“Supply chain, across industries, constitutes about 50-80% of the value add.” Kaveh Taghizadeh, the Vice President MESA SCM & Procurement at KPMG, knows that fully understanding the entire supply chain should be a primary business requirement. For an organization to better understand their supply chain, diving into analytics would be a logical development.
According to Dr. Philipp Biermann, a partner in the Competence Center Transport & Logistics at Simon-Kutch & Partners, “Some sectors sometimes spend up to 10% of their revenues on all logistics related activities. Unfortunately too many companies have not established an integrated view on their supply chain…However, in a faster moving world your supply chain might even become a competitive differentiator because you are able to respond faster to new consumer trends.”
While some companies do have well-established analytics integrated into their supply chain management process, many do not generate the right type of data. “This misunderstanding often leads to investments in the wrong type of support systems… when implemented correctly, an investment into the improvement of the Analytics of the supply chain is something that firms should be undertaking.”