Fuel costs, supply chain partners’ performance, sales revenues, network optimization and more. Today’s supply chains are busier than ever before. Supply chains have also become more complex due to globalization and the Internet. Companies have more products, more locations, more channels, and more markets as a part of the mix. This creates a lot of new challenges that require new tools.
However, relying on traditional supply chain systems is becoming more and more difficult thanks in part to a mix of global operating systems, pricing pressures and increasing customer expectations. The amount of data being produced throughout the supply chain is unbelievable and for many businesses, the ability to harness, analyze and translate all of this data into an action and/or goal has been difficult, until know.
97% of supply chain executives had an understanding of how data analytics could benefit their supply chain, only 17% reportedly had implemented analytics in one or more supply chain functions.
Supply Chain Data Analytics
Data analytics is the science of examining raw data to help draw conclusions about information. The greatest benefit of this science is to make better business decisions as well as validate existing models or theories. However, Accenture found that even though 97% of supply chain executives had an understanding of how data analytics could benefit their supply chain, only 17% reportedly had implemented analytics in one or more supply chain functions.
Spend Matters recently highlighted five top benefits of data analytics
- Better predict customer needs and wishes
- Improve supply chain efficiency
- Better assess supply chain risk
- Improve supply chain traceability
- Improve reaction time and order-to-cycle delivery times
For many companies, data analytics is being translated into real-time dashboards. Managers are able to utilize dashboards daily, to quickly determine what is happening in their transportation or supply chain network. Furthermore, the often-time real data helps companies to catch and solve problems as they occur.
KPIs and Benchmarking
In addition data analytics can be utilized for benchmarking purposes allowing companies to compare data on factors such as freight rates and on-time delivery percentages against peers. As a result, companies are able to get a more complete picture of their performance in the marketplace.
How Do You Tap In To The Data?
There are a growing number of business intelligence solutions available on the market. Do your homework, seek input from supply chain partners, such as Third Party Logistics (3PL) providers and decide which solution fits best with your overall strategy.