Supply chain analytics is the use of data, statistical algorithms, and other analytical methods to transform raw data into meaningful and valuable information to improve and optimise the performance of a company’s supply chain. It involves collecting, analysing, and interpreting data from various sources within the supply chain, including production, logistics, distribution, and customer demand.
The goal of supply chain analytics is to enable businesses to make more informed and effective decisions related to the management and operation of their supply chain, such as identifying bottlenecks, forecasting demand, optimising inventory levels, and improving delivery times.
Importance of supply chain analytics for businesses
Supply chain analytics is essential for businesses because it helps them optimise the performance of their supply chain, which can lead to a range of benefits, including:
Improved efficiency and cost savings: By analysing data from various sources within the supply chain, businesses can identify inefficiencies and areas for improvement, leading to cost savings and increased productivity.
Enhanced visibility and traceability: Supply chain analytics can give businesses real-time visibility into their supply chain, allowing them to track the flow of goods, materials, and information from suppliers to customers. It can help companies identify bottlenecks and make informed decisions about responding to changes in demand or supply.
Increased responsiveness and agility: Businesses can be more responsive to demand or supply changes and make quicker decisions on how to respond. Hence, it can help companies to stay competitive in a rapidly changing market.
Improved customer satisfaction and loyalty: Businesses can improve delivery times and reduce the likelihood of errors or delays, leading to increased customer satisfaction and loyalty.
Types of Supply Chain Analytics Technology
Descriptive analytics: Descriptive analytics involves the analysis of data to describe and summarise the past. It involves looking at historical data to identify trends, patterns, and relationships. It can help businesses understand what has happened in the past.
Predictive analytics: Involves using data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. It consists of analysing past data to predict future events or trends. It helps businesses anticipate future demand or identify potential issues or problems.
Prescriptive analytics: Prescriptive analytics involves using data and advanced algorithms to identify the best action to take in a given situation. It helps predict future outcomes and provides recommendations on the best steps to take based on those predictions.
Critical Considerations for Investing in Supply Chain Analytics Technology
Determine specific business goals and how supply chain analytics can help achieve them: Before investing in supply chain analytics technology, it is essential for businesses to identify their specific goals and how this technology can help them achieve them. It consists of analysing data and identifying areas for improvement, like whether they want to reduce costs, improve efficiency, or increase customer satisfaction.
Assess internal resources and capabilities: Businesses should assess their inner resources and capabilities to determine if they have the necessary skills and expertise to effectively use and manage supply chain analytics technology. It consists of training employees or outsourcing specific tasks to third-party experts.
Compare and evaluate different technology options: Many analytics technology options are available. Businesses must compare and consider various options to determine the best fit for their specific needs and goals. It may involve considering factors such as the features and capabilities of the technology, the cost and return on investment, and the level of support and service provided by the vendor.
Consider the long-term cost and return on investment: Investing in supply chain analytics technology can be a significant investment. It involves analysing the projected costs and benefits of different technology options and assessing the potential impact on the business over the long term.
Supply chain analytics can provide an array of benefits which can help the organisation with a competitive presence in the market. The key is to evaluate the best provider which can generate the maximum ROI by being the best fit. In addition to GPS tracking devices, fleet management software, and real-time location tracking, Intugine provides a variety of other value additions like real-time insights into exceptions, which helps get better control over the assets and assists businesses in increasing overall responsiveness and agility. Get in touch with us to benefit from our dependable, scalable, and affordable tracking and monitoring systems.