The importance of supply chain visibility and how to achieve it is highlighted in a new report from the Aberdeen Group entitled: “Supply chain visibility excellence – mastering complexity and landed costs.”
Aberdeen points out that the increased complexity of global supply chains has led to longer lead times, more pipeline inventory, and the need to control downstream and upstream logistics.
In a recent study, it found that growing supply chain complexity was a top business pressure and this in turn has contributed to increased supply chain management costs. Before a company can reduce inventory or landed costs it needs visibility into them.
Aberdeen found that best in class companies were: 2.44 times more likely to have online visibility into the customs events status; 1.92 times as likely to have formalised supply chain risk management; 1.78 times as likely to have the ability to analyse the current level of supply chain risk exposure; and 1.7 times as likely to have online visibility into supply chain disruptions.
And it said that to move towards a more connected and visible end-to-end supply chain and master complexity and globalisation, companies should extend visibility within and beyond tier enterprises; use dynamic business intelligence and decision making; centralise data and share collaboratively with customers and suppliers.