What is Supply Chain Analysis?

These days, supply chains evolved in a great manner, as goods are being sent all over the globe from various locations. As a business manager, it is important to know how to properly the supply chain analysis is done. So you can adjust and change it according to the needs of your business. While a supply chain may appear in an ideal shape at first, it may turn out to be not that effective when it starts working. This is why you need to make efficient chain analysis, using the right supply chain analysis tools, to spot any leaks or problems before they trigger any issues for your company. You may also need to perform periodic analysis.

Supply chain analysis is practically a tool you can use to check out the efficiency of your supply chain and to spot any regional business opportunities. Every enterprise and business is a link of a greater supply chain. This kind of analysis will allow you to see if there are any chances for you to grow your business furthermore.

Supply Chain Analysis Tools & Models:

With the help of chain analysis, you can see everything from the availability and price of raw materials, to transportation and logistics, final products, demand, and so on. In other words, the supply chain analysis tools won’t just help you understand how your supply chain works, but will also make you spot those companies which, whom you can do business with. For example, purchasing raw materials to create a new product or selling your products to new businesses. And the final result being the expansion of your company.

supply chain analysis

1. Descriptive Analytics:

This is the best type of supply chain management analysis that you can use to check out the past performance of the supply chain. It will tell you what has happened, so you can check if the results are matching with your plans and objectives. This method uses data mining to gather raw information from the supply chain. Summarizing it and presenting it in a compact form that will allow you get a clear image of the desired period in the past.

2. Predictive Analytics:

If you want to see what might happen in the future, this is the method you should use. As the name suggests, predictive analytics will form potential scenarios that may take place in a month, two, a year from now. Although it is never guaranteed that they will happen exactly as predictive by this method. Even so, you will know what to expect, in a significant proportion, so you can adjust your plans accordingly.

3. Prescriptive Analytics:

In case you want to see what could happen and get useful pieces of advice on what to do if future scenarios come to life. This method will help out. In other words, you will be advised what to do according to what the method predicts to happen in the future, based on the acquired data.

4. Performance Metrics:

This is one of the best supply chain analysis models, to use when you want to see how the supply chain planning and the chain itself is performing. Just do have in mind that there are several metrics and each of them provides a different type of information. So, you need to decide which metrics are most useful and relevant to your business, so you can keep an eye on those in particular.

5. Hybrid Performance Measurement:

This is a more complex form of chain analysis, as it utilizes several methods in the same framework so that the business owner can take the best decisions. Thus, a hierarchy of objectives is used, together with mathematical equations and simulations that should present. Hypothetically, what could be possible if certain conditions are met.


With the help of these supply chain analysis models, you will be able to take a closer look at how a supply chain evolves and performs. Of course, you need to find the best method that works in the case of your particular supply chain and not be afraid to adjust these methods. But only if you realize that the obtain results are not as detailed as expected. As you can see, there is the situation in which hybrid methods were utilized in order to take as many advantages as possible from several methods at the same time. Supply chain management analysis is discussed in more details in the logistics courses online and supply chain management courses online. These programs are offered 100% online by AIMS’ institute of supply chain management.

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