The capacity to track the movement of individual components, mid-way assemblies, and finished goods as they journey from the supplier to the manufacturer to the consumer is known as supply chain visibility (SCV). The scope varies depending on the product — for example, raw materials may or may not be included, items may be monitored both forward and backward in the chain, etc.
Fewer disruptions, higher customer satisfaction, and cheaper costs result from better visibility into complicated supply networks. A supply chain visibility system enables product teams to identify and address supply chain vulnerabilities like inventory shortages or order fulfilment issues before they become big concerns.
In India, supply chain visibility has increasingly gained importance. Various factors have led to this significance. But before exploring those reasons, here’s a closer look at supply chain meaning.
A system wherein a manufacturer procures raw materials, processes them in a factory, packages them, distributes and reaches them to his consumers – this broadly constitutes supply chain meaning. This concept can easily be applied to goods as well as services. Supply chain management involves managing a series of events, including tracking each component and identifying which stage of the supply chain it lies.
Supply chain visibility uses the technology for management and offers real-time logistics data. Businesses can easily identify inventory shortages, meet compliance and regulatory directives, avoid bottlenecks and track every product to delivery. Over the years, supply chain management has become so complex that making the supply chain as visible and open as possible seems to be the best bet.
Here are the top 6 reasons why supply chain visibility has become essential in India.
1) Transparency: Clearly, this is the top reason why supply chain visibility is so crucial. Most companies have chosen to outsource their supply chain management for many years. This often leads to the chain becoming very complex. By offering visibility into its supply chain, a business is taking the bold step of allowing all its stakeholders to view each and every product or service as it traverses through the supply chain. These associates are bound to vouch for this invaluable move that permits maximum transparency within the organisation.
2) Execution Efficiency: Using the appropriate technologies for supply chain management, a business will get real-time updates regarding each stage in the supply chain. Naturally, this enables businesses to plan strategies and execute them with greater efficiency.
3) Improved Customer Service: When supply chain visibility offers real-time tracking of products and services, businesses have the best opportunity to enhance customer service and maintain them at exceptional levels. Today’s customer expects delivery of the product or service within a short span of time and is often less tolerant of late deliveries or, worse, mistakes. With microfinance loans, the smallest businesses can improve their customer service by simply promoting supply chain visibility to their stakeholders.
4) Quick Resolution of Problems: When everything is in the supply chain in real-time, it not only becomes easy to track goods and services but issues can be identified quickly and rectified immediately. If you have understood supply chain meaning, you will realise there are various potential obstacles throughout the chain. But supply chain visibility, the chances of predicting such troubles and being prepared for them is higher.
5) Informed decision-making: When there is ample data with sufficient insights – the kind that supply chain visibility will provide – business owners will be making informed decisions. This simply means better planning, dynamic operations and business strategies based on strong predictions.
6) Savings: When a business employs supply chain visibility with the help of microfinance loans, it has access to real-time data at every stage of the chain. This often results in increased revenues and lower costs.