Proper management (control, decision, optimization) of inventory is achieved by knowing stocks precisely and in a timely manner, which requires that stocks be visible (visibile) throughout the supply chain.
Otherwise, the correct management of the inventory may become difficult or even impossible.
If there is no clear visibility , how can the correct stock level (maximum, minimum, safety) or order fulfillment target for customer service be determined correctly? It should be noted that these may positively or negatively affect financial factors such as capital or cash flow, and responsiveness to market or demand changes .
But is visibility clear and healthy at every stage of the supply chain?
According to the survey for the Omni Channel market, “visibility” is getting harder and harder to get deeper into the supply chain, i.e. into the supplier’s warehouse and factory, while relatively good at companies’ 3PL shipping to and from their own warehouses and on the road.
The %22inventory carrying cost%22, which is as important as %22visibility%22 for the correct management of the inventory, should not be ignored.