UNIT IV HR & SUPPLY CHAIN ANALYTICS

Sl. No. Contents

1 Human Resources

2 Planning and Recruitment

3 Training and Development

4 Supply chain network

5 Planning Demand, Inventory and Supply

6 Logistics

8 Analytics applications in HR and Supply Chain

1. Human Resources

• Analytics is defined as the interpretation of data patterns that aid decision-making and
performance improvement. HR analytics is defined as the process of measuring the impact of
HR metrics, such as time to hire and retention rate, on business performance.

•Human resources is a people-oriented function and is so perceived by people. But for

those who think that the HR team’s contributions are limited to extending offer letters and
onboarding new hires, human resource analytics (HR analytics) can prove them wrong.
When used strategically, analytics can transform how HR operates, giving the team insights
and allowing it to actively and meaningfully contribute to the organization’s bottom line.

What Is HR Analytics?
To understand the essence of HR analytics and to explain how it impacts business
performance, we asked Mick Collins, Global Vice President, Workforce Analytics &
Planning Solution Strategy and Chief Expert at SAP Success Factors, to break it downfor us.

“HR analytics is a methodology for creating insights on how investments in human

capital assets contribute to the success of four principal outcomes: (a) generating revenue,
(b) minimizing expenses, (c) mitigating risks, and (d) executing strategic plans. This is
done by applying statistical methods to integrated HR, talent management, financial, and
operational data,” says Collins in an exclusivediscussion with HR Technologist.

HR analytics focuses primarily on the HR function and is not – as is largely

believed – exactly interchangeable with people analytics or workforce analytics.

The terms HR analytics, people analytics, and workforce analytics are often used
interchangeably. But there are slight differences between each of these terms. It would help
you to know the difference to be able to assess the most relevant datato their function.
The difference between HR Analytics, People Analytics, and WorkforceAnalytics

HR analytics: HR analytics specifically deals with the metrics of the HR function, such as
time to hire, training expense per employee, and time until promotion. All these metrics are
managed exclusively by HR for HR.

People analytics: People analytics, though comfortably used as a synonym for HR

analytics, is technically applicable to “people” in general. It can encompass any group of
individuals even outside the organization. For instance, the term “people analytics” may be
applied to analytics about the customers of an organization and not necessarily only
employees.
 Workforce analytics: Workforce analytics is an all-encompassing term referring
specifically to employees of an organization. It includes on-site employees, remote
employees, gig workers, freelancers, consultants, and any other individuals working in
various capacities in an organization.
 In the HR context, some workforce analytics metrics and HR analytics metrics may
overlap, which is why the two terms are often used as synonyms. The goal of the two may
also be the same.

For instance, data on employee productivity and performance informs both HR and
workforce analytics, and the goal is to improve retention rates and enhance the employee
experience.

How Does HR Analytics Drive Business Value?

HR has access to valuable employee data. How can this data be used to enable

change in the organization?

There is a great deal of discussion on replicating the consumer experience in the employee
experience. Essentially, the data on consumer behavior and mindset can help develop
strategies to maximize sales by capitalizing on those factors. Similarly, the data useful for
the HR function can be used to improve employee performance, the employee experience,
and in turn, maximize business outcomes.

Collins offers an example of how HR analytics can be used to enhance business value.
“HR analytics could be used to measure investments in reskilling, which will deliver the
right competencies to support a new revenue model, using data-driven insights to modify the
training offering as sales results emerge.”

This is definitive granular data that can not only impact the bottom line, it canalso
transform employee engagement in an organization.

“As such,” Collins continues, “you might think about the ‘ROI’ of HR analytics being
that of increasing the business value derived from using data for talent decisions.”
What Metrics Does HR Analytics Measure?

Common metrics measured by HR analytics

Several HR metrics contribute to business value, but the key question when
measuring these metrics is this: what does the business need?

This question can be best answered by having a conversation with business leaders. A
strategic collaboration between the C-suite and HR leaders will help determine the HR
analytics strategy.

Based on the key performance indicators (KPI) of the organization, HR can thenpropose
the metrics that can influence these KPIs.

It is important to note that the C-suite sees a clear connection between the need for
analytics and the impact it will have on the bottom line. As an HR practitioner, you will
need to build a case for why tracking metrics related specifically to the
people of the company is critical.
 For instance, the C-suite may not be interested in the number of people who have left the
organization voluntarily. What might interest them is how many of these employees were in
strategic positions or were highly skilled, the duration of their employment, what led to their
exit, the cost of replacing these employees, and finally, how all these events affect company
profits.

Here are some common metrics tracked by HR analytics:

1. Revenue per employee: Obtained by dividing a company’s revenue by the total

number of employees in the company. This indicates the average revenue each employee
generates. It is a measure of how efficient an organization is at enabling revenue generation
through employees.

2. Offer acceptance rate: The number of accepted formal job offers (not verbal) divided
by the total number of job offers given in a certain period. A higher rate (above 85%)
indicates a good ratio. If it is lower, this data can be used to redefine the company’s talent
acquisition strategy.

3. Training expenses per employee: Obtained by dividing the total training expense by
the total number of employees who received training. The value of this expense can be
determined from measuring the training efficiency. Poor efficiency may lead you to re-
evaluate the training expense per employee.

4. Training efficiency: Obtained from the analysis of multiple data points, such as
performance improvement, test scores, and upward transition in employees’ roles in the
organization after training. Measuring training efficiency can be crucial to evaluate the
effectiveness of a training program.

5. Voluntary turnover rate: Voluntary turnover occurs when employees voluntarily choose
to leave their jobs. It is calculated by dividing the number of employees who left voluntarily
by the total number of employees in the organization. This metric can lead to the
identification of gaps in the employee experience that are leading tovoluntary attrition.
6. Involuntary turnover rate: When an employee is terminated from their position, it is
termed “involuntary.” The rate is calculated by dividing the number of employees who left
involuntarily by the total number of employees in the organization. This metric can be tied
back to the recruitment strategy and used to develop a plan to improve the quality of hires to
avoid involuntary turnover.

7. Time to fill: The number of days between advertising a job opening and hiring someone
to fill that position. By measuring the time to fill, recruiters can alter their recruitment
strategy to identify areas where the most time is being spent.

8. Time to hire: The number of days between approaching a candidate and the candidate’s
acceptance of the job offer. Just like time to fill, data-driven analysis of time to hire can
benefit recruiters and help them improve the candidate experience to reduce this time.

9. Absenteeism: Absenteeism is a productivity metric, which is measured by dividing the

number of days missed by the total number of scheduled workdays. Absenteeism can offer
insights into overall employee health and can also serve as an indicator of employee
happiness.

10. Human capital risk: This may include employee-related risks, such as the absence of
a specific skill to fill a new type of job, the lack of qualified employees to fill leadership
positions, the potential of an employee to leave the job based on several factors, such as
relationship with managers, compensation, and absence of a clear succession plan. HR
analytics can be used to measure all these metrics.

Broadly, the data required by an HR analytics tool is classified into internal and external
data. One of the biggest challenges in data collection is the collection ofthe right data and
quality data.
 Common data sources HR analytics solutions

I. Internal data

Internal data specifically refers to data obtained from the HR department of an

organization. The core HR system contains several data points that can be used for an HR
analytics tool. Some of the metrics that an HRIS system contains includes:

1. Employee tenure
2. Employee compensation
3. Employee training records
4. Performance appraisal data
5. Reporting structure
6. Details on high-value, high-potential employees
7. Details on any disciplinary action taken against an employee

The only challenge here is that sometimes, this data is disconnected and so may not serve
as a reliable measure. This is where the data scientist can play a meaningful role. They can
organize this scattered data and create buckets of relevant data points, which can then be
used for the analytics tool.

II. External data

External data is obtained by establishing working relationships with other departments of

the organization. Data from outside the organization is also essential, as it offers a global
perspective that working with data from within the organization cannot.

1. Financial data: Organization-wide financial data is key in any HR analysis to

calculate, for instance, the revenue per employee or the cost of hire.

2. Organization-specific data: Depending on the type of organization and its core

offering (product or service), the type of data that HR needs to supplement analytics will
vary.
 For example, says Collins, “HR leaders at a global retailer should power their analytics
engine with store revenue and costs and customer experience data, whereas HR at a
construction company might pursue operational – health and safety – data and data related
to contingent labor costs.”

