1. Cost of Visibility
SCO enabling trust through visibility
2.0

2. Visibility Costs & Investments EASY to quantify, track or measure
HARD to quantify, track or measure
SCO enabling trust through visibility
2.0

3. Cost of Visibility Costs of Creating and Maintaining Visibility
Investments/Non-Recurring Costs (Preventing Visibility Failures)
Definition: One-time costs that improve visibility
Examples: initial implementation of data standards, purchase of technology tool
Recurring Costs (Appraising/Maintaining Visibility)
Definition: On-going costs that improve visibility
Examples: data standards maintenance, personnel training
SCO enabling trust through visibility
2.0

4. Cost of Visibility Costs of Creating and Maintaining Visibility
Investments/Non-Recurring Costs (Preventing Visibility Failures)
Definition: One-time costs that improve visibility
Examples: initial implementation of data standards, purchase of technology tool
Recurring Costs (Appraising/Maintaining Visibility)
Definition: On-going costs that improve visibility
Examples: data standards maintenance, personnel training
Costs Resulting from a Lack of Visibility
Visibility Failure Costs (Internal Operating)
Definition: Internal costs related to a lack of visibility
Examples: wasted product, re-work, resources needed to address pricing & order issues, recall costs
Visibility Failure Costs (External Customer Facing)
Definition: External costs related to a lack of visibility
Examples: lost sales due to stock out, brand damage, lost trust from consumers
SCO enabling trust through visibility
2.0

5. COST OF VISIBILTY MODEL
The trade-offs – what is the optimal level of visibility for our company at this time?
Level of Visibilty Attained
Cost
Total Cost of Visibilty
Where you really want to be
Cost of Visibilty Failures
Optimum Level of Visibilty Failures
Cost of Enabling Visibility
Where most are now
SCO enabling trust through visibility
2.0

6. COST OF VISIBILTY MODEL
Level of Visibilty Attained
Cost
Total Cost of Visibilty
Where you really want to be
Cost of Visibilty Failures
Optimum Level of Visibilty Failures
Cost of Enabling Visibility
Where most are now
Level of Visibility Attained is defined by:
Speed
Accuracy
Completeness of Data Access
Scope of Product Affected
What is the appropriate level of speed and scope?
Cost of Enabling Visibility rises at an increasing rate as speed and scope increases.
Cost of Visibility Failure drops at a decreasing rate as speed and scope decreases.
SCO enabling trust through visibility
2.0

7. COV Costs & Investments
Consider the Total Financial Impact to your Organization
COST OF VISIBILTY MODEL
Level of Visibilty Attained
Cost
Total Cost of Visibilty
Where you really want to be
Cost of Visibilty Failures
Optimum Level of Visibilty Failures
Cost of Enabling Visibility
Where most are now
COV Costs & Investments
Costs of Visibility Failure
Costs of Enabling Visibility
Categories
Lost sales
Training
Inventory
Data standardization
Transportation
Consultant/Solution provider fees
Wages/Indirect labor
Data/System audits
Legal/Professional fees
Scanning/Other technology
SCO enabling trust through visibility
2.0