Is it possible to speed up your logistics flows from the supplier through the warehouse reception area to the stockroom? Yes, by improving your operational performance through better control of your logistics flows. Such an approach contributes to better operational performance (reduce production or distribution leadtime, time and stocks) and better customer relationships.
Ok, but how? Through flow diagnosis. Observe your process chain, understand it and identify deep areas for improvement.
Well said, but not so simple! Today, flows are becoming more and more complex. Multi-modal transport, multiplication of players (subcontractors, internal), partial information, multiplication of channels, formats (email, pdf), retrieving logistic information can become a real nightmare. However, various methods are being developed to open this black box, gain new visibility on opaque flows, and identify optimisation levers. The core of our response relies on data, much more data, thanks to digital innovation (IoT, data aggregation & analytics).
From VSM to e-VSM, digitized diagnosis
Let’s go back to the basics. Value-stream mapping, also known as « material- and information flow mapping »,is a lean management method to analyze the current state and designing a future state for the series of events that take a product or service from the beginning of the specific process until it reaches the customer. A value stream map is a visual tool that displays all critical steps in a specific process and easily quantifies the time and volume taken at each stage. Value stream maps show the flows of both materials and information as they progress through the process.
The e-VSM is defined by the use of digital innovations such as IoT to map the flow stages through automated data collection at a more granular level. The e-VSM is the easiest, most automated way to draw, analyse and share value stream maps. It’s used to reduce waste, balance lines, save costs, increase capacity and reduce lead times.
IoT technology to open supply chain black boxes
e-VSM relies on the Internet of Things (IoT) technology and the ‘Zero G’ (or 0G) network developed by Sigfox to automatically track all the flows you wish to optimize from end-to-end.
A representative sample of deliveries can be carefully tracked by dedicated trackers collecting data such as location, temperature, and movements throughout the journey.
In order to integrate and manage this new data, as well as ‘traditional’ data like shipping and delivery addresses, we developed an application with a processing engine that automatically converts this raw data into meaningful supply chain indicators.
These indicators include time, dispersion, service level, total distance, number of stops, waiting times & locations, CO2, temperature thresholds, unexpected shocks, and reliability % of milestones. These indicators are then visualised in an interactive Business Intelligence dashboard, providing summary and detailed information. It allows us to accurately describe flows to identify possible sources of underperformance and to build an action plan with the necessary stakeholders.
Gains beyond the scope of the shipments or flows monitored.
Gains in several areas : The contribution of the diagnosis affects multiple stages, both in the treatment of underperformance problems and in continuous improvement.
Testing new monitoring methods: Complementary to traditional monitoring, e-VSM provides additional information and helps supply chain digital transformation.
« The e-VSM allows you to undertake a flow optimisation process based on factual, end-to-end and representative data, and obtained much more easily than by site visits or complex reconciliations of heterogeneous files. It is very effective! » Say Benjamin Grise, senior manager at Argon&Co
To conclude, E-VSM is an essential part of the digital transformation of the supply chain. It contributes to the optimisation of flows and better control over its visibility. Its speed of integration and its ability to be deployed on a large scale make it a real game-changer for the industry.