Supply chain executives are increasingly recognizing the importance of visibility in their operations. Jeffrey Luft, portfolio development executive at Siemens Digital Logistics, emphasizes the value of investing in visibility capabilities to improve supply chain performance.
Visibility is crucial in the supply chain because it allows organizations to measure and track their operations, ultimately leading to improvements. Customers now expect real-time updates on the status of their orders, while manufacturers need to ensure the timely arrival of inbound goods for production.
To achieve visibility, companies need to leverage data from their operations and elevate it to a strategic level where they can optimize the flow of goods. This can be done through the use of a digital twin, a virtual representation of the supply chain that enables simulation of different scenarios before implementation.
While finance officers may question the cost of implementing a digital twin system, Luft argues that the value it brings justifies the investment. The speed of return on investment, however, depends on the resources allocated to the effort.
Moreover, Luft stresses the importance of involving experts from various disciplines within the company to create an effective supply chain. Collaboration between sales, product design, and other departments is essential to mitigate potential risks and optimize operations.
In today’s fast-paced and demanding supply chain environment, investing in visibility capabilities is crucial for organizations looking to stay competitive and meet customer expectations.
