Retailers turning to forward-looking analytics more than manufacturers

A new supply chain analytics benchmark study from American Shipper found that manufacturers are relying on analytics based on historical data almost twice as much as retailers and LSPs.    Retailers have cited increased supply chain visibility and reduced freight spend as the primary benefits of business intelligence tools, according to new research from American Shipper.
   However, a new study released Wednesday, You Can’t Manage What You Can’t Measure: Supply Chain Analytics Benchmark Study, also found that while 65 percent of retailer respondents see visibility as a primary benefit of analytics, only 47 percent of retailers are actually using analytics for visibility.
   “This indicates there’s a gap between vision and action,” said Eric Johnson, research director at American Shipper and author of the study.
   The benchmark report also found that retailers are slightly more likely to use forward-looking iterations of analytics (known as predictive and prescriptive analytics) than manufacturers, who are nearly twice as likely to use descriptive analytics.
   The study also looked at the number of BI tools shippers and LSPs use and found that the majority of companies are using three or fewer systems, while LSPs are three times more likely than shippers to use a single tool.
   “This makes sense, as LSPs are often in the position of being analytics consumers and providers,” Johnson said. “They need to be seen by their customers as providing analytics through a single platform that spans many logistics functions.”
   Johnson said the benchmark study, the first of its kind, was developed to get a better understanding of how shippers and LSPs procure and consume analytics. The research found there are myriad uses, motivations, sources and benefits for companies to incorporate analytics into their supply chains.
   “Not surprising since analytics and business intelligence is such an emergent discipline within supply chain,” he said. “I believe we’ll begin to see companies turning more and more to data scientists, both inside and outside their organizations, to help them understand what all the data they produce actually means.”
   The free report is available for download here.