Businesses today are undergoing a data-driven revolution, and no space is more impactful than supply chain management. Among chief supply chain officers, 79% are developing training programs to increase the adoption of best practices in analytics, according to Gartner. Many organizations struggle to translate supply chain data into actionable insights.
This is where graduates of the University of South Carolina (USC) Aiken’s online Master of Business Administration (MBA) in Business Analytics program come in. The advanced degree program equips students with the skills to overcome challenges like limited data infrastructure and a talent shortage, allowing them to optimize supply chains and meet the high demand for these critical skills.
What Is Supply Chain Management?
According to Investopedia, an organization’s supply chain — the intricate network connecting suppliers, a company and the end customer — plays a critical role in business success. It directly impacts customer satisfaction and profitability. When a company struggles to deliver a product on time, frustrated customers and lost sales ensue. Efficient supply chain management (SCM) helps businesses avoid such pitfalls by optimizing processes throughout the journey, from raw material sourcing to final delivery.
The growing complexity of supply chains is another driving force behind the surge in SCM efforts. Companies partner with more international suppliers and face mounting pressure for rapid product delivery. Managing this global network generates vast amounts of data — everything from inventory levels to shipping routes.
A supply chain manager strives to streamline operations, minimize costs and prevent stock shortages while also preparing for unforeseen disruptions. This comes from a well-defined, five-phase process that encompasses everything from meticulously planning production needs to ensuring timely delivery to the end customer. Manufacturing, where raw materials become finished products, plays a central role in this process. Sourcing materials and managing returns are equally essential, as they all contribute to a smooth flow of goods.
What Is Business Analytics?
Business analytics (BA) utilizes statistical methods and cutting-edge technology to transform raw data into actionable insights. Imagine a company visualizing customer behavior and sales trends through interactive dashboards. BA empowers them to identify new customer segments, optimize marketing campaigns and drive growth. It can even leverage publicly available information to provide a holistic view of the market landscape.
The following four main types of business analytics can be applied to optimize supply chains:
- Descriptive: This type uncovers historical data trends and patterns that explain past events.
- Predictive: Looking ahead, predictive analytics leverages historical data and statistical models to forecast future outcomes.
- Prescriptive: Building on descriptive and predictive insights, prescriptive analytics recommends specific actions to achieve desired goals.
- Cognitive: This advanced form utilizes artificial intelligence (AI) to mimic human thinking and problem-solving, automating complex tasks and providing highly accurate forecasts and recommendations.
How Do Analytics Support Supply Chain Decision-Making and Optimization?
Imagine a supply chain as a row of dominoes — a problem at any stage can topple the entire line, impacting a company’s ability to meet customer expectations. Supply chain analytics is the key to identifying potential disruptions before they occur. It analyzes information from various applications used throughout the supply chain including procurement, inventory management, order fulfillment and transportation.
An enterprise resource planning (ERP) system can combine data from across the entire network, presenting it in user-friendly dashboards and reports. This holistic view allows employees to understand the ripple effects of any disruption. These software solutions can detect potential delays with a supplier and instantly send alerts, allowing for proactive adjustments.
Beyond problem-solving, supply chain analytics empowers companies to make strategic, long-term changes. Manually managing the vast amount of data generated by a global supply chain is nearly impossible. Analytics software tools gather, assess and enable businesses to act upon this data, optimizing operations and gaining a competitive edge.
Here are just a few examples of how supply chain analytics optimizes business functions:
- Demand planning: Historical data and other factors predict customer orders, preventing overspending on procurement while avoiding stockouts and excess inventory.
- Sales and operations planning: Production and purchasing decisions are aligned with forecasted demand, ensuring businesses have the right goods to meet customer needs.
- Inventory management: Analytics track inventory movement and identify which items require replenishment, minimizing both stockouts and unnecessary inventory carrying costs.
Prepare to Be a Data-driven Supply Chain Leader
Imagine a supply chain in which professionals identify potential disruptions before they occur, optimize inventory levels to minimize costs and use data-driven insights to inform every step of the process. USC Aiken’s MBA in Business Analytics online program equips graduates with the skills to provide organized direction in this data-driven future. This program combines a strong foundation in business principles with cutting-edge analytics expertise, preparing students to become leaders in the future of supply chain management.
Learn more about the University of South Carolina Aiken’s online Master of Business Administration in Business Analytics program.
