Disruption is nothing new; it’s just happening a lot faster and with greater impact than ever before. The good news, though, is that it’s not only possible to survive under such circumstances; great companies can even succeed and prosper in the midst of massive disruption.
Today’s companies continue to expand to reach global markets, but this has made control of supply chains more and more complex. Companies recognize that developing and executing successful supply chain strategies can be key to gaining a competitive advantage in the marketplace. A key to managing a global supply chain is having strong visibility. This has in turn prompted companies to use technologies such as ERP/MRP systems, warehouse management systems and transportation management systems. Additionally, companies are utilizing hardware technologies, hand-held scanners, GPS, tracking devices, cameras, microphones, RFID readers, wireless networks and automated warehouse systems (AGVs, Robots). Adoption of these technological tools allows more visibility than ever before. But having the data, alone is not enough; managers now have millions and billions of bits of data to decipher and sort through. Having piles of data is not enough, supply chain managers are now faced with how to best use the data to obtain the right information to track performance, diagnose bottlenecks and uncover opportunities for continuous improvement.
Last month Gartner published an article titled “Extend Your Portfolio of Analytics Capabilities” where they discussed the four types of analytic capabilities, their usage and the human intervention needed at each level to translate the data insights to action. The framework is captured well in the below figure – also from the same article.