What Supply Chain Visibility Really Means
A simple definition of Supply Chain Visibility is the ability to track materials as well as their transformations as they move across the value stream. The definition may look simple, but the execution is definitely not!
The word visibility in this context can refer to:
- Where raw materials are sourced from;
- Tracking of movements of raw materials and finished goods as they travel through the value stream;
- How they are stored;
- How raw materials are consumed into production orders and what exact finished goods are produced as a result;
- Tracking of raw materials and finished goods in transit;
- Tracking consumers interactions with finished goods;
- Consolidation of data to generate information and insights for business decisions.
In its broader meaning, visibility has to work for the Brand Owner, Customers and also the final Consumers. Everyone has to benefit from this enhanced visibility.
A company that invests on people, technology and processes as enablers for Supply Chain Visibility, with the focus only on internal use cases, may even realize some benefits but it still is a narrowed strategy.
The Most Common Mistake
Besides not looking holistically enough to create enhanced visibility and experience for customers and/or consumers, the most common mistake companies make is to look for technology solutions without building a strong Business Case in the first place. Why is this a mistake?
First of all, Supply Chain Visibility is an extremely complex topic. There are simply too many use cases under this domain. There are too many different perspectives and problem statements to be assessed and evaluated. The technologies supporting these different use cases and problem statements are completely different as well. 
Secondly, even if the company knows what are the primary use cases to be explored, there’s always the possibility of additional benefits and use cases to be implemented with a minimum additional effort. This is something extremely important to be considered.
The third factor, and perhaps the most complex one is the large amount of solutions available out there. A single vendor will not be able to cover all possible use cases and will not bring this end-to-end and holistic view that a robust business case needs.
Ideally, as a first step, a business consulting partner can help to frame the Supply Chain Visibility strategy in a more effective manner. This approach will ensure more value to be generated, with less capital.
Creating Powerful Business Cases
An ordinary business case is a great tool for a company to understand the level of investment to be made, the implementation timeline, the resources that will be necessary, the risks involved, the expected Return Over Investment (ROI) and other foundational components.
A strong Supply Chain Visibility business case should also include in details the use cases that will be pursued, the rational on why they were selected, and a roadmap covering the technology building blocks, the business capabilities to be created over time, and other initiatives that will sustain the overall strategy. 
The biggest difference between an ordinary and a powerful business case then, is the effort invested to think strategically on how to frame this Supply Chain Visibility roadmap and its components. Even if the investments initially would cover a limited amount of use cases, the roadmap needs to consider a long term perspective. Decisions happening now should be made under the future vision context. The initial steps taken now should be seen as an integral part of a bigger journey.
Among all pillars within a business case, the use cases are undoubtedly the ones that will truly sustain it. They represent the company’s objectives, the elements that will generate competitive advantage.
Selecting The Right Use Cases
Let us now look into some of the use cases that companies around the world, from different industry sectors, are exploring under the Supply Chain Visibility domain:
- Sustainability & Circular Economy: auditable records related to carbon foot print to produce, store and transport the goods; percentage of recycled raw materials used on finished goods, any other eco-friendly initiative that can be measured and shared with consumers so they feel more connected to the brand and its values.
- Provenance, Transparency and Fair Labor Practices: auditable records, with a more upstream focus, bringing information and creating trust with final consumers about where and how products are sourced. E.g. regulated waters for fish; regulated farms for food; batch certificates from audited suppliers, confirming they are suitable to operate in the market.
- Consumer Engagement and Brand Loyalty: 2D barcodes or smart sensors at the product/item level to create a more intimate connection with consumers, leveraging from online content, cloud solutions and mobile technology.
- Regulatory & Compliance Requirements: projects motivated by regulatory reasons on specific sectors (Pharma, Food, Tobacco, etc), to mitigate issues like counterfeiting, tax evasion, goods diversion, etc.
- Operational Automation & Supply Chain Efficiencies: usage of tracking mechanisms as a foundation for enhanced mechanisation and automation of supply chain operations.
- Supply Chain Integration: usage of tracking mechanisms across two or more trading partners within the supply chain, as a foundation for collaboration and mutual process automation.
- Real-Time Traceability (IoT): traceability can happen at the raw materials, sellable unit, or cargo levels. These solutions can be used cross-border, by brokers, by last mile delivery companies and by importer planners, for example.
- Control Towers: different configurations of control towers can be designed, more or less complex, providing real-time or near real-time visibility about inventory levels, product flow, customer orders, and so on. Data & analytics also play a key role here, enabling business driven decisions.
Conclusion
The selection of relevant use cases, along with the right partners and solutions, and when properly aligned with the business model, will generate transformation! It definitely sets the business up for success in the new digital era.
Don’t just rush into solutions and technologies. Just remember that it all starts with the strategy. Spending energy into a strong assessment and business case, combined with the correct mindset, that is the formula to succeed! Believe it!
