Analyst Insight: In supply chain operations, creative strategies for recruiting, developing and otherwise accessing expertise in advanced analytics, data management and change management offer a distinct competitive edge. Surging investment in advanced analytics capabilities is yielding outsized returns for companies determined to both stabilize their supply chains and increase flexibility. Adapting to new realities and technological advancement requires quickly identifying and addressing critical skills gaps.  

Since 2021, a massive increase in investment in advanced analytics for supply chain operations across industries has fueled not only significant returns, but also a glaring talent shortage. 

APQC research finds that 72% of companies view advanced analytics to be “very” or “extremely” effective in producing supply chain insights for their organizations. Advanced analytics, which refers to technology-enabled processes for examining datasets to uncover patterns, correlations and trends, helps organizations make more informed business decisions. In APQC's 2024 Supply Chain Priorities and Challenges survey, 65% of companies selected big data and advanced analytics as the top trend that will affect supply chains over the next few years.

Research shows that while most companies (89% of our survey sample) have increased investment in advanced analytics over the past three years, more than half (52%) find implementation and optimization of new technologies stymied by a shortage of people with the skills necessary to use the technology and train others. 

To get the most out of their existing human capital capacity and prepare for the future, business leaders are beginning to: 

Take a hard look at their organizational structures. Determine whether a centralized, decentralized, or hybrid approach to the data analysis, management and reporting function makes the most sense for the organization.

Invest in recruiting, upskilling and reskilling employees. Identify talent pipelines and develop internal knowledge-sharing practices and change-management training.

Explore opportunities to outsource. Bring in outside resources as needed, to allow organizations to tap into a broader pool of expertise, and supplement with specialized knowledge while adding flexibility with less fixed cost.

Focus on data ownership and governance. Ensure clear governance models and practices and the allocation of formal accountability for the quality and security of data that is vital for supply chain.

Lapses in governance and other poor data management practices can lead to catastrophic consequences for supply chains. No matter how advanced an organization’s analytics tools are, forecasts built from bad data can still lead decision-makers down the wrong path, or keep them from identifying key opportunities. 

Outlook: In the near term, difficulties in recruiting advanced analytics experts and tech-informed change leaders will continue to hinder efforts to revolutionize supply chain operations. As organizations begin to develop talent pipelines and innovative strategies for optimizing both internal and external expertise, however, they will also be able to further deploy automation, which will reduce the need for manual updating and maintenance of data-management systems. 

Resource Link: www.apqc.org