Visibility is a High Priority As Supply Chain Complexity Rises
Sixty-three percent of firms rank supply chain visibility as a high priority, according to a recent Aberdeen Group study titled Supply Chain Visibility: A Critical Strategy to Optimize Cost and Service. Another 28 percent say it is a medium priority.
The study found that supply chain complexity is increasing as the number of suppliers, partners, carriers, customers, countries and logistics channels rise. Given this, top of mind with supply chain executives is the need for improved speed and accuracy. These become cost drivers, and better visibility is necessary to help manage and reduce those costs and improve operational performance.
According to the report, with increased globalization shipments are spending more time in the transportation and logistics pipeline. Visibility to item, shipment and pallet is dependent on universal standardization of product IDs and bar codes.
Key findings of the report include:
–The top 20% best-in-class companies claim to be compliant to GS1 standards
–Users that adhere to GS1 standards are more than twice as likely as others to monitor transportation and logistics activities at the unit and container level
–Shippers and logistics service providers are tightly interconnected and need to speak the same language to enable end-to-end visibility
–Firms are relying increasingly on the use of third party logistics providers as supply chains become more globally connected.
This also echoes the findings of KPMG’s recent 2013 Global Aerospace & Defence Outlook that found that delivery delays in the aerospace sector, demand volatility in the defense sector and increasing incidences of supply chain disruptions across the board have shown that greater visibility and collaboration are needed between suppliers and partners.
Click here to view the full Aberdeen report.
