imperative
If you are feeling hesitant about pushing for supply chain visibility solutions, take note of this: The post-pandemic period has already shifted the dynamic, where more managerial support towards technology-driven approaches to building supply chain resilience can be found.
Visibility is the 3rd Strategic Priority, According to Industry Leaders
According to the GEODIS Supply Chain Worldwide Survey of 623 industry professionals in 17 countries, supply chain visibility is currently the third most important strategic priority for organizations, following“ensuring on-time, in-full deliveries” and “improving product availability and delivery”.
The study also points out that supply chain complexity is rapidly increasing, with 70% of respondents saying their supply chain is “very or extremely complex”. Global supply chains, multi-modal transportation, more partners and carriers, changing regulations, and growing eCommerce demands are cited as contributing factors behind the increased complexity, making enhanced supply chain visibility a necessity.
A Favorable Environment to Embrace Supply Chain Changes
Over 50% of firms believe that increased digitization and automation will improve supply chain resilience, according to research by SMB Guide. Besides, as COVID-19 pandemic rises, companies are looking to agility and responsiveness in the supply chain, with some reducing their inventory by up to a third. The research by Adelante SCM cited that 75% of respondents will make changes based on pandemic lessons, empowering supply chain leaders to advocate for visibility-enhancing programs.
Improve Supply Chain Visibility with TrackingMore
As the importance of supply chain visibility continues to grow, TrackingMore has emerged as a leading tracking API solution for businesses seeking to enhance their logistics operations.
From real-time tracking data access to 1,200+ carriers, to our Air Cargo Tracking solution, we are continuously paving our way to help our customers level up their game in supply chain visibility.
Case Study: DP World
The DP World case study demonstrates how TrackingMore’s comprehensive capabilities can help organizations like DP World level up their supply chain visibility.
Prior to the COVID-19 pandemic, DP World's existing platform, SeaRates, lacked detailed tracking capabilities for air and road freight shipments. As the pandemic disrupted supply chains, more of DP World's customers shifted to air freight, leading to a spike in demand for air waybill (AWB) tracking functionality.
To address this challenge, DP World partnered with TrackingMore and launched its new supply chain visibility platform, Cargoes Flow. TrackingMore's tracking API provided DP World with several key benefits:
The improved visibility enabled by the TrackingMore partnership has been crucial in helping DP World’s customers navigate the challenges of the supply chain landscape, enabling them to make more informed decisions and respond to disruptions more effectively.
Join Us to Achieve Full Supply Chain Visibility
Enhancing supply chain visibility is no longer a luxury, but a necessity for businesses seeking to thrive in today's dynamic marketplace.
By reflecting on the insights outlined in this article, you can rethink your supply chain strategy and unlock the transformative potential of end-to-end visibility. Our suite of solutions, including Air Cargo Tracking, empowers you to harness the power of supply chain visibility. Take the first step towards supply chain excellence by reaching out to us now!