Turning Data into Direction

Turning data into direction

August 28, 2026
By Bryce Burgess | Director of Solutions Operations

Labor is tight, uptime expectations are at an all-time high, and cost scrutiny never stops. And that’s just a regular Tuesday.

It’s never been more valuable to make the best decisions as quickly as possible. At the same time, too many supply chains are becoming noisy and fragmented. Data lives in way too many places. Replenishment of product is harder than it should be. And the information that should answer questions often creates more.

This shows up as a cost on the plant floor. Highly paid employees are chasing products and reacting to issues rather than improving outcomes. And that’s an important distinction. The challenge isn't effort, it's friction.

Most teams want to do the right thing. They work hard, and they’re invested in the performance of the organization. But when systems aren't connected and data isn't clear, friction creeps in. And friction slows everything down.

Said another way: The lack of solid data creates friction, and friction is extremely expensive. Data can reduce friction when handled correctly. Here’s how to do it.

What is supply chain data?

Let’s start with an important note: You don’t have to be a supply chain data analyst to have (or understand) good data. Turning data into direction isn’t about collecting more data, it’s about what you do with it.

At a high level, supply chain data is everything you can measure about how materials move, how inventory is managed, and how people interact with products. But not all data is equally useful. I find it helps to break data into four buckets.

How to turn data into action

Collecting supply chain data isn’t the hard part anymore. Most organizations already have more data than they know what to do with. The real challenge is turning it into actionable insights.

Too often teams get stuck in analysis. They export spreadsheets, build reports, and review findings; meanwhile, nothing truly changes on the floor. Maybe there’s an uptick in effort, but the outcome stays the same.

Those four buckets work because they get you to think about why things are happening. Once you understand what’s happening, you can focus on what will move the needle for your situation.

Instead of asking people to interpret raw data, you want data to offer key signals. (A spend report that leads you to standardize a product.) Or you want data to show trends. (An inventory alert that suggests an adjustment to min/max levels.)

Long story short? You want a repeatable process where data provides clear next steps.

Where to start

The answer to “Where do I start with supply chain data?” is simpler than most people expect. You don’t start with a dashboard or a report. Instead, you pick a problem and work backwards.

Three big focuses I’m seeing right now (and these are pretty evergreen) are teams trying to reduce cost, improve uptime, and increase productivity. Each goal points you to different data.

Step 1: Define success

Whatever problem you decide to tackle, your first step should be defining the desired outcome. You want to be specific here and really lay out what success looks like.

Two common examples are fewer stockouts and reducing the time spent retrieving inventory. Those are simple enough. But one that goes under the radar is lowering spend per employee.

Most people approach cost reduction as a piece price conversation with the focus being on finding a cheaper glove to reduce spend. In my experience, this path often leads to missed opportunities. The true driver of savings isn’t the cost per glove, it’s the total cost per employee.

It’s a bit of an oxymoron, but sometimes to lower the per employee amount, you actually need to spend more on gear. I love sharing an example where a team was going through 15 pairs of gloves per month at $7 a pop. That’s a monthly cost of $105 per employee.

To lower that monthly cost, they switched to a glove that costs $14.

How can it be cheaper when the gloves cost twice as much? The employees love the gloves so much they only use three pairs a month. That makes the new monthly cost $42, 60% less. (To be fair, this was expected; the new gloves are more comfortable and offer better overall protection.)

This is how a glove with a higher unit price can actually reduce overall spend. Once a glove lasts longer and lowers consumption, the total cost per employee decreases. Suddenly, that one change creates a greater savings opportunity than buying the lowest-cost option.

That’s why it’s so important to shift from price-based decisions to outcome-based decisions.

Data can do amazing things, but you need to know your goal ahead of time. If you don’t start from a clearly defined end state, not even the best data can help you.

Step 2: Simplify the inputs

You may be tempted to think that everything is worth looking at. Don’t give in to that temptation. Start with one category in one location with one measurable issue. You can expand from there, but yes, you should start that “small.” Or as we say at Fastenal: Start anywhere. Scale everywhere.

This approach works better across a business. Instead of relying on one person to interpret complex data, you give teams simple, consistent insights they can act on quickly.

At the operational level, the people responsible for driving results (operations leaders, plant managers, line supervisors, maintenance leads, etc.) often don’t have the time or the data background to work through raw reports or complex spreadsheets.

They need a simple, intuitive data source that highlights the opportunities and actions that will improve performance on the plant floor.

Some teams have already collected data, but it lives in an office. It’s just sitting in spreadsheets. But data on its own does not create value. Data gives you value when it’s simple enough that teams can understand it quickly and then use it to improve operations.

The takeaway

Here’s the secret people aren’t talking about (yet). The teams that win aren't the organizations with the most data; they're the ones that can turn data into action consistently.

And that's where Fastenal can help. We capture data through our inventory technologies, through every transaction that happens on the plant floor. Yes, we’re a supply chain partner, but we aren’t just “providing inventory.” We help teams use data to make better decisions. Every time gloves are dispensed or an RFID restock is triggered, it creates data.

Our goal is to connect your data in a way that explains what's happening, why it’s happening, and what needs to happen next. If your data isn’t driving decisions, it’s adding friction, and that cost shows up in ways you may not be measuring yet.

Here’s the takeaway. You should start by answering this question: “What should my data help me do next?”

From there, the right partner can help turn that answer into clear, repeatable action.

Summary

Supply chain data creates value when it drives action, helping organizations reduce costs, improve uptime, and increase productivity through better decision-making.
The biggest challenge is not collecting more data, but turning data into clear, actionable insights that reduce operational friction.
Outcome-based decisions often deliver better results than price-based decisions, as total cost, consumption, and performance can matter more than unit price alone.
Organizations achieve better results when data is simplified, accessible, and focused on solving specific operational problems.
The most successful teams use connected data, inventory visibility, and supply chain insights to create repeatable improvements across their operations.