The ever-growing ecommerce market and consumer demand have disrupted modern supply chains. They have become complex, and a lack of proper management often leads to major losses. For example, India spends about $160 billion on road logistics, twice what countries with better transportation management spend, due to inefficiently planned freight movement.

Supply Chain Visibility (SCV) is a logistic business’ ability to get complete visibility into all supply chain elements – inventory, storage, freight, etc. Today’s supply chains require end-to-end visibility to prevent operational errors, increased costs, and delivery delays. Technology like AI and IoT are making real-time supply chain visibility possible.

Let’s take a look at SCV facts and trends that are relevant in 2023.

Must know facts about supply chain visibility

1. Less than 10% of companies have full supply chain visibility

Only 6% of companies claim full visibility of their supply chain, while others admit they don’t have complete visibility. (Source)

While most enterprises understand the need for digitization and visibility into the supply chain, challenges like a lack of know-how and finances hold them back. COVID-19 disrupted the logistics industry and was a factor in the delay in digitization, but it is also the current driver for it.

2. The top technologies for SCV are analytics, IoT, and cloud computing

As digitization becomes crucial for supply chains, certain technologies take priority over others. In a survey about technologies that are a priority for supply chains, 41% of respondents said data analytics tools, 39% said IoT and 39% said cloud computing is the top technologies to invest in. Together, these technologies will enable better data tracking, analysis, and automated processes.

3. Automation is becoming the driver of efficient supply chains

The global logistics automation market has a predicted CAGR of 12.4%, the highest CAGR of any supply chain market. The market size is expected to grow from $50.9 billion in 2020 to $82.3 billion by 2026. This indicates the penetration of AI and automation in the logistics industry.

4. SCV greatly improves supply chain efficiency

• Supply chain visibility enhances data: The entire process of data tracking, collection, storage and processing relies on visibility into the supply chain.
• Prevents inventory mismatch: A delay in information between the warehouse and the store results in overstocking and understocking, resulting in losses. Consistent and real-time data sync (in other words, complete visibility) is imperative to maintaining the right stock levels at the warehouse, store, and website.
• Tightens delivery time: Being able to track a product from the time it is paid for by a customer to the moment it is delivered helps companies plan for any challenges along the way. Idle time at the warehouse, delays in packaging, truck breakdowns, etc., several issues can delay delivery or stretch the supply chain. An SCV solution can help you mitigate these risks and plan ahead.

Emerging trends in supply chain visibility

1. Penetration of AI and automation

The key to enhancing the supply chain is to create more automated, error-free processes. Logistics teams are already achieving this by integrating AI and automation with supply chain visibility software.

Enterprises are using AI solutions that process data tracked via connected devices to detect (and predict) issues like bottlenecks, breakdowns or delays, find the most optimal solution, and set it in motion. While issues cannot be completely eliminated, logistics teams can drastically reduce the reaction time between issue detection and resolution, resulting in more efficient supply chains.

Repetitive tasks within logistics operations are being automated using Robotic Process Automation (RPA), a subset of AI. RPA reduces human dependency (and, with it, human-prone errors), making operations more efficient.

2. Internet of Things (IoT)

IoT sensors are going to be a major component of end-to-end supply chain visibility; they will enable different elements (man, machine and material) within the logistics chain to transmit valuable data, which will be used by AI and analytics tools to create high-level visibility. IoT sensors are more affordable and easily accessible today, leading to rapid adoption within logistics processes. The global IoT in the logistics market is predicted to rise to $93 Billion by 2028. (Source)

IoT will enable logistics businesses to centralize data management. All machines, products, and people will be a part of a connected environment giving businesses greater control over unplanned incidents. Through IoT, logistics teams can enhance fleet operations, increase driver safety, improve vehicle life, manage fuel consumption, reduce product wastage, etc.

3. Blockchain Technology

Blockchain technology, made popular by the cryptocurrency wave, is a decentralized ‘ledger’ that documents transactions on a peer-to-peer network. The technology is structured to ensure data is incorruptible, eliminating the need for manual verifications and approvals.

Logistics processes can leverage the blockchain to document all updates on a single shared ledger, creating complete visibility and a single source of truth. Through supply chain visibility, blockchain will help supply chains eliminate issues like compliance violations, fake products, delivery delays, etc.

Coupled with AI and IoT, blockchain technology will enable logistics businesses to automate the tracking of manufacturing, storing, transportation, and quality of goods and trust the process to be compliant. It will also allow companies to promise and verify the authenticity of products to their customers.

4. Circular supply chains

With drastically changing climate conditions, green processes are the need of the hour. Supply chains will demand sustainability, especially as consumers become more aware of how their products are manufactured.

‘Circular supply chains’ will replace traditional linear supply chains, where recycling and reusing leftover/scrap material is introduced into the manufacturing process to help promote a low-waste supply chain. Complete visibility into operations will, once again, be imperative to ensuring minimal wastage and the success of a circular supply chain.

5. Supply Chain as a Service (SCaaS)

Today’s supply chains are large global networks that can include vendors, suppliers, manufacturers, fleets, retailers, etc., that cater to consumers. This model has enabled large-scale growth and more revenue but has also increased operational complexities.

Supply Chain as a Service (SCaaS) is one solution to this challenge. Companies can outsource their supply chain needs to third parties and use digital solutions to track both internal and external (connected) processes.

SCaaS will help companies adequate resources start and sustain business. It will also help lower costs, improve productivity, and ultimately enhance consumer satisfaction.

Conclusion and related content

The infusion of technology will give supply chains the tools to face modern-day challenges. Issues like freight mismanagement, warehouse disruptions, inventory loss, etc., will be easily mitigated and, in some cases, eliminated.

If you are interested in related topics here are some articles that might be of interest to you:

• Link: Supply chain resiliency: Preparing for crisis
• Link: Critical issues in supply chain management

Linnart Felkl

Data scientist focusing on simulation, optimization and modeling in R, SQL, VBA and Python