Classifying a Supply Chain

A supply chain is a huge footprint within an industry sector. It includes a large cross-section of businesses within that sector, all linked together. This is what makes the supply chain.

A constantly moving and evolving network of supply and demand, it’s a balancing act. There’s many different components all coming together for a common goal.

The goal of the supply chain is simple. Produce the best product in the best condition for the end consumer, as efficient as possible.

It sounds complicated, but it’s not that bad. Supply Chain Management (SCM) is an important part of the entire logistics of a business.

Velocity, Variability and Visibility

These three terms, Velocity, Variability and Visibility can be one way of looking at the SCM of a business. These factors all combine to help a business develop new opportunities. These may be the inclusion of new business by exploiting fast-changing environments.

Let’s take a look at each term and see how they impact the supply chain:

  • Velocity: This is the on-going pace of doing business over a period of time. Velocity will increase by introducing improvements.
  • Variability: This references the variables that create fluctuations over a period of time. Variability will measure how they affect the end result.
  • Visibility: This is the ability to take a step back and look at the big picture. Visibility will help increase velocity and constrain variability.

We’ll expand on each of these concepts so you can understand them in full. Supply Chain Management is one reason why Accentis Enterprise ERP is so powerful. Watch our videos explaining each of them in detail here!


Velocity influences many different areas within the supply chain. It can depend on where in the chain you are, or other factors that can seem out of your control.

Cash flow is an area of the business that is often overlooked. You should know how long it takes for customers to pay their invoices. With no money coming in, your cash flow is a defunct operation.

On the flip side, paying for supplied products and not having them delivered is an issue. You need those products to manufacture your goods, and if they’re not on-hand, you can’t use them.

Processes can help to influence velocity through better control. You just need to know what you should be controlling.

Accentis Enterprise improves your velocity with process control and automation. It will reduce inventory holding times in both delivery and manufacturing.

Use software features such as Just-in-time delivery and Lean Manufacturing. These options improve business efficiency and increase return on investment.


Variability can affect your business by both internal and external factors. It will encompass production management and profit and loss information.

When you improve gains and reduce losses, you regain control of the supply chain. The business as a whole will benefit.

It’s impossible for even the most well-managed business to have a zero-variability factor. You don’t know what’s going to happen, or when. What you can do is execute control as best as possible. Improve reporting on expected averages and limit fluctuations.

New businesses have a blank slate with all new data to work with. They need to be able to pivot as new challenges crop up, remaining agile.

A business that has experienced variability would already have data to use. An example would include yield data on weather and its effect on crop sales or over-all yields. Another is a supplier that has been inconsistent with supplying fittings. This holds up your projects and causes instability.

When you minimise the variables, you minimise the effect it has on your business. A welcome benefit is a saving of time and money.


Visibility is being able to see what is happening in the supply chain, and act on it. You can’t supply pallets of mature plants to Bunnings without knowing your facts. What are your seedling yields, or are your supply partners able to provide what you need?

Forecasting based on previous results is only one way to factor these results. Some small business operators will know their information week to week. As your business grows and starting to introduce more factors, guessing will start.

When you know what is happening within the business, you can act on it. Information that is stuck inside a staff member’s head can halt production. You need a report, that you can run on the process to sort out any issues.

These are variables that we were talking about above, but now you can see them. Having the data right there at your fingertips gives you the chance to act on it. Without knowing where the issue lies, how do you know how to react?

It’s not always possible to do a physical inspection of each location with an issue. What is possible, is to generate a report and see exactly what you need, in an instant.

With an informative report, you can see past issues, and forecast future results. This is a powerful feature that shows why Accentis Enterprise is in a league of its own.


Knowing how Velocity, Variability and Visibility affect the supply chain is vital.

If you want to gain better results, you need to improve your velocity. You can achieve these results by minimising the variables that affect your outcome. Visibility will show you where you need improvements.

These are three important aspects of the supply chain because of how they all work together. Nurture them and you can succeed, but ignore them, and you could fail.

Accentis Enterprise gives you the flexibility to understand your business better. You are the expert within your business, and we’re the experts at helping you manage your data.

Supply chain management (SCM) is a business tool that we can help with, along with purchasing. We also do business accounting, payroll, time and attendance and more.

If you’re in a business that is growing and in need of better business management, we’re here. Accentis Enterprise ERP is for small to medium-sized businesses. It’s a complete manufacturing, wholesaling, distribution, project management and service industry software solution.

Do you want to save time and money in your business?

Are you ready to make more money for your business?

Click here to start your journey today!