6 statistics that prove supply chain visibility matters
Yesterday we blogged about supply chain risk management and the crucial role that supply chain visibility plays in it. In a worldwide supply chain study by GEODIS, it is apparent that most companies just aren’t doing ‘supply chain visibility’ well.
It’s not to say they don’t want to. Other things beyond their control get in the way, such as transportation costs, shipping and a number of disruptions:
- Transportation: The market for transportation management systems will hit $4.8 billion by 2025. In addition, transportation and logistics activities currently account for 12% of the global GDP. And, due to dramatic fuel regulation changes, the total impact to consumer wallets in 2020 could be around US $240 billion!
- Shipping: Shipping costs are now well above $21.7 billion.
- Disruptions: Supply chain disruptions can cause significant negative losses in terms of finances (62%), logistics (54%) and reputation (54%). The biggest supply chain disruptions, on top of the Coronavirus, are: mergers and acquisitions (66%), extreme weather (41%), factory fire (37%) and business sale (33%).
So NO, those were not the 6 statistics I wanted to share. Guess you got some bonus ones!
The statistics I found interesting were around the extent of supply chain visibility of organizations (a special high-five to FinancesOnline for furnishing these data):
- Only 22% of companies have a proactive supply chain network
- 62% of companies have limited visibility of their supply chain and 15% only has visibility on production
- Meanwhile, 6% report full visibility and 17% say they have extended supply chain visibility
- Supply chain visibility is among the top strategic priorities of companies worldwide
- The most common KPIs used for supply chain monitoring include daily performance (40%), cost reduction (35%), production service rate (29%), inventory turn (28%) and production time (27%). Other factors used are lead time (27%), return rate (25%) and ROA (22%)
Clearly, Supply Chain Visibility Matters
If you lack in that area, it’s worth taking 15 minutes to connect with Blue Ridge.
We’ve crafted a highly configurable toolset of supply chain planning, machine learning, order replenishment, multi-echelon inventory optimization and pricing solutions to aggregate efficiencies and cost savings across complex supply chains.
Re-imagine supply chain visibility now. Schedule a free call with a supply chain expert.