Supply Chain

The Supply Chain Visibility Roadmap

Moving from Vision to True Business Value

November 2006

The Visibility Roadmap Report

Executive Summary

Supply chain executives identify improving visibility as their number one priority. They overwhelmingly desire better transparency to orders, inventory, and shipments across their extended supply chain. Yet most companies still have rudimentary levels of visibility, using a hodgepodge of spreadsheets, carrier tracking systems, and homegrown department-centric applications. Visibility leaders have deployed visibility software with cross-functional access and resolution and analysis capabilities, and they are achieving better results than their peers across key metrics (Figure i). For instance, they are 2.4 times as likely to have reduced their inventory levels since 2004. Figure i: Advantages of Using Supply Chain Visibility Technology

Triple as Likely as Non-users 3

Twice as Likely as Non-users 2

As Likely as Non-users 1

0

On-time Delivery Performance of 95% or More

Faster Than Average Order to Delivery Cycles

Reduced Inventory Levels Since 2004

Source: AberdeenGroup, November 2006

Maximizing Visibility Benefits

Top performers avoid using visibility technology to create a turbocharged tracking system; rather, they use visibility systems to drive sustainable improvements in lead times, delivery reliability, and inventory reductions. Many of them are now focusing on using visibility information to protect gross margin and capture more market share.

The Roadmap to Visibility

Companies can learn from the stumbles and successes of the visibility trailblazers to create a lower-risk, higher-reward roadmap for success with visibility technology. This report identifies the steps for a successful visibility program that improves supply chain productivity, responsiveness, and reliability. Key areas addressed include: • How to select an appropriate solution from the 10 styles of visibility...