Why visibility leads to improved supply chain resilience

Suppliers: Transparency of the full supplier network beyond the first tier offers original equipment manufacturers (OEMs) better intelligence into short-term, emerging disruptions as well as more strategic supplier risk. Extensive transparency into deep-tier suppliers on a more strategic level can support strategic long-term objectives in network management, such as supplier sustainability, liquidity and regulatory compliance. 

Goods/materials: Tactical and strategic benefits also accrue from immediate and extended visibility around the location of goods or input materials across the supply chain. This helps with short-term planning on inventory management while reducing the need for costly buffers around logistics.

Manufacturing: Coordinated intelligence and data on manufacturing enables better access to worker knowledge and more agile decision-making. It also can inform process optimization to help manufacturers mobilize around disruption and ensure a stronger contribution to longer-term value drivers such as cost and sustainability.

Data: The right combination of data will enable organizations to create the extended linkages between suppliers, better understand the composition of finished goods, and assess the efficacy of the manufacturing process.  Building digital capabilities starts with making sure supply chain data is accurate, timely and secure, no easy task for chief information officers and chief data officers, but certainly the place to start.

Digital technology: Companies should consider a variety of technologies to improve supply chain visibility, including digital twin, control tower, the internet of things and analytics. Event collection, data-integration technologies and analytics are crucial in making data arriving from hundreds of thousands of sensors throughout the supply chain actionable.