{"id":1891,"date":"2025-01-31T17:53:15","date_gmt":"2025-01-31T17:53:15","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/supply-chain-analytics\/"},"modified":"2025-08-05T01:44:01","modified_gmt":"2025-08-05T01:44:01","slug":"supply-chain-analytics","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/supply-chain-analytics\/","title":{"rendered":"Supply Chain Analytics 101: An Ecommerce How-To (+ Use Cases)"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is supply chain analytics?<\/a><\/p>\n\n\n\n

Why supply chain data analytics is crucial for ecommerce businesses<\/a><\/p>\n\n\n\n

5 types of supply chain analytics<\/a><\/p>\n\n\n\n

Supply chain analytics tips and best practices<\/a><\/p>\n\n\n\n

Cut costs and scale faster with ShipBob\u2019s smart supply chain analytics<\/a><\/p>\n\n\n\n

Supply chain analytics FAQs<\/a><\/p>\n\n\n\n

<\/a><\/p>\n<\/div>\n\n\n\n

If you can\u2019t measure something, how will you improve it?<\/p>\n\n\n\n

This concept applies to many areas of business, and the supply chain is no exception.<\/p>\n\n\n\n

Finding ways to optimise your supply chain can make all the difference in delivering an exceptional customer experience and increasing profitability.<\/span> As a result, efficient <\/span>supply chain management<\/span><\/a> that optimises for costs, accuracy, and speed should always be a priority. <\/span><\/p>\n\n\n\n

But optimising isn\u2019t always the hard part. The challenge often lies in understanding what parts of the supply chain require improvement. <\/span><\/p>\n\n\n\n

Fortunately, modern supply chain technology<\/a> is designed to help online brands optimise their supply chain through greater visibility<\/a>, including access to advanced data and analytics.<\/span><\/p>\n\n\n\n

In this article, we\u2019ll discuss the importance of tracking supply chain analytics and how you can better track supply chain activity and performance to make informed business decisions.<\/p>\n\n\n\n

What is supply chain analytics?<\/h2>\n\n\n\n

Supply chain analytics refers to the collection of data and information that provide insights into logistics performance, from inventory management to fulfilling and shipping orders. <\/p>\n\n\n\n

With the continuous growth of ecommerce, there is more pressure to establish a lean supply chain<\/a> while also meeting customer expectations around fast, affordable shipping.<\/p>\n\n\n\n

By implementing technology, tools, and other resources to collect real-time data across everything from inventory flow to shipping performance, online brands are able to make better decisions on how to manage their supply chain to save on costs, speed up operations, and improve accuracy. <\/p>\n\n\n\n

What kind of data is used for supply chain analytics?<\/h3>\n\n\n\n

Supply chain analytics makes use of all sorts of data that directly relates to\u00a0inbound and outbound logistics<\/a>\u00a0performance.<\/p>\n\n\n\n

This data can include anything that relates to supply chain performance, such as\u00a0inventory turnover rate<\/a>,\u00a0warehouse receiving<\/a>\u00a0turnaround times,\u00a0order accuracy<\/a>\u00a0rates, on-time shipments, and average\u00a0fulfilment cost<\/a>.\u00a0<\/p>\n\n\n\n

Supply chain analytics can also pull insights from external applications that provide visibility across the entire supply chain, including third-party performance (suppliers, couriers, and 3PLs), as well as distribution metrics<\/a> related to multiple sales channels and distribution centres<\/a>. <\/p>\n\n\n\n

Here\u2019s why supply chain data analytics is crucial for ecommerce businesses<\/h2>\n\n\n\n

Supply chain analytics can help a business improve their present operations, and plan for whatever the future may hold. Below is an overview of what supply chain analytics can do.<\/p>\n\n\n

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Help predict future demand<\/h3>\n\n\n\n

Supply chain forecasting<\/a> is key to building a strong supply chain. Supply chain analytics provide insights into future demand and trends by collecting and aggregating historical inventory and order data. <\/span><\/p>\n\n\n\n

This way, you can understand how much inventory on hand<\/a> you need at a given period of time, whether it\u2019s month-by-month or by season. <\/span><\/p>\n\n\n\n

