Part 1: New Game
Changer
– Articulation of New Game Changer
Supply Chain Visibility can simply
be defined as knowing where inventory is at any moment within a supply chain,
from the moment that materials are procured to the moment it reaches a customer.
In essence you’re making data available for all parties involved. In order for
this strategy to work companies have to work with all members of the supply
chain to improve their performance. They have to be willing to share
information across a number of platforms and be able to analyze it in a way
that is useful. So in essence visibility along with collaboration have to be
put in play together to come up with a Supply Chain Strategy that promotes the
necessary level of competitives needed to survive in the ever growing global
economy.
– References of Real World Impact
The use of visibility or the lack
of is clearly evident during times of emergency, such as when natural disasters
occur. Take for example the Thailand flooding that occured in 2011, it caused a
great economic impact for many people and businesses. Production facilities in
that area were forced to shut down, prices of electronic hardware and chips
increased, many sectors such as the automobile and electronics industry took a
hit, and companies like Intel had to lower it’s sales expectations and suffer
from a decrease in share prices. So being able to have real time data is
incredibly beneficial. It allows for companies to issue quick responses in the
face of pressure, such as correctly calculating demand and redirecting supply
as needed. It gives companies the
ability to be proactive and be ready to respond to new threats and any
opportunities that may come up.
– Projected Application to Other Companies
Companies like Walmart, have been
able to implement visibility strategies that are effective. Through their
inventory management solutions they have created a system where information
travels from “stores such as point-of-sale data, warehouse inventory and
real-time sales into a centralized database. The data is shared with suppliers
who know when to ship more products” (University Alliance). Through this and
the extensive use of technology they’ve been able to ” lower product
costs, reduce inventory carrying costs, improve in-store variety and selection,
and highly competitive pricing for the consumer” (Lu, 2014). They’ve been able
to stand by the goal of the company, which is to allow consumers to “save money
and live better”. In other words these savings have been passed on and it’s
allowed them effectively and efficiently stock over 11,000 stores with products
that are produced around the world. It’s a testament to the power of visibility
and the benefits that can come out of it if one is committed to it.
