I n recent years, the amount of infor- mation and data about their supply chains that is available to companies has been steadily increasing. Web
traffic, social networks, software, and
sensors monitor shipments, suppliers,
and customers, while ever-growing historical data show past inventory levels
and sales. This development is both
a boon and a bane. On the one hand,
the various data sources enable companies to visualize and forecast flows in
their supply chains. On the other, the
range of information and data is vast
and often unstructured, so a company
has to make smart choices in order to
select the right data for a particular
application.
When used correctly, an analysis of
the right data enables companies to
enhance the visibility of their supply
chains. There are many different definitions of supply chain visibility, but
in general, it refers to the knowledge of
and control over inventory, orders, and
shipments and the various events and
costs that affect them. Some examples
include the extent to which a company
can ascertain the location of delivery
trucks, the effects of weather on spare
parts’ availability, and which item to
supply next in order to meet customer
demands.
Given the time and cost pressures on
companies today, it is surprising that
organizations rarely employ a rigorous
approach to making systematic use of
their data in order to benefit from
an efficient, up-to-date view of their
supply chain activities. According to
Adam Hamzawi, chief executive officer of the information technology (IT)
consultancy e TURNING and a former
Capgemini consultant, only 20 percent
of companies fully exploit the data
To achieve supply chain visibility, you need to collect and
analyze vast amounts of data. But how do you choose the right
data? Following this three-step approach will help you leverage
valuable data from both existing and new sources.
BY DENIS HÜBNER, STEPHAN M. WAGNER, AND BORIS ZAREMBA
Lifting the fog:
3 steps to supply
chain visibility