•3. Passive data from employees: Employees continually provide data that is stored in the
HRIS from the moment they are approached for a job. Additionally, data from their social
media posts and shares and from feedback surveys can be used to guide HR data analysis.

4. Historical data: Several global economic, political, or environmental events determine

patterns in employee behavior. Such data can offer insights that limited internal data cannot.

For example, the recession in 2008 was a global event that changed the way employees
perceived jobs or “work.” The freelance, start-up and gig economies took off as people
continued to lose their jobs. Data from such a critical historical event can help predict how
the workforce may react to similar shifts in the future. Itcan then be used to identify trends in
the current workforce and predict voluntary and involuntary turnover.

How to Get Started With HR Analytics

For HR leaders keen to get started with using HR analytics for data-baseddecision
making, here are some tips:

I. Create a collective mindset

Before the operational and mathematical aspect can kick in, HR leaders mustprepare
their teams and organizations for a workflow-driven by analytics.

While the discussion with the C-suite for the need for analytics is one part of the change,
the other is preparing your team to deal with the amount of data that they will now be using
to measure the change.

This is a crucial aspect of HR’s digital transformation as well as company-wide digital

transformation. Getting the team started on small projects and asking them to create the
reports that they will discuss with business leaders is a good way to begin.
II. Bring in data scientists

The data scientist is expected to become an integral part of HR teams. They are best
suited to assess the viability of an analytics solution. They can also ensure the robustness of
the statistical modeling and predictions.

As Collins says, “data scientists will play an invaluable role in creating a culture of
analytics across HR. As the role of HR business partners and generalists evolves to include
skills such as data strategy, analysis, and communication (articulating ‘the story behind the
science’), the data scientist will serve as the coach, mentoring their colleagues across HR in
how to understand, and apply, the insights.”

III. Start small

A great technique to convince stakeholders that HR analytics can drive business value is
to first implement a small project successfully. Called “quick wins,” these projects can
deliver tangible results in a short amount of time with high impact.

IV. Get clearance from the legal team

The sort of data collection that HR analytics uses is governed heavily by compliance
laws. Some legal considerations to keep in mind when implementing an HR analytics
solution are:

Employee privacy and anonymity

Consent from employees about the amount and type of data being collected

Establishing the goal of data collection and informing employees accordingly IT

security when using third-party software to run HR analytics

Location of the HR analytics vendor – with whom the data will be stored –
and their compliance with local laws

Collaborate with the legal team of your organization to ensure ethics andcompliance
norms are followed.
•Choose an HR analytics solution
 The key features of an HR analytics solution

1. They answer the business questions the C-suite asks. This may require that you
invest in a solution to address each question, leading to investments in multiple analytics
solutions for granular data on each question. Alternatively, you may choose a unified
solution that can assess multiple metrics to answer each business question.

2. They are easy to use by individuals who are not data scientists. An accessible
solution created for laypersons is ideal when they want to assess any one or more metrics
without interrupting the workflow of the data scientist.

3. They are cloud-based rather than on-premise. A cloud-based solution also aids
accessibility without heavy IT integration. This grants HR the autonomy to use the solution
as and when needed.

4. They are powered with statistical analysis and machine learning technology. Big
data platforms require advanced data management systems powered by machine learning
and natural language processing. This allows the technology to learn and reason
autonomously, revealing insights that data scientistscan then analyze.

5. They are based on predictive analytics. “[Predictive analytics is] the practice of
extracting information from existing data sets to determine patterns and forecast future
outcomes. Analysts use statistical methods to forecast future alternatives – will the current
termination rate continue at the same pace or might we expect a surge of exits as the job
market strengthens?” explains Collins.

6. They are powered with visualization technology. A visual representation of vast

amounts of data can allow for better understanding of trends and events. The complex data
processed through an analytics engine requires advanced visualization software, as it cannot
be presented in simple charts and presentations.

7. They are available through a subscription model. Subscription models of software

as a service (SaaS) platforms are useful because they easily allow you to access the latest
upgrades in technology. They also eliminate the significant upfront expense of purchasing an
analytics solution and may be a more cost-efficient way of investing in analytics.
•What is Human Resource Planning?

•Human Resource Planning (HRP) is the process of forecasting the future human
resource requirements of the organization and determining as to how the existing
human resource capacity of the organization can be utilized to fulfill these
requirements. It, thus, focuses on the basic economic concept of demand and supply in
context to the human resource capacity of the organization.

It is the HRP process which helps the management of the organization in meeting the
future demand of human resource in the organization with the supply of the appropriate
people in appropriate numbers at the appropriate time and place.

Further, it is only after proper analysis of the HR requirements can the process of
recruitment and selection be initiated by the management. Also, HRP is essential in
successfully achieving the strategies and objectives of organization.

In fact, with the element of strategies and long term objectives of the organization being
widely associated with human resource planning these days, HR Planning has now became
Strategic HR Planning.

Though, HR Planning may sound quite simple a process of managing the numbers in terms
of human resource requirement of the organization, yet, the actual activity may involve the
HR manager to face many roadblocks owing to the effect of the current workforce in the
organization, pressure to meet the business objectives and prevailing workforce market
condition. HR Planning, thus, help the organization in many ways as follows:

HR managers are in a stage of anticipating the workforce requirements rather

than getting surprised by the change of events

Prevent the business from falling into the trap of shifting workforce market, a common
concern among all industries and sectors

Work proactively as the expansion in the workforce market is not always in conjunction
with the workforce requirement of the organization in terms of professional experience,
talent needs, skills, etc.
 An HR Planning process simply involves the following four broad steps:

Current HR Supply: Assessment of the current human resource availability in the

organization is the foremost step in HR Planning.

It includes a comprehensive study of the human resource strength of the organization in

terms of numbers, skills, talents, competencies, qualifications, experience, age, tenures,
performance ratings, designations, grades, compensations, benefits, etc.

At this stage, the consultants may conduct extensive interviews with the managers to
understand the critical HR issues they face and workforce capabilities they consider basic or
crucial for various business processes.

An HR Planning process simply involves the following four broad steps:

Current HR Supply: Assessment of the current human resource availability in the

organization is the foremost step in HR Planning.

It includes a comprehensive study of the human resource strength of the organization in

terms of numbers, skills, talents, competencies, qualifications, experience, age, tenures,
performance ratings, designations, grades, compensations, benefits, etc.

At this stage, the consultants may conduct extensive interviews with the managers to
understand the critical HR issues they face and workforce capabilities they consider basic or
crucial for various business processes.
 Future HR Demand: Analysis of the future workforce requirements of the business is the
second step in HR Planning.

All the known HR variables like attrition, lay-offs, foreseeable vacancies, retirements,
promotions, pre-set transfers, etc. are taken into consideration while determining future
HR demand. Further, certain unknown workforce variables like competitive factors,
resignations, abrupt transfers or dismissals are also included in the scope of analysis.

Demand Forecast: Next step is to match the current supply with the future demand of HR,
and create a demand forecast. Here, it is also essential to understand the business strategy
and objectives in the long run so that the workforce demand forecast is such that it is aligned
to the organizational goals.

HR Sourcing Strategy and Implementation: After reviewing the gaps in the HR supply
and demand, the HR Consulting Firm develops plans to meet these gaps as per the demand
forecast created by them.

This may include conducting communication programs with employees, relocation, talent
acquisition, recruitment and outsourcing, talent management, training and coaching, and
revision of policies. The plans are, then, implemented taking into confidence the mangers so
as to make the process of execution smooth and efficient.

Here, it is important to note that all the regulatory and legal compliances are being
followed by the consultants to prevent any untoward situation coming from the employees.

Hence, a properly conducted process of HR Planning by an HR Consulting Firm helps the

organization in meeting its goals and objectives in timely manner with the right HR strength
in action.
3. Training and Development

•Training and Development is a subsystem of an organization which emphasize on the

improvement of the performance of individuals and groups. training is an educational
process which involves the sharpening of skills, concepts, changing of attitude and gaining
more knowledge to enhance the performance of the employees. Training is about knowing
where you are in the present and after some time where will you reach with your abilities.
By training, people can learn new information, new methodology and refresh their existing
knowledge and skills. Due to this there is much improvement and adds up the effectiveness
at work. The motive behind giving the training is to create an impact that lasts beyond the
end time of the training itself and employee gets updated with the new phenomenon.
Training can be offered as skill development for individuals and groups.

