Understanding the language of data is essential for business leaders who want to be successful in today’s networked, globalized world. However, this knowledge requires specialized training in specific business-oriented data tools and techniques. Those who acquire these data skills are equipped to improve all elements of any organization they work for.
The online Master of Business Administration (MBA) with a specialization in Business Data Analytics program from St. Thomas University (STU) is an ideal option for future business leaders. It combines business fundamentals with the cutting-edge insights necessary to strategically leverage data. Moreover, the skills that graduates learn in this program enable them to make data-driven decisions and optimize business functions, including the vitally important area of supply chain management.
The Impact of Data Analytics on Supply Chain Processes
According to Cambridge Spark, supply chain analytics is “the process of collecting, analysing, and interpreting data related to supply chain activities. This includes everything from sourcing raw materials to delivering finished products to customers.” While companies that create products to sell have always needed to manage their supply chains, supply chain analytics adds new precision to the process. In the past, companies have reacted to events that influence their supply chains. However, with the insights provided by cutting-edge data analytics tools, modern businesses can be proactive about their decisions, states Cambridge Spark.
There are specific steps that a leader must take to implement data analytics in their company’s supply chain. It is crucial to first define key objectives, ensure that they align with your company’s values and identify key sources of data, according to Lutz. The next steps are to prepare the data by cleaning it and ensuring its accuracy, choosing an analytics tool and developing an analytical model that suits the company’s needs. Finally, leaders must test and validate their chosen model’s effectiveness “by comparing results with actual outcomes,” states Lutz.
Benefits of Supply Chain Analytics and Artificial Intelligence
Artificial intelligence has gained traction in the business world in recent years and offers real potential to reshape the field of supply chain analytics. “AI-powered data analytics tools offer useful information about customer preferences and demands,” according to Surgere. “Unlike your human data analysts, AI can sift through mountains of data and identify helpful trends for forecasting.” In other words, AI systems can improve a company’s use of supply chains by allowing managers to sift through databases that would be too large and unwieldy for humans to parse.
AI has other significant use cases in supply chain analytics. For example, Surgere notes that AI can help companies optimize their inventory to meet real-time trends in supply and demand, ensuring that products are maintained and delivered with maximum efficiency. AI also has a role to play in improving delivery routes. As per Surgere: “AI also analyzes historical data and uses machine learning to help you plan routes based on predictive analysis. AI can assess vehicle capacity, delivery windows, and other data to refine its algorithms and develop the best route for each driver.”
Anticipating Market Changes and Customer Demand
Of all the impacts that supply chain analytics can have, one of the most significant is its role in evaluating consumer demand. Entrepreneur Jigar Dixit writes on Medium that: “By analyzing information from diverse sources such as sales records, inventory levels, and supplier performance, companies can uncover hidden patterns and trends that inform demand forecasting and supply planning.”
The company Proctor & Gamble (P&G) is a premier example of this approach in action. According to Dixit, P&G put into place a “demand sensing solution that analyzes daily point-of-sale data from retailers.” As per Dixit: “This system allowed P&G to reduce forecast error by up to 40% in some product categories, leading to improved inventory management and reduced stockouts.”
The Time to Pursue a Business Data Analytics MBA Is Now
One of the best ways to acquire essential knowledge of supply chain analytics is through an MBA in business data analytics. STU’s online MBA – Business Data Analytics program offers courses like Policy, Planning, and Strategy Systems — which gives students a chance to develop analytical and practical skills to understand the role strategic management plays in business. Another important class is Business Data Management, which provides students with the hands-on expertise to collect, curate and manage business data.
An advanced business degree in data analytics prepares professionals for careers in supply chain and beyond. Aspiring business leaders with an interest in data analytics, supply management or both should consider STU’s program.
Learn more about STU’s online MBA with a specialization in Business Data Analytics program.
