Data-Driven Decisions: Leveraging Analytics for Optimized Supply Chain Network Strategies
Data is everything and everywhere when it comes to business. You need to use the data in a way that benefits you, this is how you leverage analytics. You can do this to optimise your supply chain network for efficiency. Here is how.
Collect and Segregate Data
The first thing you need to do in order to optimize supply chain network strategies is to collect as much data as you can. Collect all sorts of data related to your product, its customers, its supply, and more. The next thing is to segregate all that data into different categories. Organise the data in such a way that it can be studied easily because this data is going to help you optimize and improve your supply chain network.
Select the Right Suppliers
After segregation, you need to analyse the data regarding different suppliers, so that they can be compared to figure out which ones would be right for your products. Suppliers are the heart of the supply chain network and a good supplier will allow you to optimise your supply chain network. Study the quality of their service, the time they take to make deliveries, the cost to keep them on as suppliers, and more.
Manage Inventory Levels
Look into the data regarding your inventory levels to appropriately manage them. Too much or too little inventory can create a problem. The former will be a waste of money as well as storage and the latter will cause you to lose customers because you either can’t deliver on time or at all.
If there is too much inventory, you can clear it at the right time to make space for new or fresh products. If the inventory is less than what the demand of the product is going to be, you can produce some more.
Find the Perfect Routes
The routes for shipping your products can make or break your business. They are an extremely important part of your supply chain network, so you need to pay close attention to them. By analyzing the data regarding traffic, the conditions of the road, the time saved, etc. you can get an accurate estimation of how beneficial it will be to take a particular route. Take this information and select the perfect shipping routes.
You can use the data of your product’s performance in the market, the preference of the customers, and more, to predict what the demand will be in the future. This is extremely beneficial because it can help you to produce and manage your inventory levels accordingly. This is a great strategy for optimising your supply chain network.
Assess the Risks
Some risks are always present when doing business. It is no different when it comes to your supply chain network. You need to use the data about your supply chain to assess the risks hidden within. There can be many issues related to delivery, quality of product or service, accidents, and more. These risks need to be taken into consideration and then mitigated accordingly.
These are some of the strategies for leveraging analytics for optimising supply chain networks. If you are aiming for optimisation, try a supply chain network strategy and see how it works for you.