•Organizational Development: Organizational Development is a process that

―strives to build the capacity to achieve and sustain a new desired state that benefits the
organization or community and the world around them.‖

•Development is made to answer the training problems:

•TRAINING

• Training is meant for operatives

•It is reactive process

•AIM: To develop additional skills

•It is short term process

•OBJECTIVE: To meet the present need of an employee

•Initiative is taken by the management

• DEVELOPMENT

•Development is meant for executives

•It is pro- active process

•AIM: To develop the total personality

•It is continuous process

•OBJECTIVE: To meet the future need of an employee

•Initiative is taken by an individual Importance of Training and Development:

•Optimum utilization of Human resources

•Development of skills

•To increase the productivity

• To provide the zeal of team spirit

•For improvement of organization culture

•To improve quality, safety

• To increase profitability

• Improve the morale and corporate image

 • Reasons to go for Training and Development:

• When management thinks that there is a need to improve the

performances of employees

• To set up the benchmark of improvement so far in the performance

improvement effort

•To train about the specific job responsibility

• To test the new methodology for increasing the productivity

ORGANIZATION DEVELOPMENT:

AN INTEGRATED APPROACH

This model depicts three basic strategies to achieving successful organizational

change. The three strategies are not mutually exclusive and all three could be used
concurrently to bring about systemic change. One or the other, however, may be
more conducive to the type of change needed in a particular organization. For this
purpose, they are shown as being three different strategies.

• The Behavioral Strategy takes an employee training and development approach. It

posits that employee learning would bring about the organizational change needed.
Learning would consist of gaining knowledge, skills and new attitudes, which would
lead to new behaviors. These new behaviors would then lead to improved quality and
performance

• The Structural Strategy takes an organizational design approach. It posits that

organization structure and design should be aligned (or realigned) consistent with the vision,
direction, mission, or goals of the organization. The Structural Strategy would incorporate
changes in the organization chart. Employees, units, divisions, and departments could be
realigned to optimize resources. For example, hierarchies could be flattened and decision-
making could be placed closer to the point of action. Significant work could be done in
chartered, self-directed teams. Such realigned relationships would lead to improved quality
and performance.
•The Technical Strategy takes a continuous improvement approach. It posits that processes
in the areas of customer focus, product and service delivery, support, and supplier and
partnering could be improved. This strategy also maintains that technology be continuously
updated and aligned with the processes of production and service to make work more
efficient and effective. Continuous process improvement with aligned technology would
lead to improved quality and performance. Training Best Practices and Organizational
Success

Some of the best companies today realize that continuous learning and
development is key to organizational success. For this purpose, professional trainers may be
hired to conduct training sessions on specific topics. These trainers have the responsibility to
develop training strategies, which help in knowledge retention and enable the employees to
achieve success in the workplace. Trainers need to be mindful of some training best
practices to accomplish this goal. This article will review some of the best practices that
should be followed in the training industry. Some of the most effective learning and
development programs today include the following best practices:

•1. Training programs should be strategy-driven Trainers should be well aware that all
training and development programs need to be in line with the organization's overall
strategic goals. They should closely interact with the clients to ensure that the designed and
implemented programs help to achieve business success by overcoming an area of
improvement. The trainers should align the learning objectives and business objectives to
make the training more relevant.

•2. Set criteria to define success The success of training programs should be measured
against different criteria. Training programs should result in a return on investment, either in
the long term or the short term. Professional trainers should clearly outline how the training
initiatives help an organization fully achieve its goals. The timeframes should be identified
at the beginning, and a re-evaluation of the programs should be conducted on a regular basis.
 •3. Training programs should be supported by key strategies, systems, structures,
policies and practices When designing a training program, the trainers should ensure that
learning is aligned with and directly supported by organizational structures, lines of
authority, decision-making, values and other business practices. This would help to establish
boundaries and reinforce thedesired results.

•4. Training should be driven through many channels Some of the best trainers in the
industry help the organizations to explore and utilize differentplatforms to reinforce learning
outcomes and ensure that people get the right skills at the right time, in the right way and at
the right cost. They closely liaison with the companies to tap methods, such as classroom
lecture and role-plays, on-the-job application, e-learning, and use of other technology and
support tools to match learning styles of each employee. Each approach offers multiple
benefits and shouldbe looked into for delivery of effective training programs.

• 5. Learning by doing and establishing shared accountability Some of the best programs
enable the employees to maximize their potential through self- directed training and
development. By identifying their own needs, creating individual learning plans and seeking
learning opportunities, employees are encouraged to take responsibility for learning and apply
the learned concepts at work. By experimenting and learning by doing, an employee may find
himself to be more effective at work and contribute to organizational success. Many trainers
recognize that learning is built around action rather than theory. Training best practices can
vary depending upon the specific situation, culture and maturity of each organization. However,
the best trainers ensure that they are well aware of the training needs before implementing any
initiative. The industry is built around the belief that the process of doing, reflecting and
learning is a continuous one. Everyone who follows this blog knows that I tend to take a softer
approach to training that at times may not seem as traditional or as typical of the training
principles you are taught in school. I also don‘t tend to weigh my page down with off-the-shelf
products, although guest writers are more than welcome to do so as long as they write
generically about all such products. This blog is not to promote, but to share training ideas and
best practices. Putting people first is a part of any training for me, but there is a business side to
it as well that we cannot ignore. Our clients are profit-oriented unless they are non-profit, but
they too are still looking at a bottom line.
4.Supply chain network (SCNet)
A company's supply chain network impacts how quickly products get to the customer. Once
implemented, it's hard to make changes, which can affect multiple locations and departments.
Therefore, a thorough review of the plan is required before modifying processes or
locations and resources.

An optimal supply chain network has to fit with the organization's long-term
objectives.

What Is a Supply Chain Network?

A supply chain network describes the movement of both materials & information, assessing
the programs and policies that impact the supply chain. Most business units in an organization
have an interest in efficient supply chain operations. A supply chain network design
documents these interactions, tracks improvements and sets long-term goals.
How Does a Supply Chain Network Work?

By analyzing their supply chain network (SCNet), companies can collect quantitative
measures that aid strategic decision-making. The supply chain network takes into account plant
locations and capacity, possible pricing level changes, distribution locations and capacity,
supplier and product factors, inventory management andcustomer service impacts.

Companies implement supply chain network designs to maximize profits and stay ahead of
competitors. A key factor is how well the existing supply chain integrates changes. New
processes may mean substantial infrastructure changes. The question becomes: is it worth it?
Drivers that impact the supply chain include the following:

Acquisitions
Carbon footprint reduction Changing

customer base

Consolidation/Deconsolidation

Divestment

Expansion

Growth
 Inventory

Mergers

New markets New

product lines

Sourcing

Strategic planning

Supply chain networks model the existing supply chain and a future state that includes
improvements that can lower costs, save time and get products to consumers faster. Resource
and location constraints may be addressed in the form of new warehouses and suppliers.

SCNet designers attempt to deliver the required services as cost-effectively as possible.

Supply chain networks help decision-makers determine the best sourcing and inventory
practices to meet demand. Ultimately, an effective SCNet creates efficiencies, meets or
exceeds customer demand, and provides the lowest costs via an efficient network.

Outcomes and Benefits of SCNet

Implementing a supply chain network has numerous positive outcomes. Your company can
reduce supply chain costs, improve services and increase return on investment. In order to
mitigate the risk of making global changes to your supply chain, carefully weigh the cost of the
changes against the benefits of making them. If your existing supply chain is fragile, it may be
worth a temporary disruption to develop a supply chain that can support growth initiatives in a
sustainable way.

The potential benefits are high. An intelligent supply chain network can reduce the total cost
of the supply chain by weeding out inefficiencies. A well-documented process creates
transparency that improves service level performance. Additionally, SCNets provide a reusable
tool for business changes and a template for testing different operating models.

