Many companies with complex supply chains are co-developing specialized analytics systems with providers that allow them to adapt quickly to dynamic market conditions, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens™ global Specialty Analytics Services report for the supply chain industry finds that organizations are investing in technologies to harness enterprise and ecosystem data for better decision-making. The COVID-19 pandemic exposed the fragility of global supply chains, so enterprises are exploring how data and analytics can make systems more resilient and sustainable.
“Companies can no longer take supply chains for granted,” said Bob Krohn, partner, manufacturing, for ISG. “By implementing new technologies with providers, they are achieving the end-to-end visibility they need to stay ahead of changes.”
Enterprises can solve many supply-chain problems with advanced analytics based on a solid data foundation, the report says. Once companies have integrated internal and external data and removed errors, analytics platforms become powerful decision-support systems that can generate suggestions for optimizing operations. They can also help companies calculate risks and plan how to manage potential disruptions.
AI is often at the center of these solutions, and providers and enterprises are beginning to apply generative AI (GenAI) to many use cases, ISG says. In integrated supply chain command centers, GenAI may improve demand forecasting, capacity planning and order tracking. Combined with computer vision and IoT, GenAI may allow companies to introduce automation throughout the supply chain, making the best use of limited staff.
With more specialized analytics tools, enterprises have found new use cases, the report says. Integrated data allows them to evaluate specific suppliers to ensure supply chain continuity. Digital twins that simulate physical assets and processes are helping companies predict outcomes and make better decisions. Improved analytics systems streamline distribution, enabling on-time order fulfillment. They also support compliance with ESG reporting rules that require understanding the whole supply chain.
Companies seeking specialized analytics providers commonly look for a track record of quickly delivering business value, ISG says. They often choose providers that employ reusable components, called accelerators, that reflect expertise in the client’s industry. Enterprises get the most out of custom analytics platforms when they own the intellectual property developed in conjunction with the provider.
“Off-the-shelf analytics platforms can solve some common problems, but oversight and control of a complex supply chain requires a custom solution,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Leading providers collaborate with clients to build systems that can evolve and deliver results over time.”
The report also explores other supply-chain analytics trends, including rising operational costs and demand for talent-building within enterprises.
For more insights into supply-chain analytics challenges, including the lack of visibility into operations and into the level of sustainability, plus ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ global Specialty Analytics Services report for the supply chain industry evaluates the capabilities of 17 providers across one quadrant: Supply Chain.
The report names Fractal Analytics, HARMAN Digital Transformation Solutions, LatentView Analytics, MathCo, Sigmoid, Tiger Analytics and Tredence as Leaders in the quadrant.
In addition, Innover Digital is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in the quadrant.
Customized versions of the report are available from LatentView Analytics, Sigmoid, Tiger Analytics and Tredence.
The 2024 ISG Provider Lens™ global Specialty Analytics Services report for the supply chain industry is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
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