Making Visibility a Supply Chain Priority

Multiple Aberdeen Group supply chain studies have indicated the importance of Supply Chain Visibility in the past. The latest October 2009 report on Integrated Transportation Management has shown that near real-time visibility to supply chain events at a detailed level is one of the key requirements for excelling in supply chain execution. Aberdeen’s industry research has consistently shown that increasing visibility is a critical strategy for the enterprises to dramatically reduce costs and improve supply chain operational performance in the global economy.

To address the supply chain visibility challenge and help shippers define what it means to have adequate supply chain visibility, Aberdeen has launched its new annual 2009 survey on Supply Chain Visibility and invites all logistics and distribution professionals to participate and gain access to the study’s insights: http://www.aberdeen.com/survey/6027visibilityb

Aberdeen’s 2007 and 2008 supply chain visibility studies had confirmed the existence of four “automation gaps,” in supply chain visibility - supply chain milestones that were frequently tracked, but where most of the tracking occurred manually (versus with the help of technology). These gaps included tracking the following:

·        raw material arrival at the supplier;

·        supplier production in-process events;

·        trucking (haulage) events, and

·        customs clearance events. 

The 2009 upcoming study will benchmark the trends in tracking specific supply chain milestones with the goal to identify the core areas where visibility is the most critical and how these areas differentiate by the industry sector.

Global competition and the increased complexity of global supply chains have led to increased lead times and pipeline inventory (which includes inventory in-transit and in temporary staging). This, in turn, has contributed to increased supply chain management costs. Reducing costs by driving down excessive inventory on hand has become a critical priority for companies in today’s economy. But before a company can reduce pipeline inventory or landed cost, it needs to have visibility into them. Hence, improving supply chain visibility has become a key strategic imperative in managing today’s integrated supply chain networks.