Inbound Logistics | July 2024

[ INSIGHT ] VISIBILITY

by Oana Jinga Chief Commercial and Product O cer and Co-Founder, Dexory letstalk@dexory.com | linkedin.com/in/oanajinga

Tips for Closing the Visibility Gap With modern supply chains being so intricate and involving numerous stakeholders, maintaining full visibility is becoming increasingly challenging. However, many businesses operate with fragmented and legacy systems where data lives in different silos and across different platforms. This lack of integration makes it difficult to track and monitor the entire supply chain in real time.

Here are four ways to close the visibility gap:

1. Gather real-time data. Businesses can get a holistic view of all their operations and make sure that the data matches the WMS in order to quickly point out any discrepancies in the system. 2. Leverage advanced analytics and predictive monitoring. This information helps to anticipate demand uctuations, optimize inventory levels, and identify potential bottlenecks in the warehouse. By utilizing AI-powered solutions for analytics, businesses can generate more insights and visibility with more data. 3. Invest in technology infrastructure. Allocate resources to upgrade and integrate technology infrastructure within the warehouse. This includes implementing WMS, Internet of Things devices, and cloud-based solutions to streamline operations and enhance real- time visibility. 4. Prioritize collaboration. Foster collaboration with manufacturers, suppliers, and distributors. Implement shared platforms and standardized data exchange protocols to ensure seamless communication and information ow throughout the supply chain. The visibility gap poses a new challenge in an ever-complex environment. New innovations allow supply chain professionals to close the gap through continuous real-time data. n

• Increased operating costs. Without a clear view of the supply chain, businesses may face increased operational costs due to inefciencies, excess inventory, and disruptions. This, in turn, affects the overall protability of the organization. • Customer dissatisfaction. In today’s consumer-driven market, customers expect timely and accurate deliveries. The visibility gap can result in delayed shipments or stockouts, leading to dissatised customers and potential damage to a company’s reputation. • Risk exposure. Lack of visibility makes it challenging to identify and mitigate risks effectively. Whether it’s geopolitical issues, natural disasters, or supply chain disruptions, organizations with limited visibility are more susceptible to unforeseen challenges. Warehouses dedicate 6,500 hours annually to tasks such as cycle counts and stock checking. Even so, due to the dynamic nature of modern warehouses, that data snapshot is outdated quickly.

From a data perspective, the visibility gap is caused by the following: • Fragmented systems. Disjointed systems create data silos that hinder the seamless ow of information across the supply chain. • Inecient communication and human error. When critical information is not shared promptly or accurately, it creates visibility gaps and exacerbates operational challenges. Similarly, human error can cause issues such as incorrectly entering information in the warehouse management system (WMS). • Legacy technologies. Outdated or incompatible technologies can impact the real-time exchange of data. Legacy systems often lack the capabilities needed to keep up with the dynamic nature of modern supply chains. Lack of visibility can lead to many risks and inefciencies. These inefciencies have real-world business implications that include, but are not limited to:

44 Inbound Logistics • July 2024