Enhancing Decision-Making In SCM: Investigating The Status Quo And Obstacles Of Advanced Analytics In Austrian Companies

Abstract

Over the past few years, the stability and predictability of logistics and supply chain networks have significantly decreased. This has led to higher risks and increased uncertainty in decision-making within supply chain management (SCM). Fortunately, the abundance of available data presents a tremendous opportunity to alleviate this uncertainty. However, realizing the full potential of advanced analytics, such as predictive and prescriptive analytics, is hindered by a lack of knowledge regarding their practical applications and performance benefits, as well as a deficiency in implementation expertise. This research paper examines the current state of advanced analytics applications and the primary challenges faced by Austrian companies in this domain. The findings reveal a distinct pattern: although the literature highlights numerous performance advantages, the practical utilization of advanced analytics remains at a rudimentary stage and is primarily confined to isolated departments. While demand management, procurement, and transport planning have shown some initial success in their implementation, other areas like production planning and, particularly, warehouse management lag. The primary challenges observed in practice include a limited understanding of the potential of advanced analytics, lack of transparency and data quality issues, difficulties in internal marketing, and inadequate organizational integration. These challenges, along with potential courses of action, serve as a starting point for other companies aiming to address similar issues. The significance of this work lies not only in its theoretical contribution to existing research on advanced analytics in SCM but also as one of the few studies that delve into the practical implementation and specific application domains of advanced analytics in Austria.