Supply chain analytics is used by any organization to improve its overall efficiency at the operational level by analyzing the mass of data generated throughout  the entire chain of sourcing, manufacturing , distribution and logistics.The data generated are used to improve the revenue growth, working capital , improve the service level, alignment of the inventory with the demand, optimization of logistics involved and eliminate wastages at all the levels of the organization.Nowadays Companies use analytics  evento analyze sentiment data from social media to understand what the customer expects from the next product.

But applying Supply Chain Analytics formula is not a mean task. Coming out with a strategy that takes the company towards the right mix of insight and operations which is typical to a company is difficult.  Following challenges are faced by a company when they decide to modernize the supply chain either by going for a software tool or implementing a customized service.

  1. Cost: These analytical tools are very expensive to get and maintain. Implementing it throughout the organization incurs huge cost. The expected returns by implementing the software takes lot of time.
  2. Effort: The effort required to implement and maintain such enterprise software takes a lot of effort. Sometimes during integration of a standalone software to the company’s technological systems does not interact well with other systems.
  3. Need of experts: People are required with expertise to run the software. They need to be hired or trained and both put strain on the company’s purse strings. Taking too much time to get the required resources, will make the company fall behind.
  4. Work together: The required teams to run the Supply chain analytics need to work together and not in isolation in case of any disruptions. All teams within an organization need to work together, to put the systems up and running, without the risk of failure or risk of being shut down. They must collaborate well with their colleagues as that’s the driving force behind any company.
  5. Change of technology: Supply change analytics is changing each minute. The RFID and new IOT based sensors coming in to play, create different kind of data, which also needs to address.


Though there are some challenges of implementing Supply chain Analytics, we cannot deny its importance for any organization. Because of so much competition in the business world, it’s needed to have an edge above their competitors, which is achieved by going through the data available and making sense of it by the company. Studies show that the top management of most of the companies is working towards the analysis of the data generated at each step of the supply chain to operate more efficiently.