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Supply Chain Visibility

In: Business and Management

Submitted By mwakisagu
Words 692
Pages 3
What Practical Steps Should be taken to increase “visibility” in the supply chain of your business? What would the potential benefits be and would they outweigh the risks involved?

Introduction

There exists a distinct difference between an international and a global firm. Whilst the latter “crosses international boundaries in terms of manufacturing, inventory and distribution”, a global company is “characterized by global sourcing and production, along with centralized inventories information”. [ (uol.ohecampus) ]

Globalization has introduced complexities in the supply chain and logistics management. According to Rushton et al, complexities provide some significant implications for logistics operations. These include; extended supply lead times, production postponement with local added value, complicated node management, multiple freight transport options, extended and unreliable transit times, and the need for greater visibility in the supply chain. [ (Rushton, Croucher, & Baker, 2011) ]

“Supply chain visibility (SCV) is the ability of parts, components or products in transit to be tracked from the manufacturer to their final destination. The goal of SCV is to improve and strengthen the supply chain by making data readily available to all stakeholders, including the customer”. (SearchManufacturingERP, nd)

Steps to be taken to increase visibility of the Supply Chain

Information systems play a crucial role in managing the complexities brought about by globalization. The more globalised the supply chain, the more complex the supply chain and logistics.
The first step is to make a decision on the type of information that is required. Once this is done, “the Manager must then decide which technologies and how to integrate these technologies into their companies and their partners companies” [ (Chopra & Meindl, 2007) ]

Some of the...

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