Challenges of supply chain visibility in distribution logistics

Abstract

Purpose: Complex supply chains characterise today's economic life, which is determined by uncertainties and risks. Managing those successfully requires the development of resilient and flexible structures and processes based on information transparency, which enables better decision-making, especially in times of global crises. In this context, supply chain visibility (SCV) is defined as the stakeholders' capability to have access to accurate and timely information about the flow of goods. Although the importance of SCV has been discussed in scientific literature and practice, challenges still inhibit improved SCV, particularly in distribution logistics. These have been scarcely investigated. The purpose of this study is to identify the challenges of SCV in distribution logistics and to provide implications to address them. Methodology: A qualitative content analysis (QCA) spanning 26 scientific articles was used. Results: We found evidence of challenges inhibiting SCV in distribution logistics within the three aggregated dimensions of inappropriate processes & technologies and information systems, lack of communication & trust, and insufficient monitoring & decision-making metrics. The findings show that trust can be seen as both a challenge and a prerequisite. Despite the possibilities of digitalisation, there exist trade-offs between manual processes and new technology implementation. Decision-making can be based on individual experiences, and monitoring can be difficult due to undefined metrics. Conclusion: Practitioners may use the findings to better identify and address the challenges of SCV in distribution logistics. Further studies could extend the findings through empirical studies, which would allow practitioners to assess their level of SCV and derive initial solutions.

Enhancing Supply Chain Visibility in Large Enterprises: A Literature Review

“…Large enterprises often operate extensive and intricate supply networks involving multiple tiers of suppliers, manufacturers, distributors, and logistics providers across various geographic regions. Due to the complexities of supply chain networks, uncertainties are caused in information flows and poses great challenges [4].…”

“…In the context of supply chain management, large enterprises are organizations with substantial market influence, extensive operational reach, and significant resource capabilities. Large enterprises often face fragmented data systems and interoperability issues, making it difficult to consolidate and analyse supply chain data from multiple data sources [4] [5] Moreover, diverse supplier networks and geographical dispersion across multiple countries and regions intensify the challenges in data collection and monitoring. Coordinating information flow across multiple tiers of suppliers and complex supply chain networks is challenging.…”

“…Coordinating information flow across multiple tiers of suppliers and complex supply chain networks is challenging. Real time information is essential for accurate monitoring across the supply chain network [4].…”

Can We Do More with Less? Analyzing the Organization of Flexibility of Space and Infrastructure at UDCs: A Case Study for Food Center Amsterdam

“…At the same time, the specific stakeholders are case-dependent. Cities can play a key role as infrastructure providers, coordinators for stakeholders to work together for efficient logistics [40], and in allocating costs and benefits [38]. This shows the puzzle of aligning stakeholders with common goals and bridging conflicts of interests to come to collaboration.…”

Factors influencing decision-making in buying process of express logistics services

“…Visibility of key information across organisational boundaries are viewed as prime criteria for building competitiveness (Bartlett et al 2007;Mandal et al 2016). In logistics & supply chain, visibility is defined as the stakeholders' ability to have accurate & timely information about the flow of goods (Freichel et al 2022). Real time visibility of logistics is taken into consideration in decision making, as opaque system creates inefficiency and hurdle for logistics users.…”