In today's complex global supply chains, visibility has become a crucial factor for success. Organizations are increasingly recognizing the importance of enhancing visibility across multiple tiers, including beyond their immediate suppliers. Nth tier visibility refers to gaining insights and control over suppliers beyond the first tier. This blog aims to explore the significance of nth tier visibility in supply chain management, and provides an overview of best practices, and offers practical strategies to enhance it effectively.
Understanding Nth Tier Visibility
Nth tier visibility is the ability to track and monitor suppliers beyond the immediate tier in the supply chain. It involves gaining insights into their operations, processes, and potential risks. Achieving nth tier visibility is essential for mitigating disruptions, improving sustainability practices, and ensuring compliance throughout the supply chain.
The Importance of Nth Tier Visibility
The following highlights the importance of nth tier visibility
a.Risk Mitigation: Enhancing visibility of nth tier suppliers helps identify and mitigate various risks, such as quality issues, ethical concerns, or compliance violations. By proactively addressing these risks, organizations can minimize their potential impact on the overall supply chain.
b.Resilience and Responsiveness: Nth tier visibility enables organizations to respond more effectively to unexpected disruptions, such as natural disasters or geopolitical events. Timely information about supplier activities facilitates agile decision-making and allows for alternate sourcing options.
c.Sustainability and Social Responsibility: Visibility into nth tier suppliers allows organizations to assess their sustainability practices, including environmental impact, labor conditions, and adherence to ethical standards. By monitoring and collaborating with suppliers, organizations can drive positive change throughout the supply chain.
Strategies to Enhance Nth Tier Visibility
Below are some of the best practices to effectively enhance nth tier visibility:
a. Supplier Onboarding and Evaluation
Establishing a robust onboarding process that includes evaluating suppliers' transparency, data sharing capabilities, and their own supply chain practices. Clearly, communicating and setting expectations regarding nth tier visibility requirements from the beginning to ensure alignment between the organization and its suppliers.
b. Supplier Collaboration and Communication
Fostering open lines of communication with suppliers at different tiers. Encouraging regular data sharing, progress updates, and performance metrics to ensure transparency and early identification of potential issues. Cultivating a collaborative relationship with suppliers to promote their active participation in enhancing nth tier visibility efforts.
c. Technology and Data Analytics
Leveraging advanced technologies such as supply chain management software, IoT sensors, and data analytics tools. Utilizing these tools to enable real-time data collection, analysis, and visualization, providing valuable insights into the performance and risks associated with nth tier suppliers. Implementing data integration and standardization processes to ensure seamless visibility across all tiers.
d. Audits and Assessments
Conducting periodic audits and assessments of nth tier suppliers to verify compliance, quality standards, and sustainability practices. Collaborating with third-party organizations to obtain independent perspectives and ensure unbiased evaluations.
e. Continuous Improvement and Collaboration
Fostering a culture of continuous improvement and collaboration among suppliers. Encouraging knowledge sharing, best practice exchanges, and joint problem-solving initiatives to enhance overall supply chain visibility. Sharing success stories and lessons learned to inspire and motivate suppliers to improve their nth tier visibility efforts.
Expanding Visibility to Build a Resilient Supply Chain
Enhancing nth tier visibility is a critical aspect of effective supply chain management. By implementing the best practices mentioned above, organizations can unlock hidden potential, mitigate risks, and improve sustainability practices. Nth tier visibility facilitates better decision-making, promotes collaboration, and strengthens the overall resilience and competitiveness of the supply chain.
In today's interconnected world, a resilient supply chain is a competitive advantage, and nth tier visibility plays a vital role in achieving that resilience.
About the Author
VISHWAS BUNYAN,
Group Manager, Digital Transformation Office (DTO), Tech Mahindra
SCM expert at the digital transformation office (DTO) at Tech Mahindra. Vishwas has 22 years of Professional experience in the IT Industry. He has done MBA from the Indian Institute of Management (IIM), Trichy, and holds a Bachelor of Engineering Degree.
