9 CONTRACT MANUFACTURING: THE VALUE OF A NETWORK BASED APPROACH | 2024
9
The Promise of a Network Is More Than Visibility
Network enablement and supply chain visibility concepts may sound interchangeable for a supply chain leader just beginning the journey. The value of a Supply Chain Operating Network is much more than visibility. The network automation enables bi-directional process flow and optimization. However, to understand the concepts, we must first define visibility. As shown in Figure 4, the term “ visibility ” also has many definitions. Supply chain leaders inherently know they need greater visibility, but the conversations between buyers and sellers spin due to a lack of definitional alignment and agreement. Most current visibility solution deployments focus
on singular flows, such as transportation, quality information, or purchase order status. Despite the advancements in business-to-consumer processes, we have made little progress in automating business-to- business interaction between trading partners. Most current systems hang on the backs of 40-year-old versions of Electronic Data Interchange (EDI) processes maintained by gray-haired baby boomers. The implication of retirement and the associated business continuity are issues that few discuss.
Figure 4. Supply Chain Visibility Gaps
3.9
Manufacturing Visibility
3.1
0.8
4.0
Supplier Visibility
2.5
1.5
4.1
Logistics Visibility
2.9
1.2
4.3
Enterprise Visibility
3.0
1.3
Importance
Performance
Gap
Source: Supply Chain Insights LLC, Redefining the Supply Chin Response Study Q23. How effective would you rate your company on visibility? Q24. How important would you rate visibility capabilities for your company?
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