Global Supply Chain Visibility
What is International Supply Chain Visibility?
International supply chain visibility relates to your ability to track and evidence shipments from the overseas manufacturer or supplier through to the consumer. Visibility of your end-to-end international supply chain will demand that you oversee all entities involved, not just your immediate suppliers but also their suppliers and service providers. Something that’s not always straightforward in the world of global sourcing. The end-to-end international supply chain will include third-party service providers, such as freight forwarders, port services, export customs clearance agents, ocean shipping lines, air cargo services, international haulage companies, import clearance agents, domestic trucking firms, warehousing and onward delivery services to the end customer.
Why is Supply Chain Transparency So Important?
International supply chain visibility is a wide-ranging concept, and which areas of your supply chain require increased visibility will vary by country, industry and company. When looking to achieve greater supply chain transparency, companies should consider the Incoterms 2020 rules within the contract, customer requirements, trade compliance, competitiveness, cargo location, rates, documentation and supply chain activities.
List of Services
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Incoterms 2020List Item 1
You can include Incoterms in your contract to cover who is responsible for every stage of the supply chain, including customs clearance and insurance requirements. Incoterms also make it clear who pays for each different cost within the international supply chain. However, you should consider using Incoterms from E Group (EXW) or F Group (FCA, FAS, and FOB) which will give your business greater visibility and control over your international supply chains and shipping processes.
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Customer RequirementsList Item 2
Providing good customer service by delivering the right goods to the right locations at the right time is fundamental to customer satisfaction, retention and procurement. Many customers expect your company to be able to track their orders, provide transparency and provide regular progress reports. Your own service team can keep the customer informed about delivery times, update the customer about any delays and work proactively with the customer to resolve any issues.
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Trade ComplianceList Item 3
Trade compliance is a process of understanding and adhering to the laws and regulations controlling the export and import of goods, products, information and technology between two or more countries. Supply chain transparency allows your company to monitor and manage variables including tariffs, trade agreements, documentation requirements and customs clearances which could delay shipments.
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CompetitivenessList Item 4
Inefficiencies within the international supply chain can impact the profit margins on your shipped goods. Without full visibility of your products, they could arrive earlier or later than originally planned, and this can be a costly affair with equipment and trucks not being available. Therefore, resulting in unnecessary payments of demurrage and detention charges.
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Cargo Location
Having real-time visibility into the location and shipment status of your cargo within the international supply chain is fundamental for the success of your business. Having visibility of goods at each stage of the supply chain will help your company reschedule purchases, manage inventory and deliveries, keep your customers informed of the status of the goods, and guarantee payments to suppliers and service providers.
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Rates
Visibility of the end-to-end international supply chain will help your company understand how much you are spending on shipping and delivering freight, so that the correct landed costs can be calculated to ensure profit margins are maintained. The full visibility of international shipping costs is necessary for the business to organise cost-benefit analyses and track company spending.
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Documentation
Having the correct documentation is vital when importing or exporting, as inappropriate or overlooked documentation can lead to shipping delays, increased costs and business risks, such as cancelled international commercial activities. Having real-time visibility of accompanying documents within your international supply chains will enable your company to ensure compliance with customs regulations prior to customs clearance.
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Supply Chain Activities
Transparency within your international supply chain activities means that you can track your shipments, manage delays due to weather, deal with suppliers going out of business and other issues threatening your ability to deliver on time. Having visibility across your entire international supply chain enables you to identify potential supply issues sooner and respond quicker.
Steps for improving international supply chain visibility
I help clients achieve international supply chain visibility by the following steps.
Defining the client’s goals and expectations
As part of the onboarding process, I will meet with my client to have an open and honest discussion to understand their challenges and requirements. I believe every client’s business is unique and my ultimate aim is to provide the best service possible for the client. Therefore, during this onboarding process, I will agree a collaborative tailored approach to meet their business goals and expectations. Following these discussions, I will provide the client with a detailed scoping document (statement of work) which will set well-defined and measurable goals.
Analysing the clients international supply chain
Since most international supply chains are extremely complex, it is important to analyse the end-to-end supply chain to identify pain points and provide an in-depth insight of current processes. The analysing process ensures that inefficiencies and possible supply disruptions are identified at an early stage. After identifying these pain points, I will discuss these with the client and prioritise these in accordance with the company’s strategic goals.
Improving collaboration with suppliers and service partners
Collaborating with suppliers and service partners will deliver many benefits, including increased supply chain visibility. Effective collaboration within international supply chains can dramatically reduce inventory levels and costs, together with improvements in speed, service levels, and customer satisfaction. This will involve selecting partners based on value potential, capabilities and strategic goals.
Implementing Software Solutions
Integrating international supply chain management software and third-party applications will enable greater collaboration between the client’s business and their suppliers and service partners. These inhouse or third-party freight forwarder software solutions will provide real-time data sharing and improve visibility across the international supply chain.
Instigating Key Performance Indicators (KPIs)
By developing and implementing strong, smart and measurable key performance indicators (KPIs), I enable my clients to monitor their supply chain activities and performance. These KPIs will help to establish lines of communication with the suppliers and service providers, enabling greater supply chain transparency and the ability to share regular progress reports. These KPIs will be critical for measuring progress towards international supply chain visibility.
Developing an International Supply Chain Network
A direct result of developing greater supply chain visibility will be a supply chain that looks more like a supply chain network. As my clients achieve improved visibility and better collaboration with suppliers and service providers, their supply chain will develop increased connectivity between more organisations. This way of doing business will create a ‘win-win’ business culture and mutually beneficial gain, therefore constituting a supply chain network.
10 Benefits of Supply Chain Visibility
When you have a full appreciation of the importance of
international supply chain visibility and the risks of a lack of visibility, then benefits are clear:
- Increased customer service
- Positive effect on your company’s bottom line
- Robust supply chain management
- Reduced costs
- Increased product flows
- Increased agility and ability to respond to unexpected challenges and events
- Better ordering and inventory controls
- Supply issues can be identified sooner and dealt with quickly
- The ability to implement strategies more effectively
- The ability to identify, mitigate and minimise risks within your international supply chain
How can I help improve end-to-end visibility?
I have been working within international business for over 30 years and I have delivered many logistics, supply chain and import / export projects and programmes for clients. I have helped my clients to optimise their international supply chains through a range of consultancy services and have addressed their business challenges, such as international supply chain visibility.
I have mapped out complex international supply chain networks for many clients, optimised their inbound flows, recommended alternative Incoterms 2020 rules, sourced and implemented cloud-based supply chain software to provide greater supply chain visibility and reduce operating costs for their companies.
My knowledge and experience will help your business develop competitive supply chain visibility solutions that will address unexpected challenges quickly and effectively.
Supply Chain Improvement Case Studies
Thanks to an increasing number of successful supply chain case studies, business owners are starting to consider how my solutions can benefit their businesses.
Telecommunications
The client was experiencing difficulties supplying telecommunication equipment internationally and required a global business solution to meet future requirements.
Importer of Wines
The Client required end-to-end international supply chain solutions from the wine producers in Argentina to their end customers in the UK and Europe.
Brexit Readiness
The client identified that they needed an Interim Supply Chain Director to pull the requirements together and implement workable solutions for each international supply chain.
Contact me to discuss your supply chain requirements
If you would like to discuss your international supply chain requirements with me, please complete the form below and I will contact you.
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