The Holy Grail of Supply Chain Management

The challenge of creating sufficient visibility in supply chains and networks has been described by supply chain expert Adrian Gonzales as the Holy Grail of the field—that is, in a figurative sense, something that is highly sought after but virtually unattainable. That said, one could argue that the opportunities for visibility today are greater than ever before. Better system solutions, collaboration platforms, and tracking technologies are constantly being developed to meet the demands for transparency from suppliers, customers, and consumers—ideally in real time.

With AI and ML in modern SCM planning systems, we can also take into account an increasing number of factors—such as weather, traffic conditions, promotional campaigns, and more—which can serve as the basis not only for automated decisions but also for a learning process that leads to better future forecasts and better, faster decisions.

The ”visibility” that is primarily sought is very basic: which goods have been shipped and exactly where in the supply chain they are right now. That information alone paves the way for much better planning, efficiency, and customer service. There are several reasons why this seemingly simple information need is so difficult to meet in many cases. First, the necessary data is often scattered across many different parties and systems. Add to this the reluctance that still exists in some quarters to share data. Other reasons include the perception that achieving good transparency is sometimes too complicated and expensive.

The latest issue of Supply Chain Effect focuses largely on the key issue of visibility and data sharing in the supply chain. This is a fundamental and challenging issue for anyone working in supply chain management and logistics, but it is also central to anyone working in sales or holding overall operational responsibility. E-commerce and its leading players have definitely spearheaded a trend in which data access, visibility, and transparency are becoming increasingly standard requirements demanded by consumers. This trend has led us to increasingly demand the same level of visibility in our professional roles. Combined with rapid technological advancements and a growing focus on sustainability, this creates a market force that may very soon transform the “holy grail” of supply chain management into something more than just a vision!

Stefan Karlöf, Editor-in-Chief

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