Josh JonesAbstract
Managing an operational workforce is more intricate and challenging than ever.
With a new age of supply chain complications, gaps in a hybrid work strategy, and the modern-day consumer’s growing expectations, an executive in operations has their work cut out for them.
How does one detect and conquer these challenges?
With a data-driven digital transformation upon us, understanding and utilizing predictive analytics is the ticket to success.
For many, this means knowing the ins and outs of their business operations… yesterday, a month ago, or even a year ago.
But for those forward-thinking leaders who want to have an edge, this means predicting the future.
Enhancing Operational Efficiencies
Maximizing profits and mitigating losses is the name of the game.
In 2020 retail sales grew by 7%. In 2021 that statistic more than doubled, and by the end of 2022 the National Retail Federation projects, we will see at least another 6-8% increase from the year prior.[1]
Business is booming which means demand is skyrocketing and the need for a nimble Operations department becomes even more crucial.
In order to keep up with demand and achieve excellence, business leaders must eliminate, automate, and simplify routine activities.
With many reputable enterprises having already a large and well-established operations department, it can oftentimes be daunting to pinpoint their blood-spurting problems or where there is room for growth in revenue and production rates.
But, with the right data and predictive analytics, leaders can gain insight into the inner workings of their operations and make key changes with the future in mind.
65% of global enterprises increased their funding for analytics in 2020. Out of the enterprises currently investing and actively using predictive analytics to inform their business strategies, 63% notably improved efficiencies and productivity. [2]
What does this mean moving forward? Predictive analytics is a necessity to stay afloat in today’s market and catalyzes enhanced business operations.
Gaps in a Hybrid Work Strategy
In order to enhance these operations, however, business managers and executives need to be able to properly communicate with one another and their teams.
The implementation of new processes and change can only work if everyone is on the same page, visualizing the same future, and performing tasks properly and efficiently.
Earlier this year a survey showed that 76% of its respondents confirmed that their companies have shifted to a hybrid working model.
Out of these companies 63% claim they have not made any significant changes to adapt to the new model.[3]
The inefficiencies of this new standard in a workplace setting can be curbed by modeling employee workflow data.
Using predictive analytics, operational leaders can manage and monitor the productivity of those they can’t readily communicate with and thus assign tasks based on these metrics.
With enough data, one could even predict which of their employees will leave or their future production rates.
Suffering Supply Chains
What if the ability to make predictions extended to supply chains?
56% of retailers reported that they were or are still experiencing a disruption in supply chains from the pandemic and 64% of retailers were challenged to adapt their supply chain for eCommerce. [4]
In a seemingly unstable and rapidly transforming post-pandemic market, proper supply chain management doesn’t just give you a competitive edge, it is a path to long-term business success.
69% of companies do not have total visibility over their supply chains. In fact, even those leaders who strive to get a handle on their supply chain generally are limited to only 2 – 3 reports that they can use to measure risk, efficiency, and reliability.[5]
In addition to revenue growth and satisfying demand, efficient supply chain management is becoming a key driver of better customer service.
“When we talk about ‘smart transportation,’ it is more than moving cargo from A to B. Digitization within transport and logistics means seamless service to our customers, visibility in the supply chain, and driving a more efficient business.” – Soren Skou[6]
There is a silver lining. For many, that is the use of predictive analytics to not only monitor and maintain tabs on their supply chain but to go beyond what they can achieve with standard analysis and take a glimpse into the future of their operations.
Wrapping up
Operational hurdles are rapidly evolving with the current economic climate.
Proactively adapting to the transforming environment and staying ahead of tomorrow’s news is crucial for enterprises to thrive.
Understanding some of the most significant hindrances in today’s retail market and the potential role that big data plays in overcoming these obstacles is half the battle.
Adopting predictive analytics, applying it to your business model, and building accurate predictive solutions is how you win.
admin
March 12, 2024