Supply Chain Analytics
Supply chains are lucrative platforms for gaining a competitive advantage. This is because of two reasons which include their complexity and their role in defining the cost structure of a company. With the growing data complexity, most companies are finding it difficult to model their trade-offs of growth and supply chain cycles such as the procurement process. This is where supply chain analytics can help.
By leveraging supply chain analytics solutions, companies can fine-tune their entire supply chain network in ways that was probably not possible in the past. Supply chain analytics can help in effective supply chain management and identification of inefficiencies in supply chain configurations. It has the potential to improve the end-to-end performance of the supply chain in terms of financial, operational as well as managerial aspects. Therefore, it is high time that companies realize the potential of supply chain analytics in a real sense.
The growing complexity and globalization have put supply chains into the limelight like never before.
At Quantzig, we understand the difference that supply chain analytics can create in the supply chain operations of a company. And to help companies deal with the logistics and transportation challenges as well as improve the supply chain strategy, our team of experts has highlighted a few major benefits of supply chain analytics that can act as a guide for companies to understand market volatility, the impact of indirect supply chain cost and improve ROI.
Looking to improve efficiency across the supply chain but wondering where to start? Get in touch with our experts.
Benefits of Supply Chain Analytics
Gain a significant ROI
Supply chain analytics has the ability to analyze the structured as well as unstructured data. The insights gained from such data can help companies to respond quickly to customers’ demand maintaining integrity and accuracy.
Understand the risks better
Supply chain analytics can help in identifying the known and unknown risks. Also, it can assist in predicting future risks by identifying trends and patterns across the supply chain.
Improve accuracy in planning
By analyzing customer data thoroughly, supply chain analytics can help businesses to precisely predict future demand. Also, it guides an organization in decision-making regarding production by analyzing customer demand and market trends.
Achieve the lean supply chain
Supply chain analytics can be used by companies to monitor the responses of stakeholders, warehouse, and customer needs for data-driven decisions.
Prepare for the future
Companies are leveraging advanced analytics for supply chain management. Advanced analytics has the potential to process both unstructured and structured data to offer organizations a competitive edge. Also, it sends timely alerts that facilitates better decision making. Furthermore, supply chain analytics can establish a correlation among different sources and minimize risks.
5 C’s of Supply Chain Analytics
Supply chain analytics makes unstructured data from various social media platform and structured data from the Internet of Things (IoT) accessible.
Supply chain analytics enhances collaboration with suppliers across the entire supply chain through cloud-based commerce networks.
To know how our analytics solutions can help you in quick and accurate decision making, request a free demo below.
Using analytics in the supply chain also ensures the security of the supply chain from cyber hacks and intrusions.
Using analytics in the supply chain improves the capability of the supply chain through automation. It helps in coordinating, collating, and conducting decisions across the entire supply chain.
Supply chain analytics offers comprehensive and fast insights in real-time as latency is something that is not acceptable in the future supply chain.
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Business Challenge: Optimization of logistics network to reduce costs
A leading logistics client wanted to review its transportation network to reduce cost of operations.
Situation: High network management costs
The client was facing challenges of increasing transportation costs and high inventory levels of finished goods at each level of transportation network. This also led to high operational and holding costs. Client was looking for a solution to optimize the network to reduce the costs.
Solution/Approach: Supply chain network model creation with sensitivity analysis and inventory optimization
We examined thoroughly the existing transportation network and inventory level at existing DC locations. We created a supply chain network model and investigated the optimal number and locations. In order to decrease the transportation cost and inventory levels, sensitivity analysis and simulations were performed for new and additional locations.
Impact: Reduced operational costs
Client gained visibility on the reasons of inefficiencies. This helped them optimize the network with improved fulfilment and service levels, reduce inventory levels at each location with better network planning. The client also reduced the cost of operations by optimizing transportation and reducing inventory holding cost.