More and more, supply chain visibility becomes an increasingly common goal. Why is visibility within the supply chain so important? What are the advantages of this transparency for a logistics company? Here we tackle these issues to address some of the frequently asked questions around visible supply chains and supply chain management.
What Is a Supply Chain?
A supply chain is every step involved in moving a product from the original supplier to the final destination. This chain is a series of linked actions that follow a process and meet expectations so that the product moves fluidly towards its destination.
What is supply chain visibility then? This is the concept of an openly transparent understanding of how the product moves throughout the process. It allows logistics companies to track the process and have a real-time understanding of the variables that impact progress. With a visible supply chain, it is possible to locate a product within the chain at any given moment.
What Are the Advantages?
Supply chain visibility offers a plethora of advantages for logistics companies and their clients. For example, it allows supply chain managers to understand the points where efficiency can be improved. In turn, they can decide how to move the product more quickly and eliminate obstacles.
It also offers companies improved customer service and communication. From drivers to distribution centers, transparency in the supply chain keeps people accountable for their role in staying on schedule.
Moreover, this program allows logistics companies to foresee problems and mitigate any risks that could arise. As with any business, increased efficiency reduces costs within the operation. With transparency in the supply chain, each point can make data-driven decisions that improve their role in the process.
Utilizing Data and Technology
With technology that provides the data you need, logistics companies can improve supply chain visibility. Every link in the chain must be tracked and transparent. This allows supply chain managers to know where a product is at any given time. A tracking system with real-time visibility allows companies to stay on top of products and remain aware of events that impact the chain.
Increasing visibility helps to improve and strengthen supply chain partners across the board. Whether parts components or products in transit, supply chain optimization helps supply chain businesses with the following.
Meet customer demands
Have information readily available for all stakeholders
Manage inventory levels
Maintain advanced analytics
Supply Chain Visibility and Derby Logistics
This trend has become more important as companies outsource aspects of their supply chains. This release of control and visibility can keep them in the dark as to the process they work with. With transparency and technology in place, members of the chain can take action and reshape demand or redirect supply as needed.
Derby Logistics is an experienced logistics company based in Houston, TX. We understand how transportation needs fluctuate and evolve in ways you might never anticipate. Our team helps you create strategy over solutions to address any issue you face.