For many supply chain leaders, the digital age has brought a paradoxical challenge. We have more data than ever, yet we often have less clarity. This was the central theme of our recent webinar, "How Critical Signals Get Lost in Overcomplicated Supply Chain Reporting." Our featured expert, Tim Binder, Sr. Director of Supply Chain at Cirtec Medical discussed how to transform reporting from a source of confusion into a strategic competitive advantage.
The Cost of Complexity
Supply chain leaders often fall into the trap of over reporting by mistaking volume for visibility. Cirtec Medical operates in a high stakes environment, manufacturing Class III implantable devices like brain computer interfaces where precision is non-negotiable. In such a high compliance industry, signal loss is a significant business risk.
Tim noted that supply chain teams often struggle to connect their daily tasks to broad organizational outcomes. When dashboards are cluttered with noise, the executive leadership team loses the ability to see the true story of the supply chain. This complexity makes it difficult to prioritize resources or redirect efforts where they are needed most.
"Is the data you're giving somebody access to something you would actually want to take an action on? Am I going to write a check in my checkbook or tap my credit card based on that data?" - Tim Binder
Finding the Signal Framework
The "Signal Framework," suggests that the solution is not more data, but better distillation. Tim explained that Cirtec simplified their global supply chain performance across 11 sites down to two primary metrics: On-Time Delivery and Days in Inventory.
By focusing on these two KPIs, the team could clearly see the service versus inventory tradeoff. This clarity allows the C-suite to focus on what truly moves the needle by keeping promises to customers while optimizing company resources like cash and labor.
"The world of a set safety stock is dead... AI can start to think about it over and over and over, look at the signals, and then constantly optimize for it." - Tim Binder
While AI is often seen as a driver of data overabundance, Tim framed it as a productivity tool. By using AI to automate transactional tasks, supply chain professionals can shift their focus toward value adding activities. However, it’s cautioned that humans lose focus beyond four or five KPIs. The most effective strategy is to select priority signals and set automated thresholds for the rest, reviewing every 4-6 months.
Building a Strategic Advantage
To maintain agility in a changing global landscape, supply chain leaders must move toward a modernized approach. With trends shifting toward localization in the U.S. and centralization in parts of Europe, having a "unifying layer" is critical.
Using a solution like APEX by LeanDNA allows organizations to standardize metrics across disparate ERP systems. This ensures that every site and every leader is looking at the same actionable story. As our conversation with Tim concluded, the goal is to bridge the gap between having information and having insight to move from reactive firefighting to proactive decision making.
Read more about Cirtec’s success reducing inventory and improving COTD.
Watch the on-demand webinar
