Fulfillment and supply chain solutions play a significant role in the growth of successful businesses. The process of visible supply chain fulfillment is necessary for developing an effective customer service experience. Today, we’ll discuss visible supply chain fulfillment; its definition, key elements involved, benefits, and examples.
The growth and success of your company are heavily reliant on how well you perform various operations of your business ranging from product sourcing to delivery. In order to deal with complicated modern logistical problems, visible supply chain fulfillment offers you both transparent and efficient solutions for moving your business forward.
What is Visible Supply Chain Fulfillment?
Visible supply chain fulfillment is the method of analyzing and tracking goods and products from production and manufacturing facilities to the delivery of customers. VSCF helps businesses and companies to make informed and data-driven decisions based on the existing and right information. However, the visibility of the SC process makes the system efficient by offering estimated arrival time and product location in real-time. It allows you to decrease the inventory cost while improving the delivery time and customer satisfaction level.
Visible SCF offers a lot of benefits to your business in terms of saving costs. It helps companies to quickly respond to the customer market needs and requirements. If businesses have access to the data in real-time, it allows them to make adjustments in their operations and quickly respond to market changes. Most importantly, VSCF decreases the human errors that happen throughout the process, and it ensures timely product delivery.
Statistical Facts about VSCF
Visible SC fulfillment allows businesses and companies to decrease the relevant associated costs like delayed delivery or lost time. According to an estimate by CSCMP (Council of Supply Chain Management professional); visibility fulfillment saves roundabout 90% of the total cost. The visibility fulfillment also amplifies the order fulfillment time by 18%; and decreases the outbound inventory cost by 20%. It means higher profitability and improved customer satisfaction levels.
Key Elements of Visible SC Fulfillment
Some of the key elements of visible supply chain fulfillment are as follows;
The critical part of supply chain visibility and transparency is to be aware of the location of goods at all times. You should trace your goods from the point of your production facility to the final destination of customers. RFID tags or GPRS devices can help you in the tracking of goods.
Cost & Rate
You should be aware of the transportation cost that you are employing in order to maintain SC visibility and transparency. It comprises labor cost, fuel cost, and shipping cost. When you have the proper information, then it helps you to make better decisions on how to efficiently move your products.
Auditing your record would help you to improve the visibility of your SC network by informing you of the problematic areas, wasted products, and improvement needed areas. The data would help managers to recognize improvement needed areas to amplify the efficiency of the SC process. Auditing records also offer you a key insight into customer satisfaction levels.
It is significant to be aware of various activities that are happening in your SC network in order to maintain transparency. It comprises of inventory management, receiving, shipping, packaging, production, and manufacturing.
Benefits of Visible SC Fulfillment
Some of the main benefits of visible supply chain fulfillment are as follows;
Visible SCF streamlines various areas in the SC network and processes from procurement to the sale point. It lets you know when and where customers are purchasing your products. A centralized platform would recognize disruption in the supply chain, but also amplify operations from start to finish.
The visible SCF helps companies move from their reliance on various Excel spreadsheets to a centralized and integrated system. Streamlining various processes and integrated systems would offer them simplified data.
The SC network of various companies is facing challenges like VUCA (volatile, uncertain, complex, and ambiguous) due to the patch system work. VSCF allows companies to organize their various operational stages by coordinating their system into a single structure. In short, VSCF helps you to protect the profitability of your business, instead of changing the global market.
Visible SCF helps businesses and companies analyze various areas of their SC network and processes. If any of the problems like product scarcity, new tariffs, or shipping delays break the chain, then the company would repair the broken chain.
Example of Visible SC Fulfillment
Amazon is the world’s leading e-commerce store and it employs RFID tags in its warehouses a great example of visible SCF. The tags help warehousing staff to monitor and track the stock and merchandise when it move into the warehousing facility. However, the company scans the tags while storing and moving the stock items. It becomes easier for the company to track inventory and make sure the delivery of the products is on time.
Conclusion: Visible Supply Chain Fulfillment
After an in-depth study of visible supply chain fulfillment; we have realized VSCF is highly significant for the growth and productivity of your business. If you are learning about visible SC fulfillment, then you should keep in mind the abovementioned elements, benefits, and examples.
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