Organisations can improve operational efficiency and effectiveness by enabling data-driven decisions in complete value chain sourcing, manufacturing, distribution, and logistics.
This includes analytic areas like demand forecasting, capacity v/s demand analytics, supplier risk assessment, spend analysis, inventory optimisation, logistic analysis, sales analysis, etc.
The major benefits include:
Good return on investment. As per Gartner survey, 29% of organisations received high levels of ROI by using Supply chain analytics.
Better risks Assessment and Mitigation. Supply chain analytics helps in identifying risks and assists in predicting future risks by observing patterns and trends in the supply chain process and leads to having a proper mitigation plan.
Demand Forecasting. Supply chain analytics can do better demand forecasting with customer data analysis. Demand forecasting helps an organisation to understand customer buying patterns during various seasons, festival and events throughout the year.
Just in Time. Inventory can be managed very lean and have available to the customer based on when what and how much is needed. It helps in reducing cost overhead in inventory accumulation at the warehouse.
Advance analytics adoption. A lot of companies are using advanced analytics for their supply chain management. Advanced analytics processes companies structured and unstructured data and provide business insights to make proper decisions to increase profitability for the organisation. Technically it builds correlation and patterns to understand product consumption based on different segments of consumers.
Supply Chain Analytics refers the to the improvement in the operational efficiency and effectiveness by enabling data-driven decisions at strategic, operational and tactical levels. It encompasses virtually the complete value chain: sourcing, manufacturing, distribution and logistics.