How Do I USE My Supply Chain Data?

by Catherine Gutierrez The quality of the Busines Products

Billions of dollars have been spent by companies around the world –designing the perfect wayto slice and dicedata found in supply chain management.

Yet,it’s not necessarily the data that counts, but how the information is used.

Ironically, while firms have certainly been successful in creating countless gigabytes of information, it doesn’t seem that many of them can tell us anything about how to use this data.
Supply Chain Data

Take a look online. You are certain to find companies touting their ability to tell you that they can quickly provide you with supply chain management and qualification data – but what are they doing with it? All too often, the answer is nothing. You pay a hefty price to receive this information and then it sits untouched, gathering dust in the database.

The reality is thatsupplier data is only helpful if it is put to a good use. Specifically, the information should be used in one of two ways:

1. To increase profits, by eliminating inefficiencies

2. To improve safety, by screening out poorly performing suppliers

Eliminating Inefficiencies

Start by establishing criteria to reduce redundancies in your supply chain management system. The data that you have gathered will point you in the direction of where the greatest problems lie.

Once you identify the issues you have in your supply chain, clearly state your vendor expectations moving forward. When you communicate what you expect – both to the supplier and internally between departments, you set a precedent. Everyone is on the same page – and time isn’t wasted.

Likewise, you should reiterate your expectations again with the supplier before a contract is signed. This reinforces the precedent and again enforces efficiency. Then, hold regular meetings with the internal departments involved with your supply chain to keep all users updated on a constant basis.

Improving Safety

Suppliers need to be consistently evaluated.

Look beyond the data, to see what the numbers are telling you. Has the vendor’s Experience Modification Rating (EMR) or Total Recordable Incident Rating (TRIR) changed over time? You want to check to see if their performance is improving. If it’s not, you need to re-think using this supplier.

Consider subjective criteria as well. Work history, written policies and past performance can be a great indicator of how safely that supplier will perform on-site. As you determine selection criteria – be certain that you look at all facets of the supplier’s ability (not just cost) and be strong in your selection. This process will create preferred vendors and strengthen new and existing relationships.

As work is being completed, conduct audits and record safety evaluations as part of your supply chain management process. This will help you to see progressand identify weaknesses that may suggest a supplier’s need to be replaced. Update the information that you gather annually, so that you are always aware of the current status of that supplier.

Consider the help of a supply chain management firm to both collect and use the statistics you’vegathered. This way you can enjoy enhanced profits and safety – without having to roll up your sleeves. Make the data work for you. Supply chain management that is done this way will not only improve your overall profits, it will help you to create a safer workplace for everyone involved. For more information click here!