Supply Chain Visibility for Midsize Manufacturers: Where to Start and What to Do With the Gains

Most midsize manufacturers know they need better data. The problem isn’t awareness, it’s knowing where to begin without overcomplicating things or blowing the budget on technology. Getting supply chain visibility for midsize manufacturers right doesn’t require a massive overhaul. It starts with what you already have.

During a recent Moore on Manufacturing episode, Mike Sibley shared practical advice on how manufacturers can improve visibility, manage inventory more strategically and prepare for the unexpected. Here’s what he recommends.

Start With Your ERP Before Spending Anything New

The most common mistake Mike sees isn’t that manufacturers lack the right tools, it’s that they’re not fully using the ones they already have. Most companies have an ERP system sitting underused, either because it wasn’t configured properly from the start or because the team never built the discipline to follow the process consistently.

Before adding anything new, get your existing system working the way it’s supposed to. That starts with data accuracy, cycle counts, periodic physical inventory checks and making sure what your system shows actually reflects what’s on the floor. Bad data undermines every decision downstream, no matter how good your dashboards look.

Build a Simple Dashboard and Expand From There

Once your data is reliable, the next step is visibility into a handful of key metrics. Mike recommends starting small rather than trying to track everything at once. A useful starting point includes inventory on hand, supplier performance, forecast accuracy and lead times.

The goal isn’t a perfect system on day one. It’s getting eyes on where your risks actually are so you can act on them. You can always add more over time.

Forecasting Is More Accessible Than Most Manufacturers Think

You don’t need expensive software to build a usable forecast. Statistical modeling tools are available in Excel and through AI applications that most companies already have access to. Pair that with your ERP data and you have the foundation for predicting purchasing patterns and managing cash flow more proactively.

James Moore has built supply chain dashboards for manufacturing clients that connect forecast data, raw materials and lead times into a single view, giving leadership a clearer picture of what’s coming before it becomes a problem.

What Sitting Inventory Is Actually Costing You

One of the most consistent themes in Mike’s advice is that manufacturers underestimate the cost of holding inventory. Carrying costs run 20 to 30%, and that number compounds quickly if you’re sitting on materials without a firm forecast to support them.

The bulk discount trap is a good example. Ordering a large quantity to capture a price break looks smart on paper, but if it takes two years to consume while you’re paying carrying costs and servicing a line of credit, the savings disappear. As Mike put it: “How long is it going to take you to use it? Do you have the forecast to even support that?”

Pairing your inventory strategy with a 13-week cash flow model helps keep working capital visible and manageable, not just theoretically tracked.

What to Do If Tariff Refunds Come In

For manufacturers expecting tariff refunds, Mike’s advice is direct: don’t treat it like recurring revenue. The temptation is to absorb it into operations, but that creates a dependency on cash that won’t keep coming.

The better uses are debt reduction, capital investment or automation upgrades, things that strengthen the business rather than fund its day-to-day costs. If any portion needs to pass through to customers, account for that first. Either way, the opportunity is a one-time chance to invest, not a reason to relax on margin management.

What This Means for Your Business

Better supply chain visibility doesn’t have to mean a major technology investment. It means being more deliberate with what you already have, accurate data, a few focused metrics, accessible forecasting tools and disciplined working capital management.

Watch the episode on YouTube with Mike Sibley for more on supply chain strategy and what manufacturers should be prioritizing right now.

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