CCW331-BUSINESS ANALYTICS

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 Human Resources – Planning and Recruitment –
Training and Development - Supply chain network -
Planning Demand, Inventory and Supply – Logistics –
Analytics applications in HR & Supply Chain -
Applying HR Analytics to make a prediction of the
demand for hourly
employees for a year.

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 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.

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 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
(d) Executing strategic plans.
This is done by applying statistical
methods to integrated HR, talent
management, financial, and operational
4 data.
 Difference between HR Analytics, People
Analytics, and Workforce Analytics
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.

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 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.
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 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.

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 What Metrics Does HR
Analytics Measure?

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 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.
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
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company’s talent acquisition strategy.
 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.
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.
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Measuring training efficiency can be crucial
  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 to voluntary
attrition.

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 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.
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
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their recruitment strategy to identify areas
 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.
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
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employee happiness.
 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
15 and external data. One of the biggest
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 Common data sources HR
analytics solutions
Internal data
Internal data specifically refers to data obtained
from the HR department of an organization.
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

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 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
2. Organization-specific data
3. Passive data from employees
4. Historical data
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 Choose an HR analytics
solution

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 The key features of an HR
analytics solution
They answer the business questions.
They are easy to use by individuals who are
not data scientists
They are cloud-based rather than on-
premise
They are powered with statistical analysis
and machine learning technology
They are based on predictive analytics
They are powered with visualization
technology
They are available through a subscription
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model
 PLANNING AND
RECRUITMENT
 The strategic plan may include long-term goals,
while the HR plan may include short-term
objectives that are tied to the overall strategic plan.
 More recently, however, the personnel department
has divided into human resource management
and human resource development, as these
functions have evolved over the century.
 HRM is not only crucial to an organization’s success,
but it should be part of the overall company’s
strategic plan, because so many businesses
today depend on people, to earn profits.
 Strategic planning plays an important role in how
productive the organization is.

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  Most people agree that the following duties normally fall
under HRM. Each of these aspects has its own part within the
overall strategic plan of the organization:
 Staffing: Staffing includes the development of a strategic
plan to determine how many people you might need to
hire. Based on the strategic plan, HRM then performs the
hiring process to recruit and select the right people for the
right jobs.
 Basic workplace policies: Development of policies to help
reach the strategic plan’s goals is the job of HRM. After the
policies have been developed, communication of these
policies on safety, security, scheduling, vacation times,
and flextime schedules should be developed by the HR
department.
 Ofcourse, the HR managers work closely with supervisors in
organizations to develop these policies.
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  Compensation and benefits: In addition to paychecks, 401(k)
plans, health benefits, and other perks are usually the responsibility
of an HR manager.
 Retention: Assessment of employees and strategizing on how to
retain the best employees is a task that HR managers oversee, but
other managers in the organization will also provide input.
 Training and development: Helping new employees develop skills
needed for their jobs and helping current employees grow their skills
are also tasks for which the HRM department is responsible.
Determination of training needs and development and
implementation of training programs are important tasks in any
organization. Succession planning includes handling the departure of
managers and making current employees ready to take on
managerial roles when a manager does leave.
 Regulatory issues and worker safety: Keeping up to date on
new regulations relating to employment, health care, and other
issues is generally a responsibility that falls on the HRM department.

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 HRM as a Strategic Component of
the Business
 David Ulrich discusses the importance of bringing HR to the table in
strategic planning. Keeping the Ulrich model in mind, consider
these four aspects when creating a good HRM strategic plan:
 Make it applicable: Often people spend an inordinate amount of
time developing plans, but the plans sit in a file somewhere and are
never actually used. A good strategic plan should be the guiding
principles for the HRM function. It should be reviewed and changed
as aspects of the business change. Involvement of all members in
the HR department if it’s a larger department and communication
among everyone within the department will make the plan better.
 Be a strategic partner: Alignment of corporate values in the HRM
strategic plan should be a major objective of the plan. In addition,
the HRM strategic plan should be aligned with the mission and
objectives of the organization as a whole. For example, if the
mission of the organization is to promote social
responsibility, then the HRM strategic plan should address
this in the hiring criteria.

