Visibility. We all want more…but what do we really want?

Guy Courtin’s thoughts on visibility in the supply chain. What does it really mean for the supply chain?
 
While the terms big data and mobility are the rage, one term that I have constantly heard over the past year is visibility. I have even had the good fortune of being able to present some thoughts and ideas on the topic at various conferences. The one thing that I am reminded of on a regular basis, is the disconnect between what visibility is and should mean for supply chains.
 
Many think that gaining greater visibility means “seeing more.” Really taking the word for word definition from the dictionary –
 
Capable of being seen, exposed to view. Merriam-Webster.com.
 
For supply chains, there is the belief that this requires seeing more information, getting more data. A retailer might want to get even more data from their POS systems, or integrate social media data into their overall view of their supply chain. Manufacturers feel that additional data from their suppliers and logistics providers is desired. Or even commodity trading prices. Consumer package goods players might look to add additional demand data to integrate into their forecasting to assist with how they plan their outputs.  Now I am not implying that these are not valuable goals, but I think we need to think about what it is we are really looking for.
 
Visibility is not about seeing “more” but really about understanding what it is we are already observing and how it impacts our supply chain. Take for example the retailer that wants more POS data. What if they could collect greater detailed information about how their stores are doing, what units are selling and at what volume and mix. If they could get more visibility down to the SKU level…how fantastic. But what if that data is too old once they received it? Have you really gained more “visibility” or just more noise, information that might have once been valuable but now is lost due to a host of factors. Supply chains need to focus on the data they are already viewing, understand what they are observing and determine if there are any causalities that can identified. Based on these observations, supply chains can then determine if they need additional data to provide greater color. It is more important that supply chains identify the data that needs to be seen and at what pace. The speed at which the data is gathered and processed is more important that the amount accessed. It really is the quality over quantity argument.
 
Don’t just chase more data in the name of greater visibility. 
 
Guy Courtin is a veteran of the supply chain and software industries, having held leadership roles at Progress Software, SmartOps and i2 Technologies. He is an active member of the supply chain community and you can read his thoughts on leading blogs, such as this one, or find him at conferences and events

Quelle: eyefortransport

Portal: www.logistik-express.com