Supply Chain Analytics is used to help companies gain a competitive advantage. We look at the information collected from a host of supply chain measures and then draw conclusions. We can do “what-if” analysis as well as assess where profitability will be impacted.
The 3 reasons why we should do supply chain analytics:
Make better supply chain decisions while reducing waste
Model profitability impacts
Gain competitive advantage
Supply Chain Analytics: What is it and Why is it so Important?
Supply chain analytics is an art and science to looking at raw data with the aim of drawing conclusions about information. The goal is to help a company make better supply chain decisions while reducing waste and increasing supply chain performance.
Rising fuel costs, off-shoring, and increased competition from low-cost outsources are some of the driving forces for doing supply chain analytics.
The Role of Analytics in the Race for the Supply Chain of the Future
We need to both understand the supply chain as a complex system and have the ability to perform effective use of data. According to Lora Cecere, “only 11% of companies have the capabilities that they need to evaluate a “what-if analysis” and only 24% of companies are able to model profitability impacts of changing conditions in their complex systems.”
The What, Why & How of Supply Chain Analytics
We need to match not only knowledge of mathematical techniques but also knowledge of the supply chain. Supply chain analytics is an area of investment and competitive advantage for many companies. Supply chain analytics helps companies understand what their business is doing as well as come up with new solutions and ideas for where they are going.