When customers make an order through an e-commerce business, they want to always know the status of their order, even if unexpected delays happen due to external factors. Here are five reasons why visibility in your supply chain is important for your business and customers.
Risk Reduction And Cost Cutting
If you always know where your products and their materials are in every phase of the supply chain, you will have a lower risk of losses from misplaced products or interruptions in transport. Once you have better control and knowledge of all the parts of your supply chain, you will be able to eliminate inefficiencies and streamline the process to cut costs. You will not have to pay for unnecessary downtime or inventory replacements because you will make sure they get to their destinations as timely as possible. Data has proven that businesses with a more visible supply chain are more efficient and profitable.
Customers want their orders to arrive on their doorstep as soon as possible without any wasted time. Supply chain visibility ensures that customers are always able to access the latest data on their order’s location and estimated arrival time. Additionally, businesses that offer quicker and more transparent supply chain movement gain a competitive edge over businesses that do not, as customers will gravitate towards making buying choices that provide them with visibility into inventory movement. According to Seagull Scientific, “Achieving a high level of supply chain transparency gives organizations insight into how they can work more efficiently, accurately and improve workflows and processes.” Visibility in your supply chain will also prevent mistakes in transport that can cause immense financial losses to your business. Customers like quick and efficient service, so providing them with all the tools they need to track their orders will help you compete in the marketplace.
Preparing for The Future
Visibility in your supply chain will make your business’s operations more resilient for the future and unforeseen market fluctuations. Having the best communication and transparency within your supply chain is important to be able to absorb shocks in the economy or substantial delays in the transport of your products. Visibility will make your business resilient and ready for whatever the future may hold.
Government regulation over businesses can change from year to year, so visibility will make your supply chain easily adaptable for mandated changes in procedures or prices. Moreover, if you source or ship your products internationally, tariffs on cross-border trade can quickly change, necessitating flexibility within your supply chain. Visibility will give your business the ability to adjust to new regulations that can come and go by the year.
As modern logistics technology advances, supply chains inevitably become more complex and global. Visibility in your supply chain will make your business more competitive in the marketplace, as businesses that can reach the most suppliers and customers reliably will come out on top. When you build out that complex supply chain, you need to have the most visibility to make sure you know where everything is at once.
Visibility is important for your business in this age of increasing competition and complexity.