Supply Chain Visibility: Critical Challenges and How ClicData Can Help

Having blind spots in your supply chain is a potential disaster! You need proper supply chain visibility from production to delivery to meet customer demands and stay competitive.  

But you probably know the struggle all too well… Dealing with fragmented systems, siloed information, and complex supply chain processes. You’re not alone. 69% of companies have poor visibility across their supply chain. This makes it challenging for companies to respond to real-time issues, avoid stockouts, and meet customer expectations. 

So how can you improve your supply chain visibility and ensure smoother operations and better customer satisfaction? With consolidated data and real-time reports. 

Let’s see how it works.

Understanding Supply Chain Visibility (SCV)

Supply Chain Visibility (SCV) refers to the ability to track and monitor every step of your supply chain. This means that everyone involved in the process, including your supply chain, procurement and operations teams, but also manufacturers, gets access to real time data on every product, from raw materials to the delivery of finished products. 

SCV tells you about the location, status, and movement of goods throughout the supply chain. This transparency helps forecasting future trends and disruptions to make informed decisions. 

The Evolution of Supply Chain Visibility in the Digital Age

Supply chains once relied on manual processes and slow communication, limiting visibility and efficiency. 

Industry 4.0 technologies such as cloud computing, AI, and IoT are revolutionizing SCV, offering real-time tracking, predictive insights, and centralized data access. These technological innovations were a game changer as they empower you to make faster, data-driven decisions. And everyone jumped on that train – 90% of companies are now experimenting with AI to optimize their supply chains!

And it’s just getting started. We see new trends emerging, like the use of blockchain for transparency, RPA for process efficiency, and sustainability metrics which are shaping the future of SCV. 

However, no matter how much machine learning, AI, and blockchain you put into your process, if your data is incomplete, inconsistent or not reliable, you will end up making the wrong decisions. 

The quality of your data should be your priority number one, before diving into anything else. 

The Growing Importance of Supply Chain Visibility in Retail

E-commerce is reshaping consumer expectations, with customers demanding greater transparency and instant updates on their orders. Which means you also need access to real-time data! 

Here are some reasons why SCV is important in retail:

• With the rise of e-commerce and omnichannel shopping, customers now prefer to order online. Moreover, they expect to receive their products quickly, often within the same day. Hence, you need good visibility of your supply chain to meet consumer demands and remain competitive. 

• You need to act quickly during disruptions like natural disasters or supplier issues. Here, SCV can help identify potential problems early so that you can take immediate actions to minimize their impact. This will help you stay agile in the unpredictable market.

• A recent market research from IBM revealed that 79% consumers look for clear markers of product authenticity and origin before shopping – and most of them are willing to pay more for that transparency!  

• Of course, better supply chain visibility will improve your stock level management. You’ll avoid stockouts and overstock situations, leading to improved customer satisfaction and reduced carrying costs.

Despite the importance of SCV, many retail and e-commerce businesses lack the level of visibility necessary to truly optimize their operations.

Why Do Operations Managers in Retail Lack Supply Chain Visibility?

There are many reasons why supply chain visibility is so hard to get, the most common pain points being: 

1. Siloed Data Across Multiple Systems

Data silos is the #1 pain point. 

Statistics show that fragmented or missing data costs companies more than $600 billion annually. In the context of a retail organization, the data sits in separate systems like ERP softwares, inventory management systems, and CRMs. These systems don’t speak to each other – neither is the data which results in inconsistent reporting. 

Also, many businesses still rely on traditional methods like spreadsheets for their data analysis. This scattered information across different departments makes it hard for companies to get unified supply chain analytics. 

Real World Example – Walmart

Ever heard of Walmart? The largest retail networks in the world serving millions of customers daily faced the challenge of balancing inventory levels across its vast network of stores. They also struggled with overstock in some locations and stockouts in others leading to lost sales opportunities.

Why? They used separate systems for inventory tracking and supplier performance hindering their ability to manage stock levels efficiently. The impact? High holding costs and reduced profitability.

2. Complex, Global Supply Chains

Retail supply chains are very complex and involve multiple suppliers and logistics partners. Managing these relationships is challenging, especially when you source products globally. Multiple shipping routes and customs processes complicate the logistics.

When the supply chain is stretched across the globe, it can be difficult to get real-time visibility of the process. Most Supply Chain Ops are left in the dark about when goods will arrive or when disruptions occur. This makes it challenging to manage inventory levels and customer expectations efficiently.

Real World Example – IKEA

IKEA sources most of its products from Asian manufacturers. As factories in Asia shut down or reduced operations during the pandemic, IKEA experienced significant production delays. This led to a backlog of orders and an inability to meet customer demand. Shipping and customs clearance delays further exacerbated the situation.

Why? The absence of real-time visibility into each stage of the supply chain hindered IKEA’s ability to accurately predict delivery times. The impact? Stockouts at stores and online that frustrated customers who desperately wanted to remodel their whole house during the lockdown! 

3. Lack of Real-Time Data

The retail and e-commerce industries are one of the most complex to navigate due to the gigantic volume of data to process every day and the number of factors impacting the business.

From fluctuations in customer demand, external factors like weather all the way to geopolitical events – everything has an impact on the supply chain. Operations managers need access to real-time data to respond quickly to these shifts and stay competitive.

