In today’s increasingly competitive global marketplace, as organizations go digital and decisions become more data-driven, the need to effectively regulate and optimize supply chains is greater than ever. Relying on conventional solutions is becoming increasingly less viable, especially amid increasing consumer expectations, pricing pressures, and unforeseen market fluctuations such as those caused by the ongoing COVID-19 pandemic.
Consequently, the supply chain analytics industry is rising to prominence worldwide. The use of smart analytics combined with AI and IoT helps deliver real-time performance visibility and insights, providing businesses with the operational agility to minimize the impact of unforeseen events and allowing them to gain a competitive edge.
Reportedly, more than 29% of businesses implementing supply chain analytics achieved higher levels of ROI, compared with 4% that did not achieve any ROI. As technologies such as AI and IoT become more commonplace, companies could witness further benefits through supply chain analytics implementation. Organizations will not only have far greater supply chain intelligence but will also become more efficient, preventing disruptions while supporting new business models.
Projections based on a research analysis by Global Market Insights, Inc., show that the supply chain analytics market size could reach nearly US$10 billion by 2027. Oracle Corporation, IBM Corporation, Sage Clarity Systems, Blue Yonder Group, Inc., Tableau Software, LLC., Infor, Capgemini SE, Bridgei2i Analytics Solutions Private Limited, and Antuit.ai are currently some of the big names in the sector.
Let us now understand why supply chain analytics in the manufacturing segment is emerging as a key component, how the recent pandemic has impacted supply chain dynamics, and the ways analytics is helping businesses strengthen their supply chains and operations.
Manufacturing analytics continues to witness an upward growth trend
At a time when Industry 4.0 and industrial IoT (IIoT) is transforming the manufacturing sector, real-time analytics is becoming essential for businesses to improve the speed of decision making and take better actions. According to a survey, after implementing manufacturing analytics, 80% of manufacturing companies reported better than anticipated results.
As the demand for analytics at production facilities expands, tech firms are focusing on bringing new solutions to the market.
Last year in September, for instance, HCL Technologies had rolled out an easy-to-use manufacturing analytics platform called MINTVIZOR for plant managers and factory personnel. The solution delivers real-time monitoring and analytics to drive decision-making for improved product quality, higher throughput, and reduced downtime.
Citing another recent instance, in January 2021, software company Tavant Technologies had announced the implementation of the AI-enabled Tavant Manufacturing Analytics Platform (TMAP) at Japanese machinery equipment maker Kubota Tractor Corporation. The platform will power the Kubota Quality System (K-QA) to track the effects of in-field equipment with an accuracy of over 93%. As evident, the manufacturing analytics segment is emerging as a lucrative domain across the global supply chain analytics market.
COVID-19 disruptions to reinforce supply chain analytics industry trends
The COVID-19 pandemic and subsequent impacts have disrupted supply chains globally. Accenture reported that approximately 94% of Fortune 1000 companies are experiencing supply chain-related challenges due to COVID-19.
The ongoing crisis is completely transforming the ways in which organizations handle supply chains. While the complete impact of the pandemic is still unclear, one thing which is for certain is that it will have worldwide economic consequences experienced through supply chains, from raw materials to finished products.
With the global pandemic bringing new challenges and bottlenecks, businesses urgently need to optimize their supply chains in order to address the volatile demand. Analytics could help businesses achieve supply chain optimization and gear up to deliver quality products at low cost and derive high-profit margins. Additionally, supply chain analytics can help organizations forecast and plan for unforeseen events, providing them the ability to navigate disruptions in advance.
Providers of supply chain analytics are looking to capitalize on the emerging market opportunities by launching new products and upgrading existing ones. For instance, in January 2021, Oracle Corporation had announced new upgrades to its Fusion Cloud SCM platform for improved process optimization. The platform could help shippers boost supply chain efficiencies.
Analytics solutions will be a core business component in 2021 and beyond as stakeholders get operations up and running with the gradual ease of lockdown restrictions. AI, IoT, IIoT, Industry 4.0, and digital trends will only drive the supply chain analytics market forward in the near future. Healthcare, transportation & logistics, and energy & utilities could emerge as the major adopters of analytics solutions as more and more of them incorporate technology to strengthen, regulate, and optimize their supply chains.
Global Market Insights, is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.