There is an old Marketing adage ‘Customer is king’. In these times of intense global competition, customers have become very demanding. They expect the best out of every penny they spend on products and services at a very competitive price. So, in order to be successful study of supply chain that serves the needs of their customers whilst maximizing their overall profitability becomes of paramount importance.
But just depending on conventional supply chain systems does not help, as it is very challenging to draw inferences from the humongous raw data generated by these systems. The other challenge faced by the companies are the mix of increased competition from low-cost outsourcers, shrinking supplier bases, the global recession, ever increasing customer expectations, pricing pressures, as well as global operating systems. All these challenges create waste in the organizations’ supply chain. This is where data analytics comes in. It helps the companies to study the raw data present at hand to draw conclusions about forecasting and pattern of consumer demand which results in increased efficiency and savings.
Supply Chain Analytics – Here’s what you need to know
Supply chain analytics is combined study of mathematics, statistics, and machine-learning techniques, predictive technology to understand and predict meaningful patterns and knowledge in the supply chain of a business organization. It is used to study the order, shipment, transactional and sensor data. It helps to improve forecasting customer demand and be more responsive to customer needs.
Benefits of Supply Chain Analytics:
Supply Chain Analytics allows the business organizations to monitor every minute, hour and day pulse of the entire supply chain starting from the multiple vendors of the manufacturer, to logistics, to retailer and to the end customer and funnel the data received to obtain deeper insights about customer behavior, demands and allows the companies to make better business decisions. Some of the benefits of Supply Chain Analytics to business organization are the following:
- Gives information about the B2B transaction amounts with the top ranked suppliers
- Gives information about not good performing suppliers based on key performance areas like processing of payments, on time deliveries, accurate shipments and complete orders
- Gives information about the increase or decrease in the volume of business for a particular suppler or customer
- Seasonal fluctuations and potential order volumes can be easily forecasted with the data analysis for the previous years.
- Analysis of the B2Bdata makes the companies aware of the demands by the consumer.
All these information help the companies to plan and make sure that the orders are fulfilled well on time, shipment of the end products delivered to the right locations, ensure that orders are processed in time and thereby the payments being done on time.