These 7 data analytical benefits in your supply chain will allow you to deliver excellence, always.
Author: Yaki Kruger
Data analytics is driving the supply chain industry to new heights with deeper business insights than ever before. Say goodbye to lost packages and hello to precise delivery times! No more missed opportunities or manual guesswork, companies are now fully loaded with the power of data, ready to navigate their supply chain like pros. Data analytics is all about making sense of complex information and finding innovative solutions to real-world problems. And what could be more challenging and rewarding than optimising the global movement of goods and services? Join us as we uncover the latest trends, share best practices and uncover insights that will make your supply chain shine. We’ve listed 7 of the many benefits in this article, so buckle up, because we’re about to embark on a journey of data-driven supply chain success. Shotgun!
1) Inventory and trends:
By scrutinising data pertaining to the amount of stock that a company holds and how it moves over time, they can better understand the state of their supply chain and make informed decisions to optimise it.
Data analysis can help these companies determine the optimal quantities of inventory to hold. Balancing the cost of too much inventory (such as storage costs and opportunity costs) with the cost of stockouts (such as lost sales and dissatisfied customers) can make all the difference in a competitive market.
Insights into how inventory is moving through the supply chain, such as understanding the velocity of inventory (how quickly it moves from one stage to another), the turnover rate (how often inventory is sold and replaced), and the pattern of inventory usage (which products are selling faster than others) will provide inside info on how to save on costs while simultaneously satisfying your customers.
2) Cost analysis:
Identifying cost optimisation areas can better the chain for efficiency and cost savings. By analysing data on aspects of the supply chain, such as inventory levels, supplier performance, and transportation costs, companies can make informed decisions on how to reduce costs and improve efficiency.
Data analysis on the financial aspects of the supply chain can help companies identify areas of inefficiency, such as inefficient transportation routes, high inventory holding costs, or poor supplier performance. You can remedy these inefficiencies through process improvements, cost-saving initiatives, or negotiating better terms with suppliers.
Companies can also use data analysis to track changes in cost over time and identify trends, such as rising transportation costs or increasing supplier prices. You can use this information proactively to address cost increases and ensure that the supply chain remains cost-efficient.
Predictive analytics are key to identifying potential cost-saving opportunities in the future, such as predicting demand trends and adjusting production schedules accordingly, ensuring profitability.
OQLIS partner and Supply Chain Solutions company FORTE’s Customer Champion, Jean-Pierre Viljoen, elaborates, “The more training data you bring in, the better predictions you can make.”
3) Customer demand patterns:
Recognising patterns in customer demand enables the supply chain to be better prepared to meet demand. The regularity and behaviour of customer demand for products and services change over time. By staying on top of this agile information companies are better prepared to meet customer demand.
Data analysis can forecast future demand for products and services based on historical data, like sales data, and customer behaviour patterns. This information can be used to adjust production schedules, order inventory, and manage resources to ensure that demand is met.
By looking at behavioural data, companies can understand customer demand drivers better, and even predict how they may change in the future. This information, for example, can prompt their marketing department to develop more effective marketing strategies and adjust product offerings to best meet customer needs.
Recognising customer demand patterns can also help companies optimise their inventory levels and minimise the risk of stockouts or overstocking. By understanding the velocity of inventory movement, companies can ensure that they have the right amount of inventory available to meet customer demand. By being better prepared to meet customer demand, companies can enhance customer satisfaction and build stronger relationships with their customers, ensuring brand loyalty and stickiness.
4) Lead times and delivery schedules:
“Ambiguity is a big source of frustration for most,” says Jean-Pierre Viljoen from FORTE Supply Chain Solutions, “People like certainty, and to know when things will arrive”. Optimising the amount of time it takes for a product or service to move through the supply chain and reach the customer, is a critical aspect of supply chain management. It can have a significant impact on customer satisfaction, overall performance, and general business health.
By analysing lead times and delivery schedules, companies can make informed decisions on how to improve performance, like understanding the average lead time for each stage of the supply chain and identifying bottlenecks or areas of inefficiency.
Data analysis can improve demand forecasting, enabling companies to predict future demand and adjust production schedules and inventory levels accordingly. This helps to ensure that there is always enough inventory on hand to meet customer demand and reduces the risk of overstocking. By streamlining lead times and delivery schedules, companies can improve delivery times, and increase customer satisfaction.
5) Supplier performance:
The ability of suppliers to deliver products and services in a timely and cost-effective manner can make or break your supply chain reputation. Evaluating supplier performance helps companies ensure they are receiving the best value for their purchases and that they are able to meet customer demand.
Supplier performance data analysis enables companies to gain insights into supplier strengths and weaknesses and identify areas for improvement, considering factors such as delivery time, quality of products, and cost.
Data analysis enables companies to plan and coordinate their supply chain more effectively and to be more prepared for changes in demand or supply chain disruptions. They reduce the risk of stockouts or overstocking and improve overall supply chain performance.
6) Supply chain risks and bottlenecks:
Various issues can arise in your supply chain and negatively impact the flow of goods and services. Identifying these risks and bottlenecks is an important aspect of supply chain management because it allows companies to take proactive measures to minimise their impact and ensure the continued flow of goods and services.
Companies can now more effectively identify potential issues and take proactive measures to minimise their impact. This includes identifying factors such as supplier disruptions, changes in demand, and logistics challenges.
Data visualisation, such as the OQLIS data insights plugin and dashboards, can provide greater visibility into the supply chain, enabling companies to detect and respond to disruptions rapidly. This helps to minimise supply chain risks and improve overall supply chain performance.
7) Transportation and logistics efficiency
Optimising transportation and logistics can help to reduce costs, improve delivery times, and enhance customer satisfaction. Companies can identify ways to improve delivery times and reduce transportation costs, like optimising routes,
reducing transit times, and bettering the use of available transportation resources. Greater visibility into the transportation and logistics aspects of the supply chain enables companies to quickly detect and respond to transportation disruptions, subsequently, minimising the impact of supply chain risks and improving overall supply chain performance.
With OQLIS data insights software, clients can successfully navigate the twists and turns of the supply chain maze and deliver the goods through analytics and visualisation. Reach out to make it happen today: [email protected]
May your shipments always reach their destination with maximum velocity and minimum lead time.