A Guide to Supply Chain Analytics
The shipping and logistics industry has reached an inflection point. Technology around supply chain analytics data is transforming the speed with which leaders can gain meaningful insights and make strategic decisions.
This progress could not have come at a better time.
The pandemic, labor shortages, and intense supply chain volatility have disrupted markets on the largest possible scale. As a result, historical solutions for creating stability and predictability aren’t as effective as they once were.
Creating stability in the supply chain is a top priority for executives everywhere, and the sizable investments they are making to achieve that focus largely on supply chain analytics.
The good news is that supply chain data analytics technology has gotten sharper, faster, and easier to use. So, while the industry has never been more volatile, the process of supply chain analytics has never been simpler. This means that the goal of stabilizing the supply chain has never been more accessible.
Trax's supply chain technology experts are watching enterprise organization leaders win using our tools. Regardless of complexities, our solutions make growth possible in any market by maximizing visibility and once again giving leaders control of their operations. Connect with us anytime to learn more.
About Supply Chain Data Analytics
Supply chain data analytics refers to collecting and using data to improve the efficiency, profitability, and resilience of supply chain operations.
These big data sets run the gamut in type from freight audit and payment to transportation to team performance and more. In addition, IoT and enhanced connectivity have made it possible to track digital movement and the physical movement of goods along the supply chain.
All this data collection aims to gain multiple views, from a sweeping panoramic to microscopic. The right tools uncover bottlenecks and inefficiencies and give hard evidence on the status of the work in real time. Leaders can leverage supply chain analytics to see more clearly, address problems before they develop, and become more than just proactive, but predictive in their ability to plan ahead.
By harnessing the power of data, supply chain analytics can help businesses:
- Examine and determine the meaning of past events
- Diagnose the cause of specific problems in the supply chain
- Predict outcomes of future events within the organization or global market
- Prescribe solutions and key actions to prepare for future outcomes
Of course, simply having access to a large amount of data doesn’t effortlessly result in perfect analysis. Bad data can be just as harmful to your organization as too little data.
The Danger of Bad Supply Chain Data Analytics
An effective, efficient, data-driven system has a few key traits.
First and foremost, it focuses on the essential points of analysis. These include:
- Vendor data
- Internal operational data
- Project costs and performance
- Team costs performance
- Vehicle or asset costs and performance
- Invoicing & financial information
- Timeline data
- Scenario planning
These areas of focus will vary based on your organization.
Regardless of what makes this list, effective supply chain analytics prioritizes which data points are most useful, and how to make them visible in a way that drives behavior change in your organization. In simple terms, it will help you decide which data matters, why it matters, and what you should do about it.
Top Supply Chain Analytics Examples
Since this is our area of expertise, here’s a deeper dive into the supply chain analytics tools that support a modern, data-driven approach to business:
Trax Freight Audit and Payment is a solution that combines industry-leading knowledge with cloud-enabled technology to bring quality freight invoice and payment data into focus. It makes your organization more efficient, ensures it’s always compliant, and measurably reduces transportation spend.
Transportation Spend Management is an amalgam of Trax solutions that coordinate to analyze and optimize transportation logistics, helping you advance from initial operational performance to delivering world-class value in all you do.
Implementing Better Supply Chain Analytics
Here’s how to make supply chain analytics a cornerstone of your organization:
- Choose a proven analytics platform — Trax has a proven record and industry expertise. That’s why we’re chosen by global enterprise organizations. Do the due diligence, researching and comparing suppliers to ensure they can support your unique needs and help you map a custom roadmap that matches your goals.
- Identify your priorities — No two organizations are the same and needs differ even among similar companies. Determine the success markers that matter most to you, whether it’s visibility and efficiency or compliance and cost reduction, then begin at the beginning.
- Start with capabilities and processes — Pick tools that match the capabilities and processes of your existing systems, and can also scale as you or your people grow. This thoughtful evaluation will ensure that each tool you introduce gets the right buy-in and adoption.
Supply Chain Analytics: The Key to Navigating Ever-Increasing Complexity
The trends in the global supply chain will continue to be typified by more complexity, not less.
Optimizing supply chain data analytics, improving freight audit and payment processes, and achieving transportation spend management maturity are achievable.
Trax is the global leader in transportation spend management and supply chain analytics. Our customers include the world’s most globally focused and complex organizations worldwide. We enable leaders in those organizations to gain more control than ever over performance and spend.
Ready to find out how Trax can make supply chain analytics a simple, streamlined, and dynamic part of your business success? Contact us today.
What does it mean to have intelligent visibility? Read next: Intelligent Visibility in Supply Chain Analytics
Trax is the global leader in Transportation Spend Management solutions. We partner with the most global and complex brands to drive meaningful optimizations and savings through industry-leading technology solutions and world-class advisory services. With the largest global footprint spanning North America, Latin America, Asia, and Europe, we enable our clients to have greater control over their transportation performance and spend. Our focus is on your success.