Supply chain visibility

One example of network links that provide all entities of the snpply chain with needed visibility is Ciseo s eHub, a private exchange (Sheffi 2005). Mnltiple tiers of snpplieis are linked together and instantly provided with a complete picture of the supply chain, including potential dismptions, capacity problems, and potential delays or shortages. The eHub also provides problem resolution options. In this marmer, participants have resolution options to logistics problerrts once the problem is idendlied. 

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Variability increases with the number of nodes. The more nodes that a value chain has in a design, the greater the variability, the more working capital required and the higher requirements for automation and supply chain visibility. Waste (unessential activities and costs) increases as the number of nodes increases. Whenever possible, look for opportunities to disintermediate the supply chain and reduce the number of nodes. 

Supply chain visibility— According to Blackhurst et al. (2005) supply chain visibility refers to the sharing of information in real-time across the supply chain stages and among their partners. The net effect of visibility is to make the supply chain more responsive, increase availability and reduce inventory risk. For example, Dell shares customer demand information with its suppliers so that they can maintain proper inventory of needed parts. Wal-Mart shares points-of-sales (PoS) data with its suppliers so that they can forecast and plan their replenishment strategies. 

Strategic plans Supply network design Product rollovers and product pricing Product variety Supply chain visibility... 

Butner K., 2007, Blueprint for Supply Chain Visibility, Somers, NY IBM Corporation. 

When two or more companies adopt long-term perspective and work together to constmct unique value that none of the partner can attain alone, then such an environment is referred to as supply chain collaboration. Due to intensified competition, individual companies have found it difficult to compete alone but need to align their supply chain partners to achieve collaborative advantage. In a collaborative ethnicity, supply chain partners work together and communicate openly. They share information to improve the supply chain visibility which reduces uncertainty they also share knowledge and expertise in all joint efforts such as joint problem-solving and new products development to smooth the operations and enhance the competitiveness. 

In spite of the great opportunities provided by supply chain visibility and workflow automation the true potential of e-supply chain can only be realized when it is supported by an executive decision-making process that optimizes the automated flow of materials based on the information available from supply chain visibility. This executive decision process is collaborative planning which can only be effective through a real-time coimnunication network via Intranet, Extranet and B2B portals (or trading hubs) and a sales and operations planning (S OP) process. Figure 12.2 show the e-supply chain communication network of a pharmaceutical company. The S OP is described in Chapter 16. 

Supply Chain Visibility SC Event Management SC Keiretsu Virulal... 

One company that has recognised the importance of improving supply chain visibility through shared information is Cisco Systems, a market leader in telecommunications and network equipment (see below). 

Supply chain event management enables organisations to gain visibility upstream and downstream of their own operations and to assume an active rather than a passive approach to supply chain risk. Figure 9.2 shows the progression from the traditional, limited scope of supply chain visibility to the intended goal of an intelligent supply chain information system. 

In such a situation it can often be weeks or months before problems become visible, by which time it may be too late to take effective action. The often cited case study of Nokia and Ericsson demonstrates the advantage that supply chain visibility can confer. 

Butner, K. (2007). Blueprint for supply chain visibility. Somers IBM Global Services, http // www-935.ibm.com/services/uk/bcs/pdf/bIueprint for supply chain visibility.pdf... 

Supply chain visibility Scheduling and expediting Poorer visibility... 

Loss of supply chain visibility. Introducing third parties reduces the visibility of supply chain operations, making it harder for the firm to respond quickly to local customer and market demands. This loss of visibility can be particularly harmful for long supply chains. 

In terms of existing solutions, the existing ERP, SCM, EAl and other B2B solutions are designed to improve efficiency of the supply chains and not to enhance their reliability or robustness under uncertainty. Some vendors offer partial solutions to this problem under the name of Supply Chain Event Management (SCEM). These offerings include track and trace, supply chain visibility and alert messaging solutions (Bittner, 2000), which merely notify the human operator of unexpected occurrences and leave him to resolve the issue. In such a scenario, there is a critical need for a framework and for suitable tools that would allow companies and managers... 

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