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Data2Value Initiative

Supply Chain Analytics

Executive Summaries & Use Cases

Frank Kienle

What is Supply Chain Analytics?

"Supply chain analytics can support, improve or automate any decision within supply chain management processes"

As businesses expand and supply chain structures grow in complexity, the need for enhanced visibility and decision support becomes imperative.

Analytics transforms raw data into actionable insights across the entire supply chain - from sourcing raw materials to delivering finished products to customers.

The Four Pillars of Supply Chain

SOURCE

Supplier selection, performance, compliance, risk management

MAKE

Manufacturing processes, cost optimization, predictive maintenance

PLAN

Forecasting, inventory optimization, S&OP

DELIVER

Customer satisfaction, logistics, network design

25 Analytics Use Cases

SOURCE (5)

  • Supplier Performance Metrics
  • Supplier Risk Analysis
  • Supplier Capacity Planning
  • Compliance/Document Tracking
  • Raw Materials Quality Analytics

MAKE (7)

  • Manufacturing Cost Analysis
  • Production Scheduling
  • Batch Size Optimization
  • Predictive Maintenance
  • AI for Quality Assurance
  • Digital Twin
  • Overall Equipment Effectiveness

PLAN (7)

  • Demand Forecasting
  • Inventory Optimization
  • Multi-Echelon Optimization
  • Vendor Managed Inventory
  • Supply Chain Segmentation
  • Sales & Operations Planning
  • Supply Chain Risk Analysis

DELIVER (6)

  • Customer Satisfaction Analysis
  • Order Fulfillment Analytics
  • Supply Chain Network Design
  • Transportation Cost Analysis
  • Delivery Time Prediction
  • Delivery Route Optimization

Supply Chain Planning Matrix

Level Purchasing Production Distribution Sales
Strategic
(Long-term)
Supply Network Planning Supply Network Planning Supply Network Planning Demand Planning
Tactical
(Mid-term)
Materials Requirements Plan Production Planning Distribution Planning Demand Planning
Operational
(Short-term)
Materials Requirements Plan Detailed Scheduling Transport Scheduling Available-to-Promise

Types of Analytics

Descriptive

Interpretation of historical data

"What happened?"

Predictive

Predicting future event probability

"What will happen?"

Prescriptive

Suggesting decision options

"What should we do?"

Common Techniques

Time-series forecasting (ARIMA, Prophet) • Machine Learning (Random Forests, XGBoost) • Deep Learning (LSTM, RNN) • Optimization (Linear Programming, MILP) • Simulation • Process Mining

The Analytics Translator Role

"Analytics translators perform some of the most essential functions for integrating analytics capabilities in a company. They define business problems that analytics can help solve, guide technical teams in the creation of analytics-driven solutions, and embed solutions into business operations."
— McKinsey

Business Literacy

Management, problem solving, sales framework, product management

IT Literacy

Process modeling, software design, enterprise architecture

Analytics Literacy

Statistics, data management, decision making, AI/ML

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