What is Advanced Supply Chain Management & Analytics?

When you come across the term “Supply Chain Management”, what do you think?

Most people picture — warehouses, trucks, or shipping containers moving goods from one place to another.

But that’s just scratching the surface.

Today, supply chains have gone way beyond logistics. Modern businesses are handling global networks, real-time customer demands, as well as unpredictable market shifts. 

And that’s where the advanced supply chain comes into play.

In simple words, an Advanced supply chain integrates data, technology, and smart analytics to make better decisions in the business. Right from predicting customer demand to cutting down costs and managing risks – every aspect is data-driven. 

And guess what? Companies are investing massively in it.

Big corporate giants like – Amazon, Flipkart, Zara, and Unilever aren’t just running on warehouses and trucks anymore. They are operating on real-time data, predictive analytics, and smart technologies of AI, IoT and Blockchain.

A data-driven approach has compelled the supply chain industry to move from being a “good-to-have” to a “must-have” strategy for companies across the world.

Let’s explore in detail why Advanced Supply Chain Management & Analytics is booming in the market and how it is opening exciting career doors for professionals like you.

Why is Supply Chain Management No Longer Just About Logistics?

Earlier, supply chain management (SCM) was mostly about warehouses, transportation and timely deliveries. 

But the world has changed. Today -

1. Customer expectations for faster, cheaper and transparent deliveries have increased.

2. Companies like Amazon, Flipkart and Zomato have completely redefined the supply chain game. 

According to a report by McKinsey, 93% of supply chain leaders are planning to make their supply chains more resilient post-pandemic. 

Did you get it?

In short, the modern supply chain is no longer just about logistics. It is about strategy, technology, data and customer experience. 

What Makes It Advanced? — Tools, Tech & Trends Shaping Modern Supply Chains

So, what is “Advanced” in Advanced Supply Chain Management and Analytics? 

Well, it is the integration of the latest technologies.

To excel in the supply chain field, professionals need a strong blend of technical expertise and soft skills:

• Artificial Intelligence (AI) & Machine Learning (ML): These technologies are used to predict demand patterns and automate decision-making processes.
  
  For example, businesses utilize AI to forecast out-of-stock scenarios and alert retailers proactively. 

• Internet of Things (IoT): IoT devices provide real-time tracking of goods, enhancing visibility and reducing the chances of losses.
  
  For example, large shipping companies use IoT-enabled smart containers to track temperature, humidity, and location in real-time while transporting sensitive cargo like pharmaceuticals or fresh food. 

• Blockchain: This technology is crucial for transparency and security in transactions. It is used for verifying authenticity and tracing of products across every stage of the supply chain.
  
  For example, global food giants use blockchain technology to trace the journey of their food products (like mangoes, meat) from farm to the supermarket shelves within seconds.

• Big Data Analytics: Big Data Analytics: The data-driven tools process vast amounts of data to uncover insights. These help businesses make informed decisions and strategic planning.

• For example, big eCommerce giants use data analytics to predict product demand, manage inventory in real time, and personalise customer recommendations. In fact, such predictive analytics models help reduce delivery time and operational costs to a large extent. It ensures that the right products are stocked based on customer buying behaviour.

The 5 Types of Supply Chain Analytics You Should Know

The five primary types of supply chain analytics are —- descriptive, diagnostic, predictive, prescriptive, and cognitive. Explore how each functions below.

1. Descriptive Analytics — “What’s Happening?”

This tells you what’s going on in your supply chain right now. It helps track things like inventory levels, delivery status, or overall performance.

Example – How much stock do we have left? How fast are we delivering orders?

2. Diagnostic Analytics — “Why Did It Happen?”

This digs deeper to find out the reason behind a problem. It helps you figure out what went wrong.

Example – Why did shipments get delayed last month? What caused low sales in a specific region?

3. Predictive Analytics — “What Could Happen Next?”

This is all about forecasting. It uses past data to predict future trends and challenges.

Example – How much demand should we expect next season? Is there a risk of stock shortage?

4. Prescriptive Analytics — “What Should We Do About It?”

This suggests the best actions to take. It helps in making smart decisions to avoid problems or improve processes.

Example — How can we optimize delivery routes? What’s the best way to manage inventory?

5. Cognitive Analytics – “Let AI Handle the Heavy Lifting”

This is the most advanced type. It uses AI and machine learning to process large chunks of data quickly and provide accurate solutions.

Example —  Using AI to automatically predict customer demand patterns or identify risks in the supply chain in real-time.

How Does Supply Chain Analytics Work in Real Business Scenarios?

If you’ve ever wondered — how do big companies like Amazon deliver millions of packages on time? Or how does Starbucks never run out of your favorite coffee beans even in remote locations?

Well, the secret behind all this magic is Supply Chain Analytics. SCA helps companies turn their raw data into smart decisions. It’s no longer about just moving goods from one location to another, but using data to predict, plan, and perform better than ever. 

These tools collect huge amounts of data from different points of the supply chain — like inventory, suppliers, customers, transport, warehouses, etc. They analyze these data to find patterns, predict future risks and suggest solutions. 

