Learn how to implement effective supply chain visibility with real-time tracking, data integration, and collaboration for optimized operations and growth.

Romain Fayolle

Supply chains of today have become the muscle that does the heavy lifting to ensure a win in the marketplace for the company. Companies understand this fact well and have invested big amounts in digital and automated supply chains to enhance their supply chain network. The effort of these supply chain transformations is majorly in two areas:

to automate the repeatable and predictable steps of managing the supply chains and
assist humans with data, helping them make decisions.

While the benefits are recognized, not every business has effectively transformed itself. This could take several forms; however, the most common and crucial cause will be the inability to gain supply chain visibility (SCV) throughout the chain.

In this article, we will discuss how businesses can overcome this major challenge and implement effective supply chain visibility during the transformation. We will also discuss its benefits and practical ideas to ensure a successful transformation. But let’s first discuss why supply chain visibility is so important.

Why Supply Chain Visibility is So Important?

Supply chain visibility allows companies to monitor all activities, assets, and processes across the supply chain in real time. It helps understand inventory volumes, access in-transit shipment statuses, track manufacturing progress, evaluate dealer performance, and optimize logistics schedules.

The importance of supply chain visibility is high as it enables organizations to:

Respond Quickly to Disruptions: With visibility, companies can detect and fix possible disruptions before they become problems that impact consumer satisfaction.
Improve Customer Satisfaction: Supply chain visibility ensures that the company is always on top of customer orders and keeps communication proactive and accurate. For example, the company can share updates on order tracking and other timely updates, building trust and loyalty with customers.
Optimize Costs: Visibility helps pinpoint areas of concern and prioritize action. Knowing the process bottlenecks can help improve them and optimize costs.
Better Collaboration: Like proactive customer communication, SCV helps build the same approach with all stakeholders. Sharing accurate and timely data fosters stronger relationships with suppliers, partners, and between different teams internally.

So, while building effective supply chain visibility is really important, it is neither easy nor straightforward. Many challenges prevent the right supply chain visibility from being achieved. Next, let us discuss some of the common challenges.

4 Common Challenges in Achieving Supply Chain Visibility

While every company will have its own set of challenges, depending upon their stage in the journey, their current systems, the talent base, and their sector, there are some challenges that are a common denominator. Let’s have a look at them:

Fragmented Systems: Disparate systems that are optimized in their own areas of influence, like ERP, WMS, and TMS, often operate in silos, making it difficult to have a streamlined data flow. Someone has to manually download and upload data from one system to another, leading to delays in the information relay.
Inconsistent Data: This is the most common problem plaguing visibility. From inaccurate master data elements to demand outliers in the sales history, incomplete or inaccurate data hampers decision-making and erodes trust in the system.
Resistance to Change: While companies invest, if employees and partners are hesitant to adopt new tools or processes, the effort and money will go to waste.
Integration Challenges: Legacy systems may not support modern visibility solutions, creating integration challenges.

Addressing these barriers is critical for the successful implementation of supply chain visibility. However, the company should have the right implementation plan to build the right visibility. Let’s understand the steps involved in creating this plan. A detailed project implementation plan that defines roles, responsibilities, and tasks within the implementation process is essential to ensure successful project delivery.

8 Steps to Building a Clear Implementation Plan for Effective Supply Chain Visibility

*Implementing Effective Supply Chain Visibility in Your Organization*

1. Define Clear Objectives

Start by defining your goals for supply chain visibility. Are you aiming to reduce lead times, improve customer satisfaction, or enhance inventory management? Defining clear objectives will help guide your implementation strategy.

Break down your objectives into quantifiable KPIs such as on-time delivery rates, inventory turnover, or forecast accuracy.

2. Invest in Integrated Technology

Supply chain visibility is founded upon technology. Invest in platforms that integrate all the current systems and offer a single view of the supply chain. Look for solutions that:

Integrate Physical Devices: Track shipments & inventory with IoT systems, RFID tags, and GPS.
Integrate Existing Solutions across the Supply Chain: Ensure the platform can process and streamline data from different solutions, such as ERP, TMS, and WMS, that exist today.

And since it is almost 2025, choose cloud-based platforms for scalability and ease of integration.

3. Standardize Supply Chain Data Across Systems

Data standardization is essential for seamless integration and accurate reporting. Create consistent formats and protocols for data entry, storage, and sharing across the supply chain.

Implement data governance policies to ensure data accuracy and integrity. Assign roles for data stewardship to maintain quality.

4. Collaboration Plan with Supply Chain Partners

Visibility should extend beyond your organization, ideally from your supplier's supplier to your customer's customer. Engage with suppliers, logistics partners, and customers to get and share data and timely alerts. Build supplier and customer portals for real-time data sharing, such as inventory levels, order statuses, and shipment tracking. Collaborative platforms can improve communication, alerts, and alignment across the extended supply chain.

