How supply chain visibility impacts business performance
The last few years have been challenging for businesses. During the pandemic, logistics costs multiplied, and lead times fluctuated. Then came the economic crisis, which brought additional challenges. This forced companies to think about optimising processes to make them more flexible. One of the most critical aspects of this is supply chain visibility.
Improving supply chains to increase visibility
Structuring the process chain helps to increase the sustainability of operations. At the same time, it helps to react and adapt flexibly to changes. The only way to achieve this result is to consider all the nuances.
Technical solutions such as warehouse management or order tracking systems are excellent tools. However, to achieve maximum visibility, it is essential to synchronise the data from these tools.
The benefits of linking processes into a single chain:
- creating an accurate picture of business performance;
- the ability to identify and address weaknesses in the chain;
- improved decision-making.
The visibility of the entire chain significantly increases the transparency of what is happening. Often, companies know excessive costs but cannot identify the cause. Structuring the data helps to find gaps in the system and correct them.
Retailers need to stick to a single mechanism. This business consists of many departments that are often not connected. Automation is a great way to improve their efficiency. This approach provides end-to-end visibility of all processes and how they interact.
Prevent unforeseen costs
Integrating data into a single ecosystem provides an opportunity to improve process planning. The business thinks through each chain step, comparing and complementing information from parallel processes. This approach helps to prioritise the tasks and risks associated with each step.
Another benefit of increasing supply chain visibility is developing a long-term strategy. Systematisation allows companies to clearly understand failure and product return rates and work to improve performance. In addition, collecting data from all sources helps identify transit losses. Often, some goods are damaged during transport or storage in the warehouse. By taking this into account, the company can predict and budget for potential costs.
Optimising the supply chain is the first step in building a long-term business. Technology solutions play a vital role. Their choice depends on several factors, including strategic goals and business specifics. The company should pay particular attention to system integration and compatibility.