According to the Deloitte Supply Chain Survey, 2023,  Companies that use advanced supply chain analytics improve their operational efficiency by 20% and reduce supply chain costs by 16%.

Let’s discuss some real-life examples to illustrate things further. It will help you understand how supply chain management and analytics work in real business scenarios. 

(a) Forecasting Demand — How the World's Big Retailers Do It? -- (Like Walmart)

Imagine you own a retail store. You need to know: 

• What products will sell the most next month?

• How much stock do you need?

• What if demand suddenly spikes?

The largest retail giants use predictive analytics to track customer buying habits, seasonal trends, and even local events to stock their stores smartly.

Outcome - This helps them avoid overstocking (which increases storage costs) or understocking (which leads to lost sales).

(b) Reducing Delivery Delays — How Global eCommerce Giants Do It? --- (Like Amazon)

Global eCommerce giants use real-time analytics to track shipments, monitor traffic conditions, weather updates, and driver routes.

Outcome - This data helps them find the fastest delivery routes, avoid delays, and send live updates to customers.

(c) Minimizing Risks — How the World's Biggest Food Companies Do It? --- (Like Coca-Cola)

Supply chain risks are real — supplier failure, raw material shortages, or transportation strikes.

Big food/beverage companies use prescriptive analytics to prepare backup plans. For instance, if one of their sugar suppliers fails, the system automatically suggests alternate suppliers based on cost, quality, and location.

Outcome - This keeps their production running smoothly. 

(d) Looking into Inventory Management — How the Leading Fashion Brands Do It? --- (Like Zara)

Leading fashion brands use supply chain analytics to track which designs are selling and which are not — in real time. Suppose, if a product isn’t performing well in a particular store, they either lower the production or send it to a store where demand is higher.

Outcome - This agility allows the company to refresh its collection twice as fast as competitors.

Skills You Need to Succeed in Advanced Supply Chain Management & Analytics

It is true – the future of the supply chain belongs to professionals who can blend technical know-how with analytical thinking and smart communication.

For advanced supply chain analytics, you need more than just traditional skills.
Here’s a quick list of must-have skills that you need to succeed in —

1. Develop the Data Analytics Skills

Supply chains generate tons of data, from orders and deliveries to customer feedback.

You should know how to read that data, analyse patterns, and use tools like Excel, SQL, Power BI, or Tableau.

2. Know the Application of Supply Chain Tools 

One needs to be familiar with tools like:

1. Deloitte Analytics Platform

2. IBM Sterling Supply Chain Intelligence Suite

3. Tableau

4. PeopleSoft Supply Chain Analytics

3. Boost your Problem-Solving Abilities

Your everyday challenges may revolve around unexpected delays, supplier issues, and stock-outs.  Supply chain professionals need to be quick at finding apt solutions.

4. Work on your Communication Skills

Supply chain teams work with suppliers, warehouses, logistics, marketing, and customers.

So clear communication is utmost essential. 

5. Sharpen your Business Acumen

Supply chain decisions directly impact profits. So, take care of the financial matters - like 

cost management and budgeting, that help you boost ROI and profitability.

6. Get Adapted to New Trends

Supply chain trends keep changing — from green logistics to automation.

Professionals who stay updated with the latest trends will always have an edge.

7. Enhance your Project Management Skills 

Coordinating multiple teams, vendors, and timelines requires solid project management skills. For businesses, tools like Jira, Trello, or MS Project come in handy.

Careers & Salaries: What’s the Scope of Advanced Supply Chain Professionals?

We all know the supply chain used to be a back-end job.

But, not anymore 

With rising e-commerce, global trade, and customer expectations, the supply chain has moved to the front. Today, companies are seeking professionals who can manage supply chain operations smartly – along with data-driven AI tools.

Here’s a list of popular career roles you can choose in the advanced supply chain (along with the salary). These job roles are broadening the scope for supply chain professionals and helping them become more versatile and future-ready in the highly competitive market. 

Source: Ambition Box

How Can You Upskill in Supply Chain Analytics?

Advancing your expertise in advanced supply chain requires a commitment to continuous learning –

• Upskill Programs: It is rewarding to enroll in career-driven courses that focus on supply chain analytics and the latest technologies.?

• Certification courses: You can go for short-term certification courses from top-tier universities like the executive development program in Advanced Supply Chain Management & Analytics from IIM Kashipur and IIM Rohtak.

• Simulations: If you engage in real-life-based projects and simulations, you’ll be able to understand the application of analytical tools in real-world business scenarios.?

The Bottom Line

Advanced Supply Chain Management & Analytics has been a game-changer for businesses. 

So, if you want to stay relevant in the market, you need to enroll in career-driven short-term courses to develop your in-demand skills. These courses help you with a unique cross-functional perspective that drives business growth. Some of the most popular courses in advanced supply chain management are as follows: 

• IIM Kashipur's advanced supply chain management and analytics certification program to develop your in-demand skills. 

• IIM Rohtak’s advanced supply chain management certification program.