Pointers at Glance
- Analytics is one tool for the supply chain that helps a business understand the data well.
- It helps in making informed decisions about logistics and transportation processes.
Supply chain analytics is a process that analyzes data collected through supply chain systems and applications to uncover patterns, generate insights, and extract value. The data is collected at various supply chain touchpoints.
Different Types of Supply Chain Analytics
It is categorized into the following four types. Each has its own merits and importance in modern supply chain management.
- Descriptive Analytics
- Predictive Analytics
- Prescriptive Analytics
- Diagnostic Analytics
How Can Supply Chain Analytics Make Your Business More Profitable?
Traditional this methods restrict individual supply chain units. It creates a human need to update status after any transaction and communicate it with other teams.
The biggest issue with this approach is that no matter how quickly communication happens, a gap always exists. Additionally, consolidating data between supply chain units cannot be error-free and fast.
Fortunately, with modern supply chain analytics technology, the entire supply chain’s massive data can be used to innovate and improve the company’s profitability.
By using supply chain analytics, the following can be done:
Improve Accuracy in Planning
Supply chain analytics can predict future demand accurately by calculating and analyzing customer, supplier, and distributor data.
Boost Risk Management
It helps in identifying known risks and predicting future threats. It becomes possible based on analysis patterns and trends throughout the supply chain.
Improve Inventory Management
Inventory management is another complex process prone to expensive disruptions if not addressed. While managing their inventories, inventory managers must deal with deadstock or delayed shipments.
Bring Efficiency to Logistics and Transportation
Tools can optimize logistics & transportation management. There is high pressure to excel at logistics and transportation. Companies require more room for mistakes to achieve last-mile deliveries and cold chain logistics. After all, customers prefer to avoid buying from a retailer after an unsatisfactory delivery experience.
Logistics and Transportation
Integrating analytics solutions for logistics and transportation can help with the following:
- Efficient asset movements between locations
- Bring route optimization & cut down costs linked with different transportation routes
- Better fuel consumption and management
- Improve on-site personnel performance
- Better warehouse operations
- Shipment tracking and remote management
- Reduce delays
Process Optimization
Applying diagnostic or predictive analytics solutions to supply chain management leads to discovering low-value processes. They can be optimized and planned for emerging risks and disruptions.
Become Lean
A lean supply chain means minimal wastage. SCA makes this possible. When you concentrate on lean operations in the supply chain, you can bring down unnecessary costs. The company will start seeing more significant profit margins once that happens.
Improve Customer Experience
Customers stay loyal when deliveries are done properly. It leads to improved supply chain management and decreases the loss of customers to competitors.
Investing in SCA brings visibility & transparency, improving operational efficiency, customer experience, resilience, and profitability.
