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Enhancing Operational Excellence: The Crucial Role of Visibility in Supply Chain Management

todaySeptember 5, 2023

A boat and other transport in the supply chain


In today's rapidly evolving global marketplace, supply chain management has become a cornerstone of success for commodity traders and across industries business. With thinner margins on the trading side a solid grip on the supply chain can make the difference between a successful deal or a possible bleeder.
A well-optimized supply chain ensures products are efficiently produced, transported, and delivered to customers. However, one key factor that has emerged as a game-changer in the realm of supply chain management is visibility. Supply chain visibility refers to the ability to track and monitor every aspect of the supply chain in real-time, from raw material procurement to the final delivery of products. This article explores the significance of visibility in supply chain management, its benefits, challenges, and the technologies reshaping the landscape.

The Significance of Visibility in Supply Chain Management

Visibility in supply chain management requires a transparent flow of information and data across all stages of the supply chain. This visibility is crucial as it enables businesses to anticipate disruptions, make informed decisions, and enhance operational efficiency. With the global supply chain becoming more complex due to factors such as globalization, outsourcing, and just-in-time production, maintaining visibility has become paramount.

  1. Anticipating Disruptions:

Visibility allows businesses to identify potential disruptions before they escalate into major problems. By closely monitoring suppliers, manufacturers, and logistics partners, companies can quickly react to unexpected delays, shortages, or quality issues. For instance, if a supplier faces a transportation disruption on sea-transport, a business with visibility can adjust its chain schedule with receiving warehouses, repacking and next-leg shipments to minimize the impact on customers and prevent additional costs.

  1. Informed Decision-Making:

Accurate and real-time information empowers supply chain managers to make well-informed decisions. By having visibility into inventory levels, demand forecasts, and production schedules, managers can optimize inventory levels, allocate resources effectively, and avoid overstocking or understocking issues.

  1. Customer Satisfaction:

Visibility directly impacts customer satisfaction. When businesses can provide accurate delivery estimates and updates to customers, it builds trust and loyalty. Additionally, real-time visibility allows businesses to proactively communicate any delays or issues, setting realistic expectations and minimizing customer dissatisfaction.

  1. Operational Efficiency:

A transparent supply chain enhances operational efficiency. Businesses can identify bottlenecks, streamline processes, and eliminate wastage. By having a clear picture of each process's status, companies can minimize idle times and ensure resources are utilized optimally. Suppliers can be rated on performance.

Challenges in Achieving Supply Chain Visibility

While the benefits of supply chain visibility are clear, achieving it is not without challenges. Some of the common obstacles include:

  1. Data Silos:

Many supply chain processes are managed by different departments or even different entities within a larger network. This can lead to data silos where information is fragmented and not readily accessible to all relevant stakeholders. Overcoming these silos requires integrating various systems and platforms.

  1. Lack of Standardization:

The lack of standardized communication protocols and data formats across different supply chain partners can hinder visibility efforts. Achieving a cohesive view requires collaboration and agreement on data exchange standards.

  1. Technological Hurdles:

Implementing visibility technologies demands a certain level of technological infrastructure. Small and medium-sized enterprises might face challenges in adopting these technologies due to cost, resource constraints, or lack of technical expertise.

  1. Data Security and Privacy:

Sharing sensitive supply chain data among partners can raise concerns about data security and privacy. Ensuring data protection while still enabling necessary visibility is a delicate balance that needs to be addressed.

  1. Resistance to Change:

Human resistance to adopting new processes or technologies can impede visibility initiatives. Educating stakeholders about the benefits of visibility and involving them in the process can help mitigate resistance.

Technologies Shaping Supply Chain Visibility

Fortunately, technology has been a driving force in overcoming these challenges and advancing supply chain visibility. Several technologies have emerged as key enablers of transparent supply chains:

  1. Internet of Things (IoT):

IoT devices equipped with sensors and RFID tags can track the movement and condition of goods throughout the supply chain. These devices provide real-time data on factors such as temperature, humidity, and location, ensuring the quality and integrity of products.

  1. Blockchain:

Blockchain technology offers secure and transparent data sharing among supply chain partners. It ensures data immutability and traceability, making it easier to verify the origin, authenticity, and movement of products.

  1. Advanced Analytics:

Advanced analytics tools process vast amounts of data to provide actionable insights. Predictive analytics can help anticipate demand patterns, while prescriptive analytics can suggest optimal actions based on different scenarios.

  1. Cloud Computing:

Cloud-based platforms facilitate data sharing and collaboration among supply chain partners. They enable real-time information access, even across different geographical locations.

  1. Artificial Intelligence (AI):

AI-driven solutions can analyse data to identify patterns, trends, and anomalies. Machine learning algorithms can improve demand forecasting accuracy, optimize routing, and detect potential disruptions.

Supply Chain Visibility and Sustainability

In the strive for a sustainable supply chain and a minimal carbon footprint, a proper Supply Chain Visibility contributes considerably to sustainability improvement programs.
Not only distance between destinations but also the choice of routes and way of transport are important factors in 


In the complex and interconnected world of supply chain management, visibility has emerged as a vital element for success. Businesses that prioritize supply chain visibility can anticipate disruptions, make informed decisions, enhance customer satisfaction, and improve operational efficiency. Despite challenges such as data silos, lack of standardization, and technological hurdles, advancements in technology, including IoT, blockchain, advanced analytics, cloud computing, and AI, are reshaping the landscape and making end-to-end visibility a reality. As the global supply chain continues to evolve, the organizations that embrace visibility will be better positioned to navigate uncertainties and achieve operational excellence.

Designed for trade

DycoTrade supports its customer with a end-to-end Commodity Trade & Risk Management solution, build on the strong ERP foundation of the Microsoft Dynamics 365 framework

DycoTrade 365 enables agility and insight for Commodity trading companies and commodity intensive enterprises and helps to drive faster adoption throughout all business layers. Broader usage and easier maintenance through continuous updates and enhancements emphasize simplicity and prevents business interruption. 

DycoTrade CTRM is created with the goal to deliver the industry standard solution for commodity trading companies worldwide and enable them to increase revenue, reduce cost and manage risks.

With any questions, you are more than welcome to contact us, at DycoTrade. Want to explore our solutions or need more info? Contact us at [email protected].

DycoTrade B.V. | Molenvlietweg 26 | 1432 GW | The Netherlands | | +31 (0)20 – 761 0437

Written by: Commodities People

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