Real-Time Supply Chain Visibility: Best Practices
Learn why real-time supply chain visibility is key to agility.
The ability to oversee your supply chain and the actions of your suppliers and partners is key to successful business, especially in complex sectors like the semiconductor industry where disruptions can halt entire production lines. Without supply chain visibility, you risk:
- Regulatory non-compliance
And yet, only 13% of businesses confidently claim to be able to map their entire supply chain. Indeed, KPMG found that 43% of companies have either limited or no visibility of even their direct, tier 1 suppliers’ activities, let alone what is happening further upstream.
While this is a concern for those organizations, this is your opportunity to gain a competitive advantage when it comes to supply chain management. And that means not only understanding the bigger picture, but also using tech solutions to gain real-time supply chain visibility that helps you make the best possible decisions based on events as they happen.
This article explores the platforms you can use, the benefits of implementing them and how to overcome common challenges.
Key takeaways
- Most companies lack full supply chain visibility, risking compliance and delays.
Real-time supply chain visibility
To achieve real-time supply chain visibility, there is a number of technological solutions that enable you to gain the benefits. Here is a rundown of the tech available.
Integrate data sources
Each member of your supply chain will have their own data related to their own operations, including inventory levels, shipment locations, performance, and other metrics. By integrating these sources, by connecting ERP systems and other data management tools, you gain a view of the entire supply chain and how it is performing. Otherwise, you are retrospectively assessing the success or failure of the process only after you have received the goods and sent your product downstream.
You can make faster decisions to improve the workflow if you have the information before the issues escalate. For example, you can spot a delay with one supplier straight away, allowing you to update your delivery schedules or trigger contingency plans. Sharing data is a powerful way to improve agility, transparency, and resilience.
Use IoT and sensors
Advances with the internet of things (IoT) means that there are many smart devices that you can use to track the movement and status of your raw materials to ensure they are on time and being transported safely. These include:
| Device | Explanation |
| RFID tags | Small devices that store information and communicate through radio waves to help you track goods in warehouses and in transit. |
| GPS trackers | Tags that use the global positioning system to send live tracking information back to you, giving live shipping status updates. |
| Temperature sensors | Ensure your sensitive goods, such as pharmaceuticals and food products, remain within the necessary conditions during transit to maintain their integrity. |
| Humidity sensors | Measure moisture levels to protect materials that must stay dry, including electronics and textiles. |
| Load sensors | Track the weight and balance of your cargo in real time to ensure it is not being overloaded. |
| Vibration and shock sensors | Impacts during handling could damage sensitive goods and these sensors provide an alert if they detect any unusual shocks or vibrations. |
| Smart pallets | Feature sensors embedded into the pallet to track location and load conditions. |
Adopt cloud-based platforms
Collaboration is key to real-time visibility and having shared workspaces is essential for facilitating this communication between supply partners. With traditional office tools like word documents and spreadsheets, you can struggle to maintain version control as one party edits and saves the document before sending it by email to another party. It is easy for the latest version to get lost in email chains and you end up with everyone seeing a different set of information, potentially leading to major issues.
A cloud-based system allows all parties to work together, with everyone accessing the latest iteration whenever they log into the workspace. You don’t have to wait for someone to send you an update; it is there in the platform to view. Beebolt’s document management feature is a central repository for all important documentation, accessible by all authorised personnel to keep everyone in the loop and up-to-date.
Ensure data accuracy and consistency
When you work with partners in different locations, you run the risk of different cultures, systems, and workflows causing inconsistencies in your supply chain data. This makes it important to standardize the data formats you use before you begin the project.
Create a unified language for interpreting supply chain information, such as date formats and units of measure. This avoids issues that could lead to problems with inventory and shipping costs.
Use validation protocols like automating checks for duplicate entries, incomplete fields, or incompatible units of measure to ensure you understand the true status of your shipments and are working from valuable insights when making decisions.
Implement AI and analytics
Having the data at hand is one challenge for visibility, but interpreting that data and putting it to use to streamline your processes is another. Artificial intelligence and machine learning are powerful tools for providing insight on demand forecasting and risk detection. Here are some uses for these powerful tools:
- Use historical data to make accurate predictions over future logistics needs
Prioritize cybersecurity
The nature of supply chain visibility is that it involves parties from outside your organization accessing your shared workspaces and the free flow of data between entities in the chain. This makes it essential to ensure you use secure and robust platforms for communicating between partners.
Use a single source of truth for your supply chain collaborations, rather than sending messages over unsecure email chains. Look for encryption protocols and access controls to keep your sensitive information safe whilst collaborating effectively.
Set clear KPIs
An important element of effective real-time visibility is to set clear KPIs that help you understand whether your processes are performing as expected and improving over time. Metrics to track include:
- Order Fulfilment Cycle Time: Measures how long it takes from receiving an order to delivering it. Shorter times show your supply chain is more responsive.
Find more KPIs for productive supply chains here.
Benefits of real-time visibility
- Improves operational efficiency by ensuring you react to issues in a timely manner and spot bottlenecks early before they complicate your processes
Challenges and limitations of real-time visibility
| Challenge | Solution |
| Data accuracy and standardisation issues | Implement strict data validation protocols and unified data standards across all systems and partners. |
| High implementation and integration costs | Prioritize scalable visibility solutions, such as Beebolt, and explore phased rollouts to manage costs effectively. |
| Internal resistance to change | Engage stakeholders early with clear communication and training to build support for new visibility initiatives. |
| Cybersecurity and data privacy concerns | Apply robust cybersecurity measures, including encryption, access controls, and compliance with relevant data protection regulations. |
FAQ
What makes real-time visibility different from traditional supply chain tracking?
Real-time visibility provides live, dynamic updates on supply chain activities, whereas traditional tracking relies on periodic, often delayed status reports.
What is the role of AI in supply chain visibility?
AI enhances supply chain visibility by predicting disruptions, automating data analysis, and optimising decision-making through machine learning insights.
Which industries benefit the most from real-time supply chain tracking?
Industries such as retail, manufacturing, logistics, and healthcare benefit most due to their reliance on time-sensitive inventory and delivery.
Can visibility solutions improve sustainability reporting?
Yes, visibility solutions improve sustainability reporting by offering accurate, real-time data on emissions, resource use, and supplier compliance across the supply chain.
Conclusion
If you can gain real-time supply chain visibility, you can improve efficiency and sustainability in your supply chain, helping you improve performance and avoid risks. By using technology, you can improve your working relationships with supply chain partners to achieve better collaboration that feeds into decision-making backed by the best possible data and predictive analytics.
Beebolt’s supply chain operating system allows you to work together with partners in the cloud, sharing documents securely and ensuring everyone is working from the latest versions. It also gives you access to powerful AI and analytics to spot disruptions, create new routes and accurately forecast demand. Sign up for a free seven-day trial today.