SCNet Elements and Optimization

Supply chain network optimization allows companies to pit current and future state models
against one another. Using several "what-if" scenarios, these models help planners design
strategic goals and realistic metrics. At the end of the day, SCNet optimization lets companies
move forward with confidence once a final plan is adopted.
 Before green lighting an SCNet optimization plan, leaders should gauge their comfort level
with the documentation of the current system and the levers being manipulated in the new
model. By conducting thorough analyses and scenario-based testing, the entire organization can
understand the individual mechanisms and their true impact. Consequently, you can make sure
that you choose the right drivers to obtain the ultimate goals.

You can create models that include the cost of the current supply chain as a basis of
comparison to your new design. Next, model the what-if scenarios to determine if the new
network has achieved the goals as anticipated. By carefully evaluating the model and the supply
chain data, you can see the gaps in your distribution channels and other supply chain
components. This is particularly valuable for B2C businesses and start-ups.

Elements of a supply chain network include:

Risk analysis: Gain perspective on changes to your supply chain, including unexpected
hiccups or disruptions.
Complex problem solving: Design a methodology to find the best routes tocustomers
based on multichannel e-commerce or marketplace locations.

Project mentoring: Provide a project framework that helps internal resources identifythe best
software for your supply chain.

Example of a Supply Chain Network

A supply chain network for an orange juice producer might consist of three sections:Inbound

Logistics

This flowchart could show the Orange Grove->Orange Juice Plant->Orange Juice Bottling
Plant workflow. Fuller details would include a secondary/separate workflow for how the bottles
are made. This might include the oil field where the raw material is produced, the tree
plantation producing paper for the labels and various organizations involved such as the label
printer and paper manufacturer.

Internal Logistics

This would include the organization distributing the orange juice to retailers and grocery
stores. This includes the company HQs and satellite locations.
 External Logistics

This would include the regional and national distributors and the shops selling the orange
juice.

Developing a supply chain network allows companies to better understand their current
supply chains and to document ideas for improvement that can be well-vetted prior to
implementation.

Often organisations focus only on their organisation; what they produce or provide and not
what the end customer receives. Looking at a supply chain network enables firms to look at the
overall movement of materials/information from start to end, allowing organisations to see the
value in creating partnerships; and the value in working together to ensure the best possible
value is provided to the end-customer.

Supply chains and supply networks both describe the flow and movement of materials &
information, by linking organisations together to serve the end-customer.
Network’ describes a more complex structure, where organisations can be cross- linked and
there are two-way exchanges between them; ‘chain’ describes a simpler, sequential set of links
(Harland et al., 2001)

In order to understand a supply chain network; we need to understand what a supply chain is.
A supply chain is a series of processes linked together to form a chain.

• Supply Chain Example: for apple juice production.

The above diagram is an example of a simplified supply chain; the supply chain shows the
movement of material flow from the Apple farm right through the production process to the
end users.

Supply Chain Network Example: For Apple Juice Organisation

A supply chain network shows the links between organisations and how information and
materials flow between these links. The more detailed the supply chain network the more
complex and web like the network becomes.

The above example demonstrates a simplified version of a supply chain network of an Apple
Juice organisation. The organisation will have an upstream network and a downstream network.
Organisations are linked via two types of flows:

To get a complete picture of an organisations supply chain network; information & material
flow should be mapped. Inefficiency can then be located and removed.

Material flow: Is the movement of goods from raw primary goods (such as Wool, Trees and
Coal etc.) to complete goods (TV’s, Radios and Computers) that are to be delivered to the final
customer.

Information flow: Is the demand from the end-customer to preceding organisations in the
network.

Supply Chain Network: Information flow, Flow of Materials

If a focal firm provides their suppliers with their sales data/ forecasting demand
information; their supplier will be able to reduces costs (such as over production waste) and
improve prices.

In order to better serve your end customer it is important to develop strong partnerships
 within your supply network which has a flow on effect to your end customers whether you
are a manufacturer, distributor or retailer. Better communication will increase efficiency and
productivity. Trust is the core ingredient to developing better communication and
relationships.
2. Planning and Recruitment

Here’s an overview of the steps.

Read and understand your business plans Scope out

your DDHR (data-driven HR) projectDefine your

primary metric

Define your secondary and supporting metrics

Articulate the ‘What’

Articulate the ‘Why’ behind the ‘What’

Drive Decisions, Case for Change, Targets and Change Plans

Implement, Measure Success, Stabilize and Realize Value

1) Read and Understand Your Business Plans

It may seem obvious... but... have you read your most up-to-date corporate business plan or
objectives? If you don't have access to it or don't have one, have you interviewed members of
your executive team to understand the overall direction?

If you haven't, how will you be able to build people and organizational capabilities?

HR becoming data-driven is about achieving better balance with your qualitative and
quantitative data (i.e. gut feel and hard facts). This balanced approach needs to be applied
within the context of something relevant, juicy and purposeful for the organization – whether
that is a specific Line of Business (LoB) that you serve, or a larger corporate objective.

HR must understand the Corporate and Business Unit Plans, understand what this means in
terms of people programs and capabilities, and must identify, scope, and deliver Data-
Driven HR projects which will help you achieve these business plan outcomes.
2) Scope Out Your Chosen DDHR (data-driven HR) Project

Your scoping exercise should include these activities:

Read Your Corporate Business Plan

Read Your Line of Business Unit Plan (the plan for your direct client)

Discuss and "play-back" your key observations to the management team/LoB to ensure
you've created sufficient understanding

Ensure and articulate how your first DDHR Project supports Key Areas of Focus for your
client (these could be from the Corporate objectives, LoB objectives, or acombination)

For your first DDHR Project, research, brainstorm and document the following - to the
best of your ability:

The specific objectives, outcomes and metrics related to the project

The people and organizational requirements/capabilities for delivering on this

Your gaps when it comes to all aspects of HR & people programs (i.e. if you need to
"improve close rates in our Sales Team" and you don't have a best practice Sales
Closing Training Course available, then this would be considereda "gap“)

The risk, implications and business impacts of not closing that gap

Brief your LoB Lead/management team on your findings from the above activities
- gain deeper understanding, alignment and support for your project. If you've got it right,
you should have raised the enthusiasm and interest of your clients.

Now you've put some boundaries around your ONE Data-Driven HR Project and
understood it in greater detail with your organizational or LoB counterparts - you must now
define the project in more detail - and execute. There are several steps to this - steps that
dig into the data and metrics you're going to capture.
3) Define Your Primary Metric

You need to define something we call a Primary Metric which captures the essence of what
your project is focused on accomplishing. When defining the Primary Metric, it's advised to be
as specific, and detailed as possible - as this is the foundation of all subsequent steps.

You may however decide, at this point in time, to keep this directional in nature (i.e. decrease
or increase) and not get into specific targets. This is all good. Targets can be estimated/set in a
subsequent stage when you have access to hard data.

Here's an example:

"Decrease Turnover of our Top Performers (Rated Outstanding and Exceptional) in their First
Year of Tenure in the Sales Department“

Ensure you define the nuances of your Metric such as... Do you mean First Year in the
company, or First Year in Sales? Do you count a top performing employee who spent 3 years in
Marketing, then transferred to Sales and then left the company 9 months into their Sales role?

Quantify (state the current facts regarding) your Primary Metric in terms of both rate
and magnitude:

In 2019 our Top Performer Turnover Rate for those employees in their First Year of Tenure
in the Sales Department was 23%

In 2019, this represented 17 EEs departing on a total segment of 77 EEs

To achieve a comprehensive understanding, your Primary Metric needs to be looked at from

many lenses - this means slicing and dicing your data across the data dimensions which are
available to you. If you are fortunate to have powerful workforce analytics or BI tools, this
will be simple. If you are calculating in a spreadsheet, this will be more challenging so be
prepared to dig in and spend some serious time on this.
4) Define Your Secondary or Supporting Metrics

Your Secondary or Supporting Metrics are the additional data dimensions and
segmentation which may be important to your analysis. The extent of these Secondary
Metrics and segmentation is really up to you - but in our experience, this is where the most
insightful observations and story lines can come from.

For example: Segment and slice your data so you can understand if there are any anomalies
based on demographics, location, manager, manager's attendance at a People Manager training
course, recruitment channel, onboarding survey results andengagement, among other things.

