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Organizations are focusing more on supply chain analytics to acquire smoother logistics and here is how you can do it too.
The COVID-19 pandemic had a major impact on the supply chain management industry. The global supply chain logistics industry faced many challenges during the lockdown causing the restricted flow of goods from one country to another.
Owing to the increasing number of supply chain disruptions, companies were forced to identify weaker links and areas of improvement and take immediate action to correct them.
One of the most effective ways to tackle supply chain disruptions is to make use of data analytics. A majority of businesses have already realized the importance of analytical solutions for long-term survival.
The global supply chain analytics market size was valued at 5.26 billion USD in 2021 and is expected to expand at a CAGR of 17.6% from 2022 to 2030.
Newer technologies like AI, IoT, and machine learning have transformed the way supply chains function. Changing consumer demand and market conditions are making supply chains more complex and dynamic. It has been reported that integrating analytics in supply chains is essential to ensure business continuity and supply chain resilience.
What is Supply Chain analytics?
Supply chains generate huge amounts of data and analytics helps to decode this data to uncover important information. SC analytics assists organizations in making smarter and data-driven decisions.
Businesses are increasingly relying on supply chain analytics to mitigate risks and make SC activities more effective. Various SC analytics software is available in the market for interpreting data and extracting insights from it.
Key benefits of SC analytics
- Reduced costs and higher profit
- Better risk management
- Optimized production process
- More agility in the supply chain
- Cross-functional collaboration
- More visibility in the supply chain
- Forecasting the future
- Lean supply chain
How Supply Chain Management Benefits your business?
4 tips to enhance logistics
Here are 4 tips to enhance logistics in your business using supply chain analytics.
1. Convert data into actionable insights
Supply chains consist of numerous entities such as suppliers, distributors, and other logistic partners. The major benefit of supply chain analytics is that it can be used to convert complex data into simple information that is easy to understand.
Many people involved in business management will be familiar with data interpretation. So supply chain analysts can help them decipher valuable information regarding market trends, supplier details, customer demand, and much more. Data visualization software can be used to see data in the form of simple graphs and charts.
2. Use real-time data to prevent disruptions
With globalization and the expansion of businesses across new regions, the risk of SC disruptions is only increasing. It is nearly impossible for humans to manage such a huge SC network with multiple suppliers and vendors.
Product shortages, shipping delays, price hikes, natural calamities, etc. are some of the major causes of SC disruptions. With the help of real-time data analysis, these problems can be tackled to a great extent. By analyzing the data patterns, analytic experts can predict the future and optimize the production process.
Real-time visibility across the supply chain helps supply chain managers to make strategic decisions. Real-time analytics can be applied to various activities like procurement, inventory management, warehouse management, billing, shipping, etc.
3. Apply analytics on crucial areas
While all activities in an SC require equal attention, there are some areas that need some special focus. Using the right analytical methods in these key areas helps to build a customer-centric supply chain. Some of the areas that are considered to be crucial are inventory planning and demand forecasting, asset utilization, and order fulfillment.
SC managers must ensure the application of analytics in these areas to enhance SC efficiency and customer satisfaction. Automating various tasks will help to reduce turnaround time and make the process more efficient. Analytics can be leveraged to forecast demand, maintain optimum inventory levels, reduce wastage, and ensure timely order delivery to customers.
4. Make analytics accessible on all levels
SC analytics shouldn’t be limited to certain divisions or roles in an organization but has to be made available to all levels. Everyone in the organization must get access to the data and analytical tools required to monitor the process.
Different teams will have different interpretations of data insights. Be it logistics, packaging, manufacturing, or inventory management, every team will benefit from data in one way or another. Employees should be able to leverage various tools and AI in the supply chain to make operations more efficient.
To be more precise, employees should have a holistic view of the supply chain management to ensure overall success. It would be beneficial to conduct employee training sessions on data analytic tools and their applications in the supply chain.
