Building a strong supply chain
Reliable information: the right data at the right time
Conflicting inventory levels and order statuses slow down your operations. Discover how clear definitions, ownership, and smooth handovers provide information your team can act on.
According to sales, an order is ready for dispatch. In the warehouse, a part is still missing, and planning is working with an older delivery date. The information is there, but it does not mean the same thing to everyone. The result: extra inquiries, wrong priorities, and a customer who learns too late that their delivery is delayed.
This third article in 'Building a Strong Supply Chain' is about actionable information that employees can rely on. Not sharing as much data as possible, but making reliable data available at the moment a decision is needed.
1. Start with the decision
Map out for each handoff which decision is being made and what information is required for it. For releasing a production order, for instance, material availability, the correct product revision, and capacity are relevant. For customer communication, a confirmed delivery date and any deviations are important. This prevents a dashboard full of numbers without a clear purpose.
2. Agree on what information means
When is inventory available: immediately upon receipt, or only after quality release? Does 'shipped' mean a label has been created or that the carrier has collected the goods? Establish these definitions and assign an owner to each data point. Also determine which system or process is leading and how an error is corrected.
A Single Source of Truth (SSOT) is therefore essential: for every important piece of data, there must be one controlled, authoritative version on which all stakeholders base their decisions. Without this starting point, separate spreadsheets, conflicting inventory levels, and discussions about which number is correct will arise. Sales might then promise availability that planning or the warehouse does not recognize. Define where data is maintained, who is authorized to make changes, and how other systems and reports adopt them. This way, your team spends less time comparing versions and more time resolving actual bottlenecks.
A single source of truth does not mean that all information must reside in one database. Different systems can operate alongside each other as long as definitions, ownership, and data exchange are clear. A central report does not automatically make inaccurate source data reliable.
3. Choose the required timeliness
An inventory transaction can be immediately relevant to the next picker. A tactical evaluation of supplier performance can often work with periodically updated data. Therefore, determine for each application how much latency is acceptable. Real-time exchange makes sense when faster information also leads to better action.
4. Check the entire information transfer
An integration may work technically while operations still make the wrong decisions. Verify that all required data arrives, uses the same units of measurement, and is processed at the right time. Agree on who follows up on notifications of failed transfers and how employees can work responsibly during an outage.
Illustrative example: received is not yet available
Suppose goods are booked as available immediately upon arrival, while they are still awaiting inspection. Sales promises a delivery, and the warehouse receives a pick order that cannot be fulfilled. An appropriate improvement is a clear inventory status until release, combined with the correct availability rule in the order confirmation. This is an illustrative example, not a customer case.
Assess the impact, for example, based on unexecutable pick orders and adjustments to delivery promises. This allows you to verify whether better information also leads to fewer disruptions.
Your first step
Track one recurring information error from capture to use. Where does the discrepancy arise, and who notices it first? Address definition, recording, and follow-up first; then assess whether system adjustments are necessary. N&J Connect helps align processes and information, so your team spends less time searching, inquiring, and rectifying issues.
