New and modern customers want updated information about the right location of their product, and that’s where the role of real-time supply chain visibility comes into play. It is nearly impossible to track the right and exact location of your fleet. Advanced technological tools would help you to track various activities on time. Today, we’ll discuss real-time supply chain visibility; its definition, strategic approach for improvement, advantages, and disadvantages.
What is Real-Time Supply Chain Visibility?
Real-time supply chain management outlines updated comprehension and knowledge to beware of the right and exact information in your SC process. SC visibility and transparency help you to analyze various stages of the SC operational processes when they come up. Usually, real-time SC visibility means tracking goods in various stages of production and manufacturing, the tech status of machines, and the location of products as they move from production and manufacturing facilities to the end customers.
Gathering real-time information about SC processes helps managers quickly respond to disruptions and make better predictions about the future. It allows you to gain a competitive edge, have limited disruptions, and decrease costs.
Strategies for Real-Time Supply Chain Visibility
Some of the best strategies and practices for real-time SCV are as follows;
- Recognizing the required data and information that you need to gather and how you are going to employ it
- Executing systems, tools, applications, and processes that would help you to gather information in real-time
- Employing the latest technology for automated data gathering
- Combining and integrating data for various parts of the SC process
- Making the required data and information available for the decision-making team
- Continuously analyzing the system to make sure completeness and accuracy
- Making adjustments and required changes to amplify the visibility and transparency
Advantages of Real-Time SC Visibility
According to an estimate, approximately 31% of businesses and companies employ real-time information continuously. It shows the popularity and widespread usage of real-time SCV; resultantly businesses and companies could take various benefits. Some of the main benefits and advantages of real-time supply chain visibility are as follows;
Real-time SCV allows you to comply with the legal and regulatory requirements throughout the SC process. Some of the legal compliance is as follows;
- Safety of the workers
- Environmental regulations
- Import and export requirements
If you have the right information and knowledge about the things happening around you, then it would help you to resolve legal potential issues before they come up. It allows you to track regulatory changes and launch them in your SC network on time.
Satisfying the needs and expectations of customers are continue to increase in terms of product quality and delivery time. Real-time tracking would help you to satisfy and meet the expectations of customers, and it makes sure that the customers have a better experience with your company.
Better Quality Products
Real-time data allows you to have quick access to the information, and it results in the form of better product quality. The real-time SCV plays a significant role in analyzing quality control, and it helps you to quickly analyze quality control issues.
Updated information about the SC network helps you to make better decisions based on real-time information. It allows you to increase efficiency and decrease waste. Real-time SCV would help you to decrease the following costs;
- Unexpected disruption in the market
- Wrong quantity of raw material
- Inventory level
- Wasted workforce time
Real-time SCV helps you to recognize potential issues before they come up. It allows you to quickly respond to market changes and make informed decisions. Resultantly, it allows you to decrease the risk factor.
Disadvantages of Real-Time SC Visibility
Some of the main challenges and disadvantages of real-time SCV are as follows;
Poor visibility amplifies multiple types of risk factors in the logistical industry; especially in various areas when they aren’t connected. Limited real-time SCV about the route and delivery would amplify the risk of delayed deliveries, damaged goods, and high transportation.
High Overhead Cost
It is significant to track various types of potential issues in the SC network, whether it is damaged goods or fuel consumption. Poor visibility would result in the form of damaged goods, theft, and other discrepancies during the transportation stage. Resultantly, it amplifies overhead costs and reduces productivity.
Poor real-time visible makes it nearly impossible for the stakeholder to track their shipment and amplifies confusion and chaos. Delayed deliveries would happen when you have wrong information about on-ground activities, ETA, performance of the driver, and location of the vehicle.
High Churn Rate
The churn rate is when customers stop doing business with the company, and it helps companies to analyze their success. Poor real-time visibility amplifies the customer churn rate; because modern customers want complete transparency throughout the SC network.
Conclusion: Real-Time Supply Chain Visibility
After an in-depth study of the real-time supply chain visibility; we have realized that SCV in real-time is highly significant for modern businesses and customers. If you are learning about real-time SCV, then you should keep in mind the abovementioned strategies, advantages, and disadvantages.
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