Appalachian State University Blog

In today’s fast-paced global economy, data is more valuable than ever. With the right tools and the right team, organizations can leverage data to run marketing campaigns, gain a competitive edge and much, much more. However, in the broad field of business data analysis, there’s one subfield that’s perhaps more complex than any other: supply chain data analytics.

According to the U.S. Bureau of Labor Statistics (BLS), employment in the supply chain management and analysis sector is expected to increase by 9% through 2033. That increase is equivalent to about 20,000 new job openings every year. Employment in all sectors of the economy is expected to grow by an average of just 4% in the same time frame.

For anyone thinking about starting a career in supply chain data analysis, it’s important to understand what supply chain data analytics is, how it can be applied, and some of the challenges organizations face as they strive to apply a data-based supply chain strategy.

What Is Supply Chain Data Analytics? Definition and Uses

Supply chain data analytics refers to the collection and assessment of all data related to the transportation of goods. While this data can include fuel usage, warehousing costs and other metrics directly related to transportation, data about production and consumer demand can be equally valuable to a supply chain data professional.

The insights gained from assessing supply chain data can be used to improve operations and reduce costs in several ways. Supply chain data can be used to:

• Discover current supply chain issues

• Plan for expected or potential supply chain disruptions

• Extract insights from previous successes and challenges

• Forecast consumer demand to plan production quotas, shipping timelines and more

• Optimize routes

• Compare different raw material sourcing and transportation solutions

• Explore the feasibility of expanding into new markets

• Implement responsible, sustainable supply chain practices

The professionals responsible for monitoring and utilizing supply chain data are often referred to as supply chain data analysts or supply chain managers. Some professionals oversee one aspect of an organization’s supply chain such as raw material sourcing or warehousing while others monitor an organization’s supply chain from end to end.

The Economic Value of Supply Chain Data Analytics

For many organizations, monitoring and utilizing supply chain data can be an enormous undertaking. It often requires purchasing sophisticated logistics software, hiring highly trained personnel and/or outsourcing supply chain services to third-party logistics (3PL) firms. However, despite the costs of these measures, not investing in supply chain analytics can be even more costly.

In 2022, materials science company Avery Dennison analyzed supply chain data from over 300 international businesses in five sectors (apparel, automotive, beauty and personal hygiene, food and pharmaceuticals). According to the research, around $163 billion of inventory is lost every year due to expiration or overproduction. Business leaders estimate that this waste equates to a loss of about 3.6% of profits — a large number for high-volume businesses.

However, this study doesn’t account for losses caused by other supply chain issues such as damaged goods or incorrect deliveries. Given how costly these issues can be, investing in supply chain data analytics may be wise for organizations in any sector.

Challenges With Supply Chain Data Analytics and Opportunities for Professionals

Supply chain data analytics can save companies millions, but many struggle to use it to its full potential. Sophisticated artificial intelligence (AI)-driven logistics programs often need vast amounts of relevant data to operate properly. This situation makes integrating such software a challenge. Additionally, many organizations collect enough supply chain data but fail to leverage it in the decision-making process.

While these two challenges can have any number of underlying causes, they’re often rooted in the same issue: the supply chain talent shortage.

The Supply Chain Talent Shortage and Its Effect on Data Analytics

The supply chain talent shortage is an ongoing issue, with not enough supply chain and logistics professionals in the workforce. The shortage was particularly apparent during the height of the COVID-19 pandemic. However, a 2024 survey of global supply chain leaders conducted by management consulting firm McKinsey & Company suggests that it’s still a major challenge.

In the survey, around 66% of respondents say they’re making progress in digitizing their supply chains. Digitization refers to the integration of data analysis technology into daily supply operations.

Despite that effort, though, 90% of respondents reported that their companies don’t have enough skilled workers to meet their digitization goals. One major repercussion of this circumstance is that companies are struggling to gain a clear picture of their supply chains.

In the 2022 edition of the McKinsey & Company survey, 56% of respondents said they had good visibility of their supply chains past Tier One. Tier One suppliers include an organization’s direct suppliers. Tier Two includes a supplier’s suppliers, such as companies that source and process raw materials. In 2024, that number dropped to 30%, suggesting that much of the economy is still vulnerable to unforeseen large-scale supply chain disruptions.

An Opportunity for New and Experienced Supply Chain Professionals

BLS statistics demonstrate how important supply chain data analytics professionals are to their organizations. Just as encouragingly, though, the 2024 McKinsey & Company survey suggests that many organizations are actively investing in new talent to counteract the gap.

In the survey, about 70% of respondents say they’re looking to hire new supply chain data analytics talent. Roughly 65% say they’re also looking to train their existing workforce for supply chain data analysis roles. These statistics suggest that there could be career opportunities for professionals who are new to the field and those who are looking for ways to advance their careers.

Become the Supply Chain Data Analyst So Many Organizations Need

Maintaining a supply chain takes more than keeping an eye on routes and shipping schedules. It takes a deep understanding of cost management, procurement, production and quality control. Through the Bachelor of Science in Business Administration (BSBA) in Supply Chain Management program at App State Online, you can learn just that.

Designed for students who want to take on any number of roles in the supply chain sector, this program helps students build the leadership, planning and operational skills they need to guide organizations to supply chain success. To ensure graduates can work in the international context this sector demands, App State Online requires students to fulfill a Global Issues requirement by either taking an international business course or participating in a study abroad opportunity — whichever fits a student’s needs best.

To find out more about App State Online’s transfer-friendly policies, flexible class scheduling and career development sources, reach out to admissions today and start planning your career.

Recommended Readings:

The Importance of Procurement Specialists

Understanding Global Supply Chain Management

What Can I Do With a Supply Chain Management Degree?

Sources:

Avery Dennison, “Supply Chain Crisis Made Worse as 8% of Stock Ends up as Waste”

IBM, “What Is Supply Chain Analytics?”

Indeed, “Supply Chain Analyst Job Description: Top Duties and Qualifications”

McKinsey & Company, “Supply Chains: Still Vulnerable”

U.S. Bureau of Labor Statistics, Transportation, Storage, and Distribution Managers