Supply chain analytics

Supply Chain management why needed?

Competitive advantage because of its complexity and also because of the

prominent role supply chain plays in a companys cost structure and
profitability
Incompetency can cause delayed shipments, inefficient plants, and
inconsistent suppliers, among other things. This can be costly, frustrating,
time- consuming, and, under certain circumstances, even risky

For Strategic advantage, need of real-time insights from operational data to improve
performance visibility and insight.
Challenges:

Providing visibility into supply chain performance and bench-marking

Reducing operating costs through process optimization across the plan,

source, make, and deliver functions

Enhancing customer satisfaction by improving supply chain responsiveness

and product quality

Lack of real-time data visibility, with no common view across all businesses
and channels.

Irregular reviews of safety stock levels, causing frequent stock-outs or excess

inventory.
Questions to ask? Control tower
1. Where are you underperforming in your supply chain and where are
the opportunities to improve that performance?
2. Which of those opportunities give you the greatest valuein the short,
medium, and long terms?
3. How does your organization need to change to enable a control tower?
4. Where can you begin, and where do you need to end up? Identify the
road map and build the control tower capabilities.

Where are you underperforming in your supply chain and where are the
opportunWhy supply Chain Analytics?

Through Supply Chain Analytics, delivery of growth in revenues, improve margins,

manage working capital in a better way and enhance the control points across the
supply chain.
By embedding analytics in the supply chain, its helping companies optimize their
supply chain functions and close the gaps to manage market pressures and
contribute to financial performance.
Increasing supply chain efficiency

Enhancing basic metrics and reporting

Advanced analytics-driven control towers can monitor real-time critical

events and KPIs through multiple touch points.

Predictive analytics, combined with control towers can provide valuable

savings in areas such as freight optimization for the customer

Control Tower - A centralized hub that uses real-time data from a companys existing,
integrated data management and transactional systems to integrate processes and tools
across the end-to-end supply chain and drive business outcomes.

How can Supply chain analytics help?

Materials: Analytical tools can improve visibility. Complete view of supply

chain cost of any given material is essential for making optimal purchase
decisions on should- cost basis. By placing complete information at the
fingertips of supply chain managers, organizations can significantly reduce the
total cost of materials purchases through improvements in supply chain
practices and better price negotiation outcomes.

Logistics: Fluctuating demand patterns and an expanding base of suppliers

and logistics partners have driven companies to continuously rethink their
logistics network strategies.

Sourcing: As businesses expand into new, volatile markets with diversified

product portfolios, managing a multitude of suppliers around the world
becomes challenging. Signing on each new supplier has considerable costs and
potential risks.

Sophisticated analytics programs generate real- time supplier performance

management data that supply chain managers can use to improve their sourcing
strategy. Potential supplier risk is assessed through a combination of financial
analysis and capability constraints. A holistic, data-led supplier selection process,
rather than one based solely on cost, is the result.
optimum inventory norms, lot sizes, analyze slow-moving, obsolete inventory and
balance stock across locations to ensure lower inventory carrying cost.

Margin Improvement - Expense Analytics helps identify and analyze the supply chain
costs across the nodes starting from network costs to delivery at the last mile.
Control Enhancements - Identify risks in various supply chain operations; but we
also analyze financial and other risks of all your supply chain partners.
Working Capital Improvement - With working capital analytics focused on end to
end supply chain inventory, it helps free up locked capital and improve cash flow
Logistics Cost Analytics - Periodically analyze freight cost and find scope for
renegotiation - making buying decisions smarter

Solutions

Cloud Solutions Accelerate gaining full visibility

End-to-End Visibility solution - a single web-accessible access point

Secure sharing of real time data to enable supply chain

collaboration across geographical locations, organizational
boundaries for informed and quicker decision making to changing
environments

Tools:
SAS supply chain intelligence. Where SAS helps? Among many others
Real time RFID analysis using smart labels
SAP end to end visibility in minimal time
Pre-built dashboards. Maintaining dashboards
Understand perceived quality issues.
Catch emergibng issues sooner.
Tackle top-priority issues first.
Limit customer impact.
Reduce operating costs
Avoid under- or over-stocking.
Demand Forecasting

Get more out of your assets. Harness M2M and machine sensor data to
predict unplanned outages before they occur. Optimize planned maintenance
cycles to lower costs while increasing asset availability. Example of such data GPS coordinates, temperature data to usage data.

Why needed in the Indian market even more? Market Gap,

problems faced in India
In comparison to the 8.5% loss in GDP that the United States registers in supply
chain costs, India spends as much as 13%. So why are these high investments not
doing the job right?

Distribution system - disorganized distribution system affects the supply

chain adversely and often, suppliers and manufacturers just do not seem to
find the optimal links in a crowded market.

Taxes: A multifaceted tax system that involves both the Central Government
as well as the State Governments and is often too complicated to comprehend
has been quite a bane for India, and the supply chain has suffered on this front
too.

Fragmentation: market distribution or simply the economic, geographical

and commercial diversity of the country, a highly fragmented logistics market
poses a swarm of challenges.

Adoption of technology: For a country that is a global performer in the IT

segment, investments on IT in the manufacturing segment are not very
impressive.

Supply chain analytics process:

Start with business pain point
Readiness to change
Iterative approach
Include Cycles of learning in the analytics solution

Extra information PwC works with Metals and Mining industry.

SAP Lumira used for predictive analytics.

Advanced Analytics - Advanced Analytics is a grouping of analytic techniques

used to predict future outcomes. Example predictive analytics
Advanced analytics are based on mathematical principals and started as descriptive
statistics which are basically used to sum and count past occurrences for what has
happened in the past which is useful in a reactive, course correction manner.
Advanced analytics allows you to anticipate possible future outcomes and either
capitalize on them or adjust now to impact the future.

Predictive analytics/model
Data mining is a technique for building predictive models where the data is visually
explored and used to determine which predictive model to use to fit the data. For
example, if the data visually looks linear then a linear regression technique could be
applied.
Uses historical data to predict future. Fraud detection. Reducing risks.
Visual representation, data represented in various forms. Create dashboards
according to biz needs.