LIVING LOGISTICS BLOG

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

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.