Question & Answer
Question
Challenges in Supply Chain Visibility
Answer
Challenges in Supply Chain Visibility
Enterprises lose control over the inbound supply network becauseof the lack of visibility to disruptions in the supply chain. Oncea PO has been sent to the supplier companies often have no meansof figuring out its status until the shipment is received at the warehouse.This results in enterprises stocking up their warehouses with bufferinventory and contracting premium service levels with carriers. Thelack of business process coordination with suppliers results in manuallyintensive and inefficient supply and demand management and reducedorder fill rates.
Additionally from a strategic perspective the lack of forward-lookingdemand visibility causes increased inventory levels at different pointsin the supply chain. After all this confusion there is no centralrepository of data available to enable an analysis of what went wrongand how suppliers carriers and other third-party participants performed.This is primarily because the data required is distributed acrossvarious systems in warehousing purchasing transportation managementsupplier systems and carrier systems. Sometimes the data does noteven exist.
- Inability to see a unified view of shipments orders and invoiceswith relevant details and statuses.
- Occurrence of unplanned events such as delayed POs or shipmentsshort POs or shipments supplier commit or ASN not received and soforth. These events can arise from day to day or hour to hour.
- Suppliers not meeting commitments or delaying the sending of POsASNs and shipments.
- Supply-demand mismatches may delay the shipments even when theitems are available at another node or on the dock.
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Document Information
Modified date:
08 December 2018
UID
ibm10762179