Although visibility in supply chain is increasingly being seen as a crucial element behind the success of a logistics company a meager 6% of companies has yet managed to attain full supply chain visibility. These days most corporate houses are striving for transparency to avoid the steep consequences. To put it simply supply chain transparency will enable your customers to track their shipments at every stage of the transit process. Increasing the supply chain visibility is now being considered as the prime factor for building trust with the customers and in today’s article you will find some of the top reasons why transparency is important for your business.
Benefits of supply chain transparency
- Fosters customer trust
As a professional in the logistics industry you are surely aware of the fact that more and more consumers are now expecting real-time information about their shipment status. Apart from keeping your customers satisfied, a transparent supply chain will help you keep a tab on the management and lower the possibilities of things gone wrong.
- Results in sustainable logistical operations
These days the customers are more conscious about where their products are coming from and there have been many instances where corporate houses like Nike and others have faced boycotts from customers because of their faulty supply chain practices. The logistics practices of a company when done incorrectly can turn the customers against the company and prompt them to select the products of another brand. A report by MIT suggests that supply chain sustainability needs to include environmentally friendly work conditions, and end-to-end visibility right from the raw materials till the delivery.
- Reduces cost and lowers inefficiencies
Supply chain visibility will help you track the reasons behind the inefficiencies and the weaknesses of your company. This in turn will allow you to focus your attention on those issues which demands most attention and do the required damage control. It will help you standardize your logistical processes, optimize your workflow, lower unnecessary cost and improve the efficacy of your team.
- Greater profitability
When your customers get to know all the details of their shipment status at any given time, they are more likely to come back to your company with further projects. Implementation of IoT provides the shippers with abundant data which allows them to get insights about the location and status of the cargo. The IoT devices can even monitor the temperature, shock loads, humidity level and several other parameters thereby ensuring the safety of your shipment. This undoubtedly has a positive role to play in augmenting the profitability of your company.