End to End Supply Chain Analytics

End to end analytics is a term that describes a means of integrating data sources from different supply chain activities and process cycles to understand supply chain performance with the intention of developing improvement strategies. End to end analytics provides supply chain visibility. In this episode I explain why end to end analytics are needed and how you can set about the task of creating your own metrics to measure process performance. I have worked with many retail supply chains over the years and understanding what drives cost and adds value is necessary to improve performance. I use the example of retailers to explain the types of end to end analytics that they use to do that. It is an important example to understand fast moving consumer goods (FMCG). Inventory management is an essential part of retail profitability.

Process Maps

Process mapping has been a useful tool to understand what is happening in the supply chain or in any complex system. The DAMA project was one of the best examples of process mapping which analysed every step in US textile supply chains from harvesting cotton through production and distribution to the final customer. If you really want to understand your supply chain then you have to get data about the detail which is exactly what happened in the examples I discuss in this episode. Knowing how much time and cost is involved within each process is the first stage of understanding where cost is incurred and value created. From the process map you can create metrics to inform decisions about improvement strategies.

Understanding end to end analytics

Understanding end to end analytics is in mathematical terms a linear programming problem where you want to optimise performance by managing constraints. This is not simply an efficiency matter but it ensures service quality. From the point of origin through to the final customer there are many process cycles that need to be managed. End to end analytics should not simply be thought of as part of an enterprise resource planning system ‘big fix’. The hard thinking is in understanding what data you need to manage the end to end supply chain from point of origin through to the customer and beyond – e.g. consumption and waste management. End to end analytics provide the opportunities to share data and eliminate silo mentalities to better understand the supply chain for the benefit of all.

Application

In my Supply Chain Strategies Book I give the example of five performance objectives which are cost, speed, quality, reliability and flexibility. If your performance objective is to lower cost then you need data that indicates the cost of each operation, process or cycle. If the performance objective is speed – cycle or process time, lead times and delivery times are some metrics that will be part of your dashboard. I discuss those here along with quality, flexibility and reliability together with the types of Key Performance Indicators (KPI’s) and you can read more detail in the book. In some ways end to end analytics are easier to implement today with cloud based systems and software technologies gathering data from a variety of sources providing you understand how to integrate it. Comparable data requires careful planning and execution. Structuring data are the key to success.

Read more at Tony Hines Blog

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About Tony Hines and the Chain Reaction Podcast – All About Supply Chain Advantage
I have been researching and writing about supply chains for over 25 years. I wrote my first book on supply chain strategies in the early 2000s. The latest edition is published in 2024 available from Routledge, Amazon and all good book stores. Each week we have special episodes on particular topics relating to supply chains. We have a weekly news round up every Saturday at 12 noon. ...