Decision-making in the supply chain with data-driven analytics

In the dynamic world of supply chain management, making informed decisions is crucial for maintaining efficiency and competitiveness. Data-driven analytics has emerged as a powerful tool for enhancing decision-making processes, enabling businesses to predict demand, optimise operations and mitigate risks. This article explores the role of advanced analytics in supply chain decision-making, detailing the benefits, techniques and steps for successful implementation, with examples of products from Advantech that facilitate these processes.

Understanding data-driven analytics

Data-driven analytics involves leveraging data and advanced analytical techniques to inform decisions across various parts of the supply chain. Adopting advanced analytics allows businesses to describe their current operations, predict future outcomes and prescribe optimal actions. This approach enhances operational efficiency, reduces costs and improves overall decision-making quality.

Techniques in advanced analytics

Key techniques used in advanced analytics include: 

• Predictive analysis: Forecasting future events based on historical data patterns using classification, clustering and time-series analysis.
• Adaptive forecasting: Continuously updating forecasts to reflect the latest data and trends.
• Trend-corrected exponential smoothing: Methods such as Holt’s and Winter’s models smooth out data and highlight trends and seasonal patterns.

The benefits of data-driven analytics

Implementing data-driven analytics in supply chain management offers numerous benefits: 

• Operational efficiency: Streamlining processes and reducing time and costs.
• Improved decision-making: Providing deeper insights into complex questions.
• Risk reduction: Identifying potential risks and preparing mitigation strategies.
• Competitive advantage: Helping businesses stay ahead by swiftly adapting to market changes.
• Enhanced visibility: Improving real-time monitoring and sharing of information. 

Supply chain use-cases

Demand forecasting

Advanced analytics allow for precise demand forecasting, helping businesses manage inventory levels and reduce overstock or stockouts.

Real-time delivery tracking and route optimisation

Using IoT devices and GPS sensors, real-time tracking and route optimisation ensure timely deliveries and efficient logistics.

Efficient warehouse management

Robust data analytics tools help optimise warehouse operations, from space utilisation to picking and packing processes.

Predictive maintenance

Advanced analytics predicts equipment failures before they happen, enabling proactive maintenance and reducing downtime.

Implementing advanced analytics

To successfully implement advanced analytics in the supply chain, businesses should follow these steps:

1. Identify their current analytics capabilities: Assess existing analytical tools and data infrastructure.
2. Set clear goals: Define specific, measurable objectives and a convincing business case.
3. Look beyond revenue generation: Focus on comprehensive benefits, including operational efficiency and risk management.
4. Decide on an outsourcing or in-house approach: Determine whether to develop analytics capabilities internally or partner with specialised firms.

How Advantech can help you with your data-driven supply chain

Advantech, a leader in industrial automation and IoT, offers a range of products that support data-driven supply chain management. Its solutions integrate advanced analytics, IoT and real-time monitoring to enhance visibility, traceability and efficiency.

Examples of Advantech products

• WISE-PaaS/RMM: A remote monitoring and management platform that provides real-time data analytics and visualisation, enabling proactive maintenance and operational efficiency.
• IoT gateways: Facilitate seamless data collection from various sensors and devices, providing the necessary infrastructure for advanced analytics.
• Edge AI solutions: Integrate AI at the edge of the network, enabling real-time data processing and analytics for faster decision-making.
• Industrial wireless solutions: Ensure robust connectivity and data transmission across the supply chain, critical for real-time monitoring and analytics.

Implementing real-time data solutions

Advantech’s products are designed to support the implementation of real-time data solutions in supply chain operations. For example, its industrial wireless solutions and IoT gateways enable seamless integration of various data sources, providing a comprehensive view of the supply chain. This increased visibility helps in tracking and documenting products, optimizing routes and managing warehouses efficiently.

Conclusion

Data-driven analytics transforms supply chain management by providing deeper insights, improving decision-making, and enhancing operational efficiency. By leveraging advanced techniques such as predictive analysis and adaptive forecasting, businesses can stay ahead of the competition and mitigate risks effectively. Advantech’s suite of products offers robust support for implementing these advanced analytics solutions, ensuring real-time visibility and efficient supply chain operations. As businesses adopt these technologies, the supply chain will become more resilient, transparent and agile, ready to meet the challenges of a rapidly evolving market.

For more information on Advantech’s products and solutions, visit www.advantech.com/en-eu.

by Ronald Groen, Operations Director, Advantech Europe BV