**London**: The latest segment of SupplyChain’s series explores how inaccurate data erodes trust and collaboration in manufacturing. It highlights the need for reliable information to improve decision-making and align factory operations with supply chain processes for better efficiency and productivity.
In a continuous effort to enhance efficiencies within the manufacturing sector, the series titled “Aligning Factory and Supply Chain” by SupplyChain has delved into the pivotal role of accurate data within operations and the supply chain. This second segment of the series examines a critical issue: how inaccurate or outdated data can erode trust, hinder collaboration, and lead to misguided decision-making at the intersection of factory operations and supply chain management.
As manufacturing environments become increasingly complex, the alignment between strategy and execution is often disrupted by discrepancies in foundational data. A typical scenario unfolds when a planning team, optimistic about demand forecasts, adjusts production schedules accordingly. Yet, they are confronted with a harsh reality: a key component assumed to be available is, in fact, on backorder. Consequently, production supervisors scramble to adapt schedules, and procurement resorts to emergency purchase orders. The underlying issue, however, is not merely a flawed plan; it stems from unreliable data.
This misalignment of information creates an “invisible fracture” in many modern manufacturing operations. With teams from different functions utilising disparate data sets, the potential for collaborative decision-making is severely compromised. As articulated by a senior director at KPMG, “You cannot orchestrate the end-to-end supply chain if every function is using a different set of assumptions.”
Persistent obstacles to effective collaboration are typically mundane in nature, involving inconsistent, outdated, or substandard planning data. Such issues may manifest as inaccuracies in lead times, unreviewed safety stock levels post-COVID, or redundant item master lists that reference multiple versions of the same part. These small inconsistencies accumulate, resulting in significant operational discrepancies. While supply chain professionals may appear to be over-ordering, or factory operations seem to fall short of targets, both are responding logically to flawed signals. This miscommunication underscores a critical challenge in many organisational efforts towards alignment.
Often, solutions to these misalignments involve increased meetings, revised key performance indicators (KPIs), or investment in advanced planning technologies. However, as highlighted in the discussions, if the foundational data quality remains compromised, additional efforts may yield little benefit. The prevalent system-wide mistrust, perpetuated by ineffective data management, creates a culture where factory teams increasingly rely on informal insights and planners may choose to override system recommendations based on instinct, rather than solid data.
This cumulative erosion of trust ultimately creates friction between teams. Factory managers and supply chain planners may express frustration with one another’s responses, often without a complete understanding of underlying realities. Achieving true alignment necessitates not merely a better data dashboard but rather, a commitment to maintaining clean, verified, and consistent master data, which includes accurate lead times, clear order policies, and reconciled part numbers. With reliable data as a foundation, digital tools and cross-functional processes can function effectively, enabling decisions based on accurate realities.
The report indicates that effective integration between factory execution and supply chain planning hinges on the clarity of signals and data reliability. When there is assurance regarding material availability or production constraints, teams can react appropriately. The PwC 2024 Global Manufacturing Outlook posits that nearly 70% of operations leaders identify poor data quality as the principal barrier to deriving value from digital investments. This finding further emphasises that technology alone is insufficient; a shared foundation of trusted data is essential for collaboration and alignment.
The discussion reflects a growing recognition that data quality should not be regarded merely as a technical issue to be managed once and set aside. Instead, it is viewed as a vital operational asset that fundamentally shapes decision-making, escalates issues, and fortifies interdepartmental trust. Manufacturers seeking to synchronise their planning and execution must begin with realistic lead times that correlate with actual supplier performance and order policies that accurately represent factory constraints.
In conclusion, the alignment of factory and flow is only achievable when the connecting information is accurate, timely, and comprehensively shared across functions. Anything short of this foundational integrity results in assumptions and guesswork masquerading as strategic initiatives.
Source: Noah Wire Services
