Supply chain analytics has become an imperative part of any business to help better predict the future demand

Supply chain management is arguably the most important process for businesses to remain competitive. With supply chain management, companies are able to reduce costs, improve service, and optimize internal operations. However, in view of the limited impact of big data, two major obstacles stand in the way of the application of a systematic approach to improving supply chain management. First, there's a lack of available resources. Even those with a top-level level of technical expertise have very little expertise in the statistical analysis tools used by big data experts. Second, there's a widespread lack of standardized rules to adhere to. Despite the rise of new computer-based tools, many companies still rely on old, administrative procedures and systems.

Supply chain analytics requires that organizations develop a formal methodology. Supply chain management must be modeled using a formal mathematical framework, such as the logistics equation before it can be analyzed. This formal framework must describe the relationships among individual aspects of supply chains, such as routes of supply and finished goods as well as it must take into account the interdependence among them. Without a formally specified method of modeling supply chain dynamics, it's impossible to apply big-data tools such as mathematical equations to operational problems.

As a result, many supply chains fail to apply the analytical tools on a regular basis. Some companies use data-driven decisions only when they have a legal mandate or a competitive advantage to do so. However, managers may apply supply chain analytics only to a narrow range of issues. They may not apply data-driven decisions everywhere because the associated information is hard to collect and process or they may not use big data to evaluate smaller issues because they do not yet understand the importance of those issues for their businesses. Recently, in July 2019, Holisol Logistics Private Limited in partnership with Cogneau Systems Private Limited launched an AI-powered supply chain visibility and analytics platform named Verdis (virtual data scientistTM).