What is supply chain visibility?

Supply chain visibility refers to the ability to monitor and track materials, products, and information as they move through the various stages of the supply chain. This capability allows organizations to gain insights into the status and location of their inventory, the progress of orders, and any potential bottlenecks or disruptions.

Having high visibility in the supply chain is crucial for effective management, as it enables companies to respond swiftly to changes, optimize operations, improve collaboration with suppliers and customers, and ultimately enhance decision-making processes. By actively tracking materials and products, organizations can improve their responsiveness to demand fluctuations, manage risks more effectively, and ensure that products are delivered on time.

The other options do not encompass the primary definition of supply chain visibility; thus, they do not align with the core concept. Predicting market trends focuses on forecasting rather than tracking, while transportation efficiency and customer service levels are important aspects of supply chain management but do not specifically capture the essence of visibility throughout the entire supply chain.