Business Analytics for Supply Chain: a Dynamic-Capabilities Framework

Supply chain management has become more important as an academic topic due to trends in globalization leading to massive reallocation of production related advantages. Because of the massive amount of data that is generated in the global economy, new tools need to be developed in order to manage and analyze the data, as well as to monitor organizational performance worldwide. This paper proposes a framework of business analytics for supply chain analytics (SCA) as IT-enabled, analytical dynamic capabilities composed of data management capability, analytical supply chain process capability, and supply chain performance management capability. This paper also presents a dynamic-capabilities view of SCA and extensively describes a set of its three capabilities: data management capability, analytical supply chain process capability, and supply chain performance management capability. Next, using the SCM best practice, sales & operations planning (S&OP), the paper demonstrates opportunities to apply SCA in an integrated way. In discussing the implications of the proposed framework, ̄nally, the paper examines several propositions predicting the positive impact of SCA and its individual capability on SCM performance.