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Supply Chain Visibility (SCV) Explained

Supply Chain Visibility (SCV) Explained

A supply chain is a complex system which involves various activities such as procurement, inventory management, logistics and much more. The well-coordinated supply chain ensures the smooth flow of materials and timely delivery of goods to customers and retailers. But how do you make sure your supply chain is running smoothly and efficiently? Well, in order to achieve this, you need to have instant and easy access to every aspect of your supply chain and be able to spot and analyze any issues that may compromise the flow - all this is collectively known as supply chain visibility. In this article, we will explain what supply chain visibility is and the impact it can have on your business. Read on!

What is supply chain visibility?

Every ready-made product follows a standard path in the supply chain, from supplier to manufacturer to consumer. The ability to track the product throughout the entire supply chain process is called supply chain visibility. The more visibility a company has into its supply chain, the more efficiently it can handle all the problems that may arise along the way.


Digitization of operations is one of the trends that define the supply chain in 2023. SCV is enabled by specialized software and technology. Companies invest in inventory software to manage inventory, track the movement of the products and shipments and use this data to analyze and optimize their supply chain. Businesses sometimes opt for more comprehensive solutions like custom ERP software to have broader control over their supply chain.

Why is supply chain visibility important?

It is common in the supply chain to outsource certain activities. This practice allows companies to reduce total costs, concentrate on their core capabilities, better meet client requests, and have more flexibility in managing and running their supply chain. However, with outsourcing comes the risk of losing control over some processes or the supply chain as a whole - this is where supply chain visibility comes into play. 


SCV is an essential part of supply chain management and here’s why:


  • SCV provides invaluable insight into the state of operations, customer satisfaction, compliance and business growth; thus, allowing business owners to make informed decisions that positively impact the company operations. 
  • SCV reduces complexities related to managing global operations and ensures a more transparent process. It allows businesses to track all aspects of the supply chain and ensure customers get their orders on time and in the right quantity. 
  • SCV helps effectively coordinate international logistics during volatile periods like political unrest, epidemics and exchange rate fluctuations. 
  • With SCV, companies are able to reduce unnecessary expenses by identifying inefficiencies in inventory and logistics and the supply chain in general.

The takeaways

SCV is an integral aspect of the supply chain. Businesses are able to gain more control over their supply chain and make the process more efficient. Using specialized supply chain management software significantly improves transparency, efficiency and accountability throughout the entire process, and is something businesses should aim to incorporate into their daily operations.