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Investigative Business AnalysisHuman Reviewed by DailyWorld Editorial

The Digital Mirage: Why Your Supply Chain Tech Is Lying To You About True Visibility

The Digital Mirage: Why Your Supply Chain Tech Is Lying To You About True Visibility

The great supply chain technology gap isn't about adoption; it's about execution. Discover the hidden losers in the visibility arms race.

Key Takeaways

  • The current technology gap is organizational and standardization-based, not merely adoption-based.
  • Legacy ERP/WMS patching creates expensive integration consultant dependency, benefiting middlemen.
  • Lack of true visibility forces companies to increase safety stock, undermining lean principles.
  • The future requires a neutral, mandated 'Data Utility' protocol, not more proprietary software silos.

Frequently Asked Questions

What is the primary reason supply chain execution remains disconnected?

The primary reason is the failure to standardize data exchange between disparate legacy systems (like old ERPs and new WMS). Companies are buying point solutions that don't natively 'speak' the same language, forcing expensive, brittle integration layers.

Who benefits most from the current technology gap?

The main beneficiaries are the large system integrators and consultants who specialize in custom-coding the patchwork connections required to make incompatible software platforms communicate effectively. They profit from the friction.

How does poor execution visibility impact inventory costs?

Poor visibility forces companies to maintain higher levels of safety stock to buffer against uncertainty regarding the location and status of goods. This directly increases working capital requirements and storage costs, running counter to lean principles.

What is predicted to solve the data friction problem in the future?

The prediction is the emergence of a neutral, industry-wide 'Data Utility' standard—a universal protocol layer that mandates how logistics data is formatted and shared, making integration seamless rather than custom-coded.