From the course: Supply Chain Foundations: Analytics

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Diagnostic analytics for past supply chain performance

Diagnostic analytics for past supply chain performance

From the course: Supply Chain Foundations: Analytics

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Diagnostic analytics for past supply chain performance

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- Diagnostic analytics, these are analytics that reveal to supply chain professionals why did that happen? Remember descriptive analytics tell us what happened. Diagnostic analytics allow us to investigate why? So while descriptive analytics provide hindsight, diagnostic analytics provide insight. Supply chain managers would use diagnostic analytics to potentially search for root causes. For example, descriptive analytics may have told us that stockouts for our sports drinks increased. Our diagnostic analytics tools may report recent inventory levels, temperatures in impacted areas, changes in demand over the last week or over the same week in the previous year, damage and theft rates, late deliveries from suppliers or to our retail stores. These are all metrics that might be linked with causing stockouts of sports drinks. A knowledgeable supply chain analytics professional could use analytics tools and their past work…

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