According to Gartner, the global supply chain management market was valued at $15.85 billion in 2020 and is expected to double nearly to almost $31 billion by 2026. Data and analytics are a central component of this market growth, with the technology driving better decision-making in every area, from strategic to tactical. 

A recent RTInsights article highlights some examples of this supply chain innovation, including:

1. Improved Demand Forecasting 

Through data science and analytics, companies can automate demand forecasting, which enables them to respond rapidly to market fluctuations and streamline the optimal stock levels. 

2. Enhanced Production Efficiency 

Data and analytics can also help organizations address efficiency roadblocks in terms of people and processes. From a human resources perspective, companies can track, analyze, and share employee performance metrics in real-time. Organizations can drill into individual stages in the production process and identify and resolve underperforming elements to improve productivity. 

3. Better Sourcing and Supplier Management

Another analytics benefit is selecting the most appropriate supplier based on compliance, location, reviews, feedback, and services. In addition, the technology enables companies to manage suppliers more efficiently and integrate the supply chain with real-time traffic information and weather forecasts. It strikes to track delays and better prepare for any resulting impact on delivery patterns. 

4. Better Warehouse Management 

Many warehouses now have sensors installed to collect inventory flow data, allowing companies to build a comprehensive database based on package weights and dimensions. As a result, they can identify bottlenecks impeding warehouse flow and any issues that may cause safety hazards. 

5. Improved Distribution and Logistics

Finally, data analytics can help organizations improve their distribution and logistics. For example, analyzing fuel consumption can provide insights for improving driving efficiency, while drilling into GPS data can identify opportunities to optimize warehouse distribution based on the real-time routing of deliveries.

For more on how data and analytics are improving supply chain management, take a look at the RTInsights piece.