Supply chain analytics isn’t a new concept for many manufacturers. On the road to digital transformation, data has played a critical role in supply chain management. Advanced data analytics provides researchers, decision-makers, and others involved in the supply chain with the ability to improve strategic planning and operational strategy. Near real-time insights provided by location analytics is the key to establishing a lean supply chain. 

By using real-world consumer insights, supply chain leadership can meet today’s complex challenges, including increased consumer demand and staffing shortages.

Location intelligence gives supply chain leaders a deeper understanding of where people go in the real world and why. By using real-world data, they can determine the ebb and flow of consumer interest in a specific product. 

For example, a manufacturer for a lighting company uses consumer foot traffic data to chandelier retailers to determine that market demand is pointing toward a renewed interest in chandelier lighting. The manufacturer can then increase the production of chandeliers and lessen the production of other fixtures. This means that the manufacturer can reduce wasteful energy by only producing what the retailer needs.

Human mobility patterns that reflect consumer behavior allow organizations to staff according to demand. Before the coronavirus pandemic, supply chain leadership could rely on past data sets to predict how many people to staff, and the lead time to make a specific product. Now, with the staffing shortages and the changes in consumer behavior, those old data sets are no longer reliable. Manufacturers are hard-pressed to reduce the waste of overproduction and the overreliance on unreliable methods of forecasting. 

In order to maintain a lean supply chain, manufacturers need real-world data. Location intelligence can take the guesswork out of staffing and reduce lead time by giving leaders actionable data to determine when more staff may be needed and when to cut back.

In a lean supply chain, creating a smooth flow of products is crucial. A large part of this comes with adjusting inventory. Location intelligence can provide manufacturers with the information they need to determine what products are in higher demand than others, and therefore order bigger shipments of goods from their suppliers. This ensures that there is never a shortage of supplies for in-demand inventory.

On the other hand, maintaining a lean supply chain also involves understanding which products are losing consumer demand. If one market trend is changing in favor of another, manufacturers should use data to stay ahead of the curve and cut the production of dwindling products and amp production of ones that are gaining traction. In this way, it helps manufacturers move unnecessary inventory without holding places that could be taken by a more lucrative product.

Lean supply chains add value to manufacturing processes. By cutting out extra waste, manufacturers can bridge the gap between consumer demand and production. For more information on how location intelligence can help you go lean, contact us to speak with an expert today.