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SCA - Module 1-2

The document discusses data analytics and its application in supply chain management. It describes the CRISP model for data analytics and some new challenges in big data analytics. It then covers different types of analytics including descriptive, diagnostic, predictive, and prescriptive analytics. Key components of supply chain analytics are also discussed such as demand forecasting, inventory optimization, supplier performance analysis, logistics optimization, risk management, and performance monitoring.

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mahnoor
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
16 views

SCA - Module 1-2

The document discusses data analytics and its application in supply chain management. It describes the CRISP model for data analytics and some new challenges in big data analytics. It then covers different types of analytics including descriptive, diagnostic, predictive, and prescriptive analytics. Key components of supply chain analytics are also discussed such as demand forecasting, inventory optimization, supplier performance analysis, logistics optimization, risk management, and performance monitoring.

Uploaded by

mahnoor
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Data analytics

Big data in supply chain (SC)


Week 2
Introduction to Data Analytics
- Data analytics is the process of inspecting, cleaning, transforming, and
modeling data to extract meaningful insights, draw conclusions, and
support decision-making

- It involves the use of statistical analysis, machine learning, and other


analytical methods to uncover patterns, trends, and relationships within
data

- Data analytics is applied across various industries to enhance business


performance, improve efficiency, and gain a competitive edge.

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Is it still the reference model (1)? New challenges

- The CRISP model reflects a data management perspective where all


relevant information can be stored and cleaned
- This assumption might be easily violated in all those cases where the
data flow is too massive to allow an exhaustive storage
(filtering/compressing data etc.,) or when there are timeliness
constraints
- The CRISP model suggests a flat approach
- Mastering the data variety and complexity requires several levels of
analysis, combining the results of various processing tools to obtain
complex patterns or models, to form hierarchical dependencies among
the steps performed 10
Is it still the reference model (2)? New challenges

- In complex applications, the design of an analytical process is actually


a multi-disciplinary effort that involves actors with different
backgrounds
- The computational complexity requires new scalable algorithms and
the distribution of workloads on clusters or on cloud
- Big Data Analytics often involve the use of personal data, ranging from
medical records to location information, activity records on social
networks, web navigation and searching history, etc
- All this calls for mechanism that ensure that the information flow
employed in the analyses does not harm the privacy of individuals
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Is it still the reference model (3)? New challenges

- Data integration from multiple and heterogeneous sources


- Data quality
- Models fast adapting to temporal changes
New emphasis on
- Re-purposing data that was collected for a different purpose
- Re-purposing algorithms (e.g. page rank on graphs)
- Data products
data driven applications (e.g. spell checkers, machine
translation, recommendation systems, …) interactive
visualizations, online databases

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Is it still the reference model (4)? New challenges

e-Science

4th paradigm of scientific inquiry:

to acquire massive data sets from instruments or from


simulations

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Types of Analytics
Descriptive Analytics

- Descriptive analytics involves summarizing and


interpreting historical data to understand what has
happened in the past

- It includes data combination, reporting, and visualization


to provide insights into trends and pattern.

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Types of Analytics
Diagnostic Analytics

- Diagnostic analytics focuses on understanding why


certain events occurred by examining historical data

- It involves identifying the root causes of specific


outcomes or issues.

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Types of Analytics
Predictive Analytics

- Predictive analytics uses statistical algorithms and


machine learning techniques to forecast future trends or
outcomes based on historical and current data

- It helps organizations make proactive decisions

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Types of Analytics
Prescriptive Analytics

- Prescriptive analytics goes beyond prediction to suggest


actions that can be taken to optimize outcomes

- It provides recommendations for decision-makers to


achieve desired goals

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The landscape for supply chain analytics

Slightly more
complex

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Broad Spectrum of SC analytics
The process of examining datasets using
specialized systems and software to draw
conclusions
The process of helping people understand the
significance of data by placing it in a visual
context. Patterns, trends and correlations might
be undetected in text-based data
The underlying infrastructure-analytic engine
that can capture, storage, retrieval, aggregation,
analysis, and reporting
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Essential Components of Supply Chain Analytics

- Supply chain analytics involves applying data analytics


techniques to optimize various aspects of the supply chain.
Key components:

Demand Forecasting
- Using analytics to forecast future demand for products or
services

- Accurate demand forecasting helps organizations optimize


inventory levels and production planning
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Essential Components of Supply Chain Analytics
Inventory Optimization/Order optimization

- Analyzing inventory data to maintain optimal stock levels

- This involves minimizing holding costs while ensuring


products are available to meet customer demand

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Essential Components of Supply Chain Analytics
Supplier Performance Analysis/Real-time SC execution

- Evaluating and monitoring the performance of suppliers

- Supply chain analytics helps assess factors such as on-time


delivery, quality, and cost-effectiveness

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Essential Components of Supply Chain Analytics

Logistics and Transportation Optimization

- Optimizing transportation routes and logistics to reduce


costs and improve efficiency

- This includes route optimization, carrier performance


analysis, and real-time track in.
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Essential Components of Supply Chain Analytics

Risk Management

- Identifying and mitigating risks within the supply chain,


such as disruptions in the supply of raw materials,
geopolitical events, or natural disasters

- Analytics helps in developing strategies to manage and


respond to potential risks
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Essential Components of Supply Chain Analytics

Performance Monitoring and KPIs

- Establishing key performance indicators (KPIs) and using


analytics to monitor and measure the overall performance of
the supply chain

- This includes real-time tracking of metrics to ensure goals


are met
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Essential Components of Supply Chain Analytics

Collaboration and Visibility

- Enhancing collaboration and visibility across the supply


chain through analytics

- This involves sharing relevant data and insights with


stakeholders to improve communication and coordination

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Essential Components of Supply Chain Analytics

Continuous Improvement

- Using analytics to identify areas for continuous


improvement within the supply chain

- Organizations can analyze performance data and


implement changes to enhance overall efficiency and
effectiveness

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Essential Components of Supply Chain Analytics

Improved partner performance

- SC analytics gives you much greater performance


visibility into your trading partners’ activities and
performance.

- You can see quickly which ones are delivering the most
profitable business for you.

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Essential Components of Supply Chain Analytics

Improved cash management

- By helping to focus on elements like delivering perfect


orders and controlling inventory levels, SC analytics helps
with cash management.

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Summary
Supply chain analytics is instrumental in

- optimizing the end-to-end processes of supply chain


- improving decision-making
- ensuring a more responsive and efficient supply network

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Why B2B integration
- More and more companies are beginning to use SC analytics
with great results

- Business-to-business (B2B) integration means the integration,


automation, and optimization of key business processes that
extend outside the walls of a company

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Why B2B integration
- B2B provides a platform for digital supply chain

- To conduct business with trading partners through digital


exchange business documents

- B2B integration of organization have a single source for all


their SC data

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The benefits of B2B integration

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