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Managing activities with the help of dashboards and simply analyzing past actions, is no longer enough to address today's competitive world. Taking leadership in a market requires more than being reactive to facts. To lead you should be more active, you must be preactive, interactive and even proactive. This requires to couple decision means to operational systems. Analyze should involve very fresh data needs. More intelligence should be brought into play to run operations. Being innovative requires to go further than memory which is commonly the first level of intelligence.
Specifically, let us consider the logistic function of a company, which by a global management approach aims to harmonize, synchronize and accelerate physical flows (raw materials, components, work in progress, finished products, packaging and scraps). Focusing, for example on transportation and storage operations, levels of “intelligence” mentioned above are:
A company using standard dashboards from an ERP will very almost never reach excellence levels described above. It needs a data warehouse for logistics assets, and if we recall that the logistic function is not the only company function involved in the supply chain management which need to include procurement, production, sale, etc …; it is clear that we need to implement an enterprise data warehouse. With such an architecture the result is a clearer view of activities, better decision support and by example all the areas of logistics can be positively impacted: out of stock, customer service levels, bottlenecks management, safety stock, inventory level and allocation, etc ...
In order to support an enterprise global management processes logic targeting customers services levels define in the business strategy, you need to move from a departmental optimization approach to a global enterprise view. Entire chain performance can be driven through various metrics and daily projected trends, simulations, warning systems and the ability to understand and respond in real time to fluctuations. The business value of such an approach can be effectively measured by reductions in inventory, reductions in progress, increasing customer satisfaction, reducing services execution time and improving forecasts accuracy.
Ford Parts & Logistics has implemented Teradata solution that encompasses entire supply chain and allows analyzing all the events on each individual piece. The database information continuously updated on the quantities, storage locations, documents in transit, vehicles location, etc., authorizes easier demands treatments from maintenance or repair centers, and ultimately facilitates supply stocks adjustments. Ford obtained with this system after six months particularly interesting economic performances, including 20% reduction for delayed deliveries, 30% reduction for emergency deliveries, 30% reduction for demands centers processing cycle, etc. Given the amounts at stake, these results represent a return greater than 5 times the investment.
To be more competitive, manufacturers need unified and coherent information, from product development to customer service. They should analyze volumes of data ever more important, quickly make the right decisions and support their implementation. Again it is not with dashboards that all this can be done, neither with specialized solutions by department, but by implementing an enterprise data warehouse supporting thematic applications for each function.
In this area Teradata offers various solutions: logical data model specific for manufacturing industry, dedicated analytical application (Demand Chain Management), data warehouse platform (server, data base), integration capacities with major ERP (SAP, ...), consulting and integration services . To go further on this matter, you can usefully consult the following link: