In the wake of the COVID-19 pandemic, and with the resulting surge in e-commerce, demands on warehousing are growing like never before.

The modern-day warehouse is a bustling center of around-the-clock activity, with goods moving at increasing speed. Inconsistencies in inventory levels can lead to dissatisfied customers, frustrated staff and visibility gaps. Challenges in demand forecasting, supplier relationship management, production efficiency, inventory management, and technology integration necessitate seamless collaboration among disparate systems.

Visibility is a key factor in operational resilience, involving the tracking and monitoring of goods, information, and resources in real time. It makes possible insights, proactive decision-making and collaboration among supply chain partners. Visibility allows organizations to identify bottlenecks, optimize processes and enhance overall efficiency. Yet just 6% of logistics companies today are achieving full visibility over their operations.

Addressing this challenge in the warehouse requires an understanding of what data to collect, and translating it into workable strategies. The three main reason for fragmentation of data are: 

• Fragmented systems. Disjointed systems create data silos that impede information flow.
• Inefficient communication and human error. Delays and inaccuracies in information sharing exacerbate visibility gaps.
• Legacy technologies. Outdated systems lack the capabilities for real-time data exchange.

A lack of visibility leads to inefficiencies and risks in the following areas: 

• Increased operating costs. Inefficiencies, excess inventory and disruptions raise operational costs and affect profitability.
• Customer dissatisfaction. Delayed shipments and stockouts can damage a company’s reputation.
• Risk exposure. Limited visibility hinders effective risk management, leaving businesses vulnerable to unforeseen challenges.

Annually, 6,500 hours are spent on tasks such as cycle counts and stock checking, yet data is only partially gathered, quickly becoming outdated. To close the visibility gap, businesses should focus on the following areas: 

• Real-time data. Invest in integrated systems for instant updates on inventory, order status and shipment tracking.
• Advanced analytics and predictive monitoring. Use AI-powered analytics to anticipate demand, optimize inventory and identify bottlenecks.
• Technology infrastructure. Upgrade and integrate technology within the warehouse, including the warehouse management system (WMS), internet of things devices, and cloud-based systems.
• Collaboration. Foster collaboration with supply chain partners through shared platforms and standardized data protocols.
• Employee training and change management. Train employees on new technologies and implement change-management strategies.
• Continuous improvement. Cultivate a culture of continuous improvement, regularly refining processes based on data analytics and feedback.

The visibility gap poses significant challenges in an increasingly complex environment. Supply chain professionals must adopt innovations that provide continuous real-time data. Deploying advanced technologies enhances operational efficiency and ensures end-to-end visibility and data accuracy, serving as a strategic tool for proactive decision-making.

Oana Jinga is chief commercial and product officer and co-founder at Dexory.