Value Chain Diagnostics

Centre for Logistics works among others with the issues many companies encounter in connection with diagnostics, e.g. evaluation and optimisation of business processes and performance. Today, companies are dependent on the fact that their ERP system efficiently can handle transactions from the production and the logistics planning. Many business processes are controlled through the ERP system, and therefore we focus on diagnosing of issues related to the installation of the ERP system and the performance of the organisation.

For many companies it is almost impossible to identify, which areas that are performing under target and the cause of this.

This can be caused by changes in relations to:

  • Customers
  • Suppliers
  • Products
  • Orders (purchase and sale)

Therefore, there are a number of issues that have to be evaluated and diagnosed before remedying the problem and optimising the process.

The Purpose of Diagnostics

Unfortunately, existing ERP systems cannot answer the following questions:

  • What is our ability to deliver on-time-in-full?
  • Which suppliers deliver to late – or not the amount we ordered?
  • Which suppliers/raw materials/resources are involved in customer orders we fail to deliver On-Time-In-Full?
  • Our aim is to find the cause that led to these questions and use this knowledge to improve performance.

We have two main approaches to diagnostics. The first uses the data readily available in the ERP system. The second approach is based on data that we gather by logging the behaviour of customers, suppliers and internal transactions. For both approaches we employ a combination of data-mining and data analysis techniques to arrive at a diagnosis.

We are in an ongoing development, testing and implementation process with diagnostics tools through both research projects and industry collaboration.