Supply chain visibility is at the top of many executives’ priority lists. Capgemini conducted a survey in May 2011, and found that 45 percent of the survey takers listed visibility as their main goal for the year. Have you started yet?

For many executives, though, true visibility is not attainable because many are still using spreadsheet programs (such as Microsoft Excel or OpenOffice.org) or standalone supply chain software program. Because of this silo-based approach, key data is not being shared throughout pertinent departments and partners within the supply chain – making transparency difficult.

To counter this, organizations need to invest in supply chain software solutions that can integrate easily across the supply chain to share information, contends Michael Koploy in a recent article on his warehouse software guide website. In the article, “Today’s Supply Chain Secret Sauce: More Visibility, Fewer Silos“, Koploy says there are three core requirements of supply chain software that can effectively improve visibility:

1. The solution must have automatic identification and data capture (AIDC) capability. This will automate data entry, increasing speed while decreasing errors.

2. Inventory information needs to be accessible and updated in real time throughout the supply chain.

3. The system must be capable of sending out notifications and alerts to important groups to let them know about important changes in inventory status.

I fully agree with these points, as they pinpoint that visibility alone, if ever so desired, is often not enough for many organizations to turn their investment light to green. Why? I have seen repeatedly that most find it easier to quantify gains from productivity savings and compliance than from improved transparency. But then if you implement process improvements using proper supply chain software, you will drive the creation and control of detailed, current and available information – and hence get the foundation for visibility.

So make sure to look both from the visibility perspective (and the needs that will drive integration and collaboration), and from the process design and control side (that will help you build the “hard facts” business case and “as a side effect” give you also visibility).

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