With the advent of globalisation, more and more companies are getting inclined towards the idea of operating across international borders. This is good from a revenue and profitable perspective; however, things become extremely challenging when it comes to managing logistics and supply chain. Delayed shipments, inconsistent suppliers, inefficient plans lead to delay in deliveries, which ultimately leads to increased supply chain costs.
This is where analytics lends a hand. Analytics helps overcome some of the major challenges that supply chain professionals are facing today. This is another reason why analytics has become an essential part of various regular and online supply chain management courses.
Let’s move on and understand the part being played by analytics in supply chain management.
Analytics in Supply Chain
With analytics setting a foothold in the industry and offering decision support for critical and strategic supply chain activities, most companies have started to realise the increasing importance of analytics. Not only does it help in gaining insights from these activities, but it also helps reduce the costs, ultimately optimising the supply chains.
Speaking of optimising the supply chains, here’s how analytics helps:-
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Reduces Cost Fluctuations
Supply chain costs are a crucial part of a company’s cost structure, which is why handling such costs is a challenge for professionals. Additionally, these costs impact key financial metrics like the cost of goods sold, cash flow, and of course, the working capital. Thus, the need to monitor it constantly. This is where analytics lends a hand; by using analytics, professionals can improve the visibility of the true cost component rather than just price. And as far as fluctuating demand patterns are concerned, there’s nothing better than analytical tools to analyse, plan, and improve logistics network strategy.
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Manages Volatility
With globalisation entering the markets, demand volatility has increased, making demand and inventory management a challenge. Industries such as retail, manufacturing, automotive are struggling to keep pace with the changing business environment. And, the only way to tackle these challenges is with technology and analytics. Analytics, when applied to these pain areas, provide an accurately anticipated demand, helping plan inventory flow. Pursuing credible online supply chain management courses are in the best interest of professionals aspiring to hone their skills or stay relevant in this dynamic environment.
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Increased Visibility
Another key role played by analytics in the supply chain is that by providing essential data for performance management, it helps increase the visibility of supply chain activities. Analytics helps not in providing valuable savings in areas such as freight and critical events but also increases supply chain responsiveness and minimises customer impact.
Learn More about Analytics and Supply Chain
In-depth understanding can be gained by pursuing credible online supply chain management courses. One such course you can pursue is the online supply chain strategy course by IIM Kozhikode. This online supply chain strategy course helps understand the critical aspects of analytics and research, helping you build a strong foundation in this domain.
More Information:
Importance Of Analytics For HR
How to become a Supply Chain Manager?
What are the Benefits of Supply Chain Management?
What are the Tasks Performed by Supply Chain Managers?
Advanced Certificate In E-commerce Supply Chain Management And Analytics from XLRI JAMSHEDPUR