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.
2
3
4
5
6
7
8
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
11
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
12
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
13
14
15
16
17
18
19
20
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.
21
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.
22
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
23
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
24
The landscape for supply chain analytics
Slightly more
complex
25
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
26
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
27
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
28
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
29
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.
30
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
31
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
32
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
33
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
34
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.
35
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.
36
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
37
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
38
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
39
The benefits of B2B integration
40