Supply chain management (SCM) is a term largely prevalent in the manufacturing and retail industry. SCM is one of the key functions for such companies. In simple terms, we can define SCM as a function which extends from procurement of raw materials from suppliers, manufacturing the product and then distribution of the finished product to consumers (directly or via distributors/dealers):

Supply chain is associated with inventory (stock). This can be inventory of raw materials, semi-produced goods, or finished goods. Excess of inventories or shortage of inventories, both will have repercussions on profitability. Excess of inventories increases the cost significantly, and if a product has a shelf life, then it can be counterproductive. Having small inventory increases the waiting time for the end consumers, thereby increasing the risk of the consumer shifting loyalties to competition.

Analytics can be great for the SCM function by helping them maintain optimized inventory; helping the company to arrive at the optimum inventory is a complex process. The SCM professional will need to look at the past trends and demands, and thereby plan the optimum inventory. Predictive analysis will also be needed to do forecasting and demand planning.

SCM also involves transportation and logistics. This is another area where SCM looks for better efficiency and cost reduction. The consultant should be aware of the business process and help design the BI solution optimally. At every sub-function, the consultant can do value-additions to make the proposition more attractive and useful.

Since SCM involves several players (refer to Supply chain players figure), such as your client, your client's suppliers, logistics partners, distributors, and customers, the consultant can suggest value-add by thinking of improving collaboration between all these players.

You must have come across one of the Qlik products, Qlik Analytical Platform (QAP). The QAP is a great way to extend analytics to external entities, such as to vendors, suppliers, end-consumers, and logistic partners. The users in those companies can also, via a vendor portal or a customer portal, log in and get their bit of analytics.

The approach of the consultant by embedding the Qlik application in external portals reduces possibilities of errors and brings all the players on to a single platform. This brings in greater transparency for everyone and allows them to be better prepared for demand peaks.

The steps involved in an SCM can be many. Let's look at some of them:

SCM flow