Why You Must Modernize Supply Chain using Advanced Analytics and AI
Most present-day supply chains are based on technologies that are nearly two decades old. Many businesses still rely on using outdated machinery to solve their problems. However, they lack end-to-end vision, real-time response capabilities, data-sharing across silos and versatility in final delivery. This causes the slow response times, delays, struggling priorities among functions and operational inflexibility.
Naturally, traditional supply chains run in scattered, operational environment that focus on improvement of a particular aspect of the supply chain, rather than optimizing the entire value chain. Therefore, they are not able to operate effectively with the quality needed to meet customers’ high expectations.
The age-old objective of the supply chain is to have the right product, in the right place and at the right time, which has always been challenging to achieve. In today’s Digital Era, market driven forces are creating new demands, which go beyond the traditional supply chain potentials.
Factors Stressing the Supply Chain
- Doubts and risks due to market volatility
- Continuous rise in customers’ expectations
- Demand of digital disruptors for engaging experiences
- Difficulty in delivering omni-channel engagement
These dynamics are rapidly increasing the supply chain density, which in turn, affects both the risk and the cost. Most supply chain organizations sheltered into existing models currently experience decreasing margins and struggle to invest in new capabilities that will allow them to support existing business models.
The rise of advanced Data Analytics and Artificial Intelligence (AI) has led supply chain leaders to explore the potential use cases. To address the existing challenges, supply chain leaders are adopting new opportunities that will allow them to build new business models.
Evolution of supply chain using Advanced Analytics and Artificial Intelligence (AI)
Earlier, the supply chain relied only on statistical analysis and computable performance values for demand planning and forecasting. Data was stored in form of spreadsheets sourced from various stakeholders of the supply chain.
In the 1990s, organizations started adopting EDI (Electronic Data Interchange) and ERP (Enterprise Resource Planning) systems to connect and exchange information between the supply chain partners. These systems helped businesses access data for analysis, along with planning, designing and forecasting.
Fortunately, by the 2000s, organizations started to use business intelligence and predictive analytic software solutions. These solutions helped them gain more in-depth knowledge of overall performance of the supply chain. In addition, they helped them streamline the decision-making process and optimize better networks.
“Organizations That Analyze All Relevant Data and Deliver Actionable Information Will Achieve Extra $430 Billion in Productivity Gains Over Their Less Analytically Oriented Peers by 2020” - IDC
Now that the systems have already begun generating massive volume of data, the challenge is, how this Big Data can be leveraged to address business challenges?
Advance Analytics and Artificial Intelligence is the next Big Thing for the supply chain. Artificial Intelligence offers a platform for strongly connecting and interpreting data through the systems and sources. In fact, it even allows organizations analyze supply chain data and intelligence in real time. These intelligent technologies can process massive volumes of system-generated data and information (both structured and unstructured) and analyze that information within minutes and provide relevant insights.
Why is Advance Analytics and AI in supply chain important?
Advance Analytics and AI can help supply chain become quicker, smarter and make more efficient decisions. Some of the advantages are:
- Growth with significant return on investment
- Better risk management
- More accurate planning
- Ability to make informed decisions
Advance Analytics represent the ability to make data-driven actions and decisions using summary of relevant and trusted data. Visualization tools integrated with such solutions represent graphs or charts that uncovers patterns and generates insights to arrive at valuable insights.
Different types of analytics methods are used to get valuable insights from the data, which typically focus on these three dimensions:
- Descriptive analytics – Enable enterprises to view a single source of truth across the entire supply chain including internal and external systems and data.
- Predictive analytics – Helps an organization moderate disruptions and risks. Also, helps them understand the most likely outcome through the forecast and its impact on business consequences.
- Prescriptive analytics – Offers the best way advancing the specific business variables, inputs and objective using decision logic rules to find out what should be done in a certain situation.
At Cygnet Infotech, our expert Technology Solution Architects develop enterprise level solutions using intelligent technologies with expert BI resources and experience in product development for supply chain.
Our team has developed a comprehensive cloud-based SaaS solution based on Microsoft SQL server capabilities and Microsoft Business Intelligence (MSBI) tools. As a part of this offering, we have also provided rich web and mobile based analytics solution to collect and analyze EDI 852, POS and supply chain data which also includes:
- Automated data gathering from EDI 852 and other retail POS
- Once collected, data is cleansed and validated to generate various BI reports
- Customized Data Warehouse created so that businesses can store data on cloud
- Personalized dashboard created to provide one-click access to data with graphical data visualization
- Single click data analytics enabled to provide quick and easy sorting and filtering of data
This solution enabled our client to serve their end clients to export, share notes and send comprehensive reports to their sales representatives and buyers. The data architecture and detailed BI reports made this solution a unique tool of profitability.
If you want to reinvent your supply chain as a service oriented, customer centric, intelligent, self-learning mechanism while improving customer experience, you need to get in touch with technology experts at Cygnet today on +1-609-245-0971 or email@example.com.
Nilima Shah is a senior content writer at Cygnet Infotech. She enjoys researching, reading and writing articles about the latest Tech Buzz. She believes in using her skills both at a professional and on personal level to encourage businesses to adopt the latest technologies through her engaging write-ups. In her free time, she loves to create DIY art and crafts, explore places and cuisines.View All Posts