SCAX: Measuring Organizational Readiness to Embrace Supply Chain Analytics

Abstract

Supply chains today amass huge amounts of data. To remain competitive in a global economy, organizations need to constantly derive meaningful information from this plethora of data to make critical business decisions. The process of gaining meaningful and actionable knowledge from supply chain related data is referred to as Supply Chain Analytics SCA. As a result of demonstrated benefits from SCA, organizations are spending considerable amount of resources to develop these analytical capabilities. However, due to complexities of such undertakings, many SCA projects fail to achieve the desired results. It is argued that a major reason for such failures is lack of organizational readiness to embrace analytics. This paper presents an index for measuring the readiness of organizations to successfully implement SCA. The Supply Chain Analytics Index, henceforth referred to SCAX, was developed by surveying 112 SCA professionals from 7 countries and from various industries and professional backgrounds. Using this index, organizations can tangibly assess their readiness to take full advantage of the power of SCA.