A Model to Guide Visibility Investments in Complex Distribution Networks

Supply chain visibility refers to the ability to track and monitor all activities and processes within the supply chain promptly. Gaining visibility into supply chain processes is becoming increasingly crucial for businesses, as it underpins improvements in economic, environmental, and social aspects. In outbound logistics, the numerous stakeholders, process complexity, and substantial investments required make it difficult for many companies to develop effective monitoring tools. Additionally, competing objectives among stakeholders and the low quality of data provided are major challenges that hinder the success of such projects. This paper introduces a probabilistic model designed to guide investments that enhance overall visibility and data quality. The model is applied to a realistic scenario inspired by the case of a leading Italian food and beverage company, illustrating that targeted investments can significantly boost visibility during the initial project phases, even in resource-constrained environments.