Improving Business Profitability by Increasing Supply Chain Visibility14 Mar 2014, by Blog, Transportation Technology in
Supply chain systems continue to grow in complexity, whether globally or domestically. And business continues to grow even more competitive by the day as newer technologies are introduced and the customers’ deadlines become more stringent. Recognizing the need for supply chain visibility is one of the latest trends that have emerged as a result to the recent economic upheavals.
Supply chain initiatives offered by the uninitiated can be risky. It does not only involve the transportation of goods from one place to another; it also involves precarious time management and inventory management strategies to make sure the deadlines are met at all times. After all, how will your business be affected if goods are delivered a week later than promised? Such delays can shatter the bottom line for any company – whether it is shipping products or waiting for a critical part so as not to shut down production.
Supply Chain visibility allows for efficient tracking at every stage of transportation – whether it is lying in the warehouse, has shipped and in route, or has reached the final customer successfully. Manufacturing and distribution companies need to be able to track their goods at every stage so if an uncontrollable disruption occurs, efficient contingency plans can be put in place to minimize the loss.
In case of an unforeseen disturbance, the shipment can be diverted midway to a “safe” destination as a proactive reaction to the situation. This is only possible when the company is able to track the movement of goods precisely. Such impromptu corrective measures can save the company from massive losses in the form of damaged goods, late deliveries and lost sales.
Greater visibility also offers greater flexibility in terms of inventory management. Companies need not build up safety stock in order to battle unforeseen circumstances. They need to be smart about managing the channels of transport to absorb the fluctuations of demand and supply actively. Consequently, there is lesser company resources invested in the inventory while a major portion is redeemed as profits.
Supply chain visibility is also associated with greater competitive edge. You can easily scoop up competition by investing adequately in technological resources that offer elevated visibility. Consequently, you will be able to meet customer deadlines and make more customers that are looking for diligent services.
In the long run, greater supply chain visibility will surely translate into higher profitability for the company in many ways. It is time for companies to recognize this profit potential and capitalize on this opportunity to maximize available technology. It is all about offering something better than the competition.