Understanding Shipment Visibility: The Key to Efficient Supply Chain Management

These days, customers have become increasingly demanding in terms of visibility and transparency throughout the supply chain. They expect real-time updates on their orders, precise delivery estimates, and the ability to track their shipments from start to finish.

In an era where e-commerce reigns supreme and global trade is thriving, the demand for seamless logistics operations has never been so high. Shipment visibility emerges as the ultimate solution to meet these rising expectations.

So, to embrace shipment visibility, let’s deep dive into the conceptual clarity of this transformative solution and understand how it revolutionizes supply chain management.

What is Meant by Shipment Visibility?

Shipment visibility is also popularly referred to as real-time shipment visibility or logistics visibility. It is the ability to monitor and track the movement of goods or shipments right from the origin, that is, the supplier’s place to warehousing, followed by order fulfillment. 

It involves gathering and analyzing data related to the location, status, and conditions of shipments as they move from the point of origin to the final destination. The businesses and stakeholders can get up-to-date information about the whereabouts of shipments, as well as the progress and potential disruptions coming along the transportation route.

This visibility is made possible through various technologies, such as GPS tracking, sensors, telematics, and integrated software systems.

There are various goals associated with shipment visibility, and a few of them are listed herewith:

• To enhance supply chain efficiency
• Improve customer service
• Mitigate risks by enabling better decision-making 
• Coordination among all parties involved in the logistics process 

With real-time insights into shipment status, companies can optimize transportation routes, manage inventory effectively, anticipate and address delays or disruptions, and provide accurate delivery information to customers.

Why does Shipment Visibility Matter?

Shipment visibility is nowadays a crucial aspect of modern logistics and has a significant impact on various stakeholders, including manufacturers, suppliers, retailers, and customers. Here are some reasons why shipment visibility matters:

• To enhance supply chain efficiency: Real-time information about the location and status of shipments can be obtained. This helps businesses optimize transportation routes, identify bottlenecks, and reduce transit times, ultimately leading to cost savings and improved overall performance.
• Streamline inventory management: With clear visibility into the shipment status, companies can better manage their inventory levels. Accurate information about when shipments will arrive allows businesses to plan for stock replenishment and avoid stockouts or overstocking situations.
• Risk management: In today’s global supply chains, various risks can impact shipments, such as weather events, geopolitical issues, or transportation disruptions. With shipment visibility, businesses can identify potential risks early on and implement contingency plans to mitigate their impact on operations.
• Supply chain transparency: To maintain an ethical and sustainable environment, it is very much essential to focus on visibility across the supply chain foster. Companies can monitor suppliers’ practices and ensure compliance with social and environmental standards.
• Utmost customer satisfaction: Modern-day customers expect timely and accurate information about their orders. To satisfy this attitude, businesses do provide accurate delivery estimates, proactively inform customers of any delays, and offer real-time tracking updates. Satisfied customers are more likely to become repeat buyers and recommend the company to others.

Key Factors to Consider When Evaluating Shipment Visibility Platforms

There are multiple factors to consider while evaluating shipment visibility platforms. These platforms have emerged as indispensable tools in modern supply chain management. 

Below are a few of the factors to consider that make shipment visibility platforms highly effective in today’s competitive business landscape:

• Try looking for a visibility platform that has strong carrier onboarding and management capabilities, along with a wide network of domestic and international carriers.
• Choose a real-time visibility platform that goes beyond location tracking and also provides updates on the shipment status, such as live tracking, accurate ETAs, and constant monitoring.
• Ensure the visibility platform integrates smoothly with your existing TMS, ERP, and other business systems for seamless data sharing.
• If your business uses various transportation modes like full truckload, LTL, ocean, and rail, opt for a platform that offers real-time tracking for all these modes, providing end-to-end visibility.
• Select a platform that consolidates all supply chain information into one easy-to-use interface, avoiding the need to combine solutions from different providers.
• Prioritize platforms that prioritize data security through encryption and access controls to safeguard sensitive shipment information.
• Look for platforms that allow you to set up personalized alerts and notifications for specific events or milestones. 
• Ensure the platform can scale with your business as it grows, accommodating increasing shipment volumes and complexities.
• Choose a platform with an intuitive and user-friendly interface for quick access to critical information.
• Check for responsive customer support and access to training resources to help your team effectively use the platform.
• Read customer reviews and seek references to gauge the platform’s reliability and customer satisfaction.

Challenges and Solutions to Streamline Shipment Visibility System

1. Poor Customer Experience: 

Challenge: Real-time tracking and time-to-time delivery updates are required by customers. They are now becoming more aware of their right and demand real-time acknowledgment of their orders. Inability to track shipments results in dissatisfied customers and a decline in brand loyalty. 

Solution: With an efficient shipment visibility system, customers are kept informed about their orders at every step. From departure to transit stops and estimated delivery time, customers are kept in the loop, allowing them to plan their day and eagerly anticipate the arrival of their purchase, resulting in increased satisfaction and loyalty.

