Data Drives Better Decisions, Leading to Higher Profitability and Sales
What would it mean to your business if you had better data to base decisions on and to find problems? Higher profit margin? Better products? More revenue?
The industry leaders are already doing it. You should be, too.
You invested in a great ERP system. Are you taking advantage of its capabilities? Without production data, you probably have a really, really expensive accounting tool.
Get the data you need to leverage the investment you already made.
Benefits of Data Collection for Manufacturers
- Less waste because throughput is tracked
- Less double ordering of inventory because you know what scrap is expected to be and how much material you have in-process at all times
- Better pricing because you understand the true cost to produce
- Better scheduling because you have data to show throughput and can hold managers/employees accountable
- Better scheduling because you have data on each employees expected output and/or estimated time to completion for each job type
- Greater efficiency because you have the opportunity to improve the process with data showing trouble spots, bottlenecks, etc.
- Higher sales because you have quicker reaction to market demand and fewer stock outs
- Lower cost to acquire all of the data needed above by automating the data collection process
Element ID can help you get the data you need to improve profitability and boost sales. Start Here.
Best-In-Class Manufacturers vs All Others
- 38% more likely to rate internal data accuracy as very good to excellent
- 38% more likely to have a demand driven supply chain
- 32% more likely to be able to manufacture products based on demand from next stage in supply chain
- 25% more likely to have real-time inventory visibility
- 20% more likely to display operational data and metrics in real-time
- 19% more likely to be able to track lean initiatives and measure results
Best-In-Class Manufacturers defined as top 20% of aggregate performance scorers.
Source: Aberdeen Group, www.aberdeen.com
Benefits of Data and Analytical Capabilities in the Supply Chain Companies with Data Tracking vs. Those Without
- 11% more likely to experience growth in capacity utilization
- 6% more likely to experience growth in total inventory turns
- 3% less likely to experience a drop in order fulfillment rate
- 9% more likely to experience an increase in product family forecast accuracy
Both types of companies identify overcoming the following challenges as pivotal to achieving their companies’ goals
- Shrinking Profit margins from per-unit production cost increases – 28%
- Inability to accurately predict demand – 22%
- Inability to create an efficient flow between supply-chain planning, fulfillment activities, and demand – 16%
Source: IndustryWeek, www.industryweek.com
Use of Big Data
Manufacturers were asked to rate the following big data benefits on a scale of one to five:
- Product quality and defects tracking – 3.37
- Supply planning – 3.34
- Manufacturing process defect tracking – 3.32
- Supplier, components, and parts defect tracking – 3.11
- Supplier performance data to inform contract negotiations – 3.08
- Output forecasting – 3.03
- Increasing energy efficiency – 2.97
- Testing and simulation of new manufacturing processes – 2.88
- Support for mass-customization of manufacturing- 2.75
Source: Tata Consultancy Services, www.tcs.com