Supply chain visibility has been the favourite buzzword of boardrooms for years. Yet, if you ask most operations heads whether they truly know where their shipment is, how much inventory is in transit, or which supplier is causing bottlenecks – the answer is often a hesitant “not exactly.”
Why does supply chain visibility remain a myth for most companies, despite heavy investments in technology and processes? Let’s break it down.
🔍 What is Supply Chain Visibility?
At its core, supply chain visibility means knowing the real-time location, status, and condition of goods and materials across the entire supply chain, from suppliers to end customers. It enables proactive decisions, reduces risks, and optimises costs.
🚧 Why is It Still a Struggle?
1. Fragmented Systems and Data Silos
Most organisations work with multiple ERP systems, legacy TMS platforms, and siloed spreadsheets. Suppliers and logistics partners often use different software or manual processes, making integration a nightmare. Without seamless data sharing, visibility remains patchy.
2. Complex Multi-tier Supplier Networks
Companies rarely have visibility beyond their Tier-1 suppliers. For example, an auto manufacturer may track parts from direct vendors but have no clue about sub-vendors making critical microchips. This hidden complexity surfaced starkly during the pandemic chip crisis.
3. Lack of Real-time Data
Traditional tracking relies on milestone updates (e.g. “dispatched”, “arrived at hub”) which are often delayed or manually entered. True visibility demands real-time IoT, GPS, and telematics data, which many players – especially SMEs – haven’t yet adopted.
4. Poor Data Quality and Standardisation
Even if data is available, mismatched formats, missing entries, or manual errors reduce its reliability. Dirty data leads to wrong insights, making companies hesitant to trust the system for critical decisions.
5. Resistance to Collaboration
Supply chain partners may withhold data fearing loss of bargaining power or competitive information leakage. Without a culture of collaboration and trust, data sharing agreements remain limited.
6. Cost vs. Benefit Perception
Many companies, especially mid-sized ones, feel that investing in full-stack visibility platforms is expensive. They prefer to ‘manage with calls and WhatsApp updates’ until a disruption causes millions in losses – by which time, it’s too late.
💡 What’s The Way Forward?
- Integrated Digital Platforms
Move away from fragmented software towards platforms integrating ERP, TMS, WMS, and supplier portals into a unified data lake accessible to all stakeholders.
- IoT and Telematics Adoption
Invest in IoT devices, GPS trackers, and telematics for real-time data rather than relying only on manual updates.
- Multi-tier Supplier Mapping
Use AI and supplier risk mapping tools to gain visibility into Tier-2 and Tier-3 suppliers, identifying hidden risks early.
- Standardised Data Protocols
Ensure all partners adopt standard data formats (e.g. EDI, APIs) to enable smooth data exchange without manual intervention.
- Build Collaborative Relationships
Work with suppliers and logistics providers as partners rather than vendors. A shared commitment to transparency benefits all parties in the long run.
- Start Small, Scale Fast
Begin with critical lanes, high-value shipments, or bottleneck suppliers to demonstrate value. Use early successes to build business cases for full-scale rollouts.
Supply chain visibility isn’t just a technology problem; it’s an ecosystem and mindset challenge. As global trade becomes more volatile and customer expectations rise, companies that invest in true visibility will gain resilience, cost advantage, and trust – while others remain stuck making endless follow-up calls and reacting to crises after the damage is done.
