While the term supply chain refers to the link that connects facilities, companies, supply and demand, and providers, the term multi-tier supply chain builds on this concept to include more than one level of manufacturers to produce a customer product or service. There are numerous relationships happening at once between buyers and suppliers within the single supply chain.
Sometimes this process involves hundreds of different companies that play a vital role in bringing a product to life.
The Importance of Visibility
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Connectivity allows for the necessary collaboration and communication between groups, heightening visibility to include forecasts, demand, inventory, and shipments. It speeds up the flow of information to help reduce the entire planning cycle, assists in more effective measurement, and reduces overall supply chain risk.
The benefits can be seen across the entire product life cycle, allowing for seamless product launches. This communication between tiers allows brand owners to receive vital information quickly, which results in reduced risk of component shortages and shorter lead times.
The Growth of Sustainability
Not only is visibility crucial to the effectiveness of multi-tier supply chains,