December 2020
Why You Need to Keep a Close Eye on
Supply Chain Visibility
You’re in the shipping industry, so you already have an understanding of just how important your supply chain is. We all know that there are importers/exporters out there caught off guard by issues with their supply chain—some of them not even knowing where their suppliers and/or sub-suppliers are actually located! These are the types of companies that wind up in serious trouble when issues arise. They get caught off-guard, critical dependencies are overlooked, and things really go off the rails.
That couldn’t happen to you, though. Right?
Truth is that very few companies really have a solid grasp on their supply chain. Most companies recognize that improving their supply chain visibility is important, but they don’t quite know how to get there. The good news is that the need for increased supply chain visibility is widely accepted, and there are plenty of resources and technologies available to help importers/exporters navigate this complicated subject. Let’s dig a little deeper into the supply chain and why improved visibility is a necessity.
What Does Supply Chain Visibility Mean?
Before you can really discuss something with a high level of understanding, you need to know what that thing is to begin with. And, believe it or not, this is the first stumbling block when it comes to supply chain visibility. It just means different things to different people. If your understanding of supply chain visibility is simply “know where things are,” you’re not wrong. But that’s a surface level understanding.
As supply chain visibility is further scrutinized and prioritized in our industry, language and definitions will become more standardized—particularly around the scope of supply chain visibility. Generally, current definitions include the ability to track both raw materials and all components from their original suppliers/manufacturers through facilities and, finally, to consumers. What’s most important is that you consider your particular business, and focus on the specifics most relevant to your own supply chain.
Why Is This Such a Focus?
Industry experts at Quantzig have identified the “ultimate goal of supply chain visibility” as the ability “to improve and strengthen the supply chain by making information readily available to all stakeholders.” In doing so, it is possible to respond quickly to changes or errors affecting the supply chain, meaning “that the demand can be reshaped, and supply redirected whenever, and however, it is necessary to do so.” With the enormous complexity in today’s supply chains, especially those with global reach, this ability is immensely powerful.
Not only does improved supply chain visibility allow for managing complex supply chains, but it also allows companies to satisfy growing customer demands. Consumers today are not hurting for options, and they have extremely high expectations. Meeting those expectations and protecting your market share demands a higher level of efficiency, transparency, and dataflow than what used to be the standard. If you want to stay competitive in this industry, you need to be able to deliver to your customers efficiently, and you need to be able to keep them informed.
Ensure Regulatory Compliance
Meeting the demands of modern customers and being able to make adjustments swiftly to disruptions in the supply chain are major benefits of improved supply chain visibility. It’s not all about ensuring an exceptional client experience, though. It’s also about making things easier for you. Just as today’s supply chains are more complex than ever, the regulatory demands of our industry are more complex, too.
When you have great visibility into your supply chain, you can stay out ahead of any new regulations that could affect your business. If you work on a global scale, then the logistics of your business and ensuring regulatory compliance at every step is a full time job in and of itself. Increased awareness of your supply chain is vital to keeping things from getting hung up due to noncompliance with trade agreements, governmental tariffs, and more.
Modern Tools for Modern Problems
We don’t want you leaving this post feeling overwhelmed. While improving your supply chain visibility is going to take some work, there are plenty of modern technologies available that will help to make the job easier. Take, for example, sensor-based logistics. This tool in particular is one that you’ll want in your toolbox if improving efficiency, reducing waste of product and time, and boosting overall client experience are goals you’re interested in meeting. With sensor-based logistics, sensors transmit cargo data in real time.
This data can be shared with multiple involved parties, which allows not only for a quick reaction to unforeseen issues, but also for collaboration in solving complex problems in a short timeframe. What kind of data can be monitored? In addition to basics like location, these sensors can also clue you into variables including temperature, humidity, and more. With the right software in place, this data can be analyzed to ensure that any issues are addressed along the way—not when ruined product arrives at its final destination.
Keep Your Supply Chain in Plain View
JF Moran is here to answer any questions that you may have related to supply chain visibility. We offer world-class service and deal with worldwide logistics, just as we have since our founding in 1937.
The size or scope of your operation doesn’t matter. Importers/exporters at every level of business need help in finding the right solutions to issues such as this. And that’s where the experts on our team come in. Count on us for solutions that work.
Would you welcome improved visibility of your shipments?
If your answer is “yes” to having key knowledge about your shipments, we have the solution for you. It’s our Supply Chain At-A-Glance Report. Learn more about this and what it can do for you – and then request yours.