Since the early 1990s, when the concept of supply chain visibility was introduced as Supply Chain Event Management [1], the need for an end to end supply chain visibility has been rising on the list of top supply chain improvements which organisations need to address. This is highlighted by a recent GEODIS survey which showed that improved supply chain visibility is considered the third most important strategic objective for organisations to achieve, up from sixth two years previously [2], [3]. This is particularly true in emerging markets, where modes of transport vary drastically, access to some geographic locations is limited at best, and resources are limited [4], gaining visibility across the supply chain is a challenge [5]. Supply chain visibility, also known as supply chain transparency, can be defined as the ability of an organisation to access data about any part of their supply chain (from production suppliers to customers) in real time [6]. The ability to have sight of all aspects of the supply chain provides businesses with the building blocks for increasing their agility and ultimately can lead to massive inventory reductions without a reduction in customer service [7].
Other benefits of increased supply chain visibility include [6]:
- Enhanced end-to-end business process efficiency
- Visibility to supply chain “blind spots”
- Real-time visibility to customer requirements
- Enhanced customer responsiveness
- Superior handling and execution
- Decreased material and labour costs
- Better inventory management
- Improved business metric monitoring and outcomes
- Optimized logistics and transportation efficiency
- Limited transport and logistics infrastructure which can be of poor quality where
existant . - Lack of supply chain structure resulting from a fragmented supply chain and narrow supply base.
- Shortage of basic skills and/or knowledge specifically related to supply chain and logistics. This is often exacerbated by a lack of resources to address the skills gap.
- Poor strategic supply chain planning.
Supply Chain in Emerging Markets