How embedded analytics can (literally) save your supply chain?

At present, and in general, the market for goods and services is characterized mainly by a less accelerated pace in supply and demand for a spectrum of goods and services, which, in turn, is very open and, particularly, rich in possibilities. The reason why this rhythm does not move at the speed that many would prefer is that there is no such thing as a single causal factor in the global market’s economic growth (and, indeed, in no country.) This can be seen as an inconvenience from the perspective of supply chains, as the current circumstances force companies and industries to adapt to the vagaries of the market. It can also be seen as a wonderful opportunity.

Many complain that growth rates have stagnated in many countries. Moreover, many speak of a major economic crisis in the coming years, and, well, anyone would be scared knowing that the emerging markets are not growing at the expected rate, but that is how it is. It would be a completely irrational position to think of a constant and generalized uniformity of the supply and demand of goods and services around the world. This is not possible, and, for this reason, industries must accept the premise that a diverse supply is so necessary (and, in fact, a condition for the market’s expansion,) as the need to increase consumption. It is important to stop crying over the low growth rates, and, instead, rather giving a new direction to product strategies. This is the only way in which industries of any nature could be incorporated into the commercial conglomerates that make up the global economy today.

What’s going on? Today’s consumers have qualities that those of the past did not have, and that is precisely one of the lines by which it is necessary to reach the entrepreneurial realization to expand the market. Consumers now have real-time information on all the products and services they consume, and therefore, are more rigorous in terms of quality standards. When it comes to manufacturing, packaging, or even shipping time, consumers will always watch if their need is met, so, any slip in the supply chain will be punished with bad online reputation. This greatly reduces the speed of business cycles, but that is how it is.

Read also: Using Technology To Improve Operation Of The Supply Chain, by David Kiger

Again, this scenario can be seen as a problem, as an opportunity; and your entire business may depend on this perspective. This hyper-connectivity, which is intensifying in all the vital processes of human beings, give free way to information technology. Who controls the data, the information, and the knowledge, controls the way in which the business processes are executed. Why are companies so interested in collecting, processing and interpreting data? Simply because they can have more control in all supply chain operations processes and logistics in general since this means more competitiveness. It means better products and services. It means better reputation. It means being a better option in the eyes of the consumer; and this, in a slow-moving economy, is a vital necessity.

Increase sales by leveraging price analysis, optimizing platform availability, macro range and optimization of space, customer segmentation, and optimization of promotion: They all take growth by up to 5.2 percent. Embedded analytics increase the gross profit by leveraging marketing and analytics campaigns, brings rebate optimization and multi-channel optimization. It means a 5.2% increase in gross profit. Embedded analytics reduces the operating costs by leveraging staff productivity and utilizing, acquiring and analyzing activity-based costing. It reduces operating costs by as much as 40 percent. Just saying.

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Image courtesy of janholmquist at

Therefore, the existence of a more fragmented customer base, with more diverse demands, a deeper knowledge and access to global information, with a growing supply of competitors, with a reduction in the life cycle of the products launched to the market (and with offers in different and simultaneous channels,) makes the implementation of an embedded supply chain analytics solution necessary for those organizations that are aware of the need to be able to not only respond quickly to the needs of their customers, but to anticipate them properly. Furthermore, the increase of the transactions is not the only thing in the minds of CEOs. Increasingly, in a world where analytics plays an important role, sharing knowledge is a valuable resource due to the penetration of supply chains on the web.

It is a fact. The incorporation of all the elements that articulate the new supply chain scenario forces the organizations to define a strategy for the development of digital capacities. It would be simple, useless to acquire the latest software if you do not know how to use it to improve the processes of your company. Keep in mind that both people, objects, and systems will be increasingly connected through data communications, transforming the value chain into something larger, more robust, with greater potential, a network where individuals and organizations move towards the same goal, as one perfect machinery that does not stop.

Recommended: How Embedded Analytics can Measure the ‘Pulse’ of Your Supply Chain Operation

* Featured Image courtesy of NASA Goddard Space Flight Center at


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