Supply Chain Management is an integral part of all B2C businesses. Effective supply chains ensure that every product is manufactured, handled, and transported accurately and delivered to the rightful owner at the right time. It is the process that systematically manages the flow of goods from the point of origin to the point of consumption. It includes movement of raw materials to the manufacturer, storage of inventories in warehouses, the transit of finished goods and delivery to the end customer.
Globalization of trade and rapid technology advancements are transforming the way businesses operate, including how supply chains work. Today, businesses need more than just a supply chain. They need a smart supply chain that can give them an industry edge, enhance revenues and satisfy customers all at the same time. Analytics is what makes supply chains smarter, turning information into intelligence.
Here are 5 ways in which analytics improves supply chain management, offering key business insights at each stage of value addition.
Enables strategic sourcing
The first and perhaps the most important step in the supply chain is the procurement of raw material, also known as sourcing. It is important to identify the ideal suppliers to meet growing customer demands, cultivate good relationships with them and expand supplier networks for continuous delivery. Analytics helps businesses conduct real-time market research and pick suppliers from the best available sources. Strategic sourcing helps businesses partner with suppliers who can offer quality raw material at a sustainable cost.
Enhances product quality
The modern customer is extremely particular about quality and doesn’t settle for less. The seller is always on toes to bring the best quality product to the table every time. Analytics allows businesses to visualize the production process closely, establish output standards and generate real-time reports of manufacturing. It helps businesses monitor the quality of materials used and the steps followed in the manufacture. Also, a comparison of the actual production and the expected standards helps to understand the cause of deviations. It helps manufacturers speed up the production processes, reduce wastage and improve the overall product quality.
Optimizes inventory management
Keeping a track of inventories, both raw materials and finished goods is a key activity in the supply chain. In a dynamic business space, where consumer demands are ever-growing, effective inventory management is a must. Supply chain analytics keeps a day-to-day track of inventories and confirms that the inventories are neither over-stocked nor under-stocked. The right level of inventories reduces delays in production and ensures availability of finished goods in retail stores in times of demand.
Improves logistics
In supply chain management, logistics is the activity that looks after the movement of raw materials and finished goods from one point to another, till the time it reaches the end user. It also includes packaging and labeling of products in the right manner. Today, businesses are leveraging analytics and Block chain technology to optimize logistics and ensure that customer demands are well met. Analytics allows businesses to visualize the entire movement of goods in real time, including the information on who handled them at which logistical stage, establishing clarity and transparency in the entire process. It also ensures that transit risks are minimized, transport delays are addressed and goods are delivered on time.
Establishes Proof of Ownership
The primary objective of supply chain management is to ensure that the right product is delivered to the right customer at the right time. Under traditional methods of supply chain management solutions, there was always a risk of misplacement of goods or theft/damage in transit. The emergence of Block chain and advanced analytics has eliminated the risk by tracking the whole journey of the product from origin to end. It establishes proof of ownership by ensuring that the right item is delivered to the right customer on the specified date and time through the right channel of delivery.
We live in a world where the customer is obsessed with speed and quality, and markets are extremely competitive. The performance of your supply chain largely determines the success of your business. The best way to attain a competitive edge and ensure effective customer engagement is to consider switching to smarter supply chain management, driven by intelligent analytics.