Demand forecasting<\/span><\/a> is essential if you want to <\/span>avoid both stockouts<\/a> and accumulating a large amount of excess inventory (such as dead stock<\/a>, which can increase carrying costs<\/a>).  <\/span><\/p>\n\n\n

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Reduce risks in your supply chain<\/h3>\n\n\n\n

By implementing analytics tools that help you get a clearer picture of how your supply chain is running, you can see patterns form and identify potential risks.<\/span><\/p>\n\n\n\n

The key to risk management<\/span> is proper <\/span>supply chain plannin<\/span><\/a>g, so if something happened unexpectedly, then you and your team will know how to respond efficiently and keep your supply chain afloat. However, better planning always requires access to more data and analytics. <\/span><\/p>\n\n\n\n

For example, with the right data, you might notice a shift in production lead times<\/a> that are causing longer turnaround times for inventory receiving and ultimately fulfilment. <\/span><\/p>\n\n\n\n

By using data to gain more insight into the first-mile delivery<\/a> and drayage<\/a> phase, you can respond quickly by having a conversation with your supplier, adjusting lead times, or deciding to diversify your supplier network<\/span>.<\/p>\n\n\n

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Optimise your supply chain<\/h3>\n\n\n\n

Supply chain analytics allow you to keep a close eye on supply chain performance, from warehouse receiving<\/a> to shipping.<\/span><\/p>\n\n\n\n

Finding ways to optimise your supply chain<\/a> is much easier when you have access to the right analytics. With the right mix of technology and business processes, you can make supply chain improvements in a short amount of time.<\/p>\n\n\n\n

By making an effort to consistently look for ways to optimise processes, you will significantly reduce inefficiencies and save on overall costs, whether it\u2019s through improved supply chain operations and warehouse management<\/a> or a reduction in overall costs.<\/p>\n\n\n\n

5 types of supply chain analytics<\/h2>\n\n\n\n

With access to real-time data and accurate information, how you analyse supply chain performance and operational efficiency is endless. To help you get started, there are five common types of supply chain analytics that you\u2019ll see in the ecommerce industry. <\/span><\/p>\n\n\n\n

These supply chain analytics all provide deep insights that lead to better decision-making. <\/span><\/p>\n\n\n\n

1. Descriptive analytics<\/h3>\n\n\n\n

Descriptive analytics are statistical measures of past events or data that you already have. <\/span>This type of analytical measurement looks at historical data to identify patterns, enabling you to identify trends and measure return on invested capital.<\/span><\/p>\n\n\n\n

For instance, you can look at historical order data to decide which products are best-selling or even slow-moving. With this insight, you can decide whether you want to discontinue a product or increase the reorder amount for your most high-demand products<\/a>.<\/p>\n\n\n\n

2. Predictive analytics<\/h3>\n\n\n\n

Predictive analytics<\/a> use historical data, statistical algorithms, and machine learning to help predict possible trends. <\/span><\/p>\n\n\n\n

Predictive analytics can help businesses identify any potential changes or disruptions, allowing them to proactively prepare and create a more agile supply chain<\/a>. <\/span><\/p>\n\n\n\n

An example of predictive supply chain analytics is to use historical inventory data to determine a pre-set time to reorder more inventory while keeping inventory levels<\/a> and holding costs<\/a> optimised.<\/p>\n\n\n\n

Many inventory apps<\/a> and other tools not only provide inventory forecasting insights, but they also provide an option to set automatic reorder points to save on time and get reminded at the proper time.<\/p>\n\n\n\n

3. Prescriptive analytics<\/h3>\n\n\n\n

Perspective analytics uses massive amounts of data run through computer software to help make decisions. <\/span><\/p>\n\n\n\n

You can use these supply chain analytics to strategize the best possible move for your business. For example, many times brands use prescriptive analytics to determine when it\u2019s time outsource fulfilment<\/a>. <\/span><\/p>\n\n\n\n

It might make sense to launch an online brand and fulfil orders in-house at first, but as your business grows, spending your time fulfilling orders turns into an opportunity costs. You might find that your time is better spent on revenue-driving initiatives, rather than on order fulfilment<\/a>.<\/p>\n\n\n\n

When brands reach a high order volume<\/a>, they often turn to a leading supply chain and fulfilment partner (like ShipBob) to save on costs and time in the long run.<\/p>\n\n\n\n

