In the omnichannel world, supply chain leaders need to understand every process and activity. Unfortunately, omnichannel also means more data in every aspect of your operation. Omnichannel supply chain analytics provide the level of insight needed to succeed in the omnichannel-driven world. Supply chain leaders need to understand the challenges of applying omnichannel analytics, how they enable insight across supply chain functions, such as order fulfillment and inventory management, and how to apply them to achieve the greatest result.
Bringing Omnichannel to the Forefront of E-Commerce
Where Do Supply Chain Leaders Go Wrong with Omnichannel Supply Chain Analytics?
The biggest problems with omnichannel analytics can be traced back to a simple issue. Supply chain leaders can implement the best systems on the planet, but if every possible scenario is not considered, the system lacks value. In other words, the subpar integration between systems and failure to gain real-time visibility into all assets remain a key obstacle to the application of omnichannel supply chain analytics. As explained by Supply Chain 24/7, there is another factor that affects the performance of supply chain analytics. The sheer diversity of the analytics themselves leads to misconceptions about their value. As an example, consider analytics covering insights in transportation management. However, transportation management involves hundreds of individual processes. The simplest misapplication could result in poor outcomes.
Additionally, warehouse managers and supply chain leaders may lack the resources to apply analytics. Analytics can focus on the smallest issues, but their most significant potential lies in the diverse application. Therefore, it is essential to manage omnichannel supply chain analytics proactively.
Omnichannel Analytics Enable Insight Across Your Entire Supply Chain
Omnichannel supply chain analytics have the potential to give supply chain leaders insight across their entire enterprise. While it is a counterproductive process to lump analytics into one group, they must possess the capability to communicate with one another. This is no different from customers working to find the best deal on a product or service. Omnichannel analytics bridge digital and physical channels, giving supply chain leaders the ability to uncover relationships between data. Yes, data refers to people in this case. However, it is not just the personal attributes of a shopper that make supply chain analytics valuable. It is their implication for better demand forecasting, management of inventory placement, distribution strategies, and more.
How to Apply Analytics to Drive Greater Results
Applied analytics in supply chain management can lower overhead expenses, offer real-time visibility in product location, and empower leaders with better collaboration, boosting labor management along the way. However, the best benefits in the world fall on deaf ears if the process falls short. Supply chain leaders should follow these tips to improve their use of analytics and bolster supply chain performance.
- Connect every asset and process to the Internet. Connected systems allow for real-time data tracking. More importantly, all connected assets must provide a direct path forward. In other words, the information should build to arrive at a recommendation.
- Recognize the unique circumstances that influence your operation. Every supply chain is different, and varying processes will affect the performance of your operation. Depending on the individual needs of your customers, additional supply chain services may be necessary. For example, added last-mile delivery services, such as installation or white-glove service for large and bulky items, may be required.
- Get the expert assistance necessary to deploy supply chain analytics to their fullest potential. Let’s be honest. Supply chain leaders are focused on management, not data analysis. According to Pierre Mitchell via SpendMatters.com, supply chain leaders become so focused on automating processes that they overlook the potential of analytics. Regardless of how many devices are connected, their application and processing through analytics are what makes them valuable. As a result, supply chain leaders should seriously consider working with an expert in selecting analytics platforms, as well as integrating them to ensure success.
Advance Your Organizational Goals with the Right Analytics Strategy
Omnichannel supply chain analytics are about understanding your customers, their habits, the actions of your supply chain partners, your transportation network, your raw material suppliers, warranty service managers, and everything in between. There is ample opportunity for error, but you can avoid these risks by following the three critical steps to success outlined above.