Supply Chain Visibility Checklist for Manufacturers

Manufacturers face mounting challenges like delays, inefficiencies, and rising costs due to supply chain blind spots. The solution? Prioritize visibility. This guide outlines actionable steps to help manufacturers achieve real-time insights, reduce risks, and improve decision-making through better data, technology, and supplier management.

Key Takeaways:

• Set KPIs: Track metrics like inventory turnover, supplier performance, and order accuracy to monitor supply chain health.
• Fix Data Gaps: Map processes to identify inefficiencies and automate outdated manual tasks.
• Leverage Technology: Use tools like real-time tracking, ERP systems, and cloud-based platforms for centralized, accurate data.
• Apply AI Analytics: Predict demand, automate supplier communication, and build smarter workflows to minimize disruptions.
• Strengthen Supplier Relationships: Diversify your supplier base, use dashboards to track performance, and reward transparency.
• Ensure Compliance: Use compliance monitoring tools and conduct regular audits to stay ahead of evolving regulations.

Why It Matters:
In a 2022 survey, 61% of logistics managers rated their supply chains as “underperforming,” and 29% expected normal operations to resume only by 2025. With tools like predictive analytics and real-time tracking, manufacturers can reduce lead times by 30%, cut inventory costs by 15%, and improve on-time deliveries by 35%.

Ready to take control of your supply chain? Start with these practical steps to achieve the visibility your business needs to thrive.

Supply Chain Visibility as a Key Driver of Performance Optimization and Cost Control

Setting Up Your Supply Chain Visibility Foundation

Before diving into advanced tools like real-time tracking or predictive analytics, manufacturers need to lay the groundwork for monitoring and measuring supply chain performance. This starts with building a solid framework around performance metrics and data standards. Here’s how you can establish a strong foundation.

Set Up Key Performance Indicators (KPIs)

Choose KPIs that help you track efficiency, manage costs, improve customer satisfaction, and flag potential disruptions. These metrics act as a safety net, helping you identify risks and spot opportunities before they escalate.

To define meaningful KPIs, involve key departments such as procurement, manufacturing, logistics, and quality control. Focus on metrics that give you a clear picture of operational health and help you maintain a competitive edge. Here are some essential KPI categories:

• Inventory Management: Keep an eye on inventory turnover rates and carrying costs. For instance, carrying costs often account for 20–30% of total inventory expenses, making them a better benchmark than inventory-to-sales ratios.
• Supplier Performance: Measure on-time delivery rates, quality scores, and lead time variability to identify reliable suppliers and flag potential risks.
• Order Fulfillment: Track metrics like order cycle times, order accuracy, and customer satisfaction to ensure you're meeting demand while staying ahead of competitors.
• Cost Efficiency: Monitor total landed costs, transportation expenses, and warehouse utilization to find ways to cut costs without sacrificing quality or service.

For example, Guess managed to reduce reporting inaccuracies by about 30% using supply chain management software during the disruptions caused by COVID-19.

Once you've established your KPIs, evaluate your operations to identify gaps or missing data that could hinder your visibility strategy.

Find Problems and Missing Information

Map out your processes to uncover inefficiencies and recurring issues that point to deeper challenges. Process mapping is a great way to visualize how materials, information, and decisions move through your supply chain. Bringing in team members for this exercise can highlight problem areas you might otherwise miss.

The scale of visibility issues can be staggering. For example, U.S. retailers lose an estimated $2 trillion annually due to out-of-stock or overstock scenarios. In warehouse management alone, companies spend around 6,000 hours each year on cycle counts and stock checks, while customers spend an average of 24 minutes resolving discrepancies.

"When you can't see activities across the board, you're missing out on crucial information that can help optimize processes, identify bottlenecks, and increase efficiency. Now is the time to identify your visibility gaps and strategize how to close them."
– OPSdesign

Evaluate your tech stack to see where data flow might be breaking down. Often, systems like ERP, warehouse management, and transportation platforms don’t communicate effectively, creating blind spots. Look for areas that rely on manual data entry, outdated communication methods, or paper-based tracking - these are prime candidates for automation.

Harry Chase from GE Appliances highlighted the importance of data during supply chain disruptions:

"We learnt a big lesson: data is very powerful for how we make decisions. We're trying to pull multiple data points now, and when we have spikes or difficulty in moving products around, the data is critical for us to make decisions on inventory levels, going back and seeing where we need to spend more money. (...) In essence, keep customers happy, keep costs low and keep everything flowing."
– Harry Chase, GE Appliances

Create Standards for Data Collection and Reporting

Consistency in data collection and reporting ensures everyone in your organization is on the same page regarding supply chain performance. Set clear data requirements and deadlines for suppliers. Standardized data makes it easier to integrate technology and analyze performance.

