Types of Analytics in Supply Chain Management

 


The global supply chain management ensures seamless functioning, enhanced efficiency and productivity, and increased profit margin. It is only possible through proper management and insights into every activity in the supply chain. Analytics in supply chain management is utilised to skim through data insights to filter, address, evaluate, and identify solutions to potential challenges and loopholes in the supply chain. It helps the supply chain management figure out newer strategies and optimise operations to tackle supply chain inefficiencies. It immensely benefits supply chain operations as it finds the exact problems, gives solutions, and can test the potential solutions to identify their efficiency in practical life. Let us look at the different types of supply chain analytics and how they manage supply chain operations.


What is the need for analytics in supply chain management?

Analytics is indispensable in supply chain management due to several compelling reasons. Firstly, the supply chain encompasses a multitude of activities and functions performed at various levels. Industries involved in trade, such as shipping, logistics, transportation, and container sectors, generate vast volumes of data on a daily basis. This data encompasses transactional records, customer information, stakeholder details, shipping company data, and infrastructure-related data. The significant and diverse data generated within the supply chain is not merely collected but is instead harnessed for analytics purposes.

 

Data analytics involves the process of collecting raw data and transforming it into valuable insights. By analyzing this data, hidden trends and patterns can be discovered, leading to informed decision-making and appropriate conclusions. Supply chain analytics assumes a critical role in supply chain management as it oversees multiple operations and strives to enhance productivity and efficiency throughout the supply chain.

 

Through the application of analytics, supply chain management gains valuable insights into various aspects of the supply chain. It enables businesses to optimize inventory management, streamline transportation and logistics operations, identify cost-saving opportunities, improve supplier performance, enhance demand forecasting accuracy, and mitigate risks effectively. By leveraging data analytics, companies can make data-driven decisions, improve operational processes, and ultimately achieve a competitive advantage in the dynamic business landscape.


Overall, the need for analytics in supply chain management arises from the immense volume of data generated within the supply chain and the desire to extract meaningful insights from this data. By harnessing analytics, supply chain management can make informed decisions, drive productivity, and enhance overall efficiency within the supply chain ecosystem.


Benefits of Analytics in Supply Chain Management 

Analytics in supply chain management provides numerous benefits that aid in the efficient and effective management of the supply chain. The following are some key advantages:

 

  1. Risk Identification: Supply chain analytics helps identify potential risks and vulnerabilities that could lead to disruptions within the supply chain. By analyzing historical data, patterns, and market trends, potential risks can be detected, allowing proactive measures to be taken to mitigate them.

  2. Problem Solving: Analytics provides insights and probable solutions to identified supply chain problems. By analyzing data, supply chain management can make informed decisions and choose the most suitable solution to address issues and optimize operations.

  3. Efficient Planning: Supply chain analytics enables better planning and management of supply chain operations. By utilizing data-driven forecasting and prediction techniques, organizations can optimize inventory levels, streamline logistics processes, and improve overall operational efficiency.

  4. Collaboration and Performance: Analytics promotes proactive collaboration among various industries involved in the supply chain. It facilitates improved delivery times, reduces investment requirements, and enhances overall supply chain management by optimizing coordination and performance across stakeholders.

  5. Market Trends and Real-time Planning: Supply chain analytics helps organizations stay updated with evolving market trends. By continuously analyzing market data and real-time information, companies can adapt their strategies and plans to align with market demands, enhancing productivity and competitiveness.


Types of Analytics in Supply Chain Management
 

  1. Descriptive supply chain analytics: Raw data is provided to draw more insights regarding market trends, relationships, and challenges. It is the first stage of analytics and helps in culling out current patterns and productivity in the supply chain and whatever loopholes lie within. Through this, descriptive analytics proves beneficial in enhancing sales and supply chain efficiency.

  2. Predictive supply chain analytics: Advanced algorithms align with filtered data from descriptive analytics to help forecast by spotting historical trends and patterns. It is advantageous in preparing the supply chain operations for the influx of demands, tackling any incoming breakdowns or disruptions, and managing the seamless trade flow.

  3. Prescriptive supply chain analytics: It tests various solutions to evaluate their working and efficiency in the supply chain. Digital twins in virtual reality enable the testing of multiple strategies and solutions, identifying potential outcomes, and analysing data to determine success or failure. It helps in proactive decision-making and solving supply chain inefficiencies.

  4. Diagnostic supply chain analytics: It helps analyse the 'why' of supply chain operations. The filtered data insights point out the possible failures in the supply chain. Industries may face many challenges in carrying out activities, and previous disruptions in the supply chain also need to figure out an answer as to why they happened. Diagnostic analytics helps in determining the reasons for poor performance.

  5. Cognitive supply chain analytics: Industries are shifting towards automation and use cognitive analytics for that purpose. It helps integrate large and diverse data sets into software and machines for automation. By minimising human interference, automated operating systems use cognitive analysis as their resource to carry out supply chain tasks.


These different types of analytics in supply chain management help enhance supply chain efficiency, productivity, and profitability.


LOTUS Containers is a prominent shipping container service provider that sells and leases new and used shipping containers across the globe to keep trade businesses running.


Comments

Post a Comment

Popular posts from this blog

4 Uses of Used Shipping Containers | LOTUS Containers

Image
Handling storage needs within the constrained budget are not as easy as assumed. This is where used shipping containers come into the picture. Used shipping containers make your life easier by saving you a large sum of money. If you are thinking of  buying shipping containers  or  used cargo containers , this article is for you. Used cargo containers can be used for a range of business needs such as temporary offices and as a storage unit. A single used shipping container is available between a range of $800 and $3,000. Used shipping containers can withstand all kinds of weather conditions. They are insulated properly so that the changing temperatures may not impact the inside space of containers. Thus, they are durable as brand new containers. Uses of Used Shipping Containers As a storage unit and as a communication room:   Used shipping containers withstand rust if adequate care is taken. They serve the purpose of that brand new shi...
Read more

Are Container Depot, Ports, and Terminals the Same? | LOTUS Containers

Becoming familiar with important terminologies of your industry is imperative to effective communication. When dealing in cargo shipment, you might have come across certain terms like container depot , ports, terminals, yards and some of you might feel that all these have a similar meaning. Even if they seem to be similar in few contexts, they carry a suffice difference that you must know being a freight forwarder, shipper, carrier, NVOCC, or anyone involved in shipping by any means. Now when you have come here, I am sure your confusion revolving around these terminologies will be resolved by the time you end reading this article. Every day millions of containers move in and out of the country and to facilitate their movement, all these four plays a major role. Container Depot:  A container depot is a yard or storage space where empty shipping containers are held in transit after being unloaded from the vessel and laden containers are kept for container survey, repair, and...
Read more

10 Things you Should Know about Storage Containers | LOTUS Containers

Image
A portable storage container  is basically a large box you can rent and use to store your belongings and have them shipped to another location. Using portable containers offers a convenient, safe, and cost-effective solution for your relocation needs. Portable containers are big business these days in many countries. Anyone can purchase these containers at an affordable price, the price depends upon their size and density. The portable storage containers are handled by professionals who use specialized moving equipment and proven moving techniques to ensure the safety of your belongings.  The containers are very strong and completely insulated, so they provide the best possible protection against moisture, dust, dirt, and physical impact. You can use the portable   storage containers in Miami for storing your items if you need a temporary storage option for your belongings. Portable containers are used for storage or as temporary office space for in...
Read more