Other than sharing information for coordination (as discussed in section VI) and forecasting, the other vital benefit for a 3PL provider is achieving visibility. In a recent report [56] submitted by Cap Gemini Ernst and Young, Georgia Southern University and the University of Tennessee, it was reported that visibility in the supply chain should be the first of the six drivers (including connectivity, execution, optimization, collaboration and speed) to be implemented. From this report, it is concluded that visibility can result in the following benefits,
• Creating an adaptive supply chain that is effective and efficient
• Increasing the ability to do demand-driven replenishment (as in VMI)
• Lowering inventory levels
• Reducing cycle times
• Improving the use of more cost-effective transportation