Supply chain analytics can improve supply chain efficiency by increasing supply chain visibility, lowering cost variability, and controlling uncertainty.
FREMONT, CA: Supply chain analytics virtually spans the entire value chain: manufacturing, sourcing, distribution, and logistics. It helps increase organizational efficiency and effectiveness at the strategic, operational, and tactical levels by allowing data-driven intelligence to be applied to the company's data-driven decisions.
Supply chain inventory optimization is important for any business that truly wishes to have a world-class supply chain. An effective supply chain will add value to a company's credibility, increase sales, boost margins, lower overall costs, better manage working capital, and improve control points across the supply chain. Controlling and monitoring acquisitions, managing stock storage, and keeping track of the amount of product needed for sale and order fulfillment are all part of inventory management.
Purchasing inventory, storing inventory, and profiting from inventory are the three main stages in the inventory process. Inventory processes are becoming more complicated and demanding in several sectors as firms broaden their consumer reach and become more globalized. However, in today's age of big data, supply chains are becoming increasingly reliant on data to track goods as they travel towards their destination, which includes serial numbers, lot numbers, price of goods, amount of goods, and the dates that they will arrive at or move from one point to another. This allows supply chain managers to control supply chain functions better and make informed business decisions using analytics. Supply chain analytics serves as a link between companies and the vast amounts of supply chain data available to them.
For the most common supply chain challenges in inventory, supply chain analytics offers customer-oriented solutions. It can assist in anticipating demand, predicting and monitoring availability, planning the flow of products and services, and lowering material purchases through improved price negotiating and supply chain practices. Supply chain analytics can also improve supply chain efficiency by increasing supply chain visibility, lowering cost variability, and controlling uncertainty. Companies may use analytics to conduct root cause analysis for surplus or decreased inventory and formulate inventory norms for all nodes and release cash accordingly.