However, many retailers still rely on outdated reporting methods, such as manual data entry or static dashboards that do not update in real-time. This reliance on outdated information can lead to decisions based on old data, resulting in miscalculations in stock levels or supply and demand.

Real World Example – Best Buy

During the holiday season, Best Buy saw the demand for gaming consoles surged significantly.

However, the organization initially relied on manual processes for inventory tracking. This led to delays in updating stock levels. The lag in data entry also resulted in stock outs at physical stores and overselling online. Customers faced frustrations due to canceled orders and unfulfilled promises of product availability, leading to negative reviews and diminished customer trust. 

4. Limited Collaboration with Suppliers and Partners

A supply chain does not operate in isolation. It relies on multiple partners like suppliers, manufacturers, and logistics providers. However, operations managers may struggle to collaborate with these partners because each uses different systems and processes for tracking and reporting data.

Synchronizing activities becomes even more challenging when suppliers and logistics partners lack visibility into inventory needs or order schedules. This lack of collaboration often leads to missed deliveries and inefficient operations.

Real World Example – H&M

H&M relies on a network of third-party manufacturers to produce its seasonal clothing lines. These manufacturers used their own production tracking systems, which were not integrated with H&M’s ERP system. This lack of integration created significant visibility issues for H&M’s operations managers.

H&M faced delays in receiving products by scheduled launch dates because it had no real-time insight into production progress. This means they were unable to deliver products on time. This led to customer dissatisfaction and also damaged the brand’s reputation.

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→ Learn how Carrefour streamlined their supply chain operations with 400+ suppliers using a unified data analytics platform

How ClicData Solves the Supply Chain Visibility Problem

ClicData is a powerful data management and analytics platform designed to address one of the most pressing challenges for retail operations managers: the lack of supply chain visibility. 

ClicData offers a unified and up-to-date view of the entire supply chain, helping retailers streamline their operations and make data-driven decisions. 

Here is how ClicData can help with your supply chain visibility:

1. Consolidating Siloed Data Across Systems

ClicData integrates with over 200 data sources, including cloud and on-premise applications and databases, enabling retailers to consolidate data from disparate systems into a cohesive platform. This eliminates data silos, providing a unified view of the entire supply chain. 

ClicData ensures that all critical information is easily accessible by integrating ERP, WMS, and CRM systems. 

For instance, whether you need real-time updates from your ERP, WMS, or third-party logistics providers, ClicData aggregates this data into a customizable dashboard. You can monitor inventory turnover, customer orders and shipment, and supplier quality metrics, all in one place.

2. Gaining Real-Time Visibility into Global Supply Chains

ClicData offers real-time visibility into global supply chains, ensuring efficiency and reducing potential disruptions. It pulls data from suppliers, logistics providers, and customs clearance systems, merging this with internal operations for a complete view of the supply chain.

With this visibility, you can detect potential delays or issues, such as production slowdowns or customs bottlenecks, before they impact your business. For example, real-time shipment tracking lets you preemptively inform customers or adjust resources to mitigate disruptions.

Real-time insights on historical data is step 1.

Step 2 would be using machine learning and predictive analytics to further enhance supply chain visibility. 

By analyzing historical trends, transportation data, and external factors like weather, machine learning algorithms can predict potential disruptions and recommend actions. It would allow you to proactively manage risks, optimize inventory, and explore alternative routes or suppliers. The combination of real-time data and predictive analytics ensures a more resilient, agile supply chain that can quickly respond to challenges before they escalate.

3. Leveraging Automated Real-Time Reporting

Manual data entry and delayed reporting create bottlenecks for many supply chain operations. ClicData eliminates these inefficiencies by offering automated real-time reporting. The platform continuously pulls data from all connected sources and real-time updates dashboards. It makes sure that all your information is always current and accurate.

This automation allows real-time monitoring of KPIs such as inventory levels, order fulfillment rates, and supplier performance. Automated alerts notify you of critical issues, such as low stock or delayed shipments, enabling faster response times and more informed decision-making.

4. Enabling Better Collaboration with Suppliers and Partners

ClicData fosters better collaboration across the supply chain by offering a centralized platform for data sharing. Suppliers and logistics partners can access relevant information in real time, reducing delays and miscommunications.

For example, Carrefour improved supplier collaboration by using ClicData to provide real-time, accessible data on stock and sales. This enhanced data visibility allowed suppliers to monitor inventory and sales performance through detailed dashboards, fostering more efficient communication and decision-making. The automated, daily data updates ensured all stakeholders had up-to-date insights, enabling better alignment and quicker responses to market demands. This shift streamlined processes and strengthened partnerships with over 440 suppliers.

Next Steps: Achieving Supply Chain Visibility with ClicData

Supply chain visibility is important to keeping your business efficient and competitive. ClicData offers a practical solution by consolidating data from various systems into one platform. This platform offers real-time insights and helps you stay on top of every aspect of your supply chain. 

With automated reporting, customizable dashboards, and predictive analytics, you can easily monitor inventory, track shipments, and collaborate with suppliers, reducing delays and improving operations.

ClicData gives you the tools to leverage your data and improve your supply chain visibility and demand forecast with built-in machine learning capabilities.