Like so many words in the English language, the word visibility can mean different things depending on the context. The Oxford Dictionary defines visibility as the “state of being able to see or be seen.” For example, when we see a weather report, visibility is the distance at which objects can clearly be seen. But what does it mean when discussing the supply chain? In the supply chain context, we can “see” visibility in a couple of ways to support the goal of driving a more efficient supply chain.
Supply chain visibility is the ability to see what is happening now—to know the status of each and every order, shipment and invoice—especially when the status is ‘red’ and needs risk mitigation, or if there is an untapped opportunity to pursue. This visibility allows an enterprise to make quick adjustments to keep their supply chain moving. For instance, a manufacturer in Detroit, Michigan can send a purchase order to its supplier in Japan, receive an electronic document that the item is out-of-stock, and immediately react by sending the purchase order to an alternative supplier in Brazil – all in just minutes. Armed with this information, businesses can effectively manage bottlenecks, plan for delays, and proactively manage customer expectations. In short, they can resolve issues before they have a negative impact on business performance. Without this visibility, it could take days to realize your stock of an item is about to be depleted with no replacement on order – resulting in lost sales because of disrupted production schedules or failure to meet customer demand.
This scenario assumes digital exchange of information to speed transaction flow and enable automation. That is what OpenText does. We provide solutions that enable the digital exchange of information between buyers, suppliers and other supply chain partners. OpenText B2B Managed Services handles the complexity of connecting to trading partners of all sizes and digital capabilities. And OpenText Trading Grid—the largest B2B network in the world—provides the Cloud foundation for global information exchange.
Supply Chain Visibility is also the ability to look back and analyze performance over time (which, in turn, provides the foundation to look forward and predict). Buying organizations need visibility into frequency of order errors or late deliveries by suppliers. These metrics provide the information needed to help identify potential problems in the supply chain and make adjustments. For example, consider a reliable supplier who has more recently been missing delivery deadlines and sending incomplete orders. The supplier’s change in behavior may indicate a need to change terms with the supplier or, if the behavior continues, may indicate the need to consider alternative suppliers. Without this visibility, you could miss a seasonal sales opportunity – again resulting in lost sales – because you are relying on a supplier who has trouble meeting deadlines.
To help with this visibility, OpenText has added supplier performance metrics to OpenText Active Orders. Active Orders enables digitizing and automating supply chain processes with small and medium-size suppliers that are not ready or able to implement traditional EDI or B2B integration through a simple, intuitive web portal. Data from digital trading partners can also be captured, giving you a complete view of all suppliers. With metrics on supplier performance, manufacturers are able to manage underperforming trading partners—ultimately mitigating risk to business performance—and determine the most strategic trading partners to do more business with.