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  Involve people: An HRM strategic plan cannot be written
alone. The plan should involve everyone in the
organization. For example, as the plan develops, the HR
manager should meet with various people in
departments and find out what skills the best
employees have.
 Then the HR manager can make sure the people recruited
and interviewed have similar qualities as the best people
already doing the job.
 In addition, the HR manager will likely want to meet with the
financial department and executives who do the budgeting,
so they can determine human resource needs and
recruit the right number of people at the right times.
 In addition, once the HR department determines what is
needed, communicating a plan can gain positive feedback
that ensures the plan is aligned with the business objectives.
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 Understand how technology can be used:
Organizations oftentimes do not have the money
or the inclination to research software and find
budget-friendly options for implementation.
People are sometimes nervous about new
technology. However, the best organizations are
those that embrace technology and find the
right technology uses for their businesses.
There are thousands of HRM software options
that can make the HRM processes faster,
easier, and more effective. Good strategic
plans address this aspect.

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 Steps to Strategic Plan
Creation
The goal of “Conduct a Strategic Analysis”
is to provide you with some basic elements
to consider and research before writing any
HRM plans.
Conduct a Strategic Analysis
Understanding of the company mission and
values
Understanding of the HRM department
mission and values
Understanding of the challenges facing the
department

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 Lifecycle Stages and HRM
Strategy
Life Cycle Training and Labor /
Staffing Compensation
Stage Development Employee
Relations

Meet or exceed Define future skill Set basic

Attract best technical labor market rates requirements employee-
Introductio and professional to attract needed and relations
n talent. talent. begin philosophy of
establishing organization.
career ladders.

Recruit Meet external Mold

adequate numbers market but effective
and mix of consider internal management Maintain labor
qualifying workers. equity team through peace,
Growth Plan management effects. Establish management employee
succession. formal development motivation,
Manage rapid compensation and and
internal labor structures. organizational morale.
market development.
movements.
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 Life Cycle Training and Labor / Employee
Staffing Compensation
Stage Development Relations

Encourage Control labor

sufficient turnover to costs and
minimize Maintain flexibility maintain labor
layoffs and provide Control and peace. Improve
Maturity new openings. compensation costs. productivity.
skills of an aging
Encourage mobility as workforce.
reorganizations
shift jobs
around.

Improve
Plan and implement productivity
workforce and
Decline Implement tighter Implement achieve
reductions and
cost control. retraining and flexibility in
reallocations;
career consulting work rules.
downsizing and
services. Negotiate job
outplacement
may security and
occur during this employment-
stage. adjustment
policies
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 Sample HR Department SWOT
Analysis for Techno, Inc.
Hiring talented people

Company growth
Strengths

Technology implementation for business

processes

Excellent relationship between HRM and

management/executives

No strategic plan for HRM

Weaknesses No planning for up/down cycles

No formal training processes

32 Lacking of software needed to manage

business processes, including go-to-market
 Development of HRM staffing plan to meet industry growth

Opportunities HRM software purchase to manage training, staffing,

assessment needs for an unpredictable business cycle

Continue development of HRM and executive relationship by

attendance and participation in key meetings and decision-
making processes

Develop training programs and outside development

opportunities to continue development of in-house
marketing expertise

Economy
Threats

Changing technology

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 Writing the HRM Plan
 The six parts of the HRM plan include the following:
 Determine human resource needs. This part is heavily
involved with the strategic plan. What growth or decline is
expected in the organization? How will this impact your
workforce? What is the economic situation? What are your
forecasted sales for next year?
 Determine recruiting strategy. Once you have a plan in
place, it’s necessary to write down a strategy addressing how
you will recruit the right people at the right time.
 Select employees. The selection process consists of the
interviewing and hiring process.
 Develop training. Based on the strategic plan, what training
needs are arising? Is there new software that everyone must
learn? Are there problems in handling conflict? Whatever the
training topics are, the HR manager should address plans to
offer training in the HRM plan.
 Determine compensation. In this aspect of the HRM plan,
the manager must determine pay scales and other
34 compensation such as health care, bonuses, and other perks.
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 Determine Human
Resource Needs
Were enough people hired?
Did you have to scramble to hire people at
the last minute?
What are the skills your current employees
possess?
What skills do your employees need to gain
to keep up with technology?
Who is retiring soon? Do you have someone
to replace them?
What are the sales forecasts? How might
this affect your hiring?
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 RECRUITMENT
 The recruitment process is an important part of human
resource management (HRM). It isn’t done without
proper strategic planning.
 Recruitment is defined as a process that provides the
organization with a pool of qualified job candidates
from which to choose.
 Before company’s recruit, they must implement proper
staffing plans and forecasting to determine how
many people they will need.
 The basis of the forecast will be the annual budget of
the organization and the short-to long-term plans of the
organization—for example, the possibility of expansion.
 In addition to this, the organizational life cycle will be a
factor.

