Why 92% Data Quality Should Be Your Minimum Target

Achieving and maintaining 92% data quality or higher is essential for organizations seeking to reduce disruptions, optimize costs, and gain a competitive edge. Companies that meet this threshold report 47% fewer disruptions and 23% lower expedited shipping costs, underscoring the transformative power of high-quality data​.

The Importance of Supply Chain Visibility

Visibility allows organizations to monitor and manage their entire supply chain in real time, providing insight into operations, inventory levels, supplier performance, and delivery timelines. Without a clear view of these elements, CSCOs face delayed responses to issues, inefficiencies, and increased costs.

Despite the recognized importance of visibility, only 6% of companies currently achieve full supply chain visibility​. A key barrier is many organizations' fragmented data environment, often relying on multiple disconnected systems that reduce data accuracy and reliability.

Key Benefits of Enhanced Visibility

1. Proactive Risk Mitigation: Early warning systems identify potential risks, such as delayed shipments or supplier issues, before they escalate.
2. Operational Efficiency: Real-time data supports dynamic inventory adjustments and optimal transportation routes.
3. Cost Reduction: Organizations with strong visibility metrics experience fewer expedited orders and lower inventory carrying costs.

Why 92% Data Quality is the Benchmark for Success

Achieving 92% or higher data quality serves as a critical benchmark for world-class supply chain performance. This metric is not arbitrary—it reflects the minimum threshold required to unlock significant operational improvements. Companies that consistently reach this standard report fewer errors, improved customer satisfaction, and greater agility in decision-making​.

The Dangers of Poor Data Quality

Poor data quality leads to inaccurate forecasts, increased inefficiencies, and costly disruptions. For example, inaccurate inventory data can result in either overstocking or stockouts, both of which harm profitability. In a recent survey, 84% of CSCOs cited data quality as a major concern​.

Key challenges related to poor data quality include:

• Data Silos: Disconnected systems prevent the seamless flow of information across departments.
• Manual Data Entry Errors: Human error during manual processes creates inconsistencies and inaccuracies.
• Lack of Real-Time Updates: Outdated data limits the ability to make timely decisions in response to changing conditions.

Strategies to Achieve 92% Data Quality

Improving data quality requires a combination of technology, process optimization, and cross-functional collaboration. Below are key strategies CSCOs can implement to reach the 92% data quality benchmark.

1. Integrate Supply Chain Systems

Disconnected systems lead to fragmented data that hinders visibility. Integration efforts should focus on consolidating information from all supply chain functions—procurement, inventory, transportation, and warehousing—into a unified platform.

• Recommended Tools: Use cloud-based supply chain management systems that offer end-to-end data integration.
• Benefits: Reduces data redundancy, improves real-time visibility, and creates a single source of truth.

2. Automate Data Collection and Validation

Automation minimizes manual errors by ensuring that data is captured, validated, and updated in real-time. Automated workflows can include electronic data interchange (EDI), IoT-enabled tracking, and AI-driven analytics.

• Example Application: Sensors in warehouse operations can automatically update inventory counts, reducing the risk of human error.
• Outcome: Companies using automation report up to a 15% increase in process efficiency​.

3. Implement Data Governance and Standards

Data governance establishes rules and processes for ensuring data accuracy, consistency, and reliability. By defining data standards across the organization, companies can improve compliance with visibility metrics.

• Best Practices: Develop data validation rules, periodic audits, and training programs to promote data accuracy.
• KPI Focus: Regularly track and report on data quality metrics, aiming to maintain at least 92% accuracy.

4. Leverage Predictive Analytics for Continuous Improvement

Once high-quality data is established, predictive analytics can provide deeper insights into potential disruptions and opportunities for optimization. AI models can forecast demand patterns, supplier risks, and transportation delays, enabling proactive decision-making.

• Use Case: A major wireless provider achieved 10% reductions in warehouse detention times by automating compliance processes and enhancing data visibility​.
• Advantage: Predictive analytics reduces reliance on reactive decision-making, improving overall supply chain agility.

How Visibility Metrics Drive Business Outcomes

Organizations that prioritize visibility and data quality metrics enjoy significant competitive advantages. These include:

Operational Excellence

Companies that achieve 95%+ real-time tracking compliance see fewer delays and bottlenecks. This leads to shorter order-to-delivery cycles and improved customer satisfaction.

Financial Efficiency

Supply chain leaders who optimize their visibility can reduce transportation costs by 12-15% and improve ROI on spend management initiatives​. High-quality data enables better rate benchmarking and mode optimization.

Sustainability Impact

Visibility supports sustainability goals by providing accurate emissions data and enabling the optimization of transportation and packaging. Leading organizations achieve 45% reductions in carbon emissions through improved visibility strategies​.

Take Action: Strengthening Your Supply Chain Visibility

To thrive, CSCOs must elevate visibility and data quality to strategic priorities. Trax Technologies offers globally trusted solutions designed to enhance visibility, data quality, and operational control across your entire supply chain.

By integrating real-time dashboards, automating data collection, and implementing predictive analytics, we empower organizations to achieve and sustain visibility metrics that matter.

Ready to reach the 92% data quality benchmark? Contact Trax Technologies today to learn how our solutions can transform your supply chain operations and drive measurable business value.