Many aspects of supply chain management impact daily operations and affect bottom-line productivity and profits. One of the most influential is supply chain visibility and TMS integration.
In 2017, as little as 6% of shipping and transportation companies believed they had adequate supply chain visibility, according to Geodis’ Supply Chain Worldwide Survey. In addition, a staggering 77% of shipping and transportation companies said they had very restricted or no supply chain and network visibility whatsoever.
However, that has changed significantly over the past five years, and most dramatically since May 2020. According to McKinsey & Company, 30% of companies have implemented new digital performance-management systems to boost visibility. Further, supply chain visibility is highly prioritized among 77% of supply chain entities, rising above planning tools, modeling, and disruption monitoring.
Closing network visibility gaps allows management and team members to focus on shipping and transportation management aspects more critical than information gathering. Importantly, shippers and transportation management team members can leverage visibility to prepare for the uncertainty in transportation.
The Importance of Visibility in the Supply Chain
The constant flow of data from various sources, compiled and analyzed and then applied to every aspect of supply chain operations and management, makes visibility critical for long-term success. This happens when suitable systems have adequately integrated and function as they should in the hands of freight management teams.
Visibility in the modern supply chain is about knowing where we just came from and where we are heading. We’re using historical data to see why things happened and looking forward to predicting and planning for future market trends. Transportation management systems analyze vast amounts of this data to help logistics teams better manage transportation activities. Closing visibility gaps, boosting data access, and improving market insights – these tasks are integral to this effort.
What Closing Visibility Gaps Looks Like
Accomplishing this is not as easy as it seems, considering the impact vendors and suppliers operating in various parts of the world can have on local supply chains. Add the increased freight risk assumed today, and clear visibility is more critical than ever.
Closing visibility gaps means managers operate with as much accurate and up-to-date data as possible.
As highlighted by Supply Chain 24/7, “Best guesses don’t cut it. Agile companies need instant access to the best and most up-to-the-moment information about the state of their supply chain. They also need a system to help them sift through massive amounts of data and help them prescribe the best course of action.”
15 Benefits of Improving Supply Chain Visibility
- Faster communications between team members.
- Early detection of potential problems.
- Better response to disruptions.
- Easier collaborations with 3PLs and vendors.
- Enhanced truck fleet management solutions.
- Predictive planning and actionable insight.
- Real-time data access and analytical processes.
- Live monitoring of cargo and shipments.
- On-demand assistance and customer service.
- Reliable insights into market trends and customer demands.
- Fewer delays and disruptions for lower operational costs.
- Better freight rating tools and software for smart planning.
- Lower expenses and higher profits across the board.
- Optimized services for short and long hauling.
- Overall improved delivery rates and higher customer satisfaction.
Improve Supply Chain Visibility by Closing Visibility Gaps With the Help of MerguryGate Tools and Software
Unlocking these and other benefits is easy with innovative tools and software – as long as your solution is integrated with your TMS. Learn more about the benefits and value accessible through integrating with a TMS with real-time visibility capabilities. This eBook highlights how supply chain visibility is achieved through your TMS.