Suhas was working as a plant manager at XYZ Xo., a tyre and rubber manufacturing company. Recently, the company was facing a serious issue on the supply and demand management. Clients were complaining about non-availability of materials at the right time, tracking of internal movement in the factory was not proper, and scrap materials were pounding.

With increasing concerns, Suhas was worried how to bring a full stop solution to these problems. That’s when a directors’ meeting was called for a brainstorming session.

“Suhas, I think we need to make some changes in our supply chain management system terribly. Most businesses are taking data-driven decisions that can develop strategies to ensure an efficient and time-saving supply chain management system. This has also been raising confidence in the minds of the companies who have implemented business analytics in their fields.”, Vinay, an enthusiast young director spoke.

“Vinay, I understand, but given the level of operations we have, do you think investing in analytics will be viable for us?”

“Yes certainly, investing in analytics will prove to be beneficial in the long run!”

A good Supply Chain Management system can ensure competitive advantage and a better performance than its competitors. The impact can be gauged from the performance of Toyota brand, which has achieved a number 1 position in the car manufacturing sector, thanks to the excellent supply chain management system engaging the famous TPS (Toyota Production System)

Role of Business Analytics in Supply Chain Management

Companies these days are investigating much deeper into their data to get a brief understanding and learn from past as well as current data.

Forecasting Future Demand

Analytics will help define the future demand, thereby ensuring lesser storage costs or scarcity of raw materials to fulfill the demand. Balance between supply and demand will ensure that clients are satisfied and goodwill is maintained in the market for prompt delivery of services with lesser lead time.

Ease in availability of data can ensure information available at their fingertips, which makes ordering for materials quite smooth, thus, ensuring that material ordered are Just-in-Time and other materials that can be held as per the


Ease in tracking and material handling, movement of inventory can be  guaranteed by analytics. Finding areas of concern will be easier for them.

Supplier Analytics

Analytics can study your supplier’s plan and forecast availability of raw materials. This can again reduce excess inventory storage costs, non-availability of materials for production, track defective pieces, etc.

Considering the consumption of time in case of collection of data, business analytics offers a real-time solution to take quick and smarter decisions. SCM, given it peculiarity of being complex requires meticulous and detailed planning on their side.
How BA can influence Supply Chain Management

Let’s take an example –In 2011, after the Fukushima earthquake had occurred, Intel’s team had approached the suppliers in Japan to cope up with the crisis. It was possible to locate the suppliers only because of Analytics.

What does this imply? Business Analytics can bring about a huge change and redefine the way you look at Supply Chain Management. Probably, you can predict future happenings on the basis of various sources of information, for e.g., social media, news outlets and other platforms, which can give a cue about the recent happenings. This will allow you to be better prepared in case of any disaster eventually happening.

Supply Chain Management is one of the important areas wherein Business Analytics can play a strong role. Like Suhas, if you’re facing issues at the production plant, it is crucial that you harness the revolution of analytics for a competitive advantage.