If you’re a supply chain manager, you may increasingly find yourself in situations where you have to make IT decisions and recommendations. That’s because industry 4.0 technology and data are currently a crucial part of supply chain management. Unlike the past, supply chain managers today struggle with the collection and analysis of a sheer volume of data. To lessen the time for doing analysis and interpretation of this data, you can use advanced analytics.
Here are some pros of using this model in supply chain management:
- It Increases Transparency Visibility
An efficient end-to-end supply chain visibility needs a type of transparency that only advanced analytics can give. When you use and integrate it across the supply chain in real-time, you’ll make quick decisions at every management level. Besides that, because it enables you to view robust data, you can use it to manage vast amounts of data more efficiently.
As industry 4.0 continues to progress, organizations are increasingly looking beyond their companies and boundaries. You can use advanced analytics to extend end-to-end visibility to suppliers and end-users. Because it can be shared beyond your organization’s boundaries, it can achieve a new step of visibility.
- It Can Optimize Decision-Making And Execution
Supply chain optimized processes depend on carefully balanced automated and human intervention for execution and decision making. When choosing a supplier, you can use execution and human judgment with the support of advanced analytics to decide quickly.
But in a hi-tech environment having configured products, only execution and automated decision-making will guarantee you the best results. Through advanced analytics, supply chain leaders can complete continuums from human judgment and manual to automatic execution. Machine learning that activates full automation can’t do so without the help of advanced analytics.
- It Increases Market Speed
A supply chain that uses advanced analytics integrates processes in a simplified manner, thus removing challenges and duplicative data modeling. It also ensures that near-real-time data or real-time data availability becomes the focus instead of the exception. As a result, the speed of delivering goods to the market increases. As the supply chain system understands how to predict and respond to challenges more quickly, delivery times and modification shorten.
Managers can use advanced analytics to diagnose issues and repeat successful deployments across the company’s different departments. An increased market speed is vital because it is tilting towards additive manufacturing, commonly known as 3D printing.
More companies are adopting this type of manufacturing because it’s a trend that offers incredible and rapid customization. Using advanced analytics, supply chain managers can scale their additive manufacturing processes using proactive procedures that shorten lead time and develop solutions faster.
- It Increases Revenue And Lowers Inventory Costs
One of the most compelling advantages of using advanced analytics is that it can enhance your organization’s bottom-line. According to research by Gartner, businesses with more mature advanced analytics techniques often get higher revenues and lower costs.
That’s because advanced analytics directly enhances demand capacity management through the use of real-time insights. The insights given by advanced analytics also offer accurate and consistent forecasting, leading to more sales and operation planning processes.
Advanced analytics enables companies to have greater production control in and out of the supply chain. As the manufacturing industry grows, it’ll become a fundamental part of every organization.