Supply Chain Analytics: How It Guides Data-Driven Decision Making (infographic)
Supply chain analytics refers to the collection of data and information that provide insights into logistics performance, from inventory management to fulfilling and shipping orders.
How Data Analytics is Changing the Supply Chain Landscape
The ever-increasing reliance on big data is altering the landscape of supply chains as we know them. Historically, the majority of supply chain management was dependent on intuition and experience. However, with the introduction of powerful data analytics technologies, supply chains are now guided by data-driven decision making.
The ever-increasing availability of data is driving this transition. Previously, data was dispersed across numerous silos inside a business, making it difficult to provide a comprehensive perspective of the supply chain. Organizations, on the other hand, may collect and store data from all areas of the supply chain in one central location owing to data warehouses and data lakes. This enables supply chain managers to see the entire picture and make data-driven decisions to increase efficiencies and performance.
The rising availability of strong data analytics tools is another factor pushing the change to data-driven decision making. To examine data in the past, supply chain managers had to rely on manual procedures or limited software tools. However, a wide range of powerful data analytics technologies is now available to assist managers in making sense of massive data sets and uncovering hidden patterns and trends. The transition to data-driven decision making is reshaping the supply chain landscape and has far reaching implications for how businesses function.
Organizations may improve the efficiency and performance of their supply chains by leveraging the power of data, providing them with a competitive advantage in the marketplace.
The Advantages of Data Analytics in Supply Chain Management
Data analytics can aid in the smooth and effective operation of supply chains. Supply chains can uncover patterns and trends in past shipments by examining data from previous shipments. This can help them minimize disruptions and stock-outs while also improving inventory management. Furthermore, data analytics can assist supply chains in optimizing their routes and schedules, as well as tracking their success over time.
Here are some of the primary advantages of employing data analytics in supply chain management:
- Reduced Inventory Costs
- Optimized Production Plans
- More Efficient Cargo Shipments
- Reduced Risks
- Cross-Functional Cooperation
Check out the following infographic by 2Flow which takes a deep dive into ‘Analytics In The Supply Chain’.
Supply chain analytics are guiding managers into the future with data-driven decision making. If you need assistance properly analyzing your data and setting up your supply chain management for success, contact USC Consulting Group today.