Ensuring Supply Chain Visibility and Transparency

The terms "visibility" and "transparency" are frequently used in industry publications. Although it is obvious, not all data that is visible to a company ends up being shared with its partners. This is one of the reasons why there is a demand for more transparency in supply chains. Many suppliers, carriers or logistics operators are hesitant to be fully transparent with their customers. Often, companies detect shortcomings through this information. However, they prefer to handle problems before the customer becomes aware of them. On the other hand, many shippers are not comfortable sharing data with their suppliers or vendors. In these cases, there are concerns about intellectual property, financial margins or security risks. This is understandable, as information makes it possible to detect and monitor the situation at all times. However, this behaviour can result in a lack of trust between the different links in the supply chain. There is no doubt that when there is a partnership between a supplier and a customer, transparency helps to build trust. When actors are able to demonstrate that they have the tools and capacity to resolve potential contingencies, they make excellent supply chain partners. In this way, the visibility and transparency of these partners create an atmosphere of real collaboration. Over time, the links in the supply chain learn to complement each other and drive efficient practices for all parties. Many supply chain actors already have Big Data tools or systems to track their operations. With them, they can collect copious amounts of information and gain visibility into their transactions. Analysing this data makes it easier to predict, anticipate problems and improve collaboration with their partners. Supply Chain Actors However, there are still many actors who do not have the capacity to collect data or give it visibility. They simply do not have sufficient tools or structure. It’s obvious that, in order to address this situation, it is necessary to take a step-by-step approach. As individual and local supply chains gain visibility and trust, their models can be integrated into the new trends of efficiency and transparency. It is a question of taking the relationships between partners further. This will be a step towards collaborative logistics. Today, most actors involved in the supply chain are familiar with this concept. In fact, many shippers and customers can track their inbound and outbound shipments or deliveries in real-time. There is even a sea of data thanks to the development of cloud storage technologies, artificial intelligence (AI), machine learning (MLS), the internet of things (IoT) and other technologies such as blockchain. However, less than 10% of modern supply chain data is being used effectively. It is not enough to monitor data. Proactive and useful monitoring is achieved when we are able to make decisions based on that data. Data analytics systems are in full development but are still imprecise. An effort is needed to address both planned and unplanned situations and to execute accurate decisions. Currently, these systems are capable of making decisions to expedite a shipment or to find alternative routes. By analysing data from past and current operations, companies can make reasonable predictions to optimise existing supply chain functions and avoid predictable risks. Integrable Aspects Some of the aspects that are part of the supply chain have data available. It is really a matter of making an effort to integrate them. Some of these aspects are discussed below. Route Planning Transport departments generate perfectly planned routes. The objectives are to optimise times, save fuel, achieve JIT shipments, manage full loads, optimise operating hours, driving and resting times, avoid empty returns and other aspects. The management of this data can be exploited in collaborative logistics. Operational Performance Optimising global supply chains is very complex. They are typically influenced by manufacturers, who have to monitor their internal assets, operations, suppliers and identify areas for improvement or cost savings. They are also influenced by the operations of third party players that need to move in a coordinated manner, such as carriers, warehousers, customs brokers, legalisation agents, insurers, etc. Data management is a valuable tool for performance monitoring. The optimum of each link does not always lead to the optimum of the overall chain. Risk Management Monitoring data management facilitates the identification of potential risks. The visibility of this data also helps to plan corrective and preventive actions. It is of particular importance to avoid delays or inadequate practices. In supply chains, tracking data allows planning future shipments, based on the results obtained from monitoring past shipments. Similarly, manufacturers and service providers can plan their operations based on historical tracking data. Sustainability Companies' environmental management or impacts extend beyond their own facilities. Most of the aspects that contribute to the carbon footprint are related to the movement of consumer products. Visibility and monitoring of data enables them to make ethical and sustainable decisions for their business practices. It should also be taken into account in the search for partners, suppliers and other actors involved in the supply chain. Obviously, it is important to generate positive corporate visibility for the company's brand, its customers and society. Automation The use of artificial intelligence, machine learning, IoT or block chain tools allows drastic improvements. Proper data analysis corresponds to a more rigorous determination of demand forecasts. Analysis of market trends, sales, shipping information and other factors leads to accurate predictions and decision making. Autonomous learning systems require large volumes of data. Disclosing Information Ultimately, brands and businesses set the level of disclosure they wish to establish. It is necessary to decide on how to meet the regulatory requirements and stakeholder demands, in addition to how this information will be communicated. This can range from divulging a code of conduct to sharing traceability information in the raw materials at the source of the supply chain.
Visibility and Transparency It’s important to bear in mind that in order to realise the full potential of data, transparency is needed. Visibility of some data is not enough. Improvements will not happen overnight. Time must be taken to understand where the opportunities for supply chain improvement lie. The importance of starting to address small opportunities is key. Working one step at a time makes the most sense. If a company is able to address its problems by applying data analytics to small projects, it will be able to grow in the big picture. Big data management is fundamental: every actor involved in the supply chain must be aware that this is a team effort. Every in-plant operation, every handling, every transhipment or mode change is critical. Using data to identify these critical areas can only translate into opportunities for improvement. What we crave today as end-to-end visibility or tracking is probably a goal that will never be achieved. The first step is internal visibility and integration with supplier visibility. Subsequently, the visibility of all other actors will have to be integrated. The challenge will be different for each company, as the factors will depend on the local practices of each site. What is important is that the visibility of shared data will identify critical areas and anticipate risks in each supply chain.