{"id":265789,"date":"2024-08-26T13:46:53","date_gmt":"2024-08-26T13:46:53","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=265789"},"modified":"2024-09-20T12:52:13","modified_gmt":"2024-09-20T12:52:13","slug":"why-is-supply-chain-analytics-important","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/why-is-supply-chain-analytics-important\/","title":{"rendered":"Why is Supply Chain Analytics Important in Supply Chains and SCM?"},"content":{"rendered":"

Generally, supply chains generate huge amounts of data. Supply chain analytics include several processes and tools to make sense of all this available data. It uncovers patterns and generates insights.\u00a0\u00a0<\/span><\/p>\n

Supply chain analytics<\/span> is a crucial component of a thriving supply chain. It is used to manage, improve, and support supply chain operations. Supply chains are important for developing and maintaining the modern economy, and providing quality goods and services to the customers.\u00a0<\/span><\/p>\n

Businesses can make more informed decisions and optimise their performance using supply chain analytics. Let us understand what supply chain analytics is, how it is done, and why it is necessary in this guide.\u00a0<\/span><\/p>\n

What is a supply chain?\u00a0<\/span><\/h2>\n

Before we learn about supply chain analytics, we need to understand what is a supply chain and how it is managed. A supply chain can be defined as a network between an organisation and its suppliers to produce and provide products or services to the final consumers. It is the complete lifecycle of a product, from the raw materials to the final sale.\u00a0<\/span><\/p>\n

A supply chain includes various steps like procurement of raw materials, manufacturing, distribution, storage, and finally delivery of finished product. It lays out all activities of the production process – the information communicated, natural resources used, human resources needed, etc.\u00a0<\/span><\/p>\n

The key steps in a supply chain include:\u00a0<\/span><\/p>\n

    \n
  1. Planning the manufacturing process and inventory to make sure that supply and demand are adequately balanced.\u00a0<\/span><\/li>\n
  2. Sourcing or manufacturing the materials required to create the final product.\u00a0<\/span><\/li>\n
  3. Assembling components and building the product.\u00a0<\/span><\/li>\n
  4. Testing the products to find any areas of improvement.\u00a0<\/span><\/li>\n
  5. Storing it in inventory or packaging and shipping the product.\u00a0<\/span><\/li>\n
  6. Transporting the packaged product to the distributor or retailer.\u00a0<\/span><\/li>\n
  7. Distributing the products to consumers.\u00a0<\/span><\/li>\n
  8. Providing efficient customer service to buyers.\u00a0<\/span><\/li>\n<\/ol>\n

    We will discuss the steps involved in detail further in this writing.\u00a0<\/span><\/p>\n

    The efficiency of a supply chain, at both the manufacturing and distribution ends, can either make or break a business. Hence creating a proper supply chain model is very important.\u00a0<\/span><\/p>\n

    Features of a supply chain\u00a0<\/span><\/h2>\n

    The primary objective of an efficient supply chain is to deliver products or services, along with maintaining quality and quantity within a specified time period. Here are some characteristics of a successful supply chain:\u00a0<\/span><\/b><\/p>\n