LIVING LOGISTICS BLOG

    Turning Visibility into Earnings and Profit

    Apr 2, 2021 9:00:00 AM / by Cecilia Noguera

    Achieving full Supply Chain visibility is today, more than ever, a challenge for logistics businesses all over the world.

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    Having wide visibility of the operations not only improves overall performance, but it also impacts EBIT results. Just to say something, about 25% of the firms with a full supply chain visibility show an EBIT over 25%

     

    While talking about Visibility, the main objective establishing fluidity along the value chain. For supplier-focused companies, priority is given to the availability and quality of products. For production-focused ones, the main objective is to improve distribution within production facilities, and for customer-oriented companies, it is value reactivity and agility, as well as OTIF (On-time and In-full) delivery.

     

    In addition to these objectives, there is a strategic challenge to achieve full transparency in the product lifecycle: a clear view of all stages from the first line suppliers to the final customer. Achieving this is a decisive advantage to reach operational and cost efficiency.

     

    But why is the Top-Level management involvement so important?

    We found that when companies communicate about visibility and transparency goals, it usually requires a top-down initiative. Companies “that have chosen to appoint a supply chain leader as a board member are more likely to see their EBIT level rise”.

     

    When the Top-Level Management chooses visibility as a major objective and the correct management of their supply chain as a competitive advantage, it is proven that the results, both financial and operational, are due to be positive.

     

     

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    Topics: Visibility, Supply Chain Solutions, Supply Chain Management, Customer Service, Logistics, Top Level

    Cecilia Noguera

    Written by Cecilia Noguera

    Cecilia is a Visual Experience Manager at GEODIS. She has a degree in Advertising Art Direction and knowledge of Marketing, Photography and Graphic design. She joined GEODIS 9 years ago in Argentina and is now working in The Americas Center of Excellence in Guadalajara, Mexico.

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