Supply Chain Analytics

How to build a strong supply chain analytics strategy

6 Ways Supply Chain Analytics Mitigate Business Disruptions

More than 70% of supply chain leaders say their supply chain is facing more frequent and more impactful business disruptions, such as the COVID-19 pandemic, tariff disputes, natural disasters and major supply chain disruptions.

Minor supply chain disruptions like late delivery or shortage in transportation capacity are generally addressed quickly and easily, but to sense, analyze and respond to major business disruptions you need supply chain analytics. How do you build a strong supply chain analytics strategy? 

Download this Gartner report to discover 6 ways to build supply chain analytics that will help you recover from current events and prepare for the future supply chain

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    We meet with Gartner analysts on a regular basis to get a pulse of the market, hype vs. reality. With Gartner we get a lot of insight into what works and what doesn't, drawn from extensive surveys of CSCOs and Operators at the tactical level.

    Product Manager, Supply Chain Software Developer

    3 Challenges to Supply Chain Analytics Success

    Supply chain excellence depends on strong supply chain analytics strategy. Yet for many organizations, successful supply chain analytics adoption faces many challenges.

    • Few organizations have the scalable data foundation needed to build supply chain analytics that accurately represent the supply chain.
    • Talent and skills relevant to supply chain analytics are limited.
    • A lack of clarity on the supply chain analytics business case can slow down adoption.
    In a recent survey, 74% of supply chain executives rated advanced analytics as one of their top two most important emerging technologies.
    In a Gartner supply chain survey, 79% of respondents said that they have developed training programs to help their internal users with advanced analytics adoption

    3 Steps to Building a Strong Supply Chain Analytics Strategy

    To make better supply chain and organizational decisions, supply chain leaders responsible for analytics strategy and adoption should:

    • Harvest accurate and comprehensive data, securing the technical and business skills needed to maximize its value
    • Test a variety of supply chain analytics techniques to understand which is most effective for mitigating business disruptions
    • Invest in real-time supply chain analytics and digital solutions
    In a Gartner supply chain survey, 79% of respondents said that they have developed training programs to help their internal users with advanced analytics adoption

    Strategic supply chain insights you can use

    Gartner's future work insights, advice, data and tools helps supply chain leaders develop effective strategies to build a foundation for successful use of analytics and improving adoption.

    Leverage Data & Analytics to Support Supply Chain Digitalization

    This complimentary webinar looks at the significant hurdles that many organizations still face in evolving their supply chain talent towards data-driven decision-making, and how to overcome those hurdles.

    The Supply Chain Analytics Leader’s First 100 Days

    Supply chain analytics leaders can use this research to map out their team's strategy, assess current capabilities and build key relationships with stakeholders.

    Improve the Supply Chain With Advanced Analytics and AI

    A Gartner survey shows supply chain analytics leaders using advanced analytics and AI to augment and automate supply chain decision making.

    Essential Roles and Talent to Achieve Supply Chain Analytics and Excellence

    Supply chain leaders responsible for analytics talent and strategy can use this research to pursue the roles and skills required to succeed in supply chain analytics.

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    Discover supply chain best practices from your peers

    During this on-demand panel discussion, you’ll hear from supply chain leaders on how they are continuing to lead during times of disruption. 

    Watch “Panel Discussion: Lead Through Times of Disruption in Supply Chain” to hear:

    • Real-life examples of how companies leveraged Gartner insights and tools to navigate disruption
    • Supply chain innovation and agility during times of disruption
    • How to address your most pressing supply chain challenges

    Gartner experts

    Gartner’s supply chain experts include more than 100 people worldwide.  Meet a few of our leaders who can guide you on supply chain analytics.

    Ken Chadwick
    VP Analyst

    Caroline Chumakov
    Principal Analyst

    Mike Griswold
    VP Analyst

    Noha Tohamy
    Distinguished VP Analyst

    Supply Chain Analytics FAQs

    To gain an accurate understanding of the state of analytics in your supply chain, Gartner recommends:

    • Investigating what role supply chain analytics plays in business and supply chain strategies, and what key initiatives supply chain analytics can support (e.g., greater customer collaboration, more accurate demand forecasts, lower inventory costs).
    • Examining data governance and gauging the quality and availability of the data.
    • Creating an inventory of current supply chain analytics solutions and investigating technologies that could support supply chain analytics projects.
    • Auditing supply chain analytics skills and talking with both core and extended teams to uncover the availability of required supply chain and technical resources.
    • Performing a high-level, current-state assessment in order to gain and share an understanding and overall maturity level of supply chain analytics.
    • Defining the obstacles that exist in the supply chain today in order to prioritize the challenges that analytics must address (e.g., data availability, skill set shortage, lack of funding for new technology, cultural resistance).

    Gartner recommends you communicate supply chain analytics performance via the following success metrics.

    • Financial metrics: For example, revenue growth and cost reduction.
    • Supply chain metrics: For example, demand forecast accuracy and customer order cycle time.
    • Process metrics: For example, the size of the team for preparing for the sales and operations planning meeting, or the elapsed time for generating performance metrics reports.
    • Team sentiment: This is a more qualitative metric that focuses on users' perception of the value of supply chain analytics in supporting better decision making, or freeing their time for higher value-added tasks. This metric can be used to monitor adoption and anticipate potential roadblocks on future supply chain analytics projects.

    There are four primary organizational structures for a supply chain analytics team:

    • Centralized: The supply chain analytics team is a centralized supply chain function.
    • Decentralized: Supply chain analytics competencies reside in individual business units or functions.
    • Supply Chain Analytics Needs Are Supported by an Enterprise Analytics Group: A general enterprise analytics team handles supply chain analytics needs.
    • Supply Chain Analytics Needs Are Supported by External Service Providers: An external service provider handles supply chain analytics needs.

    While some companies choose one of these, others combine them to create a hybrid organizational structure, aiming to capture the best of each and avoid individual shortcomings.

    To choose the right organizational structure for your supply chain analytics team, Gartner recommends:

    • Understanding the current and future business goals that drive analytics adoption in the supply chain.
    • Building a roadmap for supply chain analytics, clarifying the current requirements and the vision for future capabilities.
    • Assessing the current and future investments available to build a supply chain analytics competency center.
    • Understanding the current analytics skill sets in the supply chain and across the enterprise.
    • Understanding the available analytics technologies in the supply chain and across the enterprise.
    • Investigating the supply chain organization’s track record in successfully embracing various organizational structures.
    • Determining whether the supply chain group can successfully manage outsourcing relationships.

    Continually evaluating the fit of the organizational structure and adjusting based on current business needs and conditions.

    Support on Supply Chain Analytics

    Gartner provides trusted insights and objective advice to help its 2500+ supply chain leader clients build a strong supply chain analytics strategy.