Supply chain data analytics is critical for manufacturers that want to better anticipate and respond to potential disruptions and develop more transparent operations.
That is why many manufacturing companies are increasingly turning towards supply chain data analytics to get visibility into every link of their supply chain, including procurement, inventory management, order management, fulfillment, and shipping. Additionally, this end-to-end visibility will help to drive sustainable supply chain initiatives that extend to the entire product lifecycle.
Benefits of supply chain data analytics
Collecting and analyzing supply chain data provides myriad opportunities for manufacturers to optimize logistics, improve customer satisfaction, and increase profitability. It can help you identify vulnerabilities, solve problems quickly, and uncover possible options to improve further.
For example, elements such as seasonality, macroeconomic pressures, and environmental and weather conditions can impact your supply chains and procurement processes. With a supply chain data analytics system in place, you can better understand how these conditions will influence factors like inventory levels, delivery time, and labor needs so you can adjust operations accordingly.
As a manufacturer, if you’re committed to optimizing your supply chain with data analytics, you can expect to see the benefits in the following areas:
Data-driven sourcing and procurement can help you make informed decisions, cut costs, improve efficiency, and adapt to unpredictable market conditions. By merging real-time third-party data (natural events, seasonality, scarcity) into internal systems, you can align raw materials procurement with production needs, reducing the risk of excess inventory or stockouts.
Here are the benefits of applying data analytics to your procurement and souring activities:
- Accurate supply forecasting: By combining environmental factors with historical trends, you can manage stock availability to accommodate predicted changes in demand.
- Inventory optimization: By analyzing material consumption patterns and usage rates, you can accurately predict inventory availability and optimize reordering processes.
- Cost savings: Through real-time data, you can optimize inventory levels, minimize production disruption, and improve efficiency. All of this will directly contribute to reduced carrying costs and increased profitability.
2. Supply chain certification
Supply chain certification builds trust with customers by demonstrating your commitment to delivering high-quality goods and services in a sustainable way. To meet certification requirements, you need to tap into your supply chain data to track the product from raw material to finished goods.
Here’s how data analytics can be leveraged to support your supply chain certification process:
- Regulatory compliance: By tracking supply chain data you can ensure all the materials and manufacturing processes comply with sustainability specifications and claims.
- Consumer satisfaction: Since an increasing number of consumers prefer sustainable products, collecting and tracking supply chain data will help you better meet certification requirements and earn their trust.
3. Digital flow and inventory tracking
A digital tracking system helps to intelligently track your material and product flows and inventories so you can ensure there’s always enough stock to fulfill orders and improve product quality. This way, you can save on costs by operating your supply chain more efficiently while fulfilling customers’ expectations. Real-time data visibility can also be valuable in navigating tax incentive programs like the Mexican IMMEX program.
Here’s how a comprehensive digital tracking system can help streamline your supply chain:
- Real-time visibility: By integrating data from all of your supply lines, you can track the movement of goods throughout your supply chain enabling real-time visibility into the flow of goods and inventory levels.
- Exception management: Quickly detect deviations from expected patterns such as delayed shipment, incorrect inventory count, or unusual order patterns. By identifying such issues, you can maintain smooth operations.
- Increased responsiveness: Data visibility will allow you to better track supply chain activities, adjust production volume, minimize business disruptions, improve performance, and quickly respond to changing conditions.
Want to improve your supply chain with data analytics?
While supply chain data analytics holds immense promise, getting real value out of your data can be tricky. The volume of data created through supply chains is staggering, and you have more data to analyze than ever before.
To extract value from your supply chain data, you need to tap into strong analytics strategy. By harnessing the right analytics, you can build smart supply chains that are future-proof and resilient to unexpected curveballs. Stakeholders can also access accurate insights to maximize operational efficiency and productivity.
To drive your supply chain analytics initiatives in the right direction, you need an experienced data and analytics partner. At Wavicle, we have the technical expertise and industry knowledge to power your supply chain analytics efforts. Contact us to learn more about how you can better react to current and future disruptions by putting your supply chain data to work.