Supply Chain Visibility: The ROI Is Real
In response to the growing interest from major corporations in supply chain visibility solutions, ARC Advisory Group published a market study that critically examines not just the drivers for greater visibility but also the value that organizations get from transparency.
Organization decision-makers are increasingly exploring and investing in solutions that deliver greater insight into their supply chains, from product conception through delivery. The ARC study defines supply chain visibility applications as “providing visibility to the order process (order placed, order adjusted, order accepted), inventory at rest or inventory in motion events, or supply chain risks or providing a standalone supply chain analytics/event management solution not embedded in other solutions.”
According to Supply Chain Digest, executives’ top pain points include increasing regulations and compliance requirements combined with decreasing clarity for decision-making. These leaders fret over additional challenges such as an inability to effectively use data, unreliable product quality, and unreliable suppliers. Visibility technology not only addresses these obstacles but also highlights otherwise unseen opportunities, unearths efficiencies, and improves organization decision-makers’ abilities to quickly adapt to changing market conditions.
Thus, it makes sense that the top driver for the growth in the visibility solution market is the return on investment (ROI) such solutions deliver.
Give a little, get a lot
The reality is that, in most cases, an investment in supply chain management visibility solutions will quickly deliver the ROI an organization is looking for. According to a Supply Chain Insights research report, 70% of respondents achieved ROI on their global trade software in 13 months post-implementation with almost two-thirds reporting ROI in one year or less. In addition, according to a report from the Aberdeen Group, companies with visibility capabilities were 1 1/2 times more likely to be able to update costs as a shipment progresses. And the Aberdeen report notes that best-in-class organizations also have 89% of their total spend under management — no small feat for an area of business that is subject to such rapid change.
The benefits end-to-end visibility provides to your supply chain life cycle cannot be overstated. With this technology, you can be alerted to problems before they escalate, experience fewer errors and delays, and gain insights into order flow, inventory, and overall performance internally as well as with suppliers.
With this data, you can make better short- and long-term decisions, improve operation efficiencies, and quickly deal with exceptions and issues. All of these benefits are quickly reflected in your market standing and bottom line. For competitive companies, investing in supply chain visibility software solutions is a good idea that pays off quickly!
[cta]For more information about how nVision Global’s suite of logistics management tools can help you automate processes and ensure accuracy, visit nvisionglobal.com or call 770.474.4122.[/cta]
