Many businesses have difficulties understanding different data types spread through the supply chain network. This leads to supply chain issues. Supply chain analytics involves analyzing data from various sources. Analyzing data from different supply chain sources gives your business a comprehensive picture of its logistics networks. It helps your company understand the effects of supply chain challenges up and down the network. Here are some ways to prevent supply chain problems by incorporating data analytics.
Inventory management is essential for supply chain optimization. Without proper inventory management, suppliers experience stockouts or overstocks of popular products. When you cannot address a customer’s specific needs at the right time, you lose revenue. Your customers will take their business to another supplier.
Analytics for advanced demand forecasting increases efficiency in many supply chain processes. Real-time analysis of structured and unstructured data on retail sales, inventory, and movement of goods leads to actionable insights that allow an organization to determine price fluctuations, plan product promotions, and manage deliveries.
When you analyze data from systems that support artificial intelligence, the Internet of Things (IoT), and machine learning, you can perform predictive maintenance to improve safety and prevent downtime. Predictive maintenance considers historical and real-time data to determine malfunctioning equipment and develop strategies for preventive maintenance.
A predictive maintenance strategy ensures maintenance is only done when it's necessary. As a result, you can avoid unnecessary costs of supplies and spare parts. You will also avoid unplanned maintenance that can lead to production delays and challenges in the supply chain.
Warehouse efficiency ensures your inventory meets customers' demands as soon as possible. Analytics at the warehouse stage of the supply chain is crucial for improving warehouse operations.
Over two-thirds of businesses don't pay heed to their supply chains. With real-time analytical insights into your warehouse workflow, you are aware of the condition and movement of products. Consequently, you know the best way to utilize your warehouse space and are familiar with potential issues that could disrupt the supply chain.
Analytics from your transportation management protocols can give you valuable insights. For example, information on traffic on major roadways, fuel consumption, and weather conditions can help you determine the best routes to use. Furthermore, it can help you limit damaged or expired goods and accelerate delivery times.
You can monitor your cargo in real-time and make informed decisions and risk management. This helps you keep your clients informed on delivery progress in real-time.
Big supply chain analytics is crucial for brick-and-mortar retailers. Data analytics are crucial for making decisions on mark-down pricing and shelf-space optimization—these insights influence retailers’ decisions on where to place products. For instance, products can be placed in high-value locations like aisle ends. It also enables them to maximize sales by clustering related products in one location.
Data analytics also help retailers determine out-of-stock goods. For example, if a product sold every few minutes is out of stock, an alert is triggered. Other data analytics technologies are being tested to improve point of sale. These include the installation of weight sensors on shelves and using cameras to stay up to date with the on-shelf stock levels.
Another popular technology is Amazon's Dash service. With this service, consumers can use wireless buttons to place orders on domestic products like washing powder. This enables stores to access data from a customer's internet-connected refrigerator to determine real-time demand.
Data analytics is crucial for any business seeking to avoid supply chain issues. It prevents problems with satisfying a customer’s demands. Insights from data analytics help improve innovation and streamline an organization’s supply chain.
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A staunch proponent of karma, Mallika believes in what goes around, comes around philosophy. She is ecstatic with her life and strives to live it to the fullest.