Data Analysis In Supply Chain Management

The advent of the era of big data and the development of data analytics technology provide new opportunities and challenges for supply chain management. A Supply Chain manager needs to know how to apply the Supply Chain Analytics method to be able to adjust and make the necessary changes according to the needs of the business. A supply chain model may at first glance appear to be in ideal condition, but in practice it may not be effective. In this article, we explore some methods of application of Data Analysis In Supply Chain Management.

That’s why it’s important for managers to provide accurate periodic supply chain data analysis, to spot any loopholes or problems before they pose a risk to the company. Businesses have been exploiting the advantages of Big Data thoroughly to come up with the best operational plans and business decisions for their businesses, thereby capturing customer behavior and product trends and drive corporate strategy.

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What is Supply Chain Analytics?

Essentially, Supply Chain Analytics is a tool that managers can use to check supply chain performance and uncover business model improvement opportunities. Each company is a link in a larger supply chain. Analytical methods allow businesses to see opportunities for further growth.

With the help of analytics, supply chain managers are able to see everything from stock status and prices of raw materials, to shipping and logistics processes, finished products, demand, etc. Analytics not only help businesses better understand how a company’s supply chain works, but also help identify business opportunities with new companies – such as purchasing raw materials for products. new business or the offering of products to new businesses. The key result of Supply Chain Analytics is to scale up the business.

Key Supply Chain Analytics Methods

Descriptive Analytics

This is the most effective form of analysis in Supply Chain management so that businesses can check the performance of the Supply Chain in the past. This method helps managers see what has happened in the past, so that they can check whether the performance results match the company’s plans and goals. Descriptive analytics uses data mining technology to collect raw data from the Supply Chain, which aggregates and presents the information in summary form for managers to get an overview of a business. particular period of business in the past.

However, the findings from this descriptive analysis technique are often just a signal to show the business what was right or wrong in the past without explaining the reason. Therefore, businesses with large databases often combine this method with other types of data analysis.

Predictive Analytics

To be able to see what will happen in the future, this is the method businesses should use. Predictive analytics creates scenarios that might happen in the next month, or year or 2 years. However, this method does not guarantee that the scenarios will happen exactly as predicted. Even so, businesses will still know what to expect, so that they can adjust their plans accordingly.

Supply Chain Managers also need to understand that these forecasts are estimates only, with a degree of accuracy that depends on the stability of the situation and the quality of the database.

An example of a situation where the proactive approach of predictive analytics can be applied is where a company can identify a set of shoppers in the following months to plan marketing campaigns to grow revenue.

Prescriptive Analytics

This is useful for those cases where businesses want to forecast what might happen and get useful advice on what to do once these scenarios appear in the future. The proposed method of analysis is a step further from predictive and descriptive analysis by making recommendations for appropriate action when predicted outcomes are likely to occur.

Prescriptive analytics uses statistical algorithms to answer the question: “What should happen?” by analyzing historical company data and information about the entire supply chain with sophisticated tools and technologies such as Machine Learning, Big data, algorithms and business rules.

A good example of this approach is that multinational corporations detect the opportunity that customers will repurchase a certain product based on the analysis of customer behavior and sales history and offer methods., appropriate production, distribution and marketing projects.

Performance Metrics

This Supply Chain analysis method is suitable for use in cases where businesses want to measure the operational efficiency of their Supply Chains. However, supply chain managers need to remember that each set of metrics will provide a different type of information. So you need to decide which metrics are most useful and relevant to your business, so that you can keep a close eye on those metrics.

Hybrid Performance Measurement

This is a complex form of supply chain analysis, as it uses several methods within the same framework so that the business owner can make the best decision. To be able to use this method, businesses need to establish a hierarchy of business goals, combined with mathematical equations and simulation models. This method will hypothesize about possible business scenarios if the stated conditions are met.

Outsourcing activities including outsourcing and offshoring are where businesses can apply a hybrid performance measurement method that combines lean and agile levels, to be able to manage and create a capable outsourced operating process. adapt to unexpected changes, implement and follow the company’s plans.

This hybrid model will analyze the factors that the outsourcing company is facing in the production and business process, comparing the lean and agile levels in dealing with those factors with companies in other areas. other; then analyze the measurement results by using predictive multiple regression analysis to process the data.

Conclusion

With the help of these Supply Chain Analysis methods and models, supply chain managers will be able to take a closer look at how Supply Chains evolve and operate. Every business will need to find the method that works best for its Supply Chain and don’t be afraid to tweak these methods if the results aren’t as detailed as expected.

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