4. Cognitive analytics<\/h3>\n\n\n\n

Cognitive analytics use machine learning and artificial intelligence to help make human-like reasons and decisions, but with massive amounts of data. <\/span>This makes the process a lot more efficient, enabling businesses to speed up their decision-making process. <\/span><\/p>\n\n\n\n

For ecommerce supply chains<\/a>, AI enables more visibility and integration across networks, which allows brands to expand their supply chain while keeping everything streamlined.<\/p>\n\n\n\n

5. Diagnostic analytics<\/h3>\n\n\n\n

Diagnostic analytics refers to overlooking overall performance in pursuit of understanding why mistakes, errors, and delays occur. <\/span><\/p>\n\n\n\n

This type of supply chain analysis helps online brands understand the reason(s) behind issues such as shipment delays, procurement disruptions, and reduced courier capacity. <\/span><\/p>\n\n\n\n

While each type of supply chain analytics may have a separate function, they all play a critical role in increasing your supply chain efficiency. <\/span><\/p>\n\n\n\n

For instance, at the beginning of the pandemic, ShipBob started aggregating shipping courier data trends to help online brands easily track courier performance each week. (Below showcases USPS average days in from January 2020 to June 2021.)<\/span><\/p>\n\n\n\n

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With this insight, brands<\/span> were able to be proactive in communicating with their customers about potential last-mile delivery<\/a> delays and why. <\/span><\/p>\n\n\n\n

Supply chain analytics tips and best practices<\/h2>\n\n\n\n

If you\u2019re looking to implement supply chain analytics for your business, here are a few tips and best practices to give you a head start.<\/span><\/p>\n\n\n\n

Ensure your tech stack is connected<\/h3>\n\n\n\n

Supply chain analytics rely on data from multiple sources. For ecommerce businesses, this could include information from your inventory management software<\/a>, store(s), manufacturer(s), warehouse(s), fulfilment operations, and more. <\/span><\/p>\n\n\n\n

To get a clear picture of how your supply chain is operating, you will need to integrate all of these data sources, so you get accurate supply chain analytics that relate to performance and tell the full story. <\/span><\/p>\n\n\n\n

Even if you\u2019re not handling your supply chain in-house, make sure you work closely with your supply chain as a service<\/a> (SCaaS) provider or fulfilment partner to connect all your data sources.<\/span><\/p>\n\n\n\n

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\u201c<\/span>Rather than a 3PL that doubles in tech, ShipBob is a tech-based company that has improved the fulfilment experience. All the integrations in the ShipBob App Store is another big draw, talking directly to the tools we use like Shopify Plus, Klaviyo, and even Gorgias, which is a huge time-saver for our customer experience agents to get status updates, see tracking, quickly view and click through to previous orders without jumping out of Gorgias.\u201d<\/em><\/p>\n\n\n\n

Jonathan Byrt, Director & Co-founder at memobottle<\/p>\n<\/blockquote>\n\n\n\n

Gather sentiment data from social media<\/h3>\n\n\n\n

Customer reviews<\/a>, comments, and discussions on social media can be a great supplement to quantitative data, as they sometimes provide qualitative data on supply chain performance that directly impacts a customer\u2019s experience.  <\/span><\/p>\n\n\n\n

Gathering data from social media can give you insights into the minds of your customers, enabling you to find opportunities to further optimise your supply chain and strengthen your <\/span>social commerce<\/span><\/a> strategy. <\/span><\/p>\n\n\n\n

For example, are people talking about their intentions to buy a specific product for the holidays? This could complement demand forecasting tools to make more accurate predictions about future demand. <\/span><\/p>\n\n\n\n

Visualise your data to make it easier to digest<\/h3>\n\n\n\n

To help make it easier to digest a plethora of supply chain data, implementing tools to visualise the information can help. <\/span><\/p>\n\n\n\n

A visual overview of your supply chain allows you to easily interpret the data, make connections and assumptions, and share easy-to-understand information with your team, so you can spend more time making improvements, rather than spending too much time analising it. <\/span><\/p>\n\n\n\n

For instance, ShipBob\u2019s advanced data and analytics reporting<\/a> provides digestible tables and charts, so you can easily get a glance on how your supply chain is operating, including insights into:<\/p>\n\n\n\n