Data and analytics derived from your daily supply chain operations can give your business insight into what areas are performing above expectations, at acceptable levels and those that are underperforming. Once any pain points have been identified, warehouse operators and other key players can develop new supply chain strategies to increase operational effectiveness, reduce costs and improve labor productivity. As there is no one area of the business that is more important than another, it is critical to focus on metrics across all business units. A functionally robust WMS will provide your business with data and analytics for all units including warehousing, distribution, production/kitting/assembly, procurement, transportation, customer service and accounting.
The accuracy of data provided is the most important factor. Data riddled with errors does not provide your team with the accurate view needed to make operational improvements. To help improve data reliability warehouse operators are implementing automated data collection technologies. These tools help to reduce manual data entry, where most errors originate.
Each supply chain operation places varying levels of importance on data elements, called key performance indicators (KPIs). Using KPIs allows your business to compare current performance against historical data or industry best practices and make any adjustments that may be needed. The top KPIs used in the supply chain and logistics industries include: inventory carrying costs, inventory turnover rates, order fulfillment accuracy, fill rates and more.
Once top KPIs have been identified for your supply chain business, custom reports can be generated, simplifying data analysis and keeping staff focused on top job functions. Using these reports to evaluate business relationships can help your supply chain to reduce costs and save time related to poor partner performance.
To learn more about how supply chain data, analytics and reporting can impact your operation’s continuous improvement strategy contact Datex experts today at www.datexcorp.com
or 800.933.2839 ext 243.