Article Title: Hidden sources of better supply-chain performance
Authors of Article: Per-Magnus Karlsson, Shruti Lal, and Daniel Rexhausen
Date of article: September 1, 2017
Companies can dig deeper into operational data to create more precise metrics for continuous operations improvements. The authors warn against relying solely on high-level cost benchmarks to identify performance gaps. They suggest three principles to guide executives to gain insights for competitiveness through better data.
This article helps further the understanding of the role of data analytics in (1) relating OM and competitiveness, and (2) shaping the future of OM.
1. In what ways can operational data and metrics be used to reveal a company’s performance gap?
Guidance: The article provides several examples. This article can be used in the chapter on operations strategy and competitiveness. Specifically, a data analytics approach can guide executives to determine which competitive priorities beyond cost (e.g., flexibility) are important. An operations strategy that focuses on specific competitive priorities can then be formulated accordingly.
2. According to the article, “Data analytics is of particular relevance to the future development of OM”. Why might this be the case? Continue reading