1. Visibility can reduce operational costs:
Visibility can help you notice inefficiencies in your operations. Inefficiencies lead to thousands of dollars in unnecessary expenses. Removing inefficiencies reduces unnecessary expenses. Without operational visibility, inefficiencies can go unnoticed.
2. Visibility can help you foresee bottlenecks in your operations:
Every operation has at some point experienced a disruption or bottleneck. Such a disruption can either be activities slowing down or operations grinding to a complete stop. When you have a bottleneck in operations your customers get unhappy. Moreover, you end up spending more to deal with the disruption.
Visibility can help your business foresee and stop a bottleneck before it becomes a problem. Visibility allows you to monitor how fast goods are moving in different segments of your logistics. The operational segment with the lowest productivity usually ends up being a bottleneck. If you notice activities slowing down in one of your operational segments, you can deploy additional resources to speed things up. This will allow you to avoid a bottleneck before it becomes a big problem.
3. Visibility creates a suitable environment for continuous improvement:
"You can't improve what you don't measure" is an adage that makes visibility necessary for continuous improvement. Visibility allows you to measure the performance of your business. Performance measurement creates a suitable environment for continuous improvement. If you don't have visibility, you can't objectively measure performance. Thus, you can't be certain if a process improvement initiatives are improving your business.
Visibility has more benefits than the 3 above. Visibility can also help improve reliability, accountability and operations management among other things. The most important thing to keep in mind is: benefits of visibility only come to life if there is a deliberate effort to improve operational processes.