Our experience with clients is that poor quality data is a foundational cause of poorly performing supply chains. Supply chains are inherently data intensive, so when the data fails, the supply chain falters and fails.
Our client engagements typically start with a deep dive into the client's data. We use this data to model the supply chain and identify root causes. Once the sources of required data are identified, we then collect the data and analyze it. During this process it is not unusual to find that the data itself is inconsistent and incomplete. Our Synchronized Information Management (SIM) solution grew out of the need for our clients to cleanse their supply chain data as a first step towards transforming their supply chain. SIM allows clients to create, manage, edit, and publish consistent and complete data throughout their extended enterprise. Once this is accomplished, the transformation of forecasting, inventory planning, order management, fulfillment planning, and reverse logistics goes much more smoothly.
In a recent article, three McKinsey authors had this to say about poor quality of data:
"OEM forecasts often aren't granular enough to be useful to supply chain partners. Typically, OEMs set broad targets across a number of product lines rather than provide details on expected unit sales for specific products. That combined with rapid product obsolescence makes getting a fix on true demand difficult. Furthermore, the IT systems that capture data across supply networks often are incompatible, thereby walling off vital information and making information-based collaboration a struggle. The mobile-phone industry provides a notable example of poor data: OEM forecasts of consumer demand, provided only four months out from delivery dates, often misstate actual demand by 400 percent."
Our Evavi solutions power the supply chain of the world's largest distributor of mobile phones and accessories, so the challenge to create and manage great data in this industry is something that we are very familiar with. We envision that the great data that exists at places such as our client will eventually be propogated to other trading partners in the mobile phone supply chain through more effective collaboration and data hubs.
