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The report from Gartner is clear – supply chain visibility is critical for every supply chain leader today. Learn how supply chain visibility can help your business.
It’s true, Supply Chain Visibility actually helps you increase your revenue. It’s one of the many ways supply chain visibility can improve your business.
Let’s look at three areas where visibility can impact your top-line revenue.
1. Proactively Identify and Resolve Exceptions
One of the most significant benefits of supply chain visibility is the ability to proactively identify exceptions and resolve them before they become problems. By having real-time visibility into inventory levels, order processing delays, warehouse processing issues, and shipment problems, supply chain leaders can quickly identify potential issues and take corrective action. This can significantly reduce the risk of inventory write-offs, delays in order fulfillment, and lost sales due to out-of-stock situations.
For example, let’s say you’re a manufacturer that uses just-in-time (JIT) inventory management. You rely on your suppliers to deliver materials on time to avoid stockouts and production delays. However, if a supplier experiences a delay, it can impact your production schedule and ultimately lead to lost revenue.
By using supply chain visibility, you can monitor your suppliers’ performance in real-time and identify potential delays before they occur. This allows you to take proactive measures, such as finding alternative suppliers or adjusting production schedules, to avoid stockouts and keep production on track. By doing so, you can ensure timely deliveries to your customers and avoid lost sales.
2. Use Visibility to Improve Customer Satisfaction
It’s no secret that customer satisfaction impacts revenue. But how can visibility software help improve both?
Real-time visibility makes it easy for you to delight your customers. FourKites gives you access to real-time shipping information — information, that you can share with your customers.
Today’s customers expect to be able to “self-service” to find out exactly where their package is and when it will arrive. By sharing the real-time information you can create a great customer experience AND free up resources. Companies across industries see a significant drop in call center volume when their customers have direct access to the delivery information.
Use visibility to build customer trust, loyalty, and revenue.
Learn more: Download the Supply Chain Executive’s Strategy Guide to Customer Service
3. Improve Revenue By Improving OTIF
Improving On-Time-In-Full (OTIF) delivery performance can have major impacts on top-line revenue. McKinsey estimates that a 5%-10% uplift in OTIF% can result in a 1% uplift in revenue.
OTIF measures the percentage of orders that are delivered on time and in full, meaning that they are delivered in the right quantity and with the correct products.
For example, let’s say you’re a food distributor that delivers fresh produce to grocery stores. By using a visibility platform like FourKites, you can monitor the temperature of your shipments in real-time and take corrective action if the temperature exceeds the required range. By doing so, you can ensure that your products are delivered fresh and on time, reducing the risk of spoilage
When companies improve their OTIF performance, they can provide better customer service and reduce your costs
- Better Customer Service: When companies improve their OTIF performance, they can provide better customer service by delivering products on time and in the correct quantity. Customers aren’t happy when their orders are late or lacking. Sub-optimal OTIF performance can lose you repeat business, and revenue.
- Reduced Costs: Improve OTIF with visibility and reduce the costs associated with missed delivery windows, expedited shipping, and customer complaints.
- Now that you’ve invested in improving your OTIF and Customer Service — don’t keep it a secret!
- Impact your revenue even more by arming your sales team with these improvements. With these new selling points, asking for additional market share or holding price points to maintain margins becomes much easier.
Start Improving Your Business with Supply Chain Visibility
Stronger global supply chain management starts with FourKites. Contact our team to learn more.