We make better judgments when they are founded on data that is as precise and current as possible, whether the decision is about seeing patterns early on or acting quickly to avert issues in the supply chain. Process mining, which looks for data traces left by business processes in operational systems' event logs, is a useful tool for optimizing business processes in addition to data mining or machine learning on the data itself. This article uses real-world case studies from the logistics of chemicals and the Indian pharmaceutical industry to demonstrate the possibilities of process mining.
The many process variations and their frequency are shown through process mining. This makes it possible to identify process variations and detect deviations from the TARGET. Process diversity, process breakdowns, inefficiencies, and their causes are identified through the visual processing of the findings. The logistics procedures in the pharmaceutical and chemical industries are typically already IT-based, making them well-suited to use technology in the transport, warehousing, and plant logistics domains. Process-related data from the systems' event logs may be combined and analyzed to provide valuable insights that may result in shorter lead times or more transparency. Additionally, in many situations, process mining offers a realistic perspective of the actual processes and their variations in logistics for the first time; this characteristic alone goes a long way toward fast decision making.
Positive benefits on turnover and competitiveness are another factor driving the use of process mining in chemical and pharmaceutical logistics. Process efficiency improvements have the ability to significantly reduce the frequently high cost of logistics. Furthermore, the performance of logistics has a major role in influencing customer satisfaction.
Identifying Use Cases
Indian pharmaceutical industry logistics problems, such as "on time in full" delivery to pharmacies, hospitals, and wholesalers, might have their complicated answers found through process mining. This use case would need the inclusion of data and systems from outside partners, which would add complexity to the research. We advise starting by making use of the possibilities found in internal process assessments, such as those conducted from order input to shipment. This allows for the quick optimization of both variations and real process run durations. Even the wide range of process run times and their variety of variations might be surprising. Below are three more instances, each with greater details.
Numerous problems are solved with the use of process mining.
When determining whether process mining knowledge should be developed internally or selectively imported from other sources, the use cases for the technology offer a crucial indicator. The fundamental query concerns frequency of usage—that is, intermittent versus ongoing use. A one-time usage captures a moment in time, such as to evaluate the variations in the present process. When this happens, it's usually enough to work with a specialist that not only has industry and process mining knowledge, but also has the right software licenses for the job. The analysis's findings might yield specific areas for development, which are subsequently organized into a roadmap for the Indian pharmaceutical industry.
One cost-efficient option to check the success of the measures is to repeat the assessment at regular intervals by means of a review.
If, on the other hand, a set up for continuous KPI reporting and thus continuous process monitoring is the goal, it pays off to build in-house knowledge and invest in process mining software licenses.
Process mining can yield extremely detailed data, regardless of the option you choose. Usually, they relate to the six basic dimensions. We provide use case examples below that demonstrate how process mining produced rapid results.
Example 1 – Lead Times and Quality Control
The "Dock 2 Stock" KPI in warehouse operations shows how long it takes to receive items and make them accessible for shipment and ordering. It frequently happens that the KPI's precise definition is deceptive. Process mining can help with a more exact analysis by gathering document flows and time stamps from the event logs of the yard and inventory management systems. Beginning with the truck's arrival and continuing through unloading, quality assurance, and stock release, time stamp collection is completed. The inventory management system's event logs are used for this. Different insights, such as those about transit times or quality control procedures, might be obtained depending on the depth of investigation. Even in the highly regulated pharmaceutical industry, segmentation frequently enables a significantly quicker batch release.
Example 2 – Buffer Area for Goods Provisioning
You can get distinct data on the duration of time that requested products remain in the provisioning area by using process mining. Time stamps from incoming orders can be merged and examined to achieve this. Since production planning generates them as part of the manufacturing supply, they are often accessible. This research may highlight issues with manufacturing supply transparency, dependability, or planning. Moreover, it may simplify procedures, lower expenses and inventory, and make the most use of buffer space that is available.
Example 3 – Reducing Penalties
After the contractually specified time of usage has passed, load carriers utilized in Indian Pharmaceutical industry logistics for inland shipment, rail transport, or sea freight typically face penalties or extra costs. Evaluation of the supplier's claims is contingent upon documentation of the load carrier's usage from point of receipt to point of return. If one concentrates on the processes that occur between a load carrier's release and return, potential savings become visible.
It is frequently possible to optimize the location and timing of the load carrier's scheduled return, as well as the circumstances under which a longer duration of usage should be agreed upon up front under more benevolent terms. The information enhances the use of the predetermined payment objective and, consequently, the cash flow too.
Costs may typically be significantly decreased without affecting operating procedures. But there are several implementation issues with this example: Because stocks do not have transaction documentation, process mining methods are unable to first determine stock levels. Furthermore, the material ID may alter while the product is being produced. Linking the retrieval ID and warehouse ID could take some expertise.
Process Mining – Identifying Potential for Optimization
Even in the chemical and pharmaceutical industries, process mining offers a great deal of opportunity for creating value. OSV Logistics is a perfect setting since it already has favorable conditions—high process digitization, to be specific. It is worthwhile to examine process mining's possibilities inside your own organization after first testing. Is it more about using certain snapshots that are carried out in collaboration with outside parties? Or do the procedures have the possibility for further improvement? The technology is advanced enough in both situations to take use of real optimization possibilities with user-friendly apps.