In supply chains, visibility refers to the ability to access information on the status of each stage of the logistics process, from production to distribution and sale. This data must be clear and transparent for service providers and customers.
Some of the benefits of having adequate supply chain visibility are:
- Reduced operating costs
It reduces unnecessary inventory, emergencies to deal with, and waste. Good visibility supported by the right technology to perform predictive analytics can improve demand forecasts by 20-30% and reduce excess inventory by up to 25%.
- Better customer service
Among other benefits, visibility enables punctuality, more realistic delivery promises, and fewer complaints and returns. A survey of companies in the sector showed that 75% of respondents consider transparency useful for strengthening consumer confidence. Similarly, other studies suggest that 82% of customers prefer companies that provide real-time shipment updates.
- Greater resilience and risk management
Thanks to visibility, logistics providers can detect disruptions in a timely manner, react quickly to unexpected external events (crime or accidents), and minimize their impact. Experts in cargo theft detection and prevention recorded 1,778 risk events in supply chains in the United States and Canada during 2022, an increase of 15% over the previous year.
- Adequate strategic decision-making
Decisions are based on data (not intuition), the logistics network is optimized, and planning is improved. Transportation and logistics industry experts believe that, following the 2020 pandemic, 62% of organizations worldwide have limited visibility into their supply chain; only 22% of companies have a proactive supply chain, and only 15% have full knowledge of their production process.
Cutting-edge technological tools have become indispensable for achieving optimal visibility. ED Forwarding, a member of PSA, has innovative technology and expert staff to achieve end-to-end transparency throughout the entire shipping process.
