Are you trying to understand your Lead Time better ?

Most of you are familiar with the concept of Business Content for SAP Data Warehouse Cloud and SAP Analytics Cloud, so I won't go into the details of that. What I would like to highlight today is a new content package for SAP Data Warehouse Cloud and SAP Analytics Cloud focused on supply chain / procurement relevant KPIs.

SAP value analytics solves several business problems for organizations who struggle with inbound materials in their supply chain:

1. Improve supply chain resilience.
2. Improve value associated with business network initiatives.
3. Offers quick wins along a continuous improvement journey.
4. Provide actionable intelligence.
5. The need for lengthy software implementations.

Pre-pandemic, a key objective for supply chain initiatives was inventory effectiveness – reduce the wrong inventory faster and provide the right inventory faster. One leading indicator of inventory reduction is lead times – the time to receive in-bound materials/components after issuing a purchase order. In the current recovery economy, lead times have increased greatly (doubling or even tripling) which has crippled supply chains. As recovery continues, lead time will always be a crucial metric which organizations need to improve no matter the economic situation.

An organization can quickly begin to diagnose issues with metrics such as lead time and organizations can quickly determine which suppliers, materials / components, and locations are causing issues with these metrics. Users of Value Analytics range from senior leaders who need to understand summary information, to knowledge workers who need detailed analysis and drilldowns to improve such metrics.

Overall the content package provides analytics for the following topics:

• Lead Time Summary: Provides an overview on the average lead time for a given time period. In addition the overview shows those suppliers and materials that have improved most and diminish the most as well as the supplier variability.

• Lead Time Analysis: Provides an option to dynamically analyze the lead time along several dimension in form of a heat map with additional insights, such as information broken down by material, supplier, and buyer.

• Lead Time Variability: Provides a quick overview on the average lead time broken down by a set of dimension, so that trends and spikes can quickly get recognized.

• Lead Time Outlier: Visualizes the information broken down by a set of dimension, so that outliers as well as the range of lead time days can be viewed by supplier, region, and material.

• Supplier / Material Overview: Creates a summary for a specific Supplier / Material with focus on the overall Lead Time.

• Lead Time Index: Creates a ranking of all your supplier combining multiple value indicators into an overall Lead Time Index for each supplier.

In terms of data sources, this content package is targeting customers with SAP ERP or SAP S/4 and all the modelling is done in SAP Data Warehouse Cloud and comes as pre-configured model in the package.

 In case you are interested in how SAP Analytics Cloud and SAP Data Warehouse Cloud can help to improve your overall lead time - reach out to me and we can get the journey started.

You can find out more details here : SAP Business Networks - value analytics