Using uniform questions in supplier surveys and assessments eliminates confusion and allows you to compare results across different partners and time periods. Define what you’re measuring, the methods for measurement, and the timing of data collection.

Store data in both raw and aggregated formats to support detailed analysis and trend identification. Regular audits and consistent data collection schedules - whether monthly, quarterly, or annually - help maintain accuracy and reliability.

Some companies are already setting new benchmarks for supplier data collection. For instance, Amazon plans to require over 200,000 suppliers to log their emissions and set reduction targets starting in 2024. Similarly, Microsoft mandates that suppliers report Scope 1, 2, and 3 emissions annually, aiming for a 55% reduction in emissions by 2030 to support its carbon-negative goals.

Applying concepts like Full Material Disclosure (FMD) can further improve supplier communication and visibility. Tailoring your data collection approach by categorizing manufacturers based on size, supply chain tier, location, and production capabilities allows for more actionable insights.

Investing in standardized data collection pays off. Over 57% of organizations are increasing their investments to strengthen supply chain resilience, with many focusing on improving data accuracy and consistency.

Using Technology for Real-Time Tracking and Data Management

Once you’ve established your KPIs and data standards, it’s time to leverage technology to achieve real-time visibility in your supply chain. This is critical because over 43% of manufacturers face challenges in accessing real-time data for decision-making. By building on your established metrics, these tools ensure that every decision is backed by accurate, timely data.

Set Up Real-Time Tracking Systems

Real-time tracking systems give you instant insight into shipments, inventory levels, and production status. Tools like RFID (Radio Frequency Identification) and RTLS (Real-Time Location System) allow you to monitor goods as they move through your facilities and supply chain. The Omlox framework, for example, provides a standardized way to integrate technologies like RFID, Bluetooth Low Energy (BLE), and Ultra-Wideband (UWB).

AI-powered systems can take this a step further. These tools automate supplier follow-ups, track performance, and send alerts when delays or issues occur. They also extract data from documents and provide real-time updates on orders and shipments, reducing manual effort and improving accuracy.

Take Ciena, a telecom networking company, as an example. They created a self-serve data ecosystem that processes 40–90 million business events daily, seamlessly transferring data from Oracle databases to Snowflake. This system supports advanced analytics across various business areas, including manufacturing and sales.

Connect with ERP Systems

Real-time tracking becomes even more powerful when integrated with ERP (Enterprise Resource Planning) systems. By centralizing your supply chain data, ERP systems eliminate the need for manual data entry, which often causes delays and errors. Before integrating, standardize your data to ensure consistency. Once in place, ERP systems provide everyone in your organization with access to the same up-to-date information.

Combining ERP with MES (Manufacturing Execution Systems) takes it further by delivering real-time production floor data, enabling smarter decisions at every level. According to a TEI study by Forrester Consulting, manufacturers using integrated systems saw a 354% ROI and a net present value (NPV) of $27.17 million over three years.

To make the most of your ERP integration, set clear KPIs to measure success. Training and change management are also crucial to ensure your team can fully utilize these real-time insights.

Use Cloud-Based Solutions

After implementing real-time tracking and ERP systems, cloud-based solutions can extend visibility and accessibility even further. These platforms allow you to manage and automate global supply chain operations from anywhere. With cloud-based SCM (Supply Chain Management) platforms, you can streamline communication, minimize risks, and reduce setup costs compared to traditional on-premise systems.

When choosing a cloud-based solution, consider factors like scalability, automation features, and integration capabilities to ensure it meets your long-term needs. Ensure the platform complies with regulations such as GDPR, ISO, and SOC 2, and includes robust encryption for data security.

The importance of technology in supply chains is clear - 82% of supply chain professionals believe advancements in technology will significantly impact the industry over the next five years. However, security concerns are growing, with the global cost of software supply chain attacks expected to rise from $60 billion in 2025 to $138 billion by 2031.

"Digital transformation is increasingly becoming essential for doing business. To achieve it, supply chain leaders must look beyond traditional methods to new technologies that can streamline operations, reduce costs and enhance customer satisfaction." - Amit Patel, SCB Contributor

While cloud-based solutions often have lower upfront costs and easier updates, on-premise systems can offer greater control and customization, though at a higher maintenance expense. The key is selecting a platform that integrates seamlessly with your ERP system and provides the data access your teams need to adapt quickly to changes and opportunities in the supply chain.

