How is supply chain visibility best defined?

Supply chain visibility is best defined as tracking supply chain components in real-time. This concept emphasizes the importance of having clear, timely access to data and information regarding the movement and status of goods throughout the supply chain. Real-time tracking allows organizations to monitor the flow of materials and products from suppliers to customers, enhancing decision-making and improving efficiency.

With effective supply chain visibility, companies can quickly respond to disruptions, manage inventory levels more accurately, and optimize logistics operations. It facilitates greater transparency between parties involved in the supply chain, leading to enhanced collaboration.

In contrast, monitoring production costs, standardizing supply chain protocols, and limiting external supplier access focus on different aspects of supply chain management. While they may contribute to the overall efficiency and effectiveness of a supply chain, they do not capture the essence of visibility, which is about seeing and understanding the current state of all supply chain components.