The concept of “supply chain visibility” has been circulating within the container shipping industry for decades. Many companies have carved out niches for themselves by focusing on enhancing visibility—some successfully turning a profit, while others have not.
Annually, new companies enter the field, often touting the potential to enhance visibility, whether in specific areas of the supply chain or more broadly. With each technological advancement, such as blockchain a few years back and, more recently, artificial intelligence (AI), these innovations are quickly associated with the promise of increased visibility.
This is not to undermine the contributions of visibility providers. Indeed, many have significantly improved supply chain transparency compared to several decades ago. Yet, the more pertinent question remains: Where is the real value being created in visibility?
At the turn of the millennium, end-to-end visibility was notably lacking, as simple as determining the location of one’s cargo. This marked the beginning of the first wave of enhanced visibility, which focused on merely providing data on cargo locations. The subsequent phases aimed to deliver this information in real-time and in a format that was easier to digest amidst an ever-growing data deluge.
Despite significant advancements driven by industry stalwarts and newcomers alike, the term “visibility” remains a buzzword, symbolizing an elusive goal. This ongoing pursuit can be attributed to several reasons.
Firstly, although vast amounts of data are now accessible, there remain isolated “data dark spots” that are not seamlessly connected. While these are becoming rarer, they present an easy target for selling new visibility solutions.
Secondly, availability of data does not guarantee universal adoption among all stakeholders in the supply chain. Often, stakeholders are hesitant to invest in these solutions without a clear, compelling business case.
Thirdly, and most crucially, the true value of visibility needs clearer definition. Many argue it lies in supply chain optimization—minimizing inefficiencies and cutting costs by understanding supply chain flows. However, the level of detail required for effective planning can vary, and not all real-time data significantly impacts decision-making.
At the core, the value of supply chain visibility may actually hinge on “exception management” and predictive capabilities. Effective supply chain management involves strategic planning, not merely reactive measures. Real-time visibility should ideally support decision-making during unforeseen events or deviations from the norm, which often have the most significant impact.
Regarding AI, while it excels at processing extensive data sets and learning from past events, its utility in managing novel, unpredictable “black swan” events is limited. The true competitive advantage lies in the ability to quickly adapt to new challenges, combining expert human judgment with critical real-time data to manage exceptions effectively. This blend of expertise and technology is where the future of supply chain visibility may well be headed.
