Markets today are rapidly evolving, bringing a change and unpredictability which has proven the fragility of supply chains across the world. It’s a challenge not even the biggest companies are able to prevent, with Airbus having recently lowered its annual forecast due to ‘persistent specific supply chain issues’.
The impact of such is that we need to ensure our global supply chains are more resilient than ever. With the challenge of doing so high on the c-suite agenda, just how can organizations ensure their supply chains are not only high performing, but also highly adaptable?
Chief Commercial and Product Officer and Co-Founder, Dexory.
The crucial role of visibility
Positively, supply chain resilience is something organizations are looking to improve. Capgemini’s ‘Fast Forward’ report found that more than 57% of organizations are increasing their investments to enhance the resiliency of their supply chains, and that, for many organizations (62%), increasing their supply chain resiliency is a key priority.
But where should companies start on their journey? For me, the first place is visibility.
We already know high quality supply chains thrive on a deep understanding of the flow of raw materials and goods. Visibility is at the core of this concept. Despite this, only 6% of logistics companies claim full visibility over their operations.
Change here is vital but business leaders must first understand the key aspects of visibility in the journey to more resilient supply chains. These include:
The early detection of issues and effective risk management: Visibility allows organizations to promptly identify potential disruptions or issues at various points in the supply chain. This means that they can take proactive measures to mitigate against them.
Improved decision making and optimization: Decisions informed on accurate and timely data enable true business agility. While visibility, by definition, increases the quality and volume of data and insights.
Customer satisfaction: Trust between suppliers and customers are damaged when supply chain issues are present. Visibility allows organizations to be more transparent with their customers and gives them data-driven insights to share.
Visibility is a foundational element of the modern, resilient and efficient supply chain. And while, yes, it can enable better performance, its potential is much broader with quality insights driving better decision making as well as better partnerships with customers and stakeholders.
The power of real-time data
We know data is an incredibly powerful asset for business leaders and teams when it comes to decision making. Timely, accurate data is a competitive advantage in the world of business and so needs to be used within the complex, fast-paced world of supply chains.
When coupled with innovative technologies, this data can transcend traditional boundaries and expectations. For example, inventory levels can be adjusted dynamically to re-route shipments into unforeseen events – for example, the weather or traffic – the impact of which extends far beyond operational efficiency. When thinking about this use case alone, not only does real-time data mean unexpected disruptions can be avoided, but it also means workforce time doesn’t have to be wasted due to more accurate and effective schedules.
It's important to note here real-time data can also help organizations ensure compliance with regulatory requirements throughout the supply chain. For example, export and import requirements, environmental regulations and even those surrounding worker safety. By understanding exactly what is going on in your supply chain at all times, compliance issues can be fixed before they become an issue.
Fixing the visibility gap
The absence of end-to-end visibility, or the ‘visibility gap’, is masking significant economic costs for businesses and not allowing them to squeeze tight margins by improving inefficiency and reducing the cost of disruption. Yet, organizations no longer need to grapple with the visibility gap in their supply chains. Innovative solutions to address strategic gaps in data, technology and visibility exist, organizations just need to make the most of them.
There are still challenges standing in the way, such as determining the types of data to collect, grappling with the multitude of elements in play, and translating insights into actionable steps. Thankfully, advanced robots can help with this complex puzzle by offering a solution to improve accuracy.
Final thoughts
There is still a lot of work to be done to remove the visibility gap and ensure resilient supply chains. Actioning this has never been so important as now given the world we live in remains unpredictable and businesses continue to fail as a result. Only by improving visibility through real-time data can organizations get a firm grip of their supply chains.
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