Which of the following is an expected outcome of effective data analytics in supply chain management?

Improvements in demand forecasting are a significant expected outcome of effective data analytics in supply chain management. Data analytics allows businesses to analyze historical data, market trends, and consumer behavior patterns, leading to more accurate predictions about future demand. With improved demand forecasting, organizations can better align their inventory levels, production schedules, and resource allocation with market needs, ultimately enhancing efficiency and customer satisfaction. By anticipating demand fluctuations more accurately, companies can reduce the risk of stockouts or overstock situations, which can incur additional costs and operational challenges.

This outcome is particularly crucial in the dynamic environment of supply chains, where consumer preferences and market conditions can change rapidly. Thus, effective use of data analytics directly contributes to strategic decision-making and operational effectiveness in managing supply chains.