Supply chain visibility has moved rapidly up the business agenda. What was once viewed as an operational task is now recognised as a strategic priority discussed in the boardroom.
Recent years have shown how vulnerable supply chains can be. Research indicates that almost half of UK companies faced significant disruption in the past year. Inflation, geopolitical tension and logistics challenges, including the war in Ukraine and the Red Sea conflict, have affected production, pressured margins and tested customer trust.
For many leaders, visibility provides the foundation for supply chain resilience. When organisations can see developing risks, they can respond sooner, protect service levels and support informed decision making.
At Birchman, we see this shift across the organisations we work with. As digital transformation specialists and an SAP Platinum Partner, we help businesses redesign their supply chain strategies so that technology provides greater clarity, control and confidence for future growth.
What Is The Economic Foundation of Supply Chain Excellence?
The UK logistics and supply chain sector contributes around £170 billion to the national economy and supports more than 8% of the workforce. This scale highlights how supply chains serve as a core driver of economic performance.
Visibility is central to this value. When organisations understand how goods, data, and money flow across their networks, they can make smarter investments, control costs, and respond faster to market shifts. It’s a hallmark of the next generation supply chain.
This connection between visibility and economic strength is why governments across Europe view supply chain modernisation as a strategic priority. Digital capability helps industries remain competitive and supports long term growth.
What is Holding Supply Chains Back
Despite steady progress, many organisations still operate with limited visibility. Most have good insight into Tier 1 suppliers, but only around 30% can see beyond Tier 2. This creates vulnerability, as major disruptions often originate deeper in the network.
Industry research shows that 60% of UK businesses believe their supply chains are now more fragile than ever. Contributing factors often include siloed data systems, legacy IT infrastructure and fragmented communication with suppliers and partners.
For leaders, this means shifting the focus from reactive reporting to proactive management.
How To Build Resilience Through Supply Chain Digital Transformation?
Digital transformation enables organisations to connect processes, partners and data within one coordinated environment. This creates a clearer view of activity across the network and supports more reliable decision making.
Here are some of the key enablers of the supply chain digital transformation:
- Cloud based SAP systems: Enable real time planning and execution across procurement, logistics and inventory.
- IoT and AI integration: Connect physical assets with digital dashboards for live tracking and predictive maintenance.
- Blockchain technology: Provides traceability and transparency from source to shelf, supporting sustainability and compliance.
- API driven connectivity: Links diverse systems, enabling data to move efficiently across global supplier networks.
Research published in the MDPI Journal shows that organisations using AI in supply chain operations have achieved logistics cost reductions of around 15% and lowered inventory levels by up to 35%. These results illustrate the practical value of digital transformation.
At Birchman, we work with organisations to design and deliver digital roadmaps that create this level of visibility and resilience.
How Nearshoring, Sustainability and Circular Models Help
Technology is only part of the story. Structural shifts are changing how supply chains are designed and managed.
Nearshoring is one of the most notable trends in the UK. Research indicates that around 69% of UK supply chain organisations intend to source goods locally or from nearby regions. This supports operational stability while also helping organisations meet sustainability objectives. Shorter transport routes reduce emissions and local partnerships give leaders better oversight of ethical and environmental standards.
Sustainability
Sustainability is now a compliance requirement. The EU Carbon Border Adjustment Mechanism, Corporate Sustainability Reporting Directive and EU Deforestation Regulation are driving new reporting requirements. Organisations must provide accurate and traceable information on carbon output, sourcing and supplier conduct. Strong digital visibility is essential to meet these obligations.
In the consumer goods supply chain, products pass through many international stages. Digital tools help organisations trace materials to their origins, validate sustainability claims and adjust quickly when regulations evolve.
Circular Models
Circular economy practices present another route to improvement. Only one quarter of UK businesses have adopted circular models, yet those that have reported stronger commercial outcomes and reduced environmental impact. Common barriers include limited supplier engagement, competing investment priorities and a lack of reliable environmental data. Digital transformation can help resolve these challenges by improving traceability and creating a clearer view of material flows.
Closing Thoughts
Supply chain visibility is no longer optional. It is a strategic requirement for organisations that want to operate with confidence in a changing world.
In the UK and across Europe, the next generation of supply chains will rely on digital integration, transparent data and stronger collaboration between partners. With the right combination of technology, planning and capability, organisations can improve performance, manage risk and support sustainable growth.
At Birchman, we work alongside businesses to deliver this transformation through SAP led digital programmes. Our focus is on practical change, helping leaders improve visibility, strengthen operations and build supply chains prepared for future demands.
If you would like to discuss how to create a more resilient and data driven supply chain, our experts are here to help.
