7 Essential Steps before investing in technology to make the Supply Chain visible

7 Essential Steps before investing in technology to make the Supply Chain visible
  • Need to improve the decision-making process
  • Reduce operational and support costs
  • Orchestrate processes across functions

1. As with any project, take a pragmatic approach

Generally, it starts with a specific scope and focus to create early wins within the organization. Learn the tools, iterate until you get users using the tools (some evangelists can be helpful), and move on to the next challenge.

2. Develop applicable use cases within your Supply Chain

Collect and evaluate use cases and prioritize the top 2 to 5 cases with the most critical need for visibility. For example, problems that endanger the ability to deliver in a timely manner, areas that are causing costs in delays, bottlenecks that impact overall performance, among others.

Link use cases to specific metrics that are actionable. These metrics serve to monitor what action can be taken immediately to improve results or performance and provide an easy way to quantify the value in use once implemented.

3. Evaluate avoided costs

When starting out, it may be easier to evaluate the costs that will be avoided by enabling real-time visibility than to try to quantify the benefit. You will be able to measure the benefit more easily when visibility is allowed and making the link with actionable metrics. Typically the avoided costs can be channeled into 3 areas:

4. Outline the information required to support the use case

What available information is necessary that must be generated? With what time interval (real time)? Whom? Is there an analysis that should be used in the technology tool? Who would be making decisions based on the availability of information? The resolution of these questions is key, before continuing to advance in the selection of technology.

5. Identify the source of the data

What are the systems, software, equipment that you need to connect, so that the required level of data can be provided to support the use case?

6. Usability

This element is key to ensuring that the user engages and adopts the technology. How do you want to present the information (blueprints, charts, graphs, reports)? And how would you like to interact with the result? For example, offering the ability to drill down into overall results in greater detail to find the root causes of delays in timing from overseas suppliers or making a visible post about the management of purchasing teams.

7. Continuous improvement

Visibility is important, but it is even more important to have the option to improve visualization tools as the company’s needs adapt to new realities. Make a connection between the specific use case and an important effort in continuous improvement that will undoubtedly empower users and show the value of the technology.

Source: Gartner

Daniel Obregón

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