You’re only limited by the data you have access to and your ability to connect it. Again, if
you’re working with a people analytics partner or use a powerful BI tool this will be relatively
easy. If you don’t and you’re dealing with spreadsheets and disconnected systems, roll up your
sleeves and tuck in… you’ll need time and some analytics expertise on your side.

5) Make Quantitative Observations - Articulate "The What"

Using your Secondary Metrics, continue segmenting and analyzing your data, making
observations focused on anomalies (outliers in your data, hot spots where acceptable thresholds
are exceeded, or where the sheer mass/magnitude of an issue can represent an opportunity, or
lack thereof).

6) Articulate “The Why Behind The What"

At this point, you'll have a collection of facts compiled about Top Performer Turnover in
Sales, for employees in their First Year of Tenure.

Armed with this multidimensional and segmented analysis, you must dig deeper into the story
lines, understand the context in which they occurred, and ask "why" to those who are best
positioned to articulate logical reasons and hypotheses.

This is qualitative understanding.

• This can be accomplished through a variety of techniques. For example, you may choose to
run some focus groups with other Top Performers in Sales, those who are in their second year
of tenure who can shed some light on the experience, you may want to implement or
harvest data from your Onboarding Experience Survey, you may want to have small group
conference calls, 1 on 1's or water cooler/off the record conversations with Managers, etc.
Whatever the approach, this is focused on getting to the lived experiences of those involved,
bringing the numbers to life and providing the context.

• The objective here is to spend some time digging deep so you can balance your facts with
context, and be prepared to tell the story in a more complete fashion, with as much texture as
possible.

7) Drive Decisions, Case for Change, Targets and Change Plans

In our opinion, it's futile and pointless to embark on Step 1 of this process unless you are
willing to drive a decision, and implement change.

GUT CHECK: If you don’t expect your data-driven HR efforts to drive decisions and
change, then seriously think about stopping now and focusing on something that the business,
or your HR team, would value.

Decision making must be done in collaboration, consultation and with the support of your
LoB client. It's therefore critical, that you've been engaging with your LoB clients throughout
the prior steps - and have access to the facts, context and opinion.

Decision making for the Line of Business is all about Return on Investment (ROI) - which
requires the development of a Case for Change. Some might call this a Pitch Deck, others a
Business Case. Regardless, the Case for Change is a 10-15 slide summary and recommendation
which is structured as follows:

Executive Summary

Background and Context

Current Environment/Issue Identification (Facts and Context)

 The Opportunity

Proposed Solution(s) and Targeted Outcomes

Costs and Benefits (ROI) Project/Implementation

Approach

Resources Required

Recommendation

Next Steps

The goal is to convince your stakeholders and impacted partners that change isneeded
and helps them accomplish their goals.

8) Implement Change Plans, Stabilize, Measure Success and Realize Value

For more information on how to implement and create sustainable change, please refer to
Playbook 4 where we go deep on this topic.

Remarkably, “Business Case Realization” is incredibly easy to ignore - in fact, we are

often systematically forced to move onto the next activity before we have captured results -
and metaphorically “banked the winnings”.

You must try and avoid this pitfall at all costs:

Remember, the only reason why you’ve been trusted to invest in data-driven HR isto chase
juicy business outcomes.

You’ve sold this initiative on a business case - so you must spend some time quantifying
and counting your accomplishments and success - and sharing that withthose that matter.

Simply determine the ROI of your initiative

On one side of the ROI equation you will articulate the “New Value” you have created
through this initiative.
 On the other side of the equation, articulate the Cost of the initiative (days effort in
working this project can be converted to a daily internal loaded cost rate). You will use
this as your denominator.

Subtract the Cost from the New Value and call the result your “Net New Value” - use this
as your numerator.

Divide the Net New Value by Cost and multiply by 100.

You now have your Return on Investment for this data-driven HR project.

5. Planning Demand

How Demand Planning Can Improve the Supply Chain

What is Demand Planning?

Demand planning is a supply chain management process of forecasting, or predicting, the

demand for products to ensure they can be delivered and satisfy customers. The goal is to strike
a balance between having sufficient inventory levels to meet customer needs without having a
surplus. A wide variety of factors can influence demand, including labor force changes,
economic shifts, severe weather, natural disasters or global crisis events.

What are the Aspects of Demand Planning?

Demand planning spans several aspects, with the three primary areas being:

Product Portfolio Management

Product portfolio management oversees the overall product lifecycle, beginning with the
introduction of a new product through to its end-of-life planning. In many cases, product lines
are interdependent, and understanding how new products may influence demand for other
products is important to understanding the overall product mix required to maximize market
share.
 Statistical Forecasting

Using historical data, statistical forecasting creates supply chain forecasts with advanced
statistical algorithms. In this area, it is important to determine the accuracy of each model,
identify outliers and exclusions and understand assumptions. Seasonal shifts (think the spurt of
holiday shopping that occurs between October and December for retailers, or the boost in yard
equipment sales in spring months) can also be assessed with statistical forecasting.

Trade Promotion Management

Trade promotion or marketing events can influence demand, especially in the retail industry.
The goal of a trade promotion is to help a brand connect with a customer, often through an in-
store giveaway, discount, or promotion, and these events can impact the demand for a product.

Why is Demand Planning Important?

If product isn’t available for customers to purchase because it’s out of stock, businesses lose
out on revenue, and over time, they could lose the customer to a competitor. On the other hand,
sitting on a slew of unused inventory incurs both space and production costs unnecessarily.
With demand planning, business leaders can stay in front of market shifts and make more
proactive decisions, while being responsive to their customers’ needs.

Demand planning is a multi-step process, dependent on the right tools, information and
processes. Often, there can be unique nuances in the process, based on product positioning,
inventory needs and organizational goals, but some best practices to keepin mind include:

Implement the Right Software

There is a plethora of options when it comes to enterprise resource planning (ERP) systems,
so choosing the right one can be tricky. When considering ERP software, it’s important to
examine the ability of the tool to handle forecasting nuances as well as the provider’s
reputation, reporting capabilities, and the transparency and reliability of the forecasts it
produces.
 Gather and Prepare Data

Data drives demand planning, now more than ever. Real-time visibility into inventory
movements coupled with metrics reports that paint a clear picture and data mining and
aggregation that can identify areas for improvement or reaction can help to create more
agile process modeling.

Define Process Models

Lacking a defined process for a demand planning cycle leads to chaos. Confusing process
with information that is simply a set of widely known facts around an organization is all too
common, making it difficult to hold anyone accountable, and thus hurting overall
performance. For most companies, the steps in the demand planning process go something
like this:

Preparation of data

Initial forecasting

Incorporation of market intelligence

Consideration of sales goals and financial reports to reconcile bottom-up forecasts with
top-down financial and sales forecasts

Refine a final forecast

Performance monitoring based on real-time analytics

Implement and Monitor

Successful demand planners usually design a pilot version of the plan using historical data,
or descriptive analytics, as a basis. They also make regular adjustments and have a team of
people dedicated solely to devising the plan, implementing it, reducing error and bias, and
designing processes for execution.

The Future of Demand Planning in the Supply Chain

Like many business needs, supply chain and demand planning are going digital. Advances
in applications of machine learning within the supply chain are making it possible to adapt
and update forecasts in real time, allowing inventory to run leaner, without missing the mark
on demand
 UNIT IV HR & SUPPLY CHAIN ANALYTICS
For supply chain professionals, understanding how to use digital enterprise architectures and
implementing artificial intelligence and machine learning programs that can help optimize a
lean, agile and data-driven approach will reveal new ways to cut costs in operations, boost
revenue and offer a greater competitive edge.

A better-connected supply chain means demand planning can be conducted even more in the
moment. When implemented well, demand planning can be a pivotal process in boosting a
supply chain’s profitability.

• Inventory and supply chain management methods are a major component of business
strategy and profitability. Without them, companies cannot manage their inventory
effectively and can incur additional costs.

The increase in costs can be incurred with increased warehousing requirements or lost revenues
due to dead stock. Human and financial resources dedicated to inventory management
can also represent a significant expense.

Poor inventory and supply chain management can hurt a company's profitability through the
strain that inefficient inventory puts on its cash flow.

