Tackling Supply Chain Analytics in Integrated Operations Centres

As companies seek tools to manage their increasingly complex operations, integrating supply chain analytics within an operations centre often becomes an early focus for quick wins. This article examines the pivotal role of the workforce in the successful integration of analytics into an operations centre. The question remains to be solved: how can employees in the integrated operations centre and on-site be effectively engaged to adopt these analytics? 

Challenges to Overcome

In the Integrated Operations Centre

• Understanding Supply Chain Complexity – The first major hurdle is the inherent complexity of the supply chain. It’s not merely about understanding individual components, it is about recognising the interconnectedness of all of the individual parts. Ideally, analytics are used to manage real-time supply chain issues. However, this requires a deep understanding of how a change in one area affects the whole operation. The challenge is turning this understanding of interdependencies into useful actions without losing sight of the big picture.
• Skills and Training – Another significant challenge in applying analytics to the IOC is the gap in skills and expertise to use advanced analytics software effectively. Many workers in the operations centre used to work on the front line where they didn’t use data analysis tools. This can make them less interested and less effective in using data for making decisions. Therefore, an ongoing commitment to professional development and tailored training is essential.
• Collaboration and Communication – Perhaps the most subtle, yet vital challenge, is the need for effective collaboration and communication within the IOC and with site operations. Without clear and concise communication channels, even the most accurate analytics can lose their impact. The challenge lies in establishing communication channels to ensure that insights are shared, understood, and utilised effectively across the organisation.

At Site Operations

• Adoption of Analytical Insights – On-site teams often use methods that have worked well in the past. Introducing data-driven decisions can sometimes be met with resistance. Overcoming this reluctance requires education and alignment of analytical insights with existing practices on site. The objective is to demonstrate that analytics can complement rather than supplant human judgement.
• Technology Accessibility – Ensuring that the workforce has access to the necessary technology, understands how to use it, and sees its relevance is vital. This challenge involves both infrastructure provision and workforce engagement with the tools.
• Coordination with the Integrated Operations Centre – Aligning the activities at the site with those in the Integrated Operations Centre is a nuanced task. Building bridges requires not just technology but a cultural alignment that sees both the site and the centre working towards a common goal.
• Data Availability and Accuracy – The effectiveness of supply chain analytics hinges on the continuous challenge of ensuring data quality—both in reliability and relevance, demanding ongoing focus and training at site.
• Compliance and Safety on Site – Implementing analytics must never compromise safety standards or compliance with site-specific regulations and guidelines.

Within the analytics team

The traditional approach to implementing analytics often relies on entrusting the task to a select group of specialised analytics personnel. This method, while perhaps efficient on the surface, opens up a series of unique challenges:

• Isolation of Expertise –The expertise is often isolated within a small group of specialists. While these individuals may excel in their field, this isolation can create barriers, preventing the broader team from understanding or leveraging the analytics.
• Limited Contribution and Understanding – With only a few people contributing to the analytics, there’s a risk that the insights generated won’t align with the real-world complexities of integrated operations. Specialised analytics personnel may miss nuances evident to others within the organisation. 
• Lack of Scalability and Flexibility – A confined approach hinders the ability to scale and adapt the analytics to evolving needs. 

The traditional approach, with its reliance on a limited pool of expertise, may seem efficient at first glance, but it can lead to an isolated, rigid, and disconnected implementation of analytics. By recognizing these pitfalls and implementing strategies to overcome them, organisations can ensure that analytics become an integrated, understood, and adaptable part of their operations, rather than a secluded specialty.

Strategies for Engagement

To overcome the inherent challenges of integrating supply chain analytics into integrated operations, a strategic approach must be adopted:

• Cross-functional collaboration: This involves creating an environment where different departments work together. It encourages shared understanding and insights, fostering a cooperative culture that transcends departmental boundaries. By working closely together, teams can leverage their unique perspectives and expertise to develop more robust and comprehensive solutions.
• Tailored Training Programs: Bridging the skills gap is essential for successful integration. Tailored training programs provide specialised instruction aligned with the needs of the operations centre and site workforce. By offering training that is specific to the roles and responsibilities within the supply chain, these programs enable employees to navigate complex analytical tools more effectively, driving efficiency and accuracy.
• Well-Defined Communication Channels: Clear communication is the bedrock of collaboration. Implementing well-defined channels ensures that everyone is on the same page with regard to the application of analytics. This alignment fosters understanding and creates a clear path for the integration and replacement of old methods with new, data-driven insights. Effective communication makes sure that the vision, goals, and expectations are consistently understood across all levels and functions of the organisation, thus improving overall organisational performance.

These strategies aim not merely to overcome challenges in the adoption of analytics; they also lay the foundation for a culture that welcomes new ideas and aims for ongoing improvement.