How Modern Analytics Could Help Your Supply Chain in 2017
More companies are using modern analytics to squeeze the most out of supply chains and logistics operations. In a recent article from Supply & Demand Executive, author Kate Delimitros says there are three ways your supply chain is benefiting from “modern analytics.”
“With today’s technology and tools, data can be shared and combined in new ways, giving supply chain teams the ability to better leverage data to make smarter decisions.”
- Companies will differentiate with standalone analytics offerings: Ms. Delimitros says as more markets converge, companies turn to supply chains to differentiate using premium customer offerings. Indeed, for years companies have captured data on equipment performance and usage. This year could be the year, “Companies find meaningful ways to repackage and sell this data as standalone products and service offerings. By aggregating and visualizing key performance indicators (KPIs) and benchmarks, analytics will pave the way to higher margins in the form of product differentiation, customer retention and upsell opportunities.”
- KPIs will focus performance across the enterprise: Because your company’s supply chain is affected by numerous stakeholders, companies should create KPIs that span departmental functions. You must look beyond “silos” to get a unified view of the data.
“For example, if procurement is only focused on achieving a low cost of goods, then product reliability may drop, which damages customer satisfaction. Similarly, reducing inventory as a primary KPI can lead to out-of-stocks. Instead, a balance needs to be achieved between inventory, sales, and cost of goods,” says Ms. Delimitros.
- Automated machine learning will pave the way for the next era of analytics: So far, it’s been impossible to use machine learning capabilities to identify trends and present potential solutions to supply chain challenges. But, “As automated machine learning solidifies its place in supply chain analytics, business users will be empowered to find patterns and trends, without relying on the assistance of a data analyst and the latencies involved,” observes Ms. Delimitros.
Read the complete story in Supply & Demand Chain Executive magazine: “Three Ways the Supply Chain Will Benefit from Modern Analytics.”
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