It can also lead to dissatisfied customers, who may seek alternative suppliers as a result of
the continual unavailability of certain products.

Adopting an optimal inventory management strategy designed for your specific challenges is
essential in reducing costs and risk, and more importantly, ensuring the long term
future of your business.

Good inventory management will allow you make better decisions. It will also giveyou the
ability to be more responsive to customer demand and ever changing marketneeds.
In this article, we will demonstrate the different inventory and supply chain management
methods available, to ensure you optimise your logistics and improve the profitability of your
business!
 I - Inventory and supply management : definitions

First of all, it is important to get to know some of the key terms and definitions

1 - Inventory management strategies

To choose the best inventory and supply chain management method, thereare two
options available:

an empirical strategy

a forecast strategy

An empirical inventory management strategy is based on sales history. By establishing

the average sales of each unit, their frequency of removal from stock and any consumption
peaks, it is possible to anticipate the future requirements. An empirical strategy is
based on what has happened in the past.

A forecast strategy also takes into account sales history, but includes macro influences –
those that take place outside of the company: things like market and sector trends,
changes in consumer behaviour, etc.

This type of strategy is essential to manage the stock of products that are highly susceptible
to seasonality or whose sale is typically irregular. For this to be useful, it requires the
availability of reliable market information and indicators.2 - Inventory and supply
management - what is it?

Inventory management refers to the methods and practices used to determine the
quantities and frequency of purchases of a company's products.

The aim of this set of measures is to establish the best compromise between storage
and delivery costs, in order to be able to meet market demand.

To be effective, inventory management involves documented tracking of products

(quantity, location, condition, etc.).
 Supply is what keeps the chain moving. It can be anything from providing the company
with the raw materials and/or goods in order to guarantee products aremade, to the movement
of products through the various phases of distribution.

Supply can occur in different places: the warehouse, a manufacturing plant or even at point
of sale.

II - Why optimise the inventory and supply management method?

Choosing an effective inventory and supply management method is vital inavoiding two
costly situations - product overstocking or out of stock scenarios.

1 - To avoid overstocking

Overstock is dormant products that don't bring any profit to a business and cost a business
money (through warehousing costs).
These products are effectively tied up capital that cannot be mobilised to create value,
and in turn increase costs which is a real disaster!
A company must try to avoid overstocking at all costs, because the negative effect it places
on cash flow, increases the Working Capital Requirement (WCR) and reduces its margin of
safety.
In addition, if products are difficult to sell and/or they are perishable, a company will be
forced to sell them at a discount or loss, which leads to a decrease in thecompany profits.
In the worst case senario, overstocked product can eventually become dead stock, outdated
or obsolete items that can no longer be sold, a net loss for the company.

2 - Avoiding low stock and out of stock

If you have insufficient products to meet the potential demand of your customers,
the risk of out of stock is increased.
This is a situation that must be avoided, because it means a temporary halt to yourbusiness.
• If stock shortages are chronic, a business will run the risk of upsetting its customers and
maybe even saying goodbye to them forever. A store that no longer receives your products
and is forced to have empty shelves on a regular basis will quickly turn to a competitor for
resupply.

III - 7 methods of inventory and supply chain management

Now that you know why it's important to find the most efficient way to manageyour
inventory, here are the most popular methods used by businesses today.

1 - The ABC analysis of stock

The ABC analysis of stock is a method of separating your products into 3 classes to
determine their importance.

Class A: 10 to 20% of products representing 80% of the total revenues. These are the most
important products. Breakage is not an option and inventory monitoring must be rigorous
and regular.

Class B: 30 to 40% of the products which represent 15% of the total revenues. These are
intermediate products and it is advisable to monitor these regularly, to always ensure a
products are available.

Class C: 50% of products that represent 5% of the total revenues. These products require
less frequent replenishment. Replenishment is only needed when all the stock has been sold,
in order to minimise storage costs.

2 - Calendar replenishment

Calendar replenishment is an easy-to-implement inventory management method.

Orders to suppliers are determined in advance and deliveries are made
on fixed dates. This method is relevant
for items sold regularly over time. It has the advantage of requiring limited
administrative management since everything is planned
in advance.This method of supply management can
also significantly reduce costs. Since the supplier can organise deliveries well in advance as
part of its activity is guaranteed in the future, this makes the supplier more open to
negotiation.
 3 - The replenishment method

This method consists of placing a regular restocking order, by defining a stocklevel

status of products. The quantity that constitutes the difference between the current
stock and the optimal stock level is defined beforehand.

This inventory and supply management method is particularly useful forexpensive and/or
perishable products sold on a regular basis, such as food products.

It can cause problems if consumption does not follow sales forecasts and may resultin the
company finding itself at the mercy of shortages or overstocking.

4 - The reorder point method or just-in-time (JIT)

The reorder point method, or “just-in-time” method, is a supply chain management

method that requires defining a minimum stock level in advance.

As soon as this level is reached, a replenishment order is triggered. The timing ofthe order
is determined by stock levels and delivery times.

This method is particularly relevant for products whose frequency of sales is difficult to
anticipate. It is also used for products whose storage costs are high and must be optimised
wherever possible.

In theory, this method has a number of advantages. It makes it possible to onlyhold the
optimum quantity and minimise storage costs. It also offers several automation
opportunities to reduce the time spent on inventory management.

Not all suppliers accept it because of the random nature of each order (quantity and date). It
also requires a lot of organisation to get right!
 Four ways of ensuring more efficient supply chain inventory management
1. Maintain alternative suppliers for your core business
Having alternative suppliers spread across geographies is a great way to ensure that the
supply of essential goods for your business remains uninterrupted. While this may not seem
extremely efficient, it certainly helps mitigate risks from black swan events.
Another step is to maintain reserve or safety stocks to prevent operations from grinding to a
halt completely.
Car manufacturer Volkswagen has regional supply chains in China and Europe. When the
pandemic affected Volkswagen’s supply chain in China, the company switched to its
European suppliers and then switched back to China again when the pandemic shut down
Europe, according to the survey report.
2. Re-evaluate your sourcing strategies and suppliers
In the survey, 44% of respondents believed their companies relied too much on suppliers
from some countries. In the future, they would prefer securing suppliers from a wider range of
countries, and possibly near-shore alternatives.
More businesses are evaluating sourcing strategies that involve local suppliers and greater
transparency to build resilient supply chains that can be monitored more closely.
Some, like Schneider Electric, are planning to cut down their suppliers by half — from
12,000 to 5,000 by 2022-23 — to work closely with a select number of suppliers, according to
the report.
3. Embrace technology and digital transformation of your supply chains
The survey reported that less than 40% of the companies have adopted digital platforms and
advanced analytics, with less than a third using the cloud or IoT. That must change for
inventory management to be effective.
Advanced inventory and warehouse management software can help companies tap into real-
time data for better visibility and more accurate forecasting. AI and advanced analytics can help
companies track crucial metrics, such as inventory turnover, gross margin, and customer
order fill rate and improve overall supply chain visibility. Inventory management
software helps companies understand how their goods move through their warehouses
automatically.
4. Become less siloed and more collaborative as an organization
The goal of effective supply chain inventory management is to guarantee that the right goods
are in the right place at the right time. Isolated departments and siloed organizational data
reduce the transparency needed to ensure effective inventory management. That’s why
facilitating a smoother flow of information across departments is the key.
• 6. Logistics

• Supply chain management (SCM) is one of the main ways to optimize the budget of
enterprises producing goods and/or services. At the same time, a great role in the supply
chains is played by logistics – the management of physical, informational, and human flows
in order to optimize them and avoid unnecessary waste of resources.

What is the Difference Between Logistics and Supply Chains?

Logistics and supply chain should not be confused. Logistics is a rather narrowly focused
concept (narrower than the SCM), which simply means globalization of resource
management — from every local unit to the entire network of production points.

In turn, supply chain management is a more complex category. Supply chain management
involves logistics and thus performs end-to-end optimization – that is, not only within the
enterprise but also when working with counterparties.

The purpose of efficient logistics management is to achieve maximum competitiveness and

profitability of the company, as well as the entire network structure of supply chains,
including the end-user. In this regard, the integration and introduction of innovations into
the processes of supply chains, as well as into the processes of logistics, should be aimed at
increasing the overall productivity of all their participants.

