Process mining analyzes the workflow within a company to achieve higher efficiency and faster decision-making. It identifies patterns and potential issues and then optimizes workflows and resource allocation. In this article, we'll tell you how and why process mining can be implemented in logistics.
Process Mining in Logistics — Realising Potential
Logistics service providers are facing mounting challenges with high expectations, complex supply chains, and rising costs. Customers now expect fast delivery, flexibility, and full transparency in the entire delivery process. Add to this the explosion of e-commerce and globalization, and you’ve got complex and extensive supply chains. Rising fuel prices, higher wages, and the search for sustainable practices are further driving up costs. Not to mention the extra expenses from storage, transport, and waste, which are often the result of poor inventory management.
Given these challenges, optimizing processes has become the primary issue for logistics companies. Process mining tools enable an objective analysis of logistics operations to identify areas for improvement. They highlight inefficiencies, bottlenecks, and deviations from the planned workflow to ensure business continuity.
Using Process Mining in Logistics
Process of mining is at the crossroads of data science and process management. It is essentially called process discovery, where data is extracted from event logs to create a model that shows any changes and deviations from the actual process. This allows companies to see exactly how things really work.
This approach is especially useful in logistics, where processes often span systems and departments — from taking orders, warehousing, to delivering goods. Each of these steps involves different IT systems and data structures. Performance mining integrates all these data sources and provides a complete overview of the supply chain.
Using process mining tools, you can integrate data from ERP systems, warehouse management systems, transportation management systems, and even IoT devices. Such integration creates transparency across the entire logistics process and reveals dependencies and interactions that would otherwise remain hidden.
Why Process Mining is Worthwhile in the Logistics
So, what is the process of mining in logistics used for in particular? Mining supply chain solutions for logistics provide clarity — you gain a clear overview of your supply chains. These platforms combine data from various IT systems, such as ERP, WMS, and TMS, so you can carefully monitor logistical processes. The connections between different process steps become clear.
Process of mining spots inefficiencies and bottlenecks that are difficult to detect on your own. This is important when managing complex systems like automated high-bay warehouses, where detailed analysis helps to efficiently manage storage space and reduce unused space. Analyzing the data collected from event logs allows businesses to identify delays in goods movement, inefficient storage usage, or non-ideal transport routes.
Moreover, process mining means continuous real-time monitoring. This means you can quickly identify and rectify deviations from your planned processes. Conformity checks facilitate the comparison of process variations. Even specialized processes, such as customs clearance, benefit from process mining.
Performance mining also has automation potential. Detailed process analysis highlights tasks suitable for automation, speeding them up and easing the workload on your team. This way, your employees can focus on more valuable work.
Process Mining in Logistics — Use Cases at a Glance
The process of mining a supply chain is a great opportunity to get a full picture of how things are working in logistics, identify inefficient processes, and make smart changes to improve everything. Here are some important process mining use cases:
- Optimizing transport routes. You can take a closer look at event logs to pinpoint waiting times, assess supplier performance, and spot discrepancies between system inventories and actual stock levels.
- Boosting storage efficiency. In warehouse logistics, you can optimize stock levels and speed up throughput times — for example, find slow-moving items, reduce excess and obsolete stock, and use your space more wisely. Process mining applies the "First In – First Out" (FIFO) approach, needed to manage perishable goods. Even the usual headache of annual inventory checks gets simpler because of it.
- Enhancing customer delivery experience. Process mining solutions help companies elevate their services and keep their customers happy. Analyzing complaints and claims is part of solving recurring problems. You can also improve your on-time delivery record by figuring out why some deliveries are delayed or not completed.
- Ensuring compliance and managing risk. The logistics industry is governed by different regulations and standards, and the process of mining a supply chain helps comply with them. You can spot deviations from the norm early on and prevent potential compliance breaches.
In short, mining supply tools help increase efficiency, put a smile on customers' faces, and maintain compliance.
Conclusions
Well, what is the process of mining in simple terms? In logistics, it acts as the lens that transforms blurred lines into a clear picture. Companies can reveal complex details lurking in their supply chains, see their operations more clearly, and make smart decisions. And you're not just seeing the bigger picture — you're understanding the nuances, and every decision counts towards a more refined supply chain.
FAQ
How does process mining help in managing logistics supply chains?
Process mining analyzes logistics processes based on real data to identify bottlenecks, inefficiencies, and deviations from the expected process flow. All this is needed for streamlining operations, optimizing resource allocation, and improving the efficiency of the supply chain management.
What are some common misconceptions about process mining in logistics?
Many people believe that process mining is too complicated or only for large companies. In reality, it's adaptable for businesses of any size and user-friendly. Another misconception is that it requires major system changes, but it actually integrates easily with existing systems.
How can companies measure the ROI of process mining in their logistics operations?
To measure ROI, check key performance indicators — process efficiency, cost reduction, and output increase. Compare these metrics before and after implementing process mining to determine the financial benefits. Improved decision quality and customer satisfaction will contribute to the overall return.
What are the best practices for integrating process mining with existing logistics systems?
Define your goals and find out how process mining will help achieve them. Ensure data is accurate and accessible. Work with IT and operations teams for seamless integration, and also leverage the expertise of your process mining experts. Regularly check analytical documentation and continuously improve your logistics processes.
