Supply Chain Analytics for Supply Chain Management: Three Tactics To Improve Efficiency
Tramm
Tramm
October 2, 2024
-
0 min read
Share:
linkedintwitter

Supply chain analytics is the process of studying historical, transactional, and real-time data in order to uncover ways to improve supply chain efficiency and performance. As such, it is a vital function of any organization involved in the transportation of goods, addressing not only cost management but performance management.

And supply chain management has grown more complex, with frequent disruptive factors the norm, on top of major pandemic shocks that exposed flaws needing strategic resets. In this context, supply chain analytics are called upon more than ever to surface patterns and insights that drive intelligent decisions.

This article will present three key tactics for effectively implementing supply chain analytics, helping companies drive down costs and improve performance.

Modern Supply Chain Management Demands Modern Supply Chain Analytics

To define it further, supply chain analytics pulls in data from throughout the supply chain (procurement, manufacturing, inventory, orders, and distribution) for deep analysis in order to predict and improve performance. This data comes from external (carriers, partners, suppliers) as well as internal (ERP, SCM, TMS, WMS, inventory management, OMS, etc.) sources.

The ability to gain supply chain efficiency by improving data analytics can achieve a number of important business goals. This includes (but is not limited to):

  • Minimizing inventory carrying costs
  • Optimizing order fulfillment
  • Proactively managing material costs
  • Avoiding stockouts and overstocks
  • Managing suppliers and purchases

Supply chain analytics also empowers businesses to engage in data-driven decision-making in the supply chain that can lower costs and improve resiliency and responsiveness. They can anticipate challenges and adapt to market fluctuations, helping them maintain a competitive edge even as challenges proliferate.

Three Tactics for Effective Implementation of Supply Chain Analytics

In order to receive the full benefit of supply chain analytics, companies need to look at it strategically and implement tactics designed to drive results in supply chain management. Here are three ways to achieve this.

Tactic 1: Integrate Data Across the Entire Supply Chain

The ability to gain a unified view of data across the supply chain is foundational in making supply chain analytics work effectively and glean actionable insights. This requires data feeds, ideally through API integrations, from all internal and external sources.

It’s often easier said than done. Data silos and fragmented systems, unfortunately, are still a thing. Enterprise systems that can’t communicate without IT intervention pose a challenge to integration.  

One surefire way to achieve effective data integration is by using a true supply chain TMS that centralizes data from across multiple sources, such as those listed above  (orders, shipments, inventory, etc.). A key prerequisite is compatibility with your current tech stack (ERP, WMS, TMS, etc.).

Tramm is a comprehensive TMS that is purpose-built to streamline supply chain operations within a unified platform approach. Its integration capabilities unify data from across the supply chain, creating a single source of truth. Tramm’s consolidated platform helps teams pull together actionable insights based on real-time data. This unified approach eliminates data silos, streamlines processes, and ensures consistency of actions across the supply chain.

Tactic 2: Implement Real-Time Analytics for Proactive Decision-Making

Real-time analytics is the process of analyzing and responding to data as it's generated, with the goal of providing quick insights to help users make better-informed decisions. Conversely, relying on delayed or outdated data acts as a drag on supply chain performance.

It's often used in applications where the timeliness of data is critical, such as in supply chain and logistics. Artificial intelligence and its cousin, machine learning, have added the ability to quickly read, comprehend, and correlate data from across sources, advancing real-time analytical capabilities.

Adopting a TMS with real-time data processing and monitoring capabilities ensures a seamless data flow and communication between systems and stakeholders. For example, Tramm’s FleetVision control tower module provides real-time vehicle tracking through integration with telematics, and status updates. It enables communication with all stakeholders via WhatsApp, SMS, or email for visibility into delivery status, deviations, and reporting.

Tactic 3: Utilize Advanced Analytics for Predictive and Prescriptive Insights

In the context of supply chain management, predictive analytics takes historical, transactional, and real-time data to create models that identify patterns for risks and opportunities. This helps guide decision-making by anticipating specific future events.

Prescriptive analytics takes this process a step further. It pulls together insights gleaned from predictive data analysis to suggest optimal actions, anticipating and solving potential issues before they arise.

This type of advanced capability for supply chain management involves integrating AI and machine learning to drive both predictive and prescriptive analytics. Staff must be adequately trained and processes aligned to take full advantage of these tools for real-time decision-making that drives greater supply chain efficiency.

Tramm’s advanced analytics include both predictive and prescriptive tools that optimize routing, and risk management. Tramm enables businesses to anticipate future challenges and take proactive steps in response. This type of real-time decision-making improves supply chain efficiency and resiliency.

Analytics Power Better Supply Chain Management

In reality, supply chain analytics is what drives supply chain management. The ability to pull in and quickly analyze internal and external data to formulate strategies and inform decisions is a foundational discipline. Mix in a complex global economy and disruptive events, and this capability becomes even more critical.

Tramm gets this, which is why it has developed a comprehensive suite that helps companies address multiple aspects of supply chain management. Its innovative supply chain TMS provides in-depth performance analytics backed by real-time data. Users gain planning and route optimization (Planning and Optimization Module), transporter management (Transact Module), real-time visibility (FleetVision Module) and impactful business insights (Dashboard Module), and much more. To learn more about how Tramm can transform your supply chain management, request a demo today.

Related Resources

Why Real-Time Data is Crucial for Optimizing Transport Operations

September 12, 2024
-
0 min read

Best Practices for Task Management in Mobile Logistics

November 14, 2024
-
0 min read

Improving Strategic Decision-Making in Logistics With Advanced Analytics

November 21, 2024
-
0 min read

How Tramm TMS Enhances Communication Across the Supply Chain

September 23, 2024
-
0 min read
tramm

Manage Your Logistics with Precision

Get on the path to better performance with Tramm.

home truck