The Functions of Logistics within Supply Chain Management

If we systematize all areas of logistics that need to be developed for the rational
management of production resources, we can single out the following functions:

Warehouse design and management. This role of logistics in supply chain management
covers several tasks at once: from the design of storage facilities to the requirements for
storage of products and ending with the introduction of various automation solutions (for
example, for machinery intended for transporting goods within warehouses);
 The formation of packages. Packaging, tracking and accounting – all of these tasks
allow for end-to-end control of goods on the way to the customer/distributor;

Transportation of products. This includes work with cargo carriers and vehicles listed in
the company’s fleet: planning their routes, calculating fuel costs, etc.;

Working with customs. When an enterprise plans international delivery of goods, it is very
important that during their transportation the goods fully comply with customs requirements
and contain all the necessary documentation;

Working with intermediaries. Intermediaries in logistics are all third-party, non- company
resources that are directly involved in the implementation of supply chains. In turn, finding
intermediaries with the most acceptable ratio of quality to cost of services, as well as
establishing long-term, reliable relations with them are also included in the list of tasks for
efficient logistics management;

Working with written off and returned goods. There is also such a thing as “reverse
logistics”, which establishes the rules and routes for transporting the returned/discarded
goods, as well as ways to dispose of them.

Challenges Logistics Helps to Overcome in Supply Chain Management

Given the above list of tasks that logistics performs in supply chain management,
we can single out a number of advantages provided by its correct implementation:

Minimization of enterprise expenses. The main role of logistics in supply chain

management is primarily to increase the overall value of each delivery, which is identified
by customer satisfaction. This means that the reduction and optimization of labor resources
must be tied in with keeping up a certain level of quality customer service. This problem is
solved both by reducing the total labor resources (primarily by eliminating unnecessary
chain links), and by introducing automation solutions;
• Consolidation of traffic volumes. Transportation costs are one of the largest expense
categories in logistics management. In general, transportation costs increase depending on the
distance, batch size, and product exposure to damage. On the other hand, the transportation cost
per unit of weight decreases as the lot size increases on long runs. Thus, the maximum
consolidation of transportation volumes can help reduce transportation costs. Enlargement can
be achieved by combining small lots into
• a single large one, intended for a long run (i.e., for a longer distance);

Improving the quality of service. With regard to the quality of service, it is largely influenced
by the speed of delivery of the goods to the end-user, as well as its transportation in proper
conditions (for example, many products today are supplied with RFID tags so that both the
manufacturer and the end customer could track whether all storage conditions are being
observed during the transportation of the goods) and within the allowed time limits (this refers
primarily to perishable goods);

Reduction of actual losses and reduction of possible risks. As you know, a business is
profitable if the value it creates exceeds the costs associated with the implementation of
activities. To achieve a competitive advantage, a company must either carry out these activities
at lower costs or carry them out in a way that will lead to differentiation and price increment.
The first thing to be done to effectively solve this problem is reducing the losses that are
associated with the return of goods. It is very important to plan not only the routes on the way
to the distributor or the end-user butalso the routes by which the goods are delivered back to the
warehouse or to the establishments for their disposal. The second factor affecting risk reduction
is the correct planning of enterprise resources, which minimizes the likelihood of damage or
loss of goods or manufacturing components on the way from the extraction of raw materials to
delivery of the finished product/service to the end-user;

Minimization of the need for intermediary services. Intermediary services (transportation,

storage, marketing, recycling, etc.) take up the lion’s share of the cost of the implementation of
supply chains. Experienced logisticians plan routes so as to minimize the need for involving
third-party services for efficient logistics management;

Supporting goods with the necessary documentation. Insurance and support of documentation
are two fundamental tasks of logistics, solving which helps to eliminateany problems associated
with legal restrictions in the storage, transportation, and marketing of goods;

Timely response to changing market demands. Advanced logistics scenarios also help to
quickly adapt to changing market requirements and, thereby, maintain top positions against the
backdrop of competitors and remain in demand for the target audience.
 Values Logistics Provides to the Supply Chain Business

Supply chain management with the help of logistics tools helps to ensure a consistently
high level of customer service with some reduction in the cost of extracting raw materials,
storing, transporting, and selling goods/services to end- users. Thus, the role of logistics in
supply chain management is to carry the following values:

ensuring the smooth operation of all parts of the supply chain. Continuity of workflow is a
rapid step towards both reducing the expenses and increasing overall customer satisfaction.
Usually, this is achieved through proper planning and the formation of a fault-tolerant
scheme of interaction between the individual links inthe supply chain;

release of labor resources. On the other side of fault tolerance is the elimination of
redundant elements (intermediaries), the participation of which entails additional costs.
Thus, it is very important to find a balance in which the reduction in labor resources does not
entail forced downtime during the implementation of supply chains;

coverage of a new target audience. Increasing overall customer satisfaction is a rapid step
toward popularizing your brand by means of word of mouth. An additional advantage is a
fact that such advertising (which is also one of the most effective methods) comes absolutely
free for you;

net cost reduction. By eliminating a number of intermediary links in the supply chain, you
will be able to reduce the net cost of a product or service, and thus increase their availability
to the end-user.

Why Is Logistics Management Important?

Logistics Management can be reduced to the fundamentals of the most efficient and
effective ways to move resources and products to the customer. This ultimately provides the
best service to customers who are ever demanding faster and more efficient services.
 Logistics management is also able to create visibility within an organisation's supply
chains, provide data on real-time movements and therefore advise on and implement change
that directly affects the organisation as a whole.

Want to learn more about advancing visibility within supply chains? Join us on the 29th of
September when we are hosting an exclusive webinar for HERE Technologies and Sigfox.

Logistics Management forms a core part of a supply chain for any organisation, managing
and overseeing the distribution network to ensure that inventory management is under
control.

Definition of Logistics Management

The management process which integrates the movement of goods, services, information, and
capital, right from the sourcing of raw material, till it reaches its end consumer is known as
Logistics Management. The objective behind this process is to provide the right product with
the right quality at the right time in the right place at the right price to the ultimate customer.
The logistic activities are divided into two broad categories they are:

Inbound Logistics: The activities which are concerned with procurement of

material, handling, storage and transportation

Outbound Logistics: The activities which are concerned with the collection, maintenance,
and distribution or delivery to the final consumer.

Apart from these, other activities are warehousing, protective packing, order fulfillment, stock
control, maintaining equilibrium between demand and supply, stock management. This will
result in savings in cost and time, high-quality products, etc.

Definition of Supply Chain Management

Supply Chain Management (SCM) is a series of interconnected activities related to the

transformation and movement of raw material to the finished goods till it reaches to the end
user. It is the outcome of the efforts of multiple organizations that helpedin making this chain
of activities successful.
 Supply Chain Management

These organizations may include the firms with whom the organization is currently working
like partners or suppliers, manufacturers, wholesalers, retailers, and consumers. The activities
may include integration, sourcing, procurement, production, testing, logistics, customer
services, performance measurement, etc.

Supply Chain Management has a multi-dimensional approach which manages the flow of
raw materials and works in progress (semi-finished goods) within the organization and the
end product outside the organization till it reaches the hands of the final consumer with a
complete emphasis on the customer requirement.

Key Differences Between Logistics and Supply Chain Management

The following are the major differences between logistics and supply chain management:

The flow and storage of goods inside and outside the firm are known as Logistics. The
movement and integration of supply chain activities are known as Supply Chain
Management.

The main aim of Logistics is full customer satisfaction. Conversely, the main aim
behind Supply Chain Management is to gain a substantial competitive advantage.

There is only one organisation involved in Logistics while some organisations are
involved in Supply Chain Management.

Supply Chain Management is a new concept as compared to Logistics.

Logistics is only an activity of Supply Chain Management.

• 7. Analytics applications in HR & Supply Chain

8 Applications Of Advanced Analytics In HR

1. Hiring The Right Talent With Competency Acquisition Analytics

Hiring the right talent is instrumental to a company’s success with employees amounting to
one of the biggest costs and greatest opportunities in most businesses. Hence, in order to
study whether or not you are acquiring the right talent for your business, competency
acquisition analytics can be used.

