This brings us to the business case for the need of increasing supply chain visibility (there are other factors too but we will just stick to this one in this article). Keeping an eye on the item movements within our organization is the primary metrics of supply chain visibility and be it incoming demand from customers or other channel partners or our own manufacturing or supplier receipts or shipping for that matter, all are mandatory parts of the supply chain visibility. All organizations, in form or another strive to keep things visible so that more informed decisions can be taken in the areas of manufacturing and supplier receipts specially but it is high time that we move to expand the horizon of supply chain visibility (SCV) and include our suppliers into it. Infact, best in class organizations have already started including suppliers into their SCV plans and they track metrics like:
Including metrics like above will reduce your vulnerability of failing to fulfill demand on time and also will enable you to plan your own inventory in a much better way so that it stays the shortest time in your premises.
- Receipts of raw material at their supplier’s end
- The shop by shop supplier manufacturing process and major production events
- Events of trucking from supplier end to their premises
- Custom clearance events
Expanded supply chain horizon will not only help you in tracking the metrics that might not be seen as directly impacting your operations (but still are) but will also help you in identifying the leakage areas that reduce the overall efficiency of the supply chain.