Applying AI Analytics for Future Planning

AI analytics can take your supply chain from simply reacting to problems to anticipating them. With real-time tracking and cloud solutions already in place, AI analytics steps in to analyze data patterns, predict potential issues, and guide smarter decisions before challenges arise. Essentially, these tools expand your visibility from immediate operations to long-term planning. To put things into perspective, the global predictive analytics market was valued at $10.2 billion in 2023 and is projected to hit $63.3 billion by 2032, growing at an impressive annual rate of 22.4%.

Improve Inventory Management with Predictive Analytics

Predictive analytics leverages data and algorithms to forecast future demand, a game-changer in inventory management. Why is this so critical? Because inventory distortion costs retailers about $1.77 trillion globally, and nearly 60% of online shoppers in the US report that out-of-stock issues influence their purchasing decisions.

By combining historical sales data, seasonal trends, and market factors, businesses can optimize inventory levels. Amazon is a prime example, using machine learning models to predict demand and ensure that popular products are stocked in the right regions at the right times. On the other hand, Dell employs a Build-to-Order model, assembling products only after customer orders are placed. This strategy minimizes excess inventory, reduces costs, and provides manufacturing flexibility.

To make predictive analytics work for you, focus on training your team to interpret and act on insights effectively. Set clear goals and key performance indicators (KPIs) - like inventory turnover and sell-through rates - to measure success. Finally, regularly update your models to reflect new data and evolving market conditions.

Automate Supplier Communication

AI tools can handle routine supplier communications like requests, negotiations, and purchase orders, saving time and ensuring consistent exchanges. The AI in logistics market is expected to soar to $549 billion by 2033, with a growth rate of 47.6% annually from 2024 to 2033.

AI also provides a detailed risk profile by analyzing supplier data, such as delivery times, quality metrics, compliance records, and financial stability. For example, IBM uses AI to evaluate supplier performance, while Unilever employs AI-driven procurement automation to enhance supplier management and purchasing decisions.

By integrating AI with ERP systems, you can automate tasks like generating purchase orders, tracking shipments, and monitoring supplier performance. Tools like AI chatbots - used by Alibaba to manage supplier relationships and customer service - streamline communication and reduce response times.

"True supply chain excellence in 2025 is about predictability, trust, and intelligent orchestration. If you can't see it in real time, you can't control it." - Joy Mookerji, Author

AI can also simplify procurement processes, including supplier selection and contract management, which is especially valuable considering that companies using AI allocate 30% fewer resources to transactional activities.

Build Custom Workflows for Manufacturing Operations

Custom AI-powered workflows can significantly enhance manufacturing operations by integrating seamlessly with your existing systems. With over 70% of industrial data going unused, there’s a huge opportunity to unlock untapped potential. To start, focus on maintaining clean, consistent, and high-quality data.

Make sure your technology infrastructure is scalable and capable of supporting AI solutions. Employee training is equally important - your team needs to understand how AI simplifies tasks and reduces workload, rather than fearing it will replace their roles.

When choosing an AI vendor, look for one that offers robust support, onboarding, and regular updates. Scalability and measurable supply chain outcomes should also guide your selection. AI-powered workflows can include features like purchase order automation, supplier scorecards, and document parsing, all of which integrate smoothly with ERP systems.

Set specific goals and identify key challenges to address with AI. Given that global manufacturers face significant supply chain disruptions roughly every 3.7 years, proactive planning is essential. AI helps anticipate and mitigate these disruptions, moving your operations from reactive to proactive.

To maximize the benefits, monitor AI outputs closely and establish clear action plans. Address data privacy concerns, especially when handling sensitive supplier or customer information. Regularly refine your models to stay aligned with new data and shifting market conditions.

One advanced approach is developing a supply chain digital twin - a virtual replica of your physical supply chain. Paired with real-time data, this tool provides end-to-end visibility and enables dynamic responses to rapidly changing conditions.

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Improving Supplier Relationships and Risk Management

Managing supplier relationships and addressing risks within your network is a critical piece of the puzzle when it comes to achieving full supply chain visibility. With 89% of companies encountering a supplier risk event in the past five years, manufacturers can no longer afford to view suppliers as just vendors. Building open partnerships and implementing strong risk management strategies are key to keeping operations stable and resilient.

Build Open Supplier Relationships

Strong supplier relationships start with open communication and shared goals. Clear and consistent communication ensures both sides are on the same page about project requirements, timelines, and quality expectations.

"Collaboration fails without communication." – JAGGAER

Setting a collaborative tone is essential. Highlight the importance of risk management while creating systems for suppliers to share potential concerns openly. Avoid heavy-handed approaches - instead, reward suppliers for their transparency and cooperation. Involving suppliers early in the product design phase can also strengthen supply chain resilience, as it encourages them to flag risks and work together on solutions. Feedback loops are another great tool, helping identify areas for improvement and ensuring critical information flows to your product and engineering teams promptly.

