What Supply Chain Data Should I Track in 2020?
Supply chain data management requires attention to detail and a mechanism in place that provides analytics, or insights, to gain actionable knowledge. Risk exists around data when it is incorrectly or inaccurately collected and shared. To ensure your organization applies data correctly and generates meaningful KPIs, supply chain leaders must know the challenges of data tracking, how it improves operational excellence, and the primary types of data to track in 2020.
Challenges in Tracking Supply Chain Data in 2020
Supply chain data provides a comprehensive view of specific and enterprise-wide company functions. However, tracking the wrong data or failure to recognize the problems with poor quality data may cause supply chain leaders to make terrible mistakes and increase the chances of worsening productivity. Taking a proactive role in data management can make a difference, and the right data is not necessarily the same as that of your top competitors. In other words, individual companies may have different data priorities, but they should all follow a similar structure—involving the collection, cleansing, analysis, and reporting of insights.
Data Improves Operational Excellence When Used Correctly
The value of data increases in the quest for supply chain efficiency. With the implementation of API- and web-connected supply chain systems, businesses can manage their inventory and follow up on stock movement more easily and automatically. Various connections beyond API, like the use of Internet of Things (IoT) connected sensors, allow professionals to track products and their movement from the factory up to the retail store. The impact of these connection technologies to better track movements in the supply chain includes reduced costs and improved service delivery. The data is collected in a central system and can then be analyzed to derive valuable insights. The application of data in supply chain management aids supply chain leaders in improving operations, products, services, hiring processes, marketing strategies, and risk management.
Thus, companies that track supply chain insights and apply data-driven decision making can reduce costs, isolate problems, provide a roadmap for correction, and validate gains in performance after making applicable changes.
Supply Chain Data to Track Through 2020
A brief look at the top-performing supply chain data points to track in 2020 include:
- Real-time shipment/order data
- Real-time inventory levels
- Product cycle times
- Available/closed trade lanes
- ROI of new system implementations
- Actual versus planned ROI of optimization efforts
- Employee safety data, including incidents and illness-related information
- Yard efficiency
- WMS YTD costs
- Inventory reconciliation results
- Labor productivity
- Average order size and shipment data
- Use of BOPIS fulfillment rates
- Customer experience and satisfaction measures
Deploy Next-Generation Connectivity in Your Supply Chain to Better Track Data
Supply chain advancement provides scalability, responsiveness, emergency management, and execution of core processes. As the world grew closer through e-commerce, a divide has arisen between the limits and challenges of tracking traditional data versus the possibilities of advanced, analytics-driven insights. To ensure your company tracks the right supply chain data in 2020, approach data management from a critical view—considering its impact from procurement through outbound freight and even reverse logistics. Fortunately, working with an expert supply chain consultant can help your organization maximize results and improve profitability.