Ready for risks. Resilient. Real-time-savvy. These three ‘R’s redefined many supply chains and their effects on business enterprises in the last two-three years. Those producers and manufacturers who were able to manage risks with the power of data visibility and agility in their operations were the players who not only survived but thrived during a challenging period that brought many other businesses to their knees.
Let’s look at an Ernst & Young survey of 200 senior-level supply chain executives in late 2020. We can notice that only 2 percent of companies who responded to the survey said they were fully prepared for the pandemic. In fact, grave disruptions affected 57 percent of businesses, and 72 percent suffered a negative effect (17 percent – significant negative effect, and 55 percent mostly negative). That also explains why the survey manifested how supply chain visibility turned into the number one priority over the next three years. There is a palpable shift from linear supply chain operations to more integrated networks full of data-driven decisions and connecting many players. As many as 64 percent of supply chain executives said that digital transformation would accelerate due to the pandemic, 52 percent of executives shared that autonomous supply chains are already here or will be by 2025.
Ditto – when we see KPMG figures during the crisis, 67 percent of leaders were aiming to increase investment in disruption-detection and innovation processes. Not surprising because we also saw how manufacturers were competing for the limited supply of critical commodities and logistical capacity, leading to many empty shelves and long purchase lead times.
Data analytics – the new face of supply chain
Supply chain and procurement professionals have realized the need for a deeper understanding of commodities, bolstering spending transparency, and improving understanding of the right purchase price.
That’s where digital transformation and technology – that make the information flow seamless and real-time- really upend this space. More and more data analytics tools and software packages are helping to improve the robustness and agility of operational processes and areas like spend consolidation, procurement, segmentation, and chain management. If you procrastinate on this big move, you cannot afford to delay it anymore. Start changing your operational aspects by using data analytics consulting and data analytics solutions. The consequent intelligence and agility will empower every nook and corner of your supply chain operations:
- By securely connecting and normalizing data from all supply chain stakeholders
- Creating shared key performance indicators (KPIs) across boundaries and gaining from active stakeholder engagement
- Empowering your teams and business stakeholders with intuitive, scalable, and connected data integration at cloud scale
- Using top-notch business intelligence (BI) and analytics services and for real-time data visibility
- Experiencing and using a unified view of data for smarter decisions
- Enhancing the ability to respond swiftly to meet sudden shifts in demand through purpose-built data solutions
- Deploying seamless integration with manufacturer ERP systems
How deep do data analytics solutions go?
All this does more than changing the texture, speed, and flow of data. These changes have a significant snowball effect in empowering many operational decisions with accuracy and agility. They go a long way in helping producers to make profitable negotiations and to avert any loopholes or losses that would, otherwise, arrive when one is in the state of being ignorant and unaware.
As a smart producer or a sharp supply chain executive, you need to ensure that you are always in control of information. Because in today’s reality, information is what every profit, every efficiency improvement, every cost-cut, every margin opportunity, every new customer offering, every fresh business possibility- really boils down to.
KPMG analysis had suggested that technology should be effectively utilized to help reduce operating costs, provide visibility, and diversify the way customer needs are met. The EY research also echoed that 60 percent of executives felt the pandemic has increased their supply chain’s strategic importance.
And when it is strategic, you cannot continue to do it in an inefficient or information-weak way. Spruce up. Buckle up. And turn information into your best soldier – to fight every crisis – no matter how big or small. For more information on how you can leverage data to optimize your operational activities, talk to our experts today.
