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Portrait of Supply Chain Visibility

April 13, 2011
Before you can reduce your inventory levels, you need visibility throughout your supply chain.

Growing supply chain complexity is the top business pressure on manufacturers seeking to improve visibility throughout their supply chains, according to a recent survey conducted by analyst firm Aberdeen Group. And it's that complexity that's piling on costs in the form of longer lead times, more inventory in the pipeline and higher supply chain management costs.

To reduce these costs, companies need to have visibility into all facets of their supply chains. "Visibility into critical activities and milestones is a necessary infrastructure element for managing supply chain processes," explains Bob Heaney, a senior research analyst with Aberdeen Group. "Best-in-class companies are more likely to have granular visibility into critical supply chain processes and events, which help them gain better control of their supply chains."

Based on Aberdeen's survey findings, the least visible activities within the supply chain are on the inbound side: order acknowledgments by suppliers, supplier invoice status, and matching up order acknowledgments with purchase orders.

Best-in-class companies, according to Heaney, ensure that their customers are serviced well. They are 40% more likely than other manufacturers to have either lot or SKU-level visibility into their inbound pipeline inventory. What's more, he adds, "they are 57% more likely to gain visibility into international inbound shipment status within hours, as opposed to days or longer."

The accompanying PACE (pressures, actions, capabilities and enablers) chart illustrates how manufacturers can progress from identifying a problem to focusing on a solution, and as a result become best-in-class themselves.

About the Author

Dave Blanchard | Senior Director of Content

Focus: Supply Chain

Call: (941) 208-4370

Follow on Twitter @SupplyChainDave

During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

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