In a dynamic global business environment, decreasing costs and increasing productivity in supply chain operations has become a critical endeavor for organizations seeking to remain competitive and agile. One such organization, led by a supply chain executive overseeing North American operations, recognizes the paramount importance of harnessing data to drive efficiency and value across the entire global supply chain. In a recent conversation with Incorta’s experts, this executive discussed the challenges they face in consolidating data from multiple systems and the potential for data-driven solutions to enhance their supply chain operations.
Understanding the scope:
The executive oversees the supply chain primarily in North America but plays a significant role in setting analytics KPIs and targets for the global supply chain. This encompasses various departments, including distribution, manufacturing, sourcing, logistics (both inbound and outbound), and other operational aspects. Given the complexity of their supply chain, data analytics have become a cornerstone of their decision-making process.
Challenges in supply chain optimization:
The organization’s primary challenges revolve around data integrity and the need for meaningful reports. They seek not just an influx of data but actionable insights that can drive value. The goal is to identify gaps and opportunities within the supply chain, whether process-driven, negotiation-driven, or cost-driven. To address these challenges effectively, they need to utilize the information they have to make informed decisions.
The executive highlights several key areas of focus within their supply chain optimization strategy:
- Reducing Inventory Carrying Costs: Excess inventory ties up capital and increases costs. Optimizing inventory levels is crucial to reducing carrying costs and improving overall financial performance.
- Negotiating Global Supplier Contracts: Managing contracts with suppliers across different regions and time zones can be complex. The ability to negotiate effectively depends on accurate data and market insights.
- Forecasting and Demand Planning: Accurate forecasting of raw materials and trends is essential to ensure the organization is well-prepared for future market changes.
- Benchmarking and Analytics: The executive emphasizes the importance of benchmarking against other organizations or industry standards. This helps identify areas where the company can improve and become more competitive.
- Productivity Analysis: Evaluating the productivity of each SKU (stock-keeping unit) and understanding its impact on profitability is crucial for making informed decisions about product offerings.
The need for consolidated data:
To address these challenges effectively, the organization has embarked on a journey to consolidate data from various systems. They have created global data warehouses that house data from different regions and standardized attributes and metrics. Power BI is used for reporting and dashboard creation, providing users with insights and customizable reports.
However, a significant gap remains: the integration of supply chain data with sales data. This integration would provide a holistic view of the product lifecycle, helping the organization make data-driven decisions regarding product lines, manufacturing, and inventory management.
The road ahead:
The potential for consolidating supply chain and sales data opens up opportunities for informed decision-making, product rationalization, and cost reduction. It allows the organization to optimize its operations, focus on high-margin products, and streamline processes effectively.
The Incorta advantage:
Incorta offers a solution that aligns perfectly with the organization’s needs. By providing a platform for consolidating and enriching data from multiple sources, Incorta enables seamless data integration and analysis. This capability empowers the organization to access accurate and actionable insights, leading to better supply chain decisions and enhanced overall performance.
A path to efficiency:
In conclusion, the supply chain executive’s conversation with Incorta’s experts highlights the critical role that data consolidation and analysis play in optimizing supply chain operations. By addressing challenges related to data integrity, report meaningfulness, and data integration, organizations can unlock their full potential for efficiency and cost reduction. Incorta’s platform offers a promising solution for organizations seeking to harness the power of data to drive value and competitiveness in today’s fast-paced business landscape.
To learn more, join us on October 25th for a customer roundtable discussing Achieving supply chain and manufacturing excellence with Incorta.