Supply chain analytics can be both a blessing and a curse. While data about a company is gold, it is messy gold. The sheer amount of available data is overwhelming; the task of organizing and understanding it may seem daunting. The question is, how can a company turn this data into something valuable? The answer lies in the creation of actionable insights.

Figure 1: Actionable insights are closely aligned with the key business goals of a company.Actionable insights backed by data-driven analytics can help companies plan and make informed decisions for the future. When these insights are closely aligned with the key business goals of a company, they can play an essential role in the creation of a successful business strategy.

Generating actionable insights starts with capturing and analyzing data related not only to company goals, but also to any obstacles standing in the way of achieving them. Focusing on what is most important to the company is the primary goal of teams tasked with collecting and analyzing data.

Breaking data into segments corresponding to different areas of the company is one way to make it easier to gather. Each data segment also should be analyzed by a team member with expertise in that area, who can generate their own insights. When insights from all stakeholders are brought together, a clear roadmap for moving forward will begin to emerge.

Data collection teams should keep in mind that analytics from any part of the supply chain can drive the creation of insights. For example, a company that creates chip wafers must focus on the high amount of water use involved in production. A look at sales analytics may reveal that the city where the chip foundry is located charges a premium on water during certain times of the day, as part of its conservation efforts. One actionable insight that can be derived is that the company is paying more for water than it needs to. The action that can then be taken is to change the production schedule to avoid the premium fee times.

Actionable insights can challenge current company beliefs, encourage evolution and reveal new patterns. Those responsible for producing insights should be prepared for surprises.

While the gold that data represents may seem messy, taking an organized and strategic approach to developing actionable insights can help a company figure out what it is doing right, what it is doing wrong and what needs to change to create a successful future. With the right approach, supply chain analytics can be invaluable to any company’s success.