Expand and Strengthen Your Supplier Network

Diversifying your supplier base is one of the smartest ways to manage risk. With up to 30% of supplier data changing annually, ongoing monitoring is crucial to adapt to market shifts and regulatory updates.

Establishing a cross-functional risk board with representatives from all parts of the value chain can enhance governance. This team can map out and evaluate the value chains for key products, identifying risks at every stage. By scoring risks based on their impact, likelihood, and preparedness, you can create a robust risk management framework.

Real-world examples show the importance of supplier diversification. In 2021, Stanley Black & Decker accelerated plans to build factories in Mexico and Texas after the pandemic exposed vulnerabilities in global supply chains. Similarly, in 2022, Toyota expanded its U.S. operations with new facilities in Alabama and Kentucky to address delays and rising freight costs.

Having contingency plans in place for everything from minor disruptions to major crises ensures you're ready for any scenario. Treat suppliers as genuine business partners by understanding their challenges and working together to solve them. This approach not only strengthens relationships but also boosts performance through shared goals and clear communication.

Use Supplier Performance Dashboards

Supplier scorecards and dashboards are invaluable tools for tracking performance metrics. They provide a clear, visual way to identify trends and pinpoint areas that need attention. Companies that use these tools effectively report a 7% reduction in supply chain costs and a 10% improvement in supplier performance.

Start by defining clear objectives for your suppliers and using standardized evaluation frameworks and KPIs that align with your business goals. Regular performance reviews help keep everyone accountable and focused on continuous improvement.

The benefits of structured supplier management are clear. For example, one aerospace component supplier saw a 15% improvement in on-time delivery, a 20% boost in product quality, and 12% cost savings after implementing a structured system. Similarly, in the automotive industry, a Supplier Performance Improvement Program reduced past-due spare parts orders by 85% across six suppliers.

Leveraging an integrated Supplier Relationship Management (SRM) system can take your efforts to the next level. By centralizing performance data, automating scorecards, and enabling real-time analytics, SRM technology addresses common challenges like poor supplier data quality (an issue for 53% of procurement professionals). Use these systems to foster open communication, create actionable improvement plans, and identify opportunities for growth. This approach ties supplier management directly into your broader visibility strategy, ensuring alignment and efficiency.

Maintaining Compliance and Continuous Improvement

Achieving full supply chain visibility isn't just about tracking data - it's about staying compliant and continuously refining your processes. As regulations evolve and market demands shift, manufacturers need systems that not only monitor compliance but also adapt strategies to meet new challenges. This balance is key to long-term success in the manufacturing world.

Set Up Compliance Monitoring Tools

Modern compliance demands more than spreadsheets and manual tracking. Advanced compliance software can help companies and their partners meet legal and industry standards with ease. These platforms offer tools like real-time data tracking, automated reporting, centralized document management, customizable checklists, and integrated risk monitoring that connects compliance data to supplier performance metrics. Unlike older methods that often leave gaps, these systems centralize workflows and ensure you're always ahead of new requirements.

Take, for example, Cloetta, a confectionery manufacturer. By using Kodiak Hub's platform, they achieved 100% supply chain compliance in June 2025. This success shows how technology can transform compliance from a reactive task into a proactive advantage. Once a robust system is in place, the next step is conducting regular audits to ensure ongoing improvements.

Perform Regular Audits

Regular audits are essential for spotting risks, maintaining compliance, and identifying opportunities to improve operations. A thorough audit process involves reviewing systems, documentation, and performance metrics to uncover inefficiencies or bottlenecks that could hurt profitability. Start with clear objectives and a well-defined scope. Assemble a team with expertise in areas like procurement, logistics, manufacturing, and compliance. This team should gather key documents - such as policies, contracts, and performance data - before conducting onsite evaluations and interviews with stakeholders.

After collecting data, analyze it carefully to identify gaps and create actionable recommendations. Develop a corrective action plan and monitor its progress to ensure improvements stick. To make audits more effective, focus on high-risk areas, use data analytics for deeper insights, and maintain open communication with stakeholders. Creating a checklist can also help keep efforts consistent across audit cycles while making it easier to track trends over time.

Update and Improve Your Strategies

In today’s fast-moving manufacturing landscape, continuous improvement is non-negotiable. With 62% of companies reporting limited supply chain visibility and only 15% having insight into production processes, there’s a clear need for better strategies - even as 80% of businesses work to improve visibility. Engaging stakeholders at every level is crucial for gathering feedback and ensuring transparency throughout the supply chain. Empowering employees to make decentralized decisions can also drive meaningful improvements.

