Challenges
Procurement data was stored in multiple systems, making it challenging to gain a cohesive view of inventory, receipt, and quality control activities.
The company needed a structured approach to monitor procurement metrics, including receipts, reversals, quality checks, and stock levels, to streamline operations and reduce inefficiencies.
Ensuring quality consistency across received goods was difficult, impacting downstream processes and product standards.
Limited automation in reporting and tracking made it time-consuming to generate actionable insights for procurement and inventory management.
Solution
Developed a centralized data warehouse on Azure Synapse, consolidating procurement data for easier access and analysis across receipt, inventory, and quality metrics.
Created ETL processes to bring data into the warehouse, transforming it based on specific business logic relevant to procurement operations.
Established targeted KPIs for procurement activities such as receipt processing, issue tracking, reversal transactions, and quality control (QC) outcomes.
Built Power BI dashboards to visualize procurement metrics, making it easy for stakeholders to track and manage operational activities, from receipts to QC results.
KPIs and Metrics Created
Measured the accuracy of received goods against purchase orders to track supplier compliance and reduce discrepancies.
Monitored the total quantity of materials issued to production, providing insights into material flow and usage trends.
Tracked the frequency and reasons for receipt reversals, enabling better management of return processes and supplier accountability.
Logged issue reversals to assess and minimize discrepancies in inventory management.
Assessed the percentage of received items that passed QC, helping ensure only quality materials enter production.
Calculated turnover rates to monitor stock movement and optimize inventory holding.
Tracked supplier adherence to agreed-upon lead times, supporting planning and scheduling efficiency.
Value Delivered
With procurement-specific KPIs in place, the company could more effectively track and manage inventory movements, reducing errors and improving inventory accuracy.
By monitoring QC pass rates and receipt accuracy, the company was able to ensure high-quality materials were sourced consistently, reducing downstream issues.
Visibility into receipt and issue reversals helped identify and mitigate sources of error in procurement transactions, optimizing process efficiency.
Power BI dashboards provided procurement teams with instant access to vital metrics, enhancing decision-making and reducing time spent on manual reporting.
Conclusion
Through these solutions, DataDrona equipped the Adhesive Procurement Company with a robust, data-driven procurement process, enabling better inventory management, supplier performance tracking, and quality control. This transformation empowered the company to make smarter, faster decisions and optimize procurement operations, leading to cost savings and improved efficiency.