What is supply chain analytics? It is the ability to represent data driven decisions based on a synopsis of trusted and relevant data that is used in the form of visualization by using charts, graphs or other forms. Supply chains normally generate huge amounts of data to generate insights and uncover patterns. Moreover, there are various types of supply chain analytics like descriptive analysis, predictive analysis, prescriptive analysis and cognitive analytics. Descriptive analytics delivers perceptibility and is the primary source of truth for the data and both the internal and external systems. Predictive analytics is the process that assists an organization in knowing the predictions for the future and its business consequences. For example, disruptions and risks can be alleviated and projected in the business by using predictive analysis. Prescriptive analytics helps the organizations to solve their issues and team up for the best result. It helps the organizations to cooperate with logistic partners that lessens problem faster and saves a lot of time. Cognitive analytics helps businesses to answer complex questions in simple and natural language like a person or team would answer to a question.
So, let’s find out the benefits of supply chain analytics consulting:
- Improves efficiency in planning
Supply chain analytics can help an organization in predicting the future demand by examining the customer data. Therefore, an organization can decide the needs of the customer after the initial order and the less money-making products that needs to be minimalized.
- Predicting future risks
Supply chain analytics helps to predict future risks by noticing tendencies and outlines during the supply chain. Thus, it helps to minimize and eliminate future risks.
- Helps achieve good return on investment
A study revealed that the organizations that used supply chain analytics achieved a greater level of ROI compared with the organizations that did not use analytics. Besides these organizations with no analytics had no or very less return on investment.
- Developing the lean supply chain
Supply chain analytics can be used for the supervision of partner responses, warehouse and the needs of the customers to make better decisions that plays a crucial role in the development of a company.
- Futureproof
Advance analytics are used by companies for supply chain management. The benefits of advanced analytics are they can develop both structured and unstructured data thereby giving businesses an opportunity to make optimal decisions by giving timely alerts.
- Minimizes risks
Advanced analytics can create patterns and relations between various sources that minimizes risks by providing alerts. Furthermore, it helps to reduce cost and has a lesser amount of sustainability effect.
- Less overhead costs
When demand predictions are accurate overhead costs are automatically reduced as revenue generating and higher velocity inventory can be stocked up. Also adopting a good automation software will optimize the warehouse layout which in turn improves productivity by executing an improved inventory management system.
Conclusion:
Therefore the benefits of supply chain analytics services are numerous as it helps an organization in achieving higher ROI, reduce costs, minimize risks and predicting the future to mitigate further risks.
