The top goals for supply chain management are changing. Global instability is increasing due to causes including geopolitical upheavals, economic pressures, and the diminishing effects of climate disasters. As a result, supply chains are realigning to respond appropriately to price swings and boost resilience.
All supply chain restructuring, including nearshoring, supplier diversity, automation, and digital transformation, begins with visibility in a logistics company. Increasing supply chain visibility is essential for enabling managers to assess inefficiencies and pinpoint strengths to achieve objectives that are backed by evidence.
However, selecting the appropriate measures to identify might be difficult. The performance of the supply chain may be measured with the use of these five supply chain metrics in a logistics company.
Five Supply Chain Metrics
1. IDENTIFY THE PAIN POINTS
Which is the primary issue that would benefit most from more visibility? Make sure you have done your homework. Meet with your internal departments and primary vendors to address challenges.
Select the most pressing issue, then conduct more research to determine the exact process, technology, or other solutions that offer the highest return on investment for your company.
Most manufacturing and distribution organizations list inventory management as an issue that has to be resolved. Your business might not be an exception to this. Once more, do your homework, examine the information, and decide which area to focus on first.
2: SET GOALS AND EXPECTATIONS
Make a plan of action now that you know where you’re going.
What SCV advantages can we take advantage of? should be discussed with your team.
Is risk management given more importance than accelerated time to market?
Determine strategies and who will execute them based on the answers to those questions.
Set a deadline for your objectives.
Watch the situation closely. Speak with your group. Can you get them anything—a new tool or piece of technology—that would make it simpler for them to accomplish their goal?
3: Break the Chain and Create a Network
Yes, we’re talking about improving supply chain visibility, but the finished product will resemble a network rather than a chain. You’ll need to work with your vendors to achieve true visibility. We advise you to start by speaking with the vendors whose involvement has the biggest impact on your bottom line. Be sure to approach them in the true spirit of cooperation and gain for both parties. The term “win-win” should be used to describe this method of conducting business. Discuss how to include SCV in all of your interactions with others in your network after meeting with your key vendors. This requires mutual trust and an openness to divulge information.
4: INVEST IN LATEST TECHNOLOGY
It’s time to make a financial commitment now that your SCV action plan has been created. For your supply chain’s data management requirements, you require a sophisticated system. There are many supply chain management options available, with prices to suit every budget. Don’t purchase more than you require, but also don’t purchase any less. Your data will be useful in this situation. Consider your particular needs and goals, as well as any identified pain points. You probably won’t come across a solution that works for everyone. In addition,
Review the systems you already have. Are there any upgrades or add-ons that would be helpful to you?
Automate work procedures when you can. To improve productivity, cut down on wasteful time, and improve visibility across your supply network, use track and trace systems, RFID technology, or smart sensors. Aim not to complete it all at once. After determining what your resources will allow, consider the demands of your partners, clients, and business.
5: ANALYZE RESULTS AND FIND WAYS TO IMPROVE
Nothing can be improved unless it is measured. Determine which key performance indicators (KPIs) are most important to measure based on your specific goals – and make sure your system is capable of doing so. Send out regular scorecards and keep lines of communication open with your collaborators.
Don’t get comfortable! You’ve distinguished your company by initiating a cycle of continuous improvement, which should be a goal for all businesses rather than a nice saying on the wall. Create a plan on paper to accomplish this.
Conclusion
Supply chain visibility becomes a critical component of keeping a competitive edge in the fast-paced world of business. Your supply chain may be fully utilized by adopting automation, digital twin technologies, cloud-based collaboration, predictive analytics, and continuous process improvement. These tactics provide you with the tools to overcome obstacles with confidence, in addition to increasing productivity and cost-effectiveness. Recall that supply chain visibility is more than just a tool; it’s a competitive advantage that helps your company succeed in the dynamic world of production and trade.
