The power of harnessing data for supply chain management

Several industries are experiencing great change brought about by the use of advanced analytics to identify trends and opportunities. Gone are the days when supply chain analysts had to wait days or weeks for IT services in order to change the metrics they were currently viewing, or dealing with vast quantities of data to identify small nuggets of useful information. 

Forbes recently explored how Proctor and Gamble harnessed the power of analytics during the North American 3PL Summit and Chief Supply Chain Officer Forum in Chicago. During the summit, Julio Nemeth, SVP of Product Supply, spoke about some of the new ways that analytics are helping the company seize new opportunities. 

Nemeth talked about how many organizations are moving away from pre-fabricated supply chain systems and are adopting "fully interconnected platforms" that are capable of learning and increasing efficiency on a day-to-day basis. He believes that the introduction of a "real-time instrumented supply chain" is near, and that the advancement could result in a 1-2 percent sales increase, 2-5 percent margin improvement, and 5-10 percent improvements in asset utilization.

During his talk, Nemeth discussed how supply network design has far surpassed focusing on simple plant locations, and now includes viewing the supply chain system as a whole. Because logistics costs are now higher than manufacturing costs, analytics allow Proctor and Gamble to look at factors like transportation reliability and location of suppliers. 

As advanced analytics continue to cover new ways that organizations can reduce expenses and increase efficiency and profitability, the importance of retaining a supply chain management consultant that is aware of the latest advancements increases. These experts can offer expert, targeted advice that can help your organization seize opportunities and take advantages of new technology as it becomes available.