The benefits of supply chain visibility: A value assessment model
In recent years, much attention has been devoted to the topic of supply chain visibility in the scientific literature. However, a thorough assessment of the benefits enabled by supply chain visibility has not yet been undertaken. This paper aims to provide a structured method and a set of assessment tools for quantifying the benefits that can be achieved through better visibility on the inbound supply chain. The method consists of a nine step process for assessing the value of an improvement in supply chain visibility; the tools are ten causal maps, which depict the KPIs affected by an improvement in the quality and/or quantity of focal company׳s visibility on specific information flows (e.g. order status, inventory level, delivery plan, etc.). The method is based on the literature, while the tools were developed through a focus group of nine practitioners. The resulting model (i.e. method and tools) was applied to the supply chain of a prominent company in the aerospace industry in order to explore its applicability in a practical context. The model proved to be efficient, since it could be easily customised in accordance with the level of effort managers wanted to put into the evaluation, and effective, thus providing reliable estimates of likely KPI improvements.
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