Achieving true supply chain visibility requires an understanding of what visibility actually is. For forwarders, carriers, customs brokers, and technology providers, visibility is simple. Visibility means either where a shipment is or when it should arrive.

For international shippers and BCOs, however, true visibility takes on a much deeper meaning and requires more. Getting ETAs and ETDs from forwarders is trivial compared to the overarching problem.

Most companies have hundreds or thousands of shipments in process at any given time. This creates an environment where thousands or tens of thousands of data points with updated locations and statuses are created, and managing this quantity manually is virtually impossible. Determining which data points are important and require attention becomes paramount.

This article details why shippers and BCOs must have deeper visibility to manage their products throughout the shipment lifecycle, from shipment booking to final delivery. Moving beyond simple tracking requires a holistic approach supported by robust technology designed to transform data into insights that shippers can use to make actionable decisions.  

Why Simple Tracking Is Insufficient for True Supply Chain Visibility

Indeed, simple tracking, while essential, is often insufficient for achieving true supply chain visibility. While it provides basic information about the location and movement of goods, it fails to capture the intricate details required for effective decision-making. For instance, simple tracking may not reveal the condition of products during transit, potential delays caused by unforeseen circumstances, or the impact of disruptions on overall supply chain performance.

In particular, visibility in the international supply chain is a multifaceted challenge that goes far beyond simply tracking shipments. For shippers, true visibility encompasses a comprehensive understanding of product, cost, and time — three critical dimensions that must be managed in tandem to ensure business success.  While service providers like forwarders and technology companies focus on delivering shipment data, Importers need much deeper insights to control their operations effectively.

As such, shippers need a more comprehensive visibility solution.

The Need for Comprehensive Visibility Solutions

Comprehensive visibility solutions enable shippers to track and monitor goods throughout their journey, from raw material sourcing to final delivery. By integrating data in various formats from multiple sources, including transportation, warehousing, and manufacturing, these solutions offer a holistic understanding of supply chain performance. This enables organizations to identify potential bottlenecks, mitigate risks, and make informed decisions that drive efficiency, reduce costs, and enhance customer satisfaction.

Challenges in Supply Chain Visibility

Shippers and BCOs often encounter significant challenges in tracking shipments, which can lead to disruptions and inefficiencies. One common issue is the lack of standardized data formats and communication protocols across different transportation modes and carriers. This inconsistency makes integrating data from various sources difficult, hindering a comprehensive view of the supply chain.

The Limitations of Traditional Visibility Tools

While valuable, traditional visibility tools often have limitations that can hinder their effectiveness. One significant limitation is their reliance on manual data entry and paper-based processes. This can lead to inaccuracies, delays, and a lack of real-time information. Additionally, traditional tools may be unable to integrate data from multiple sources, such as transportation, warehousing, and manufacturing, limiting the ability to gain a comprehensive view of the supply chain.

Furthermore, traditional visibility solutions may not be equipped to handle the increasing complexity and dynamism of modern supply chains. As a result, shippers may find it difficult to obtain the level of visibility and control required to optimize their operations and meet customer expectations.

Holistic Approach to Supply Chain Visibility

A holistic approach to supply chain visibility is required. Such an approach requires a comprehensive understanding of product details, shipment contents, and accurate arrival times. By tracking these elements, businesses can gain valuable insights into the status and condition of their goods throughout the supply chain journey. This information enables them to identify potential issues early on, make informed decisions, and optimize their operations for maximum efficiency and responsiveness.

How to Implement Systems That Provide Comprehensive Visibility

To provide comprehensive visibility, shippers should implement a system that includes the management of and tracking of inventory at the stock-keeping units (SKUs) level by capturing information such as location, quantity, and status is important. This kind of tracking enables shippers to monitor the progress of their inventory and make informed decisions about production schedules, transportation routes, and stock allocation.

However, to track at the SKU level, it is essential to integrate data from various sources, including transportation, warehousing, manufacturing, and suppliers.

Additionally, shippers need to be able to utilize data analytics tools to extract meaningful insights from the collected data and identify potential areas for improvement. By combining data integration and analytics, organizations can gain a comprehensive understanding of their supply chain and make informed decisions.

Examples of Overcoming Visibility Challenges

Walmart uses its proprietary Retail Link system to gather and analyze real-time sales data from stores, providing visibility into inventory levels, sales trends, and supplier performance. This platform allows Walmart to accurately predict product demand and ensure timely restocking, helping the company and its suppliers manage inventory more efficiently.

Patagonia also uses advanced supply chain management software and data analytics to monitor and trace its global suppliers. It tracks supplier performance, inventory levels, and shipment schedules across multiple countries.

The Strategic Advantage of Enhanced Visibility

Regardless of how one defines visibility, it is important to understand the cargo’s journey through the supply chain, particularly at the SKU level. By understanding the deeper data points, international shippers and BCOs will better understand delivery times and manage costs.  

In addition, through integrating data from various sources, shippers gain a more holistic understanding of supply chain performance. This enables organizations to identify potential bottlenecks, mitigate risks, and make informed decisions that drive efficiency, reduce costs, and enhance customer satisfaction.

By investing in a global TMS, supply chain management and visibility move beyond estimated delivery times. Shippers and BCOs will better understand their costs and suppliers and improve customer service. For more on how you can benefit from better visibility solutions, contact 3rdwave.

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