Why is a Data-Driven Assessment Important for Manufacturers?
Companies are heading towards a data culture that goes beyond collecting data, rather they encompass strategies and have access to consistent data to personalize products, messages, and relationship flows. As we have conversations around data at every level of decision-making, there's a requirement for a self-service model in organizations, where people can access the data they need in real-time. Yet, according to a survey by Fortune 1000, data, analytics, and AI efforts have been impeded.
Want to leverage data for your manufacturing setup? This article can help you learn how to take a data-driven approach for your business.
What is data-driven assessment?
Before delving into data-driven assessment, it's important to understand the value of data. The amount of data collected has never been greater, but it’s also more complex. High-quality data leads to accurate analysis, enhanced business decisions, and good customer relations while facilitating conversions and gaining customer trust.
At the other end of the spectrum, inconsistent data can lead to errors, misleading results, and poor decisions. In the supply chain sector, data-related issues may include poor data quality, security, compliance, and governance issues. This results in a slower time to market, inability to use supply chain analytics, difficulty sourcing high-quality data, and lack of data visibility across the shop floor and top floor.
So, what is data-driven assessment? And why do manufacturers need it?
Data-driven assessment is based on the analysis and interpretation of data to guide strategic business decisions that align with the goals, objectives, and initiatives of a company. It is an evidence-based approach that relies on data to make informed decisions. According to IDC, the global data is growing from 45 zettabytes in 2019 to an estimated 175 zettabytes by 2025! Backed by data, everyone in the company can be empowered to innovate and work on new ideas.
In supply chain management, data-driven assessment plays an important role in enabling informed decision-making based on accurate and timely data.
Businesses can identify areas of improvement to optimize efficiency, reduce costs, minimize their environmental impact, and improve their overall performance by collecting and analyzing data throughout the supply chain lifecycle.
At Rawcubes, we take a three-pronged approach as part of data assessment:
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People assessment: Our first step to building a data-driven organization is to promote data literacy among key stakeholders, assessing the client's existing dashboards and determining their ability to stay updated with the latest technologies.
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Business processes assessment: Here the primary focus is on assessing the business operations of the client, identifying opportunities for automation, and determining the scope for data-driven processes.
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Enterprise technology architecture assessment: This focused effort helps in understanding the company’s machinery and components, infrastructure, process/jobs complexity, data integration process, dependency graph, and modernization needs.
Benefits of data-driven assessment
Here are some benefits of data-driven assessment:
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Predicting performance
Data-driven assessment helps get the guardrails in place by predicting the performance of a company with insights into key performance indicators (KPIs). At Rawcubes, we use predictive analytics to forecast future outcomes. This helps companies optimize inventory, improve delivery times, and anticipate future performance, while also assessing their current technology and operational processes.
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Generating real-time insights and predictions
Companies can generate real-time insights with data-driven assessment by connecting their disparate data on a single platform. This helps them to meet their business goals, break down silos and establish key metrics to guide the company's strategies. At Rawcubes, we connect production equipment for real-time visibility of key machine metrics. We also provide environmental, social and governance (ESG) monitoring with real-time emission monitoring to improve the ESG score of our clients.
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Realizing cost savings
Data-driven assessment helps provide a proactive approach to maintenance that can help prevent equipment failure and prevent breakdowns, minimize costs, optimize maintenance programs, and reduce downtime. At Rawcubes, we implement preventive maintenance management while performing maintenance activities on equipment and assets, which helps in reducing overall maintenance costs and optimizing spare part inventory.
An example of data-driven assessment
The textile industry is one of the industries that can benefit from data-driven assessment for its operations to enhance sustainability, reduce costs, and meet growing demand. One way to implement data-driven assessment and achieve supply chain efficiency in the textile industry is through leveraging dynamic data for cross-functional teamwork. Here’s an example to help you understand:
A textile manufacturer produces fabrics for various industries. The manufacturer wants to improve its sustainability practices, and manage dynamic materials, vendors, line capacity, and quality process that changes with every order. To achieve these goals, the manufacturer needs to assess their equipment data, supplier data, production data, and more through their existing complex and siloed legacy systems that hinders different teams to work effectively. With Rawcubes data driven assessment, they can utilize the entire supply chain data in any format through a single platform. They can utilize their data to predict line capacity, inventory, and reduce downtime while staying ahead of customer demands.
To sum it up…
Data is undoubtedly a primary driver of economic growth and success in the 21st century. At Rawcubes, we use data-driven assessment to build a data-driven culture for your organization.