If you deal with logistics in any fashion, you’ve probably heard the phrase “supply chain analysis” more times than you care to count. But it’s more than just an industry buzz term. In fact, the big data provided by supply chain analysis is instrumental to the success of your business.
Using clean, reliable data is the only way to truly gauge the performance of your supply chain—and gain the leverage needed to improve your operation. Done poorly (or not at all) is a big disadvantage to any business. With the right tools in place, however, you’ll reap these four major benefits.
Make Your Customers Happier
It’s your company’s job to respond to your customers, and supply chain analysis helps you do that in several ways.
- Accurate Forecasting. What do your customers buy the most? When do they buy it? Knowing the answers to questions like these can help you accurately forecast inventory and production needs, ensuring that you can meet demand while not wasting valuable resources by exceeding it.
- Faster Response Times. When your chain runs smoothly, you’re able to get your product into your customers’ hands more quickly, rather than spending time dealing with costly hang-ups and bottlenecks.
- Reduced Overhead. There is a price point at every stage of your supply chain, from procuring the raw materials to delivering the finished product. However, when your chain is adequately managed, you save money—and those savings can then be passed along to the consumer, allowing your company to make a profit while keeping costs low and attracting more business.
Improve Vendor Relationships
Your supply chain is comprised of many different vendors, and they can all make (or break!) your company. But that street runs both ways. It’s not enough for you to be able to trust in them—they need to have faith in you, as well. And a successful supply chain management tool can give both parties confidence in each other.
A strategic partnership between your company and each individual vendor requires mutual trust, and that trust is exponentially easier to gain when your vendors know you’re doing everything you can to ensure not only your own success—but theirs as well.
Get the Most Out of Your Supplier Profiles
A supply chain should never remain stagnant. Just because something is working well now doesn’t mean something else couldn’t work better in the future. And when you utilize big data in your supply chain analytics, it’s easy to see where improvements can be made, particularly in regards to suppliers.
The ability to analyze your current suppliers is great. Having real-time data available to analyze potential suppliers is better.
Are you paying costly delivery fees to utilize an out-of-state vendor, when there’s an untapped supplier just across town? Are you happy with your current supplier, but looking to negotiate a discount? Supply chain analytics software can give you the tools—including visual dashboards—to wheel and deal, potentially saving you time and money.
When you start digging into your supply chain data, inefficiencies are bound to be discovered. Luckily, supply chain analysis programs can uncover critical risk factors, before they become a major problem for your company.
This extra visibility also provides a path for growth. Since data is often shared between members throughout the supply chain, it’s less likely that revenue-generating or cost-saving opportunities will be overlooked.
In fact, besides providing accurate insights into your company, one of the biggest benefits of having a more centralized system is the streamlined communication between team members. Supply chain analysis programs can be accessed on nearly any device — from a truck driver’s tablet to a warehouse manager’s desktop computer — improving workflow and flexibility in real-time.
You can effectively respond to changes in demand with the swipe of a button.The result? A renewed sense of collaboration and a more robust bottom line.
For more benefits of supply chain analysis, visit our resource page to see how Trax Technologies is transforming businesses with clean actionable data, and clear insights.