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How implementing supply chain visibility will reduce your costs

Thea Jacobsen | 04. Feb 2020
4 minutes read

Supply chains are more complex than ever. Operations are not only happening within one single warehouse anymore but involves a network of resources located in different geographical areas. Globalization, multiple networks, and goods moved across more than one mode of transportations makes communication a challenge. In addition, there is also a constant struggle of becoming more customer-centric. 

All of these factors combined are exactly why supply chain visibility is crucial in 2020. Limited visibility makes decision-making difficult. Without an overview of the different parts of a supply chain, it is simply impossible to have a holistic view. This limitation is often associated with higher logistics cost. Back in 2017, Geodis found in their Supply Chain Worldwide Survey that only 6% of companies have full visibility, which is a  surprisingly low percentage. This needs to change in order for businesses to stay competitive. Therefore, it is important to understand the significant impact visibility has on supply chain management and costs. 

Eliminate disruption 

According to the BCI Supply Chain Resilience report 2018, 62% of companies experience significant financial losses due to supply chain disruptions. With customers demanding the right product at the right time, with no damage and at a low cost, not having visibility of your supply chain will turn into a high cost for your company. You will not be able to fix the problem until it already has caused a big disruption, which again can lead to bad customer reviews. 


By implementing supply chain visibility, you become much more equipped to deal with disruptions. It all of a sudden becomes possible to act proactively when problems occur. It will give a better understanding of what happened and what changes needs to be made in order for the same problem not to occur again. All the data makes it possible to analyze and anticipate on a bigger scale and prepare yourself for the future. Hence, implementing visibility is simply a leaner way of working. 


Work more efficiently 

With full visibility, there will no longer be a struggle between efficiency and customer satisfaction. With all the facts on the table, you get full control, which makes the  decision-making process easier. The information you now have allows you to look across the entire business, breaking down the traditional silos in logistics and identify bottlenecks. Stay ahead by allocating your resources in the most efficient way.

Increased customer satisfaction

Logistics is slowly becoming a differentiating capability on the road towards a customer-centric business and supply chain visibility is a step in the right direction. This capability makes it possible to prevent problems on an easier scale and inform your customers very quickly. You can update your customers on everything from shipment status, product availability to any other problems that might occur. Improved communication will be beneficial for your customer relationships, which again can have a big impact on your brand reputation and customer retention. Happy customers are the key to a successful business.

Final words

In conclusion: implementing supply chain visibility will reduce your costs in a number of ways through

  • Fewer disruptions
  • Increased efficiency
  • Identifying bottlenecks
  • Analyzing and anticipating
  • More reliable operations
  • Increased customer satisfaction

It is imperative for companies to design a supply chain with consistent and reliable services, yet adaptable to changing customer requirements. And with supply chain visibility, you have a great opportunity to reduce costs and focus on the areas that really matter for your customers. 


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