Analytics in Supply chain Management

Analytics, In simple terms it is analysis of past data. It is the science which help in predicting outputs
based on past inputs. It tries to find a pattern which can be used for future prospects to improve
efficiency, output. It uses methods like forecasting, regression, logistic regression etc. to get results.

Supply chain Management

SCM is managing the complete cycle of inflow of the Raw material to the end delivery. It includes the
complete planning,marketing,sales,delivery of product to the end user. SCM is the backbone of any
organization which depends on material ,cash and information for delivery at Right Time, Right place,
with Right Quality, Right Quantity and Right price.

Analytics can play important role in SCM ,since it involves the complete process of product from it's
point of origination to end delivery. It can help to improve operational efficiency and effectiveness by
enabling data-driven decisions at strategic, operational and tactical levels. Different analytical levels can
be applied in SCM, On the descriptive level, we identify what has happened in the supply chain, where it
occurred, how frequently it occurred, what caused it to occur and other relevant information. For the
predictive level, we look at what could happen if certain changes were made or if certain situations
changed. Here we consider alternatives, trends within our supply chain ecosystem and the marketplace.
Moving to the prescriptive level, we establish what should happen in order to realize the best possible
outcome of the operation. Analytics can be used to control and improve inventory turnover ratio of a
company. The development of mathematical models that produce computerized descriptions of supply
chains has helped companies make greater sense of their data and develop insights helpful in decision-
making. The models can estimate the impact of potential failures at points along the supply chain—
whether caused by a fire at a factory or a flood at a distribution center. It can be used used for
forecasting, planning, network design inventory optimization, routing, warehouse slotting etc. Big e-
commerce giants like Amazon, courier companies like FedEx have taken Analytics as a serious business,
they are using it to improve their business,profits. A lot of them are using analytics software to detect
fraud before it happens, fraud examples like overbilling from third parties, issues with following contract
terms, bribery and Ponzi schemes. Companies generally realize late that they have lost money. The
companies with the help of analytics can start their analysis with their worldwide transportation costs
and drill down what all is going on at different places. So we can there is lot of domain in SCM where
analytics can be applied.