Supply chain analytics is essential in every logistics industries. Why? Every minute of the day, countless, thousands, even millions of packages and parcels are being transferred all over the world within the continuous flows of the process of supply chains.
Supply chains represent as the main core of the world economy when the supply chain has been lost in the track, then, the world’s economy will fall. How the supply chain became the backbone of the world’s economy?
The Evolution of Supply Chain Analytics: Dig in The Past
Before, supply chain analytics was only limited to statistical procedures and quantifiable execution indicators for demand and planning predictive methods. Information and data were stored in the usual spreadsheet that came from individual entities such as suppliers, customers, and manufacturers in the supply chain.
By the year of the 1990s, industries, organizations, and companies were adopting the changes on EDI (Electronic Data Interchange) and ERP (Enterprise Resource Planning) methods to make a link between the exchange information and data to suppliers and partners.
These tool or system offer much easier access to information for analyzation, together with helping the businesses in their planning, designing, and predictive methods of workflow processes.
By the year of the 2000s, several businesses started to turn their business intelligence and forecasting analytic solution into analytic software methods. methods were used by companies to earn much in-depth learning and information of how they can maximize the flow of supply chain networks during the business process, how they can provide better resolutions, and how they can optimize the workflow of their networks.
In the modern-day, one of the challenges that businesses need to face is how they can use these large amounts of data generated in their own supply chain systems. In the year 2017, a usual supply chain system has gathered 50 times more data compared before. However, this kind of scenarios has its own disadvantages, since most of these data are stocked up in the analyzation procedure. That’s why some organization is finding out the best solution to analyze this massive amount of dark data.
The Importance of Supply Chain Analytics
Supply chain analytics main goal is to lend a hand to the businesses to make their business runs smarter, faster, and more efficient when providing a solution.
Below are some of the basic importance and benefits of supply chain analytics:
- Earn a Large ROI (return of investment): According to a recent survey, most of the organizations and businesses that used this system has improved their ROI rate doubled compared to other organizations who don’t.
- Knowledgeable enough about Risk: Supply chain analytics has the ability to detect possible risks in the business. It can help to predict any unknown and future mishaps by understanding the same paths or patterns throughout the supply chain system.
- Enhancing the Accuracy in Planning: By the use of the analyzation features, users can easily analyze customer’s data. Doing this can help businesses to provide satisfying customer services to their customers.
- Reach The Lean Supply Chain: Businesses enables to use the supply chain analytics to manage any warehouse, suppliers’ responses, and customer demands for a better resolution.