Supply Chain Analytics – Market Insights into an Emerging Trends
If you can't evaluate something, how can you improve it? This concept applies to many business areas, and the supply chain is no exception.
The global supply chain analytics market size is expected to reach USD 22.46 billion by 2030, registering a CAGR of 17.6% from 2022 to 2030, according to a new study by Grand View Research, Inc. Supply chain analytics is gaining popularity as the demand for managing huge volumes of organizational data and its insights for strategic applications grows.
Source: Grandview Research
In today’s competitive global marketplace, Excellence in Supply Chains is a critical competitive differentiator. Thousands of turbulent events can trigger volatility in supply markets, affecting material and service availability and higher costs. There is a requirement for real-time performance insights and visibility to offer a strategic benefit that allows operational agility to minimize the impact of unforeseen events.
There is an increased interest in real-time supply chain support tools that address supply chain traceability, multi-level inventory optimization, demand signal repository, and leveraging point-of-sale data.
Depending on traditional supply chain execution systems are becoming increasingly less concerned when it comes to - pricing pressures, global market fluctuations, and increasing customer expectations. Recent economic impacts include:
- Fluctuating fuel costs.
- The global recession was triggered by the financial catastrophe.
- Increased competition from low-cost manufacturers.
All these factors can potentially curate excesses in your supply chain, but this is where analytics will assist and provide a competitive edge.
Which promotion will have a huge impact on sales? What will be the impact of accelerating prices on-demand? If there is limited production capacity then what will businesses do to meet the margins and revenue targets?
All enterprises with supply chains devote plenty of time and effort to looking for this ultra-competitive advantage. Due to their critical role and complexity in global commerce, supply chains play a crucial part in a company’s cost structure and profitability. Using analytics in supply chains is a great way to offer an edge over peers. Supply chains can look easy compared to other parts of a business, even though they are not. It is possible to delve deeper into existing data and develop more predictive insights, enabling a company to become proactive rather than reactive.
With analytics in place, for instance - manufacturers can leverage the data within their systems, both modern and legacy, to derive real-time insights and use that info to optimize all decisions, be it operational, tactical, or strategic. The industry is quickly adopting a range of analytics solutions. An outlook of a few of the areas and an attestation of the types of insights that can be undertaken is given below:
Business leaders are increasingly finding that supply chain analytics are crucial to their company’s goals and future success. Most of them also believe that current analytics tools need to give way to more predictive analytics capabilities that help them make quicker decisions and be more responsive to volatile supply and demand needs.
Analytics will not be a quick fix in closing current supply chain gaps. To do this right, companies must invest a good amount of resources in developing an analytics foundation before they can even run the algos embedded in the tool. The underlying data companies want to analyze must be accurate, and not many organizations can say that’s true for their current data.
With a humongous volume of data that is being generated, organizations have to implement and find ways to leverage and manage data for business growth. The journey towards utilizing analytics to extract the maximum value defined by Gartner is below.
As Gartner says, “Analytics is no longer simply a ‘Nice to have.’” It should also be accepted as a necessary foundation for moving efficiently at real-time speed, supply chain analytics is still at the nascent stage of development in many organizations and will take time to build; but, supply chain analytics promises many advantages in terms of making our supply chains leaner and more profitable.
You can also navigate through this detailed report here to have an idea of the current Supply chain analytics trends - https://bit.ly/3P70ykP