Today’s episode of The New Warehouse Podcast dives into the topic of analytics in logistics with Derek Camp, Senior Manager of Operational Analytics at Milo’s Tea Company. We cover the fascinating intersection of analytics and operations within the logistics industry, highlighting how Milo’s Tea leverages data to streamline processes and enhance efficiency. Derek shares his unique journey in the field and the innovative strategies employed at Milo’s Tea to drive success.
From Replenishment to Analytics
Derek Camp’s career at Milo’s began in replenishment, evolving over 11 years through roles increasingly focused on analytics. Initially managing replenishment for the company’s largest customer, Derek transitioned into sales analytics and operations. “I had never really worked in an analytics job… but reading the job description, I thought I could do a good job with it,” Derek explains. His story illustrates the power of adaptability and growth within a logistics role, emphasizing the impact of analytics across different company operations.
Operational Analytics at Milo’s Tea
At Milo’s Tea, operational analytics isn’t just about data collection; it’s about driving real change and efficiency across various departments. Derek discusses key metrics such as OTIF (On-Time In-Full) and OEE (Overall Equipment Effectiveness), which are crucial for assessing and enhancing production and logistics efficiency. “The higher OEE you have, the more product you can make in less time,” he notes, underlining the direct correlation between analytical insights and operational success.
Analytics in Logistics: Key Performance Indicators (KPI)
Milo’s Tea utilizes a strategic array of KPIs within its logistics and production operations. Derek explains how specific KPIs like Consumer Complaints Per Million (CCPM), On Time In Full (OTIF), and Overall Equipment Effectiveness (OEE) play a crucial role in their operations.
Consumer Complaints Per Million (CCPM): Assesses the number of consumer complaints per million units sold.
“CCPM is a quality metric that tells you how often our consumers call in with complaints about our product, whether it’s taste or, you know, packaging or whatever.”
On Time In Full (OTIF): measures the percentage of deliveries that are both on time and complete, reflecting the effectiveness of the logistics operations.
“OTIF is the overarching customer service metric for us. That’s what our customers look at first when you talk to them in a line review. And if your OTIF is high, then it starts the conversation off in a good way.”
Overall Equipment Effectiveness (OEE): is a standard for measuring manufacturing productivity by comparing the actual output against the potential output if operations were optimal.
“In production, you know, and this sort of falls into CI and production, but when we look at OEE, that is a metric that tells you how efficient you’re running your plant. And so, if you, the higher OEE you have, the more product you can make, and less time and the lower OEE you have, you’re not being efficient in making your product.”
Key Takeaways on Analytics in Logistics
- Embracing change and new opportunities can lead to significant career advancements in logistics and operations.
- Key performance metrics like OTIF and OEE are integral in measuring and improving operational efficiency.
- Effective analytics requires a blend of accurate data, comprehensive understanding, and strategic application to foster operational success.
