Supply Chain N-tier Visibility

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: Supply Chain N-tier Visibility refers to an organisation's ability to monitor suppliers at every level of its supply chain to gain a full understanding
• Impact: Visibility allows for deeper insights into supply chain dynamics, facilitating risk mitigation to minimise disruptions, and regulatory compliance through the prevention of unlawful behaviour

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Complexity and Error-proneness in Lower Tiers: Disruptions often originate in lower tiers that are not directly managed by the company but still affect the entire value chain
• Sustainability and Regulations: While there is a general shift towards a higher importance of sustainability, authorities also demand clear insights into emissions contained in a product which requires the company’s ability to access this information
• Consumer and Stakeholder Demand for Transparency: Customers and stakeholders increasingly expect ethical and transparent supply chain practices

Use Cases 

How to apply this trend? 

• AI-Powered Risk Management: Analysing supplier risks in real-time based on AI
  Example: Prewave, an AI-powered early warning system, maps N-tier supplier ecosystems and analyses supplier-related news and real-time data, to develop contingency plans in case of potential disruptions
• Automated N-Tier Supplier Communication: Directly inform all suppliers of production plans
  Example: AWS announced the introduction of AWS Supply Chain N-Tier Visibility which helps customers to directly share new production plans with their suppliers and to monitor the status of these across the different supply tiers

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Detailed Supplier Mapping: Detailed mapping of the current supplier landscape before starting to design and implement visibility systems that foster transparency
• Collaborative Transparency Initiatives: Start with fostering deeper collaboration with key suppliers to encourage transparency and data sharing across all tiers to improve overall supply chain resilience