2. Inaccurate KPI Benchmarking:

Challenge: When there is a lack of shipment data, accuracy, and real-time visibility, it becomes exceedingly difficult to gauge the true performance metrics and identify areas that require enhancement. Organizations are left in the dark, unable to effectively track progress, set meaningful goals, or implement targeted improvements. 

Solution: Data-driven decision-making can help businesses achieve sure-shot success in one go. Hence, a robust visibility solution that provides real-time analytics and enables precise KPI benchmarking for better decision-making and process optimization is a must.

3. Prolonged Delays:

Challenge: Delays in shipments can result in a large disruption in an ongoing supply chain, which can have a negative impact on the reputation and profitability of the company. The entire logistical process is disrupted by a delayed shipment, which has a cascading effect on production schedules, inventory control, and, finally, customer satisfaction. 

Solution: Better shipment visibility enables logistics workers to keep an eye on shipments from pick-up to delivery at their destination. The system notifies the appropriate stakeholders in the case of any unforeseen delays or disruptions, allowing them to take immediate action. This could involve coordinating with carriers to resolve issues, re-routing shipments to avoid bottlenecks, or adjusting delivery schedules to ensure smooth operations.

4. Inadequate Data Management: 

Challenge: The traditional approach of manually processing vast amounts of data has various challenges that can impair operational effectiveness and decision-making. The likelihood of errors and inefficiencies resulting from manual data handling is one of the main problems. Furthermore, manual data administration is labor-intensive and takes up a lot of time and resources, which takes attention away from essential logistics operations.

Solution: Businesses can use a cutting-edge platform that provides automatic supply chain visibility to overcome the problems caused by poor data management.

The automated visibility platform acts as a centralized repository platform that streamlines data organization and accessibility. Real-time data collection allows for rapid access to correct information at every stage of the shipment journey, improving operational efficiency and transparency.

5. Unstandardized Management System:

Challenge: With various carriers, suppliers, and warehouses involved in the supply chain, the absence of a unified approach can create a maze of complexities and inefficiencies. Imagine negotiating with a number of carriers, each of which has a unique tracking system, data structure, and communication protocol. Hence, getting reliable and real-time shipment updates in such a situation becomes a difficult endeavor. 

Solution: To overcome the challenges posed by an unstandardized management system, businesses must embrace a comprehensive and unified shipment visibility system. Such a system acts as a centralized platform that brings together data from all carriers and locations, streamlining the tracking process and promoting collaboration.

6. Increasing Shipping Costs and Transportation Risk:

Challenge: The cost of shipping has been steadily rising as a result of the dynamic nature of the global economy, fluctuating fuel prices, and carrier surcharges. 

Even the transportation sector is exposed to a wide range of hazards, such as unplanned disruptions, traffic delays, and unusual weather events. Businesses find it difficult to proactively minimize these risks and ensure on-time delivery without real-time visibility over shipments and routes, which could result in unhappy customers.

Solution: A robust visibility solution offers real-time tracking and monitoring of shipments, providing businesses with valuable insights into their supply chain. By leveraging real-time tracking data, businesses can identify potential transportation risks and disruptions before they escalate into costly issues. This proactive approach enables timely interventions, such as rerouting shipments or adjusting schedules, to maintain smooth logistics operations and ensure on-time deliveries.

Benefits of Shipment Visibility

• You can better manage inventory levels and cut down on stockouts or overstocking.
• It can help you give the utmost client satisfaction by improvising the client experience and providing accurate delivery updates.
• It can actively spot potential delays or disruptions on a prior basis and alert you for the same so that you can be ready with the solution.
• Examine shipment data to enhance and optimize processes for further shipments.
• Reduce risks associated with compliance, security, and transportation.
• Encourage smooth information sharing amongst stakeholders through collaboration and communication.
• Ensure that industry norms and regulations are followed.
• Maintain market leadership through effective logistics and happy customers. Track shipments in real-time as they move through the supply chain.
• It helps in cost reductions, streamlining operations, and optimizing routes.

Future Trends in Shipment Visibility

• Real-time tracking of goods throughout the supply chain is made possible by the integration of Internet of Things (IoT) devices and sensors in shipments. 
• Logistics businesses can anticipate potential delays or disturbances in shipments thanks to advanced data analytics and artificial intelligence. Businesses can increase supply chain efficiency overall by using predictive analytics to optimize routes, solve problems in advance, and handle other concerns.
• The demand for seamless integration between shipment visibility systems and online marketplaces is increasing as e-commerce expands. Customers will receive real-time updates on the status of their orders thanks to this integration.

Conclusion

After going through all the essential details mentioned above, you might now be aware of the fact that shipment visibility is the key to unlocking new opportunities, mitigating risks, and delivering a seamless end-to-end shipping experience. 

As the technology continues to evolve, businesses that leverage shipment visibility will undoubtedly position themselves as leaders in their respective industries.

So, don’t wait any longer – leap shipment visibility and empower your business to thrive in the dynamic world of logistics and supply chain management. Embrace the future of shipping today.

With Upper, you can boost your company’s shipment visibility with real-time monitoring and optimize routes to deliver conveniently. Try Upper for FREE and experience how this software is impacting your business in a positive manner.