Tuesday, June 17, 2014

Supply Chain Analytics that are essential to logistics IT system



To construct the optimal supply chain, the presence of a logistics IT system is essential.  Utility of logistics IT system does not remain in some practical parts such as reduction of lead time or inventory management in real-time.  For example, it is available to use logistics IT system for analyzing of supply chain, so-called Supply Chain Analytics.




What is Supply Chain Analytics?

In order to optimize the supply chain, analysis of the current state cannot be avoided.  Data of day-to-day operations is the decisive factor for analyzing the daily works.  This analysis is the Supply Chain Analytics.  To be changed from old-fashioned management initiated by field into management analyzed by objective data, it could eliminate elements such as hunch or rules of thumb, so it can analyze objective.


Logistics operations filled with useful data

It becomes possible to use big data in the Supply Chain Analytics with using IT systems.  In addition to the traditional analysis data on the work, it is possible to take into account the receipt status of each product or seasonal effects such as busy season.  By that way, it enables the analysis to be more realistic and effective.  In some cases, it will be required that the logistics system should be reconfigured in order to get more data.


Point of introduction of supply chain analytics

It would be the key of success or failure for the Supply Chain Analytics to  establish the organization to transmit and manage information.  Also for the efficiency of transmit or analyze information, let's review the organization of the site and operation.  For the analysis of field work, the Key Goal Indicator (KGI) is used.  Analysis by KGI, which evaluate the result of the work by sales or profit data, can make the current status of achievement clear.  In addition, it is not too late to invest in logistics IT system after deciding the company's strategy or the goals of the system introduction.  Quality of the data obtained from the logistics IT systems would influence the subsequent result of the analysis.


Also analysis of performance

As the goal of the Supply Chain Analytics, to be mentioned most often is the achievement of inventory management that has been digitized and visualized  It goes without saying that the attention is whether it has been achieved or not to the settled goal.  Therefore, the indicator should be settled for examining the achievement level of the logistics operation or goals (visualization) for the introduction of the system.  One of the indicators is KPI (Key Performance Indicator).  KPI is to evaluate the performance of the work itself and to be the indicator of the work in the field.  In addition, to link the analysis using KPI and analysis using a number of managerial glance by KGI described above, the most reasonable analysis system which is incorporated with the operations and management point of view would be made.


References :
Supply Chain Analytics: Overcoming Obstacles to Stay Ahead of Your Competitors
Supply Chain Analytics: What is it and Why is it so Important?
Using Operational Analytics to Achieve a Digitized, Visible Supply Chain

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