A study supports the concept of an analytics culture built on advanced data management processes, technologies, and talent. SCAG can strengthen firms’ core features, such as ambidexterity, adaptability, and swiftness, enabling them to upgrade their performance in terms of sales, profit, and return on investment. SCAC can improve end-to-end supply chain productivity and eliminate market fragmentation. The study finds a significant positive relationship between SCAC and firm performance, with a mediating effect on supply chain agility. This could guide managers in investing in SCAC and considering complementary assets like supply chain agility to achieve a continued competitive advantage. SCAC can accelerate FPER by establishing robust agility in operations.
Keyword: Supply Chain Analytics.
Supply chain analytics refers to the processes organizations use to gain insight and extract value from the large amounts of data allied with the procurement, processing, and distribution of goods. Supply chain analytics is an essential element of supply chain management (SCM). A few examples of supply chain analytics include demand planning (using historical data and other factors to predict what customers will order); sales and operations planning (manufacturing and/or purchasing the things an organization needs to cover forecasted demand); and inventory management etc.
Supply Chain Analytics Capability (SCAC)
Bowers et al. (2017) present the conceptual case of a U.S.-based manufacturer and marketer of basic apparel that is using SCAC to enhance supply chain responsiveness. Laila and Richardson (2015) argue that SCAC could improve end-to-end supply chain productivity, while Orenstein et al. (2016) reported that if the supply chain data streams from multiple logistics providers would be integrated, this could eliminate current market fragmentation, enabling powerful new collaboration and services.
Application of SCAC model
There is a significant positive connection between SCAC and firm performance as well as a mediating effect of supply chain agility on this relationship. These findings could guide managers’ decisions to invest in SCAC. They should also contemplate investing in complementary assets such as supply chain agility in order to achieve a high-level sustained competitive advantage. Furthermore, firms should invest in an appropriate business model enabled by SCAC.
SCAC is a driver of FPER
The importance of overall SCAC is associated with construct and sub-construct levels. For example, the role of supply chain management capability (SCMAC) is determined by the level of planning, investment, coordination, and control. Similarly, technology and talent capability could be improved by enhancing their sub-dimensions respectively. These findings have a direct impact on industries such as retail, manufacturing, and healthcare, which constantly struggle to develop analytics capabilities. For example, by developing SCAC and agility, supply chain managers could enhance firm performance and thus create new products and services (70%), increase sales and revenue (76%), and expand into new markets (72%) (Columbus 2014). Overall, the findings of the study propose SCAC as a driver of accelerating FPER (explaining 77% of the variance) by establishing robust agility in operations (44% of the variance). Overall, the empirical findings of a study answer research, and provide adequate evidence for the conceptual foundation of Kiron, Prentice et al. (2014, p.10) that an analytics culture is built on the backs of more advanced data management processes, technologies, and talent.
SCAG has a significant positive impact on firm performance
Supply chain agility can improve firm performance through the mediating role of other dynamic capabilities, SCAG depends on SCAC to implement and leverage the sub-dimensions of various analytics capabilities. Fosso Wamba et al. (2017) highlighted the dynamic capability of SCAG to sense, seize and transform supply chain processes in order to synchronize demand and supply. According to the extant research on supply chain management, a high level of SCAC can strengthen firms’ core characteristics such as ambidexterity, adaptability, and swiftness. Therefore, firms can upgrade their performance in terms of sales, profit, and return on investment if their supply chain processes are robust. Thus, we hypothesize that SCAG, as a strategic dynamic capability, will mediate the relationship between SCAC and FPER.
To understand the concept of supply chain analytics we need to understand SCAC, FPER, SCAC, etc., and need to know about the implementation side of it. Supply chain analytics can identify known risks and help to predict future risks by spotting designs and trends throughout the supply chain. By analyzing customer data, supply chain analytics can help a business better predict future demand.
Fosso Wamba, Samuel and Akter, Shahriar: Understanding supply chain analytics capabilities and agility for data-rich environments 2019, 1-26. https://ro.uow.edu.au/gsbpapers/581
Bowers, M. R., A. G. Petrie and M. C. Holcomb (2017). “Unleashing the Potential of Supply Chain Analytics.” MIT Sloan Management Review 59(1): 14-16.
Orenstein, P., D. Ladik and S. Rainford (2016). “What are the Key Drivers of Future Supply Chains?” Journal of Accounting, Business & Management 23(1): 31-40.
Roßmann, B., A. Canzaniello, H. von der Gracht and E. Hartmann (2017). “The future and social impact of Big Data Analytics in Supply Chain Management: Results from a Delphi study.” Technological Forecasting & Social Change.