Logistics with Process Mining |

Logistics with Process Mining

Data driven supply chain improvement

You are here

Logistics’ professionals are faced with increasing customer requirements as well as procurement and warehousing efficiency targets. Customers demand accurate and timely deliveries while organizations strive for lower inventory levels and cost efficiency. 

 

Challenges in Logistics:

On-time delivery fails

  • Goods are delayed, lost, or damaged during shipment.
  • Goods are delivered to the wrong destination.
  • Wrong goods are delivered.
  • Order amounts are not met.

Too high warehousing costs

  • Organization cannot pinpoint from which warehouse or distribution center the problems originate.
  • Mistakes in sorting and inventories.
  • Too high warehouse levels.
  • Vessel capacity is too low.

Difficult to manage Supply Chain

  • Too high transportation costs.
  • Rules and regulations are not followed.
  • Too much data in operative business systems about supply chain performance and key influences.
  • Logistics data is rarely used for process improvement.
  • No proper visibility to ERP - what logistics data it actually contains and what can be drawn out.
  • Strategic objective to develop new supply models to address gaps in existing delivery capabilities or to move from Make-to-Stock to Make-to-Order supply model.
  • No clear visibility to supply chain.
  • Production is halted due to missing raw materials.

 

Tackling these conflicting objectives is not a simple task and requires a new approach. 

 

QPR Process Mining Benefits for Logistics:

Typical benefits from using QPR ProcessAnalyzer and QPR's solution in Logistics Process Mining and operations improvements include:

On-time delivery +13%​

  • Goods delivered on time.
  • Order amounts are met.
  • Right goods delivered to right destinations.

40% savings in warehousing costs

  • Less mistakes in sorting and inventories.
  • Warehouses on adequate level.

20% wider geographical reach

  • Optimized warehouse and distribution center location.
  • Adequate vessel capacity.​

 

QPR Solution for Logistics Process Mining:

QPR Solution for Logistics is based on QPR ProcessAnalyzer product and ready made analysis views and  KPI process indicators focusing on Logistics process improvements.

QPR provides the right tools and methods to make most of the data and turn it into valuable information – process intelligence. Based on event data, QPR ProcessAnalyzer, a process mining software, 

1) automatically visualizes the real end-to-end process, 

2) provides key performance metrics and

3) shows what causes process hassle. It provides insight to supply chain performance. 

 

When asked to draw logistics process, most people visualize something like the flowchart on the left. A straightforward execution of cases with maybe some options or decision points. When the process is visualized based on data, the reality is closer to the flowchart on the right. 

 

 

Influence Analysis easily reveals what are the characteristics related to certain cases. Select a step in the process flowchart on the left and see, what are the typical characteristics related to cases going through this step. In this picture, the attributes defining the selected cases are Category - Women as well as Product - Road where contribution is highlighted in red. On the other hand, we can see that Category - Children and Category - Men are typically not so related to cases going through Product return. These attributes are highlighted in blue. 

 

Red process steps are more commonly related to late deliveries than the steps highlighted in blue. It seems that, whenever products are shipped in Essen and by train, a late delivery is more likely than for example when the goods are shipped in Essen by truck.

 

Watch on-demand webinars:

 

On Time In Full Process KPI

First Time Right Process KPI

 

Read more in our blog posts:

 

Logistics Process Improvement - Root Cause Analysis by Process Mining

First Time Right – Aiming For 100% 

3 Steps to Solve Your Business Challenges with Process Mining 

Game changing solution to process excellence from QPR

 

 

×

 

 

Customer Stories

 

“The Visualization of the Processes is a great tool for communicating the needed changes for the process stakeholders. Showing the actual happenings clarifies the needs for process improvements and makes the points of improvement clear. QPR ProcessAnalyzer is truly a gamechanger for process improvement.” 
- Fauzia Khan, Business Process Manager, Nokia

   Read success story

 

"We have now a lot of KPIs in reports, and they are not reflecting the situation that are difficult to change, because there are a lot of things behind it to calculate it, but then you get a report and it's not so easy to understand it anymore. QPR is, for us, an easy tool to verify, is our business working this way? Is it value added to change the process?"

- Daisy Rolly, Business Analyst Supply Chain, Terumo Europe

 

"The good thing is that, in 3 months you build something that's a complete x-ray of the processes, so you have no more debate on whether the KPIs are defined properly, or what definitions to use, you can look at the processes, the actual processes, you can look at the lead times, and you can bring those facts on the table without debates, it's coming right out of your system and having that is a big power in making decisions with those fact-based data."

- Siem Jaspers, Business Analyst Supply Chain, Terumo Europe

   Read success story

 

“We were able to identify on which process to focus our efforts using QPR ProcessAnalyzer. The solution gave us a great way to communicate the process flow and the gaps that were found during the analysis to our regional teams.”
- Capucine Azé, SD & SCM Specialist, Kemira

    Read success story

 

 

"The process insight and facts delivered by QPR ProcessAnalyzer were priceless. We were immediately able to focus our process improvement activities to the right things to reach the results our business needed.”
- Jari Vuori, Vice President Supply Chain, Metsä Board

    Read success story

 

"With the process facts in front of you, there is no denying where you need to put your focus and efforts when developing a process. This is exactly what QPR ProcessAnalyzer delivered.”  

- Kristian Witting, Director, IT and Business Process Development, Ruukki Construction  

    Read success story

 

Book a demo

Meet QPR experts and see QPR ProcessAnalyzer live demo.

 

Learn about use cases

See how QPR ProcessAnalyzer supports different initiatives.

 

Explore connectors

Take a look at our ready-made and customized connectors.

Contact us

Leave a comment and we will get back to you. 

 

Check application areas

Learn how to apply process mining to different processes and industries.

 

Join QPR Community

Discover learning resources in QPR Community.