Inventory visibility issues have grown exponentially as more customers turn to online purchasing. Tracking an item can become even more complex due to the additional steps and expediency demands of this now preferred process. Often referred to as invisible inventory, there are times when materials or products are unaccounted for in the system. This can stem from misdirected returned goods, misplaced scanning equipment, inferior receiving schedules and more.
When the rate of these incidents increases considerably, it can create significant problems. For instance, holding costs and their associated additional expenses may be increased when forecasting was exaggerated. Furthermore, companies might see missed sales due to insufficient or obsolete stock.
How can companies improve their practices, avoid these costly possibilities and ensure consumers are satisfied? Many are turning to supply chain visibility (SCV) technologies to stay competitive. These advanced systems attain real-time tracking, monitoring and notification of each item in their supply chain operations. With live, responsive supply chains, a company could see increased transparency within its inbound/outbound processes and other daily activities.
What’s more, they allow companies to trace their products from the point of sale (POS) to the end customer. Such systems work to enhance and reinforce the entire supply chain by granting 24/7 data access. Industry studies have found companies with integrated digital and SCV tools are estimated to be 20% more efficient over their competitors.
After undergoing recent global supply chain disruptions, enhanced supply chain visibility is among the top strategic priorities for companies worldwide. Despite this, studies show 6% of companies have full visibility of their supply chain. To achieve a peak visibility level, facilitate faster decision-making and meet demands, responsive supply chain solutions and modernized management systems will be required.
