After analyzing the O2C process model created by the IBM Process Mining tool, and using the tool’s dashboards to monitor activity, MMC logistics managers were able to:
- Reduce the number of Changed Delivery Date instances, saving USD 50,000 in costs and shortening lead time by three days
- Continuously monitor customer lead time variability, which increased KPI alignment by 25% for Logistics Block Removal and Changed Delivery Date activities
- Redesign the process to reduce Logistics Block Removal activities, which realized over USD 100,000 in cost savings and reduced average lead times by two days
The IBM Process Mining platform also enabled the MMC to deploy robotic process automation (RPA) tools, a long-time goal of the organization. By monitoring RPA performance, the company:
- Automated 75% of the Delivery Activity, yielding USD 60,000 in cost savings and significantly reducing reworking
- Automated 75% of the Line Creation Activity to realize cost savings of USD 50,000 and reduce lead times by three days
“Automating processes where feasible represents a huge opportunity for us,” says the MMC VP. “Due to the work volume we have in logistics, we sometimes struggle with the human resources we have available. By reducing the number of times that orders are blocked or rescheduled, we can free up time for our staff to work on other tasks.”
“One of the steps we want to take in the future with IBM Process Mining is to understand customer behaviors and how these can add delays and related costs to the process,” says the MMC VP. “We think that this tool will help us change these behaviors so we can compress delivery schedules and be more cost-efficient.”
As a large global enterprise, the MMC subscribes to a range of business intelligence services for performance monitoring and planning. “We already have a lot of information to work with but there are several business-critical KPIs that we monitor with IBM Process Mining that we can’t get anywhere else,” says the MMC VP. “You always need to stay ahead of the competition. And by increasing the automation of our business processes with IBM Process Mining, we intend to widen the gap between us and our competitors.”