Supply Chain Technology and Data Analytics
Domain 8 tests system roles, integration methods, master data, and the analytics that turn supply chain data into decisions.
Systems and integration
ERP is the system of record for finance and planning; WMS executes warehouse tasks; TMS plans and executes freight; APS optimizes scheduling. EDI remains common for purchase orders (850), advance ship notices (856), and invoices (810); APIs support real-time events and partner integration. Batch EDI suits high-volume standard transactions; APIs suit status, inventory, and exception data. Master data for items, locations, suppliers, and customers must be governed before analytics can be trusted.
Worked example
A company processes 10,000 orders per month; 2% have EDI errors costing $50 each to fix. Annual error cost is 10,000×12×0.02×$50 = $120,000. An API project reduces the error rate to 0.5%, cutting cost to $30,000 and saving $90,000 per year. If the project costs $60,000, simple payback is 60,000/90,000 = 0.67 years, or about 8 months. The reasoning is to annualize volume, multiply by error rate and cost per error, then compare savings with project cost.
Traps that cost marks
Buying technology without redesigning process; ignoring master data quality; confusing visibility with decision-making; treating EDI as obsolete; underestimating change management.