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 Forecasting is based on both internal and
external factors. Internal factors include
the following:
Budget constraints
Expected or trend of employee separations
Production levels
Sales increases or decreases
Global expansion plans

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 External factors might include the
following:
Changes in technology
Changes in laws
Unemployment rates
Shifts in population
Shifts in urban, suburban, and rural areas
Competition

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 Recruitment Strategy
Here are the aspects of developing a
recruitment strategy:
 Refer to a staffing plan.
Confirm the job analysis is correct through
questionnaires.
Write the job description and job
specifications.
Have a bidding system to recruit and review
internal candidate qualifications for possible
promotions.
Determine the best recruitment strategies for
the position.
40 Implement a recruiting strategy.
 Job Analysis and Job
Descriptions

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 Sample Job Analysis
Questionnaire

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 Sample Job Description

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 Writing Good Job Description

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 Recruiters
 Executive search firm: These companies are focused on
high-level positions, such as management and CEO roles.
They typically charge 10–20 percent of the first year salary, so
they can be quite expensive. However, they do much of the
upfront work, sending candidates who meet the qualifications.
 Temporary recruitment or staffing firm: Suppose your
receptionist is going on medical leave and you need to hire
somebody to replace him, but you don’t want a long-term hire.
You can utilize the services of a temporary recruitment firm
to send you qualified candidates who are willing to work shorter
contracts. Usually, the firm pays the salary of the employee
and the company pays the recruitment firm, so you don’t have
to add this person to your payroll. If the person does a good
job, there may be opportunities for you to offer him or her a
full-time, permanent position. Kelly Services, Manpower, and
Snelling Staffing Services are examples of staffing firms.

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  Corporate recruiter: A corporate recruiter is an employee
within a company who focuses entirely on recruiting
for his or her company. Corporate recruiters are employed
by the company for which they are recruiting. This type of
recruiter may be focused on a specific area, such as
technical recruiting.
 Campus Recruiting: Colleges and universities can be
excellent sources of new candidates, usually at entry-level
positions. Consider technical colleges that teach cooking,
automotive technology, or cosmetology. These can be great
sources of people with specialized training in a specific area.
Universities can provide people that may lack actual
experience but have formal training in a specific field. Many
organizations use their campus recruiting programs to
develop new talent, who will eventually develop into
managers.
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 Overview of the Steps to the
Recruitment Process

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 Selection Process at a Glance

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 TRAINING AND DEVELOPMENT
Any effective company has training in place to
make sure employees can perform his or her
job.
During the recruitment and selection process, the
right person should be hired to begin with.
But even the right person may need training
in how your company does things. Lack of
training can result in lost productivity, lost
customers, and poor relationships between
employees and managers.
It can also result in dissatisfaction, which means
retention problems and high turnover. All these
end up being direct costs to the organization.
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 Steps to Take in Training an
Employee
 1. Employee Orientation:
To reduce start-up costs.
To reduce anxiety.
To reduce employee turnover.
To save time for the supervisor and
coworkers
To set expectations and attitudes.

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  2. In-House Training:
 Some examples of in-house training include the following:
 Ethics training
 Sexual harassment training
 Multicultural training
 Communication training
 Management training
 Customer service training
 Operation of special equipment
 Training to do the job itself
 Basic skills training

 3.​Mentoring
 4. External Training

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 TYPES OF TRAINING
Technical or Technology Training
Quality Training
Skills Training
Soft Skills Training
Professional Training and Legal Training
Team Training
Managerial Training
Safety Training

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  Team Training:
 Some reasons for team training include the following:
 Improving communication
 Making the workplace more enjoyable
 Motivating a team
 Getting to know each other
 Getting everyone “onto the same page,” including goal
setting
 Teaching the team self-regulation strategies
 Helping participants to learn more about themselves
(strengths and
weaknesses)
 Identifying and utilizing the strengths of team members
 Improving team productivity
 Practicing effective collaboration with team members

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  S
​ afety Training:
Safety training can also include the
following:
 Eye safety
 First aid
 Food service safety
 Hearing protection
 Asbestos
 Construction safety
 Hazmat safety

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 DESIGNING A TRAINING
PROGRAM

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  The considerations for developing a training program are
as follows:
 Needs assessment and learning objectives: This part
of the framework development asks you to consider what
kind of training is needed in your organization. Once you
have determined the training needed, you can set
learning objectives to measure at the end of the training.
 Consideration of learning styles: Making sure to teach
to a variety of learning styles is important to
development of training programs.
 Delivery mode: What is the best way to get your
message across? Is web-based training more appropriate,
or should mentoring be used? Most training programs will
include a variety of delivery methods.