Building on compliance and audit practices, take your strategies further with advanced technologies. Use AI-driven systems and digital platforms to achieve end-to-end visibility, adopt automation tools to streamline workflows, and centralize data from multiple sources. Early adopters of AI-enabled visibility systems have already reported a 15% reduction in logistics costs. To implement these changes effectively, start with a structured plan based on performance analysis. Pilot new initiatives, review outcomes, and scale successful solutions across your operations.

Stay ahead by keeping an eye on trends like sustainable and ethical sourcing, which are increasingly driven by regulatory pressures and consumer demand for transparency. Invest in tools and adjust workflows to reduce risks and improve efficiency. Highlighting achievements regularly can also motivate stakeholders and foster a culture of continuous improvement. By integrating data from systems like ERP, CRM, procurement, and inventory alongside external insights, supply chain leaders can ensure transparency, resilience, and adaptability in their operations.

Conclusion: Next Steps for Better Supply Chain Visibility

Achieving full supply chain visibility means embracing real-time tracking, fostering strong supplier relationships, and committing to continuous improvement. Manufacturers that focus on these areas can address immediate challenges while setting the stage for long-term success.

Start with impactful basics. Incorporate real-time tracking, centralized document management, and automated order-to-pay processes. These foundational steps can streamline daily operations and improve how businesses respond to disruptions, creating a stronger, more agile supply chain.

Leaders in the industry have already seen the rewards of prioritizing visibility. Steve Andrews, Director at Systems Control, observed: "Leverage saves each of our buyers at least 50% of their time every week, and we were able to reduce our planned headcount". Similarly, Erin Purvis from Blu Dot shared, "We're now able to keep our customers happier because we can finally answer their questions about where their stuff is". These real-world examples highlight how visibility can drive efficiency and enhance customer satisfaction.

Technology and relationships go hand in hand. While 65% of procurement leaders lack real-time supplier visibility and only 56% use technology to manage supplier relationships, the potential for improvement is immense. Successful manufacturers know that technology doesn’t replace relationships - it strengthens them. Kyle Miller from Rand Technology put it perfectly: "No matter how advanced our systems become, business is still done between people. A strong relationship with a supplier or customer can mean the difference between securing critical inventory in a crisis or being left scrambling".

The benefits of visibility extend beyond operations. With 65% of shoppers willing to switch brands for better supply chain transparency and sustainably sourced product sales climbing 28% in the last five years, visibility is now a competitive advantage. Manufacturers can act by automating supplier follow-ups, increasing engagement, and leveraging real-time data to anticipate and resolve delays.

For those ready to elevate their supply chain management, Leverage AI provides a complete solution. Its tools - ranging from direct ERP integration and real-time mitigation features to supplier scorecards - help automate performance management while fitting seamlessly into existing workflows. Eric Swope, COO at Buckle Down, described the impact: "Leverage is a total game-changer for us. I can't believe we managed our supply chain without this level of visibility before".

FAQs

How can manufacturers identify and fix data gaps in their supply chain?

To tackle data gaps in your supply chain, the first step is to assess how you currently gather and manage information. Check for places where data might be missing, outdated, or inconsistent. A gap analysis can be a useful way to identify weak spots that could be affecting your ability to make informed decisions or maintain visibility across the supply chain.

After identifying these gaps, focus on solutions like implementing specific data collection strategies or using advanced tools such as real-time tracking systems and AI-driven analytics. Work closely with your supply chain partners to promote smooth data sharing and ensure transparency - both of which are key to keeping your operations efficient and resilient.

How does integrating AI analytics improve supply chain management and decision-making for manufacturers?

Integrating AI analytics into supply chain management allows manufacturers to boost efficiency, cut costs, and make smarter decisions. These tools deliver real-time insights, empowering businesses to forecast demand, tackle potential risks early, and simplify operations.

With the ability to process massive amounts of data, AI improves inventory accuracy, minimizes delays, and strengthens supply chain reliability. These advancements result in operations that are not only more economical but also better equipped to adapt in a constantly evolving market.

How do real-time tracking systems integrate with ERP software to improve supply chain visibility?

Real-time tracking systems and ERP software collaborate by merging live supply chain data into one centralized platform. This setup provides real-time updates on inventory levels, production stages, and shipment progress.

With automated alerts and synchronized planning, manufacturers can swiftly spot potential issues, avoid stock shortages, and allocate resources more effectively. This partnership between systems minimizes waste, boosts efficiency, and supports smarter decisions throughout the entire supply chain.