Companies that are skilled at using data and analytics are better equipped to handle disruptions in their supply chains. Such disruptions can arise from crises such as pandemics, wars, or other events that prevent goods and materials from reaching their destination as planned. This is the conclusion of a new study from Jönköping University (JU). The study also shows that excessive dependence on suppliers and business partners can make it more difficult for companies to benefit from analytics during a crisis.
The study examined how companies’ analytics capabilities affect their ability to manage supply chain disruptions and how this, in turn, affects business performance. The research is based on data from 165 Swedish manufacturing, wholesale, and retail companies, as well as in-depth interviews with decision-makers from companies including Bufab, Thule, GKN, Tranter, and Siemens Energy.
The researchers investigated how companies’ ability to collect, analyse, and use data influences their capacity to handle disruptions in supply chains, and how this ultimately affects organisational performance.
“Ultimately, this is about how companies survive and remain competitive in an increasingly uncertain world. A current example is the situation in the Strait of Hormuz,” says Martin Seif, who recently earned his PhD at the School of Engineering, Jönköping University, with a dissertation focusing on disruptions in material and product flows.
Data provides a stronger basis for decision-making
The findings show that companies that are skilled at using data become more resilient when supply chains are disrupted. This strengthened ability to adapt, often referred to as supply chain resilience, is a key reason why these companies also achieve better business performance.
The study demonstrates that analytics is important not only in day-to-day operations but also when unexpected events occur. Such insights can give companies a clearer picture of what is happening across the supply chain, making it easier for purchasing and logistics managers to make informed decisions and respond quickly when problems arise.
In this way, companies can reduce the impact of disruptions and strengthen their long-term resilience.
Not entirely friction-free
Although data and analytics help companies become more robust during disruptions, they are not enough on their own. To act on the insights generated, organisations also need other capabilities, such as agility and the ability to respond quickly.
The study further shows that close collaboration with suppliers and other partners is not always beneficial. Strong partnerships can create greater dependency, increased coordination requirements, and reduced flexibility. While such relationships may improve a company’s ability to cope with disruptions, they do not automatically lead to better business performance.
The researchers also identified barriers to data-driven decision-making. A lack of relevant and reliable data is a common challenge, particularly during disruptions when uncertainty is high. In times of crisis, uncertainty typically increases while information from partners can be difficult to obtain.
“Access to high-quality data is therefore crucial if companies want to make quick, well-informed decisions when unexpected events occur,” says Martin Seif.
Going forward, Martin Seif will focus his research on the role of retail in society’s crisis preparedness.
“I intend to build on the insights from my previous research and turn my attention to the retail sector, which plays a central role in societal preparedness. Since retail is the final link in the supply chain and the closest to consumers, it is important to understand how the sector can become more resilient and continue to function effectively during crises and disruptions,” says Martin Seif.
Martin Seif recently completed his PhD at the School of Engineering, Jönköping University. His research focuses on disruptions in companies’ material and product flows, such as those experienced during the COVID-19 pandemic, the blockage of the Suez Canal, or conflicts affecting strategically important shipping routes such as the Strait of Hormuz.
The research was conducted within the AFAIR research profile at the School of Engineering, where academia and industry collaborate to develop advanced AI solutions for industry.
His doctoral thesis is titled: In Times of Disruption: A Study of Analytics Capability and Supply Chain Resilience.
Read the entire dissertation here.External link, opens in new window.
