The Role of Analytics in the Supply Chain


Simon Pleass Managing Director at

Monday, January 9, 2023

When you have access to the correct analytics, it's much easier to find ways to optimize your supply chain.

Infographic 9 Minutes
The Role of Analytics in the Supply Chain

The collection of data and information that provides insights into logistics operations, from inventory management to fulfilling and shipping orders, is referred to as supply chain analytics.

With the continued expansion of ecommerce, there’s more demand to establish a lean supply chain while also meeting customer expectations for speedy, low-cost shipping.

By using technology, tools and other resources to collect real-time data on everything from inventory flow to shipping performance, online retailers may make better judgments about how to manage their supply chain in order to save money, speed up processes and enhance accuracy.

What is supply chain analytics software?

Supply chain analytics software is a technological solution that integrates data from various sources and segments of the supply chain, including third-party providers.

It frequently includes not just raw data but also visualisations that can be viewed and evaluated from a single dashboard, as well as specialized reporting tools.

A typical supply chain analytics solution provides information about inventory forecasts, product allocation, fulfilment performance, logistics costs, order accuracy rates and other topics.

How supply chain analytics can benefit your business

Supply chain analytics can assist a company in better planning for the future as well as the unexpected, ultimately resulting in supply chain resilience. An overview of what supply chain analytics can perform is provided below.

1. Assist in forecasting future demand

Supply chain forecasting is essential for establishing a strong supply chain. And supply chain analytics, which collects and aggregates previous inventory and order data, are required to provide insights into future demand and patterns.

This way, you'll know how much inventory you'll need at any given time, whether it's month to month or season to season.

Demand forecasting is critical if you want to avoid both stockouts and stockpiling excessive inventory (such as dead stock, which can increase carrying costs).

2. Reduce risks

You can notice trends form and uncover potential dangers by deploying tools that help you gain a clearer picture of how your supply chain is working.

The key to lowering risk is adequate supply chain planning so that if something unexpected happens, you and your team will be able to respond quickly and keep your supply chain afloat. Better planning, on the other hand, necessitates greater access to data and analytics.

With the correct data, you might see a shift in production lead times, resulting in longer turnaround times for inventory receiving and, eventually, fulfilment.

You can respond swiftly by having a chat with your supplier, altering lead times, or deciding to diversify your supplier network if you use data to obtain additional insight into the first-mile delivery phase.

3. Optimize supply chain

Supply chain analytics enable you to monitor supply chain performance from warehouse receipt through shipment.

When you have access to the correct analytics, it's much easier to find ways to optimize your supply chain. Supply chain changes can be made quickly with the proper combination of technology and enhanced business processes.

You will greatly reduce inefficiencies and save on overall costs by continually looking for methods to optimize processes, whether through enhanced operations and warehouse management or a reduction in overall expenditures.

Check out the infographic below by 2Flow which takes a further look into analytics in the supply chain.

2Flow visual on the importance of analytics in the supply chain


Simon Pleass

Simon Pleass is the Managing Director at, an outsource fulfilment partner specializing in handling inventory based in Dublin, Ireland.


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