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  Budget: How much money do you have to spend on this training?
 Delivery style: Will the training be self-paced or instructor
led? What kinds of discussions and interactivity can be developed
in conjunction with this training?
 Audience: Who will be part of this training? Do you have a mix of
roles, such as accounting people and marketing people? What
are the job responsibilities of these individuals, and how can you
make the training relevant to their individual jobs?
 Content: What needs to be taught? How will you sequence the
information?
 Timelines: How long will it take to develop the training? Is there a
deadline for training to be completed?
 Communication: How will employees know the training is
available to them?
 Measuring effectiveness of training: How will you know if your
training worked? What ways will you use to measure this?

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 SUPPLY CHAIN NETWORK
Supply Chain is a connection of all the
parties, resources, businesses and
activities involved in the marketing or
distribution through which a product
reaches the end user.
It creates a link between the channel
partners like suppliers, manufacturers,
wholesalers, distributors, retailers,
and the customer.
To put simply, it encompasses the flow and
storage of the raw material; semi-
finished goods and the finished goods
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from point of origin to its final
 Example: For apple juice
production

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 Supply Chain Network Example: For
Apple Juice Organisation

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 Material flow: It 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: It is the demand from
the end-customer to preceding
organisations in the network.

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 SUPPLY CHAIN NETWORK
DESIGN
The supply chain network design is defined
as a working model that delineates the
overall framework of a supply chain to
assess the time and costs required to
bring goods to the market.
This model helps a business spot
inefficiencies and potential risks in the
supply chain.
The model also helps analyze "what if"
scenarios to optimize operations to
reduce costs, improve service and
increase responsiveness.
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 Goal of a Global Supply Chain
Network Design
The key objectives of a global supply chain
design are to optimize inventory,
working capital and logistics costs.
It also increases visibility, identifies
opportunities for cost savings and
reduces potential risks.
Supply network design reinforces the
supply chain by mapping and modeling
processes and optimizing them to ensure
that products or services are delivered
on time and in a cost-effective manner.
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 Importance of Supply Chain
Network Design
Why are the enterprises’ only suppliers
based overseas?
Why are there so many warehouses, and
why in those locations?
Why is there so much dead stock? Why has
more inventory been ordered?
Why are freight and trucking costs so high?
Is the current network design efficient?
Is the supply chain design aligned with the
enterprises' sustainability goals?

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 Benefits of Supply Network
Design
 Streamlining and potential cost savings
 Reduction in purchase costs and inventory
 Working capital reduction
 Reduction in freight costs
 Route optimization for reducing transit time and fuel
costs.
 Reduction in network fixed costs (facilities, equipment) and
supply chain variable costs (labor, handling, 3PL costs)
 Optimization of service levels and delivery dates for
customer satisfaction.
 Process and cost visibility across the supply chain
network.
 Providing performance visibility of the complete supply chain
network by comparing its capabilities/costs against set
benchmarks.
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 Factors are considered while Designing a
Supply Chain Network Model
 To start with, enterprises must establish a benchmark, and
to do so, the following components must be considered:
 Define the objectives as aligned with the enterprises'
objectives and the supply chain design model
parameters, such as capacity issues, inventory
replenishment lead times, customer needs, location of
facilities and sources and so on.
 Collate the required data, such as forecasts and future
trends.
 Use network optimization tools and necessary data for
building a “living” model, incorporating the defined
parameters and data collected.
 Validate the model with historical "what if" scenarios and
compare the outcome with known results.
 Finalize the supply chain network design and implement it.

