Kevin Brady is owner and president of Satellite Logistics Group kevin.brady@slg.com • 281-902-5500
ITMATTERS
by Kevin Brady
Visibility: Seeing is Believing
T ake a look at this list of avoidable logistics problems: Time wasted manually scheduling shipments and tracking products from chan- nel to channel. Missed opportunities from not knowing the exact quan- tity of inventory in transit and stock availability. Strained relationships after shipments fail to make their destina- tion on time. The common element is a lack of visibility, the ability to view product data in real time, all the time. Forward- thinking companies that embrace visibility find it helps patch countless holes in their profit nets. THE TIME IS NOW Many companies acted quickly in the past year, moving supply chain visibility from a wish to a must-have. Those championing their compa- ny’s move toward improved visibility understand that today’s global econ- omy lives and breathes in real time, and stale logistics strategies threaten competitive advantage. They recog- nize the time to demand visibility in the supply chain is now. Companies that have already adopted supply chain visibility solu- tions have done more than prevent
juggling multiple applications. Additionally, visibility systems require new technology as well as the company-wide understanding and adoption of new processes. The sig- nificance of this task can be daunting, prompting some companies to remain focused on putting out the very fires visibility would prevent. CHANGING COMPANY CULTURE Cultural issues often play a role, too. Companies that have always managed their own supply chains may struggle with the concept of outsourcing to third- party players–even in today’s high-tech world. Doing so requires first recognizing the efficiency bar has been raised, then developing the trust and commitment to relinquish less-efficient processes in favor of a lean, robust supply chain system. Security concerns may also make companies hesitant to opt for transpar- ency. Internet technology has opened the doors to unforeseen accessibility and visibility, but visibility systems must also offer absolute protection. In the beverage industry, for exam- ple, brewers and beverage producers are faced with supply chain challenges that demand visibility. Competitive advan- tage in the beverage industry comes
headaches and cost erosion – they strategically use real-time visibility to one-up their competitors. Having supply chain visibility helps companies: ■ Resolve unpredictable scenarios, such as product trapped in customs, by expediting shipments. This also enables their customers to meet criti- cal sales periods. ■ Enhance just-in-time inventory strategies with the ability to respond to market fluctuations and seize mar- ket share when others can’t see events, much less respond to them. ■ Use supply chain transparency to manage excess inventory levels, thereby reducing the risk of erroneous handling, product obsolescence losses, and cash flow impediments. Given these benefits, why isn’t every company investing in systems that pro- vide round-the-clock visibility? One significant barrier to adopt- ing a strategic visibility solution is the challenge of streamlining multi- ple management systems. It does little good to implement product visibility in the warehouse but not in transit, or vice versa. Supply chain visibility is only effective in its entirety, which intimidates many companies already
52 Inbound Logistics • July 2007
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