Supply chains are about to go Moneyball
Baseball has always been data-driven. Is the same true for the supply chain?
August 29, 2023
By Ryan Upshaw | Senior National Accounts Sales Specialist
By Ryan Upshaw | Senior National Accounts Sales Specialist
Illustration by Sasha Case | http://sasha-case.squarespace.com/
Change the gameA ton of people have either watched or read “Moneyball.” Maybe you’re one of them? Either way, between Brad Pitt and Bill James, the game of baseball is forever changed. Yes, that’s a joke.
Billy Beane (and a forward-thinking Ivy League grad) took Bill James’ thoughts on analytics and used them to build one of the most prolific seasons ever in baseball. And this was for the A’s, an organization already deeply enshrined in baseball history. They used data and analytics to change their game. I believe we are witnessing the same type of revolution in supply chain. Data mattersAnalytics are driving operational efficiency. The best organizations have been doing it for years, while some organizations are scrambling to catch up. The good news is that it’s not too late; the bad news is that the last category to be affected will likely hold indirect, class-c, mill tool, and safety.
Look, I get it. For most organizations, this makes up roughly 2% of their overall revenue, and it’s easy to think: “Little value, little reward, and little impact.” In theory, this makes a ton of sense, but in reality, this category is the most archaic by a wide margin. Most big companies that I work with don’t have any data on the category, and if they do, it’s littered with free text entries and duplication. 
Whose data is it?Most companies in the oil and gas vertical, specifically in petrochemical and refining, have multiple stakeholders who have convinced category management that the only person who can handle this category is the incumbent supplier.
What they fail to realize is that these incumbents are often out of scope, don’t collect data, and don’t give these companies access to this data. I have written in the past about starting to collect data and pulling the Band-Aid off, and I am certain my current prospective customers are tired of hearing me say this. Honestly, I am unsure how many teams understand what their current program looks like. Within this vertical, I see so many silos around this. Procurement, category management, warehousing, crib management, safety services management … the list could go on forever. The left hand almost never knows what the right hand is doing. Getting goingThe great thing is you have an opportunity to start collecting data, creating KPIs that are attainable, and measuring/mapping your current supply chain. How do you start? You have to partner with a large, agile organization.
There are a lot of choices in that space. (I am partial to Fastenal seeing as they sign my paychecks!) And I can tell you what Fastenal can do for you, or I can let you do your own research. Your call. My advice? Look at the distributor who can invest in your supply chain. Then, think about what their investment would look like.
Again, I’d urge you to consider Fastenal as a way to get data out of your supply chain while driving value in an area you didn’t think you could. Reach out to jupshaw@fastenal.com if you want to learn more! You may also like: Vertical Divider
|
Like what you're seeing here? Subscribe to the Blue Print for FREE and get the magazine sent right to your address.
Got feedback? Email us at theblueprint@fastenal.com |
