Many retailers perhaps believe theirs is pretty good; however, it seems each year when businesses are surveyed by the numerous supply chain consulting firms and trade magazines, visibility usually ranks at the top of the list as an area for improvement. Indeed, the typical supply chain has become much more complex over the years as manufacturing expands to Asia, South America, Africa, and so on.
Production lead times have become longer as products continue to diversify. As a result, the need to improve supply chain operational speed and accuracy is great. This complexity reflects the need for visibility in order to optimize one’s supply chain performance.
Status Updates Are Essential
It is important to be able to track, manage, and monitor the status of inventory throughout the supply chain process — from manufacturing to procurement to sales, and through customer service. Knowing the location, and even condition, of inventory in the pipeline is crucial for buyers who are making the replenishment and stock transfer decisions and operational managers who are managing the flow of goods. Departments involved with inventory availability struggle to obtain the information they need with enough lead time for them to ensure the inventory is received complete and on time.
Any possible disruption can have a negative effect on not only your costs but, also, on your brand and your customer — thus resulting in poor supply chain performance. However, having complete visibility throughout the process, combined with the ability to send event-based notifications to partners and various functions within one’s supply chain, can enhance productivity. This, also, can reduce costs and improve process planning. This will achieve much stronger supply chain performance, which is essential for today’s economy.
Benefit Of Visibility
Here is an example of potential performance measures. According to an Aberdeen Group study, when visibility tools are utilized, best-in-class businesses had on average a perfect order rate of 96 percent delivered to customers and a 96.3 percent perfect order received from suppliers. A 3 percent decrease in supply chain execution cost as a percentage of revenue was observed, as well.
Visibility is now a requirement for companies to achieve optimal supply chain performance. CalAmp SCI offers solutions to assist. Through event-based protocols that are monitored 24/7/365, CalAmp SCI’s systems ensure that cargo maintains its integrity and the system follows business rules and documented processes. Adding sensors to the CalAmp SCI solutions, also, provides the added capability of monitoring the status or condition of the products while in transit.
Learn more about protecting your supply chain with the most cost-effective loss prevention and custody control programs here.