The primary step includes identifying the core competencies that are crucial for the
success of your business. Then, you can map these competencies against the existing talent,
their current capabilities and their potential for growth. Talent gaps, if any, can also be
identified at this stage.

The HR team can assess whether the existing resources can be trained to plug the identified
competency gaps, or whether new talent with those competencies needto be hired.

2. Recruitment Channel Analytics

Just as important as hiring the right talent, is understanding where the best talent is coming
from. Recruitment channel analytics is a process that helps determine where an
organization’s best employees have been recruited from, and what recruitment channels have
been most effective in hiring the right resources for the company.

This analysis includes gaining insights by drilling down into historical employee data,
surveys and feedback records and assessing KPIs such as the return per employee and
human capital value-added.
 3. Classification Analysis To Determine The Success Rate Of Teams

Classification analysis is the process of analyzing historical data to identify patterns that
help us predict which category a particular observation or data entity belongs to. In HR, this
analytical method can be used to study the composition of a team, and other context
variables in order to determine how successful the teamwill be.

Instead of forming teams merely on the experience, availability of resources, organizations

can use insights from classification analytics to understand what other factors such as
leadership style, team dynamics and size, the duration of a project, etc, impact the success
rate of a team. Being able to determine the success rate of a team beforehand, enables
organizations to form the right teams for a project.

4. Attrition Analysis

High attrition is a huge challenge for HR teams and cost intensive for companies. Job
postings, recruiting, onboarding and training are some significant expenses of losing
employees and replacing them. This is a bigger problem if you’re in a customer-facing
business as customers prefer to work with a particular set of people they’re habituated with.
One way to reduce attrition is by using advanced analytics and NLP to harness the employee
reviews data from employment websites like Glassdoor, Indeed, Comparably etc. This
analysis helps you measure the employee satisfaction towards the brand and understand the
common factors that lead to attrition.

5. Personalizing Training Programmes

Instead of applying run-of-the-mill training methods and general programs for all
employees, the HR team can instead personalize courses to suit the learner’s preference.

In order to do so, ‘adaptive’ learning technology must be used in which data analytics
determines the learning pace of the employee, the mode of training, as well as what
questions are best suited for them, in order to personalize the courseto suit the learner.
6. Capacity Analytics And Utilization

One of the major business benefits of advanced analytics in HR is in cutting downcosts.

HR teams can use Capacity Analytics to determine:
What the team capacity is and how much of it is actually being utilized.
What activities the team is engaged in when they are working.
What processes, tools, and applications are being used to complete the work andhow
much they cost the company.
How operationally efficient the team is – helps determine if the team is eitheroverworked or
underutilized.
The capacity for growth.

7. Improving Employee Performance

Although traditional methods of determining and managing employee performance such

as peer and manager review, monitoring KPIs, etc, are globally used, they have not been
very impactful in improving employee performance. In fact, a PwC report on Performance
Management highlights that 52 percent of organizations have made or are planning to make
changes to employee performance management in the near future.

But with Employee performance analytics, individual employee performance can be

measured much more efficiently with the help of both historical and real-time data.
Employee performance analytics provides both a retrospective as well as a forward-looking
analysis of what employee performance was and how we can improve it. With the resulting
insights, we can identify the employees that are performing well and which employees need
additional training and motivation in order to perform better.

8. Anomaly Detection Analysis

Anomaly detection analysis is used to recognize unexpected or deviant patterns. In HR

management, anomaly detection analysis can help identify relationships between accidents
at work and employees who are working longer working hours and possibly fatigued. By
identifying resources that work longer than a specified threshold, HR teams could prevent
accidents and injuries in the workplace.
 PART - A

1. What is HR analytics?

HR analytics is a data-driven approach to managing people at work. HR analytics, also

known as people analytics, workforce analytics, or talent analytics, revolves around analyzing
people problems using data to answer critical questions about your organization. This enables
better and data-driven decision-making.

2. What are common data sources for HR analytics?

Common data sources include internal data like demographic employee data, payroll data,
social network data, performance data, and engagement data. External data sources can
include labor market data, population data, LinkedIn data, and much more. Any data that’s
relevant for the specific project can be used.

3. What skills are required to do people analytics?

Relevant skills for people analytics include business consulting to identify critical issues,
analytical skills to run the analysis, stakeholder management to bring everyone together and
enable the people analytics project, and storytelling and visualization in order to
communicate effectively with the business and share results.

4. Who Is Responsible for Logistics Management?

This differs from company to company and role to role but a specialist in logistics is called a
logistician. They are responsible for analysing and coordinating an organisation’s supply
chain and oversee the entire life cycle of a product from acquisition through to delivery.

5. How Does HR Analytics Drive Business Value?

HR has access to valuable employee data. How can this data be used to enable change in the
organization?

There is a great deal of discussion on replicating the consumer experience in the employee
experience. Essentially, the data on consumer behavior and mindset can help develop
strategies to maximize sales by capitalizing on those factors. Similarly, the data useful for
the HR function can be used to improve employee performance, the employee
experience, and in turn, maximize businessoutcomes.
 Collins offers an example of how HR analytics can be used to enhance business value.
“HR analytics could be used to measure investments in reskilling, which will deliver the
right competencies to support a new revenue model, using data-driven insights to modify
the training offering as sales results emerge.”

This is definitive granular data that can not only impact the bottom line, it canalso
transform employee engagement in an organization.

“As such,” Collins continues, “you might think about the ‘ROI’ of HR analytics being
that of increasing the business value derived from using data for talent decisions.”
6. What Metrics Does HR Analytics Measure?

7. What is Human Resource Planning?

• Human Resource Planning (HRP) is the process of forecasting the future human
resource requirements of the organization and determining as to how the existing
human resource capacity of the organization can be utilized to fulfill these
requirements. It, thus, focuses on the basic economic concept of demand and supply in
context to the human resource capacity of the organization.
8. Why Are Supply Chain Networks So Important?
Supply chain networks mostly manage the flow of consumer goods in our everyday life.
The professionals of the supply chain are skilled and experienced to face any sort of
unexpected situation. They can work out the best feasible approach to deliver the
necessary products to the consumers. And, to do so they analyze the situation and
accordingly take productive steps. The supply chain network is very important for the
majority of businesseswhich is a great boost for the success of a business.
9. List Categories of Supply Chain
• There are two types of the supply chain:-
• The Push Model- is the marketing oriented approach. The
inventory is generated as per the authentic demands.

• The Pull Model- which is the customer oriented approach. According to this approach, the
consumer placed the first order. After that only the ordered product production start.
10. What Is a Supply Chain Network?
A supply chain network describes the movement of both materials & information,
assessing the programs and policies that impact the supply chain. Most business units in an
organization have an interest in efficient supply chain operations. A supply chain network
design documents these interactions, tracks improvements and sets long-term goals.

11. What is Demand Planning?

Demand planning is a supply chain management process of forecasting, or predicting, the

demand for products to ensure they can be delivered and satisfy customers. The goal is to
strike a balance between having sufficient inventory levels to meet customer needs without
having a surplus. A wide variety of factors can influence demand, including labor force
changes, economic shifts, severe weather,natural disasters or global crisis events.

12. Definition of Logistics Management

The management process which integrates the movement of goods, services, information,
and capital, right from the sourcing of raw material, till it reaches its end consumer is
known as Logistics Management. The objective behind this process is to provide the right
product with the right quality at the right time in the right place at the right price to the
ultimate customer.
13. Define Inbound logistics and Outbound logistics

Inbound Logistics: The activities which are concerned with procurement ofmaterial,
handling, storage and transportation

Outbound Logistics: The activities which are concerned with the collection,
maintenance, and distribution or delivery to the final consumer.

PART –B

Q. Questions
No.

Explain human resources analytics workingmethodology

1

2 Explain hR analytics training and development process

3 Discuss supply chain network management steps

Explain logistics process in supply chain analytics

4

Explain supply chain analytics applications

5

Explain human resources analytics applications

6.
Supportive Online Certification Courses

Sl. Courses Platform

No.
1 People Analytics Certificate Program AIHR
Academy
2 supply chain analytics NPTEL

Real Time Applications:

1. How to improve Employee performance through HR analytics