Strategic Supply Chain Analytics: Engineering Cost Optimization and Performance Enhancement


It’s no secret when you hear that Supply Chain success has a significant impact on the growth. Resilient supply chains kept the world functioning through the pandemic and as international boundaries seem to diminish, well-designed and efficiently managed supply chains can significantly contribute to international growth and cost optimization.  

One of the key enablers of a successful supply chain is strategic data analytics. Organizations can leverage data-driven insights, to make informed decisions, identify operational inefficiencies, and unlock new avenues for growth. In this blog, we will explore how strategic supply chain analytics can drive growth metrics –  supported by numbers, statistics, and real-world industry examples. 

Industry Size and Forecast: 

The global supply chain analytics market has witnessed remarkable growth in recent years and is projected to continue its upward trajectory. According to market research firm Grand View Research, the market size was valued at $4.43 billion in 2017 and is expected to grow at a CAGR of 20.27% during the period 2022-27. North America is estimated to contribute 39% to the growth of the global market over the forecast period. This rapid expansion signifies the growing focus on data analytics among organizations in driving efficiency, cost savings, and competitive advantage. 

The increase in omnichannel volume, combined with ongoing pressures in the labor market and challenges in the macroeconomic environment, is forcing retailers to rethink their operations and highlighting the need for investments in both deep learning and automation. Retailers are seeing faster inventory churns and inventory misalignments due to shifts in customer patterns, while poor visibility into inventory leads to delays and higher costs, which results in lost sales and an impact on margins. Retailers are now focusing on aligning their supply chain with their omnichannel customer aspirations. 

Enhance Supply Chain brilliance with Data Analytics 

Nearly every organization has been impacted by commodity volatility, shifting demand projections, and supplier-specific challenges, even the ones with the best-managed supply chains in the world.  

Take a look at how the most intelligent supply chains are redefining efficiency. 

In recent years, there have been a growing number of stock-outs during times of unforeseen demand. 

The fact that supply chain visibility and analytical models are often founded in hindsight is a major factor in this type of underperformance. Making judgments based on past events no longer offers a competitive edge. 

Leveraging Demand Forecasting

Effective demand forecasting is the backbone of supply chain optimization. By analyzing historical data, market trends, and customer behavior, organizations can predict demand patterns with greater accuracy, leading to improved inventory management and reduced carrying costs. According to a study by Deloitte, companies with accurate demand forecasts achieve 15% lower inventory costs on average, allowing them to free up capital for other strategic investments. 

Improving Supplier Relationships

Organizations can analyze their supplier relationships with the aid of data analytics. Companies can find failing suppliers, negotiate better terms, and create long-term partnerships that result in cost savings by analyzing delivery times, quality standards, and price. According to a McKinsey analysis, companies may save their procurement costs by 15% on average by actively managing their supplier relationships.  Retail giant Walmart put in place a sophisticated analytics system to optimize its supplier base. Walmart reduced costs and increased supply chain efficiency by looking at supplier performance data. According to the company, a 1% increase in supplier performance leads to a $10 million boost in operating profitability for every $1 billion in sales. 

Improving Operational Efficiency

Organizations may discover bottlenecks, restructure processes, and improve operational efficiency with the help of supply chain analytics services. Organizations are able to pinpoint areas for improvement, get rid of waste, and cut costs by analyzing data from all stages of the supply chain, from procurement to warehousing to transportation. Companies that optimize these processes can save up to 20% in costs, according to a survey by Accenture. Global logistics company UPS employs data analytics to streamline delivery routes and reduce fuel usage. UPS decreased its annual mileage by 85 million miles by looking at traffic patterns, client locations, and previous delivery data. This resulted in cost savings of more than $50 million annually. 

Risk mitigation

Disruptions in the supply chain can significantly affect costs and output. Organizations can use supply chain analytics services to anticipate potential risks, create contingency plans, and lessen the effects of disruptions. Organizations can proactively identify vulnerabilities and adopt risk mitigation methods by analyzing data from a variety of sources. Companies that successfully manage supply chain risks incur 50% lower costs than their competitors, according to a PwC report. 


Strategic supply chain analytics is a powerful tool that can drive cost optimization and performance enhancement. By leveraging data-driven insights, organizations can make informed decisions, optimize supplier relationships, enhance operational efficiency, and mitigate risks. As industry examples have demonstrated, companies that embrace data analytics gain a competitive advantage. And reduce costs, and position themselves for sustainable growth. 

We at Polestar Solutions specialize in helping to optimize your Supply Chain with the help of customized solutions for every domain of your business – from Effective Inventory Management, Supply Network Optimization, Capacity Planning, Production Planning, and Sourcing Planning. 

Our team of experts, who have experience in implementing Anaplan for Fortune 500 clients, unicorns, and small to medium enterprises. Also, ensure that you are working towards a long-term strategy on supply chain excellence and staying clear of the competition. 

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