A supply chain is a network between a business, suppliers, and users, including everything from raw materials to the delivery of finished goods to the end-users. The supply chain is a critical aspect for the success of a business not just because it helps to account for the expenses associated with the business operations.
It directly affects the organization’s ability to provide a positive customer experience. Remember, any mishap with one entity of the supply chain can disturb the entire chain, thus resulting in operational disruptions and unmet customer expectations.
As the companies have struggled through these past couple of years, one thing has become apparent that is supply chain analysis has become more prevalent than ever before.
It analyzes information companies obtain from various applications tied to their supply chain, namely, supply chain execution systems for procurement, order management, inventory management, warehouse management and fulfillment, and transportation management (including shipping).
Supply chain analytics has become essential for businesses to monitor and adapt their business priorities and models to readjust forecasts and adjust to demand.
It offers insights vital for devising efficient strategies and making better, faster, and more informed decisions about their business operations. Read on and learn about the key benefits of the Supply Market Analysis Framework.
Earlier companies used to rely on past orders for estimating future demands, often leading to decisions that don’t account for future changes in demand.
All of your previous data in the modern supply chain are combined with real-time market analyses to create dynamic demand forecasts. With advanced analytics, companies can anticipate demand changes and predict future risks (if any) by spotting patterns and trends throughout the supply chain.
There are times when the future expectations differ between different teams. For example, your inventory management team expects a higher demand than your transportation planning team. With cross-functional collaboration, you can create highly visible and shareable forecasts that would help bring the different teams on the same page and rally around a shared vision for the future.
Just like advanced analytics address the pain points within your production process, they can also improve the operability of your transport logistics processes. You can plan your transportation with added certainty with improved production planning and demand forecasting. Plus, you can analyze your existing freight networks to determine potential areas that need improvement.
Many businesses either have too much or too little inventory. Excess inventory leads to higher-than-necessary inventory carrying costs while running out of goods means lost sales. This means neither is ideal.
Analytics can help improve production planning with more precise forecasting, allowing you to put all the operational pieces in place and meet the expected volume. Supply chain analytics help strike the right inventory balance while keeping the costs as low as possible.
Prepare for the future
Companies are now leveraging data obtained from supply chain analysis to manage their workflow. With advanced analytics, they can process both structured and unstructured data to give organizations an edge by providing on-time alerts and making optimal decisions.
Plus, it helps businesses visualize and understand their entire operation in new, potentially game-changing ways.
With advanced analytics, companies now have far broader supply chain intelligence that helps them become more efficient and avoid disruptions while supporting new business models.