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