When confronted with a crisis such as a pandemic, businesses are required to respond on multiple fronts at once, from safeguarding staff to maintaining operational viability and at the same time, building resilience that helps them see through to the other side. However, having a seamless view of every layer and segment of the supply chain becomes difficult. In such times, warding your supply chain with Supply Chain Visibility could be the answer to all your prayers. The following feature talks about the importance of supply chain visibility, how it helps in converting losses into profits, the right visibility tools to invest in and much more.
The outbreak of the pandemic earlier last year caused major disruptions in supply chains due to which companies had to suffer significant financial losses. Now as India is under its second covid wave, which is much bigger than the first, it is about time for every industry player to digitise their supply chain and make it resilient enough to withstand the changing scenarios and avoid any further disruption.
“To make the supply chain resilient, visibility is needed to ramp up or ramp down the operations on the basis of the changing scenarios”, shares Rahul S Dogar, Managing Director, Holisol.
With rapidly changing demands and market dynamics, businesses need to be adequate in solving any prevailing issue or bottleneck in the supply chain, and it can only be addressed if we see it.
Thus, when dealing with a situation like the pandemic, data-driven supply chain visibility is the need of the hour, said Deepesh Kuruppath, Founder & CEO, Cargo FL.
Such supply chains can provide clarity on data, extrapolate blockage and point out the bottlenecks.
Ayush Agrawal, CO-founder, Intugine Technologies says, “With visibility over each node of the supply chain, organisations can detect exceptions and delays in real-time to plan corrective action and pre-empt any major disruptions to their operations”.
Supply chain visibility makes companies more agile by providing them the ability to Create Contingency plans, mitigate Supply Shocks, manage Demand Volatility by prioritising products and creating inventory reserves, and respond to changes in consumption pattern and channel shifts, shares Jayaraman Krishnamurthy, Head, Industry Solutions and Sales, o9 Solutions India.
It was noted that the companies that had supply chain visibility were the least impacted during the first wave of the pandemic and are expected to be driving growth in the second wave by leveraging technology and data-driven supply chain visibility.
“Going forward, the company’s success will depend on how well it knows the emerging trends and how well equipped it is with technology, tools, and innovative solutions and right partners to enable all this,” states Mr Dogar.
Therefore, the implementation of the right technology will be of utmost importance. “A technology-driven supply chain implementation enables companies to work in a more fluid and communicative business environment helping them be prepared for such unforeseen situations”, shares Mr Kuruppath.
With the right technology, organisations will be capable of identifying demand drivers such as market intelligence, macroeconomic data, discounts, promotions, events, social media sentiments, demographics, etc., which will be incorporated in demand forecasting models to yield high forecast accuracy and eliminate losses.
Turning losses into profits with visibility
With the changing sales environment and increasing consumer demand, companies need to manage their inventory levels and deliver their products with zero damage, at the right time and at a low cost to meet consumers’ expectations and deliver satisfaction. With lack of visibility, supply chains are unable to manage their inventory and are bound to turn into a high cost for any business as one will not be able to fix the problem until it already has caused a big disruption.
According to the 2018 BCI Supply Chain Resilience Report, 62% of companies experience significant financial losses due to supply chain disruptions.
However, with Supply chain visibility, one can close the disruptive gaps in the supply chain and keep a check on inventory while also help save on costs.
Supply chain visibility facilitates in seeing the market trends which enable companies in keeping an optimal level of inventory aligned with the demand. Companies can use key data to simulate the demand scenarios specific to the locations and SKUs, then synthesise the resulting inventory risk—thus enhancing decision making.
This is an abridged version of the original article that was published in the May issue of the Logistics Insider magazine. If you wish to read the complete article and a lot of other interesting content, please click here.