As any pilot knows, visibility is essential to safely reaching a desired destination. Modern instrument landing systems can help planes land when visibility conditions are poor. However, pilots still need visual references from the runway to maneuver an aircraft to touchdown. If visibility is poor, flights are diverted or remain in holding patterns until conditions improve.
The same goes for navigating the complexities of today’s supply chains. Without visibility, operations can be delayed, diverted or grounded, compromising the customer experience and bottom-line results. This is particularly true when it comes to industrial manufacturing. Whether you’re building combines, airplanes, or other types of heavy equipment, the focus is on maintaining product quality, delivering on time, and reducing production costs.
So, what is supply chain visibility?
In a nutshell, supply chain visibility comprises three key components:
1. The ability to identify, capture and share events and transactions as they occur and store that information for historical recording and reporting
2. Access to real-time, actionable information about the status of inventory as it moves through the supply chain from origin to destination – by every stakeholder
3. Insight into all aspects of supply chain operations: demand forecasts, order lead times, production, distribution, freight movement, packaging and delivery
Why does visibility matter?
Visibility for visibility’s sake is irrelevant. It’s what you do with available data to make decisions or react to customer demand. With access to actionable information on demand and inventory levels, you can:
- Capture and track information to the item level
- Dynamically plan and tune product movements
- Track, trace and manage inventory as it flows through the supply chain
- Support returns and confirm the authenticity and quality of products more efficiently
- Increase reliability, responsiveness, and customer satisfaction
- Respond quickly to unexpected situations and emergencies
Three ways to elevate supply chain visibility…
1. Use reference numbers to the part level: from a manufacturing perspective, materials managers want to know where parts X, Y and Z are and when they’ll arrive at the plant. With part numbers as reference points, managers can track and trace materials and reference inventory, warranty and quality information.
2. Make sure all systems support the manufacturing supply chain: ensure that suppliers, transportation providers and third-party logistics providers are all on the same page, using part numbers as reference points.
3. Harness the power of LEAN to unlock efficiencies: by creating a lean culture, you can transform and align critical processes and cycle times to your customer and supply chain requirements. That might mean building products based on proper inventory levels, proper stacking levels and proper buffer levels with a focus on reducing cost and eliminating waste.
How are you achieving supply chain visibility? What reference levels do you use?
Written by Tom Kroswek, Senior Director SCE Automotive, Ryder Supply Chain Solutions.
Mr. Kroswek is a logistics and engineering professional with 28 years of experience in supply chain engineering, transportation analysis, and inbound manufacturing support.