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 Types of Supply Chain Network
Design
 The three types of supply chain network design are:
 Strategic Network Design:
 Here, the designing of the network — location of the
facilities and sources, production and warehouse
capacities, market strategies — must be aligned
with the objectives of the business.
 Tactical Network Design:
 Here, different ways to optimize the existing network are
explored for implementing short-term planning
decisions.
 Identifying Risks and Their Mitigation:
 Here, risks are identified by asking “what if”
questions. A plan of action (PoA) for managing each
identified risk is then made.
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 Ways to Make Supply Chain Design
as a Core Business Process
 Ensure a permanent network design center
operated by a cross-functional team with the
necessary skill sets and experience.
 Plan the frequency and the critical issues
that should flag the remodeling of the supply
chain design and establish these rules.
 Appoint a trusted consultant having in-
depth knowledge and vast experience in
supply chain network design.
 Reach out for help when needed —
approach other professionals or supply chain
design forums for help when needed.
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 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,
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natural disasters or global crisis
 Aspects of Demand Planning
Product Portfolio Management
 Statistical Forecasting
 Trade Promotion Management

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 Importance of Demand
Planning
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.
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 Best Practices for Demand
Planning
1. Implement the Right Software
2. Gather and Prepare Data
3. Define Process Models
 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
4. Implement and Monitor

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 INVENTORY AND SUPPLY
CHAIN MANAGEMENT
RETAIL INVENTORY MANAGEMENT
 Retail inventory is the stocking of products that
you sell to consumers.
 Use the system to set profitable prices and ensure
you have the right amount of stock to meet
demand.
Manufacturing Inventory Management
 Manufacturing inventory management is the
practice of keeping enough stock on hand so
production lines can fulfill orders.
 The process helps managers see stock levels at a
glance and tracks raw materials, parts, work-
in-progress and finished goods.
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 Multi-Location Inventory
Management
Multi-location inventory management is the
process of managing stock across
multiple locations, warehouses, and
retail stores or across multiple selling
channels.
With multi-location management, you can
watch stock levels in all locations and
optimize your inventory to fulfill orders.

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 Inventory Management System
 An inventory management system combines varying
software packages to track stock levels and stock
movements.
 The solution can integrate with multichannel sales
systems or shipping systems.
 An inventory management system optimizes inventory
levels and ensures product availability across
multiple channels.
 It provides a single, real-time view of items, inventory and
orders across all locations and selling channels.
 This enables businesses to carry less inventory on hand
and frees up cash to be used in other parts of the business.
 An inventory management system helps keep inventory
costs low while delivering on customer expectations.

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 LOGISTICS
 Logistics typically refers to activities that occur
within the boundaries of a single
organization.
 Supply Chain refers to networks of companies
that work together and coordinate their actions to
deliver a product to market.
 Also, traditional logistics focuses its attention on
activities such as procurement, distribution,
maintenance, and inventory management.
 Supply Chain Management (SCM) acknowledges all
of traditional logistics and also includes activities
such as marketing, new product development,
finance, and customer service" - Michael Hugos
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84
 Logistics is about getting the right
product, to the right customer, in the
right quantity, in the right condition,
at the right place, at the right time,
and at the right cost (the 7 Rs)" - John J.
Coyle et al

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 Logistics Management
Logistics Management deals with the
efficient and effective management of
day-to-day activity in producing the
company's finished goods and
services" - Paul Schönsleben

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 Supply Chain
Supply Chain is the network of
organizations that are involved, through
upstream and downstream linkages, in
the different processes and activities that
produce value in the form of products
and services in the hands of the
ultimate consumer" - Martin Christopher

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 Supply Chain Management
Supply Chain Management (SCM) refers to
the coordination of production,
inventory, location, and transportation
among the participants in a supply chain to
achieve the best mix of responsiveness and
efficiency for the market being served" -
Michael Hugos

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 Difference Between Inbound
and Outbound Logistics
"Inbound Logistics refers to movement of goods
and raw materials from suppliers to your
company. In contrast, Outbound Logistics refers
to movement of finished goods from your
company to customers“.
Purchasing and warehouse (distribution center)
communicate with suppliers and they are
sometimes called "supplier facing function".
Production planning and inventory control
function is the center point of this chart.
Customer service and transport functions
communicate with customers and they are
sometimes called "customer-facing functions.
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 Transport and Logistics
Transport and Logistics refers to 2 types of
activities, namely, traditional services
such as air/sea/land transportation,
warehousing, customs clearance and value-
added services which including information
technology and consulting“.

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 International Logistics
International Logistics focuses on how to
manage and control overseas
activities effectively as a single business
unit. Therefore, companies should try to
harness the value of overseas product,
services, marketing, R&D and turn them
into competitive advantage.

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 Third Party Logistics or 3