Top Reasons You can not Ignore in Supply Chain Visibility

9 Reasons You can not Ignore Supply Chain Visibility

In the era of digitization, every industry is shifting towards adopting technology solutions to achieve cost and time efficiency. Supply chain management is no exception. With supply chain visibility, shippers optimize end-to-end supply chain operations by proactively tracking status updates, quick actions to reduce the impact of disruptions, and risk mitigation. 


This post will dive into why supply chain visibility is so important.

What is Real-time Visibility in the Supply Chain?

Real time supply chain visibility refers to the tracking in real-time, the transfer of goods and from the suppliers, manufacturers, warehouses and hubs to the end customer.


Real-time visibility in the end-to-end supply chain leverages GPS-tracking and robust software that enable businesses to plan, schedule, and monitor their logistics and supply chain management  processes at all points.


Also read: Common Mistakes In Transport Tracking Implementation And How To Avoid Them

Why is Supply Chain Visibility so Important?

numerous benefits of supply chain visibility can be achieved by implementing right supply chain management solutions across logistics and supply chain operations. Here are the nine most important reasons why supply chain visibility is more important than ever before:

Enhanced Decision-Making Capabilities

Real time visibility with supply chain management solutions enables businesses to make quick and correct decisions instantly. When unpredicted events occur, the feasibility of assessing the end to end supply chain activities in real-time allows quicker reactions, reducing potential negative impacts.


Example: A weather disturbance delaying shipments from a port can be identified and addressed immediately, rerouting shipments to minimize delays.

Increased Collaboration Among Stakeholders

By delivering real-time data, all stakeholders in the supply chain can work collaboratively. This transparency guarantees alignment, trust, and efficiency across suppliers, manufacturers, distributors, and retailers.


Example: A manufacturer’s real-time data can be accessed by a distributor, allowing for more precise delivery scheduling and inventory planning.

Improved Customer Satisfaction

Real time supply chain visibility helps businesses provide customers with accurate and quick information about their orders, enhancing their experience and trust.


Example: When customers order a product online, they can track the package in real time, obtaining updates on each stage of its journey from the warehouse to their doorstep.

Optimized Inventory Management

With quick insights into inventory levels, businesses can balance supply and demand efficiently, reducing carrying costs and avoiding stockouts or overstocking.


Example: Real-time data can emphasize slow-moving items in a warehouse, prompting markdowns or promotions to clear space for more profitable items.

Improved Accuracy and Timeliness of Shipments

Real-time visibility helps in regular monitoring of shipments to ensure accuracy and timeliness. Tracking packages, uncovering reasons for transportation delays, and managing delivery expectations become more quick, reducing errors and enhancing overall efficiency.


Example: A logistics company employs real-time GPS tracking to monitor a shipment of crucial medical equipment. When a deviation from the planned route is identified, quick action is taken to guide the driver back, ensuring timely delivery and compliance with pre-defined transport regulations.

Risk Mitigation and Management

Enterprises can take preventive measures by detecting potential disruptions or bottlenecks in real time, ensuring business continuity and minimizing possible financial loss across supply chain and logistics operations.


Example: A truck transporting fresh produce gets caught in a highway closure due to an accident. Real-time tracking alerts the distributor promptly. They quickly reroute the truck to an alternate path, ensuring the goods arrive on time and don’t go to waste.

Real-Time Coordination Between Modes of Transportation

Real-time visibility in the supply chain allows for seamless coordination between different modes of transportation, such as trucking, rail, sea, and air. This synchronization leads to optimized routes, reduced transit times, and increased efficiency.


Example: A logistics provider uses real-time data to detect a delay in a shipment arriving at a seaport. They can instantly coordinate with trucking and rail partners to reschedule pickups and ensure that the goods continue moving efficiently, minimizing potential delays.

Agility and Responsiveness in a Competitive Market

Real-time supply chain visibility guarantees a more agile and responsive operation, critical for staying competitive in today’s evolving and demanding market. Eventually, it streamline supply chain management strategy planning and operation.


Example: A sudden demand increase for a specific good during a holiday season is immediately recognized, enabling a retailer to adjust procurement and advertising strategies faster.

Cost Reduction and Profitability

Quick visibility considering all the supply chain aspects, helps detect and mitigate inefficiencies, contributing directly to expense reduction and increased profitability.


Example: Real-time tracking of fuel consumption across a fleet of trucks allows a logistics provider to optimize routes and driving ethics, saving on fuel costs.

Wrapping Up

Enhancing logistics and supply chain management operations by improving real-time visibility will continue to be a top priority. This is because end to end supply chain visibility enables them to speed up their operations, reduce costs reduction, and emerge evolving technology solutions.

To discover how advanced supply chain management technology solutions can help you streamline your supply chain operations, get in touch with the team Fretron.

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