5. Build Digital Twins

Digital twins visually represent what's happening in your supply chain. Use them to monitor performance, identify bottlenecks, and make informed decisions. This technology provides deeper visibility into potential risks and opportunities. For example, digital twins are great for running different 'what-if' scenarios virtually before trying them on the ground.

6. Add Automated Alerts

Set up automated alerts for deviations from planned supply chain operations, such as delayed shipments, low inventory levels, or missed deadlines. Use event-based triggers to notify relevant stakeholders immediately when issues arise. These alerts enable proactive intervention to minimize disruptions.

7. Train Teams and Build a Visibility Culture

Technology alone cannot ensure supply chain visibility. Equip your teams with the skills and knowledge to use visibility tools effectively. Conduct regular training sessions and workshops to familiarize teams with visibility platforms and best practices. Build a company-wide culture that promotes and values transparency and collaboration.

8. Measure and Optimize

Continuously monitor the performance of your supply chain visibility initiatives against predefined KPIs. Use insights from these metrics to refine processes and enhance efficiency. Conduct quarterly reviews to assess the impact of visibility tools and identify the next areas for improvement.

To measure the success of your supply chain visibility implementation, here are some of the visibility metrics that companies can focus on:

On-Time Delivery (OTD): The percentage of orders delivered on or before the promised date. This can also be measured with the LIFR or OTIF KPIs.
Inventory Accuracy: The alignment between physical inventory and system records.
Order Cycle Time: The time taken from order placement to delivery.
Supplier Reliability: The consistency of supplier performance in terms of quality and timeliness.
Total Delivered Cost (TDC): The total cost of fulfilling customer orders.

These are some of the most widely used and applicable KPIs, but the list can be customized based on the industry and the company's growth stage.

Best Practices for Implementation

Implementing supply chain visibility requires a strategic approach and careful planning. Here are some best practices to consider:

Define Clear Project Objectives and Scope: Project management begins with a clear definition of what you aim to achieve with supply chain visibility. Whether it’s reducing lead times, improving customer satisfaction, or enhancing inventory management, having clear objectives will guide your implementation strategy.
Identify Key Stakeholders and Their Roles and Responsibilities: Engage all relevant stakeholders, including suppliers, logistics partners, and internal teams. Clearly define their roles and project scope to ensure everyone is aligned and working towards common goals.
Develop a Comprehensive Implementation Plan and Timeline: Create a detailed project implementation plan that outlines the steps, resources, and timeline required to achieve supply chain visibility. This plan should include milestones and checkpoints to monitor progress.
Select the Right Technology and Tools to Support SCV: Invest in technology that integrates with your existing systems and provides real-time data and insights. Look for solutions that offer scalability, ease of integration, and robust data analytics capabilities.
Ensure Data Quality and Accuracy: Implement data governance policies to maintain data quality and accuracy. Standardize data formats and protocols across the supply chain to ensure seamless integration and reporting.
Provide Training and Support to Project Teams: Equip your project teams with the necessary skills and knowledge to use visibility tools effectively. Conduct regular training sessions and provide ongoing support to ensure successful adoption.
Monitor and Evaluate Progress and Results: Continuously monitor the performance of your supply chain visibility initiatives against predefined KPIs. Use insights from these metrics to refine processes and enhance efficiency.
Continuously Improve and Refine the SCV Process: Supply chain visibility is an ongoing journey. Regularly review and update your processes, technology, and strategies to ensure continuous improvement and adaptation to changing business needs.

By following these best practices, companies can achieve successful implementation of supply chain visibility and reap the benefits of improved supply chain operations and customer satisfaction.

Partner with Holocene for Supply Chain Visibility

Supply chain visibility is a company-wide strategic journey that requires leadership support, a sharp strategy, a clear implementation plan, and prompting potential pitfalls. It also requires the right technology and process adoption, along with a lot of teamwork. This article is a detailed plan that businesses can use to build their supply chain visibility and create real-world impact by boosting operational efficiency, minimizing risks, and improving consumer experiences.

We at Holocene are passionate advocates of improving supply chain visibility. With the right expertise in-house, Holocene helps organizations gain end-to-end visibility. Our advanced solutions combine real-time tracking, predictive analytics, and collaborative platforms to improve supply chain efficiency. Supply chain leaders must adapt to a dynamic environment by leveraging technology and data analytics to monitor and manage various aspects of the supply chain, including cargo tracking, cost transparency, and regulatory compliance.

Get in touch today to understand how Holocene can help your company attain greater supply chain visibility and success in a crowded industry.

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