Where’s the Value in Supply Chain Analytics?
Most supply chain applications that Logility works on have significant ROIs. But sometimes it’s hard to see where the return on investment will be coming from.
At Logility, we focus on the tangible benefits of improving your supply chain and how we go about producing hard-number results. We’re all very well versed in the traditional areas to look for: cost structure, growth, and capital. Now let’s look at what’s really behind these areas.
When developing an ROI for supply chain analytics, we promote:
- Cost reduction. We’ll find cost savings in staff, in reduced warehouse space, in fuel, in retained customers, and in lower costs-to-serve.
- Timely analytics. By providing timely analytics tied with a singular version of internal data truth and third-party data, Sales and Operations Planning (S&OP) becomes an inherently more efficient process as forecasts reflect reality.
- Supplier scorecarding. Developing KPIs for your suppliers and knowing good ones from bad ones seems like a business basic, but it’s not. Sharing these scorecards with your suppliers may create some discomfort or resistance, but it will ultimately improve the quality and timeliness of your supplied products. And that saves you money.
- Customer scorecarding. Sometimes a customer is just too costly to keep. Customers need KPIs applied to them as well. It’s for the good of the business as well as the good of the employees servicing that customer, and
it will support you in knowing where to focus resources and realign sales strategies.
- Risk analysis. Knowing the areas where your supply chain is vulnerable provides you the ability to reinforce those areas and reduce your risk. From backup suppliers to weather disruption prevention, a little insight can go a long way.
These are just some of the many areas that derive increased value from supply chain analytics. Everyone has a supply chain. Successful companies are using their supply chains as a competitive advantage. Isn’t it about time yours did, too?
Use analytics to take back control of your supply chain during disruptions! Check out this video: Plan for a resilient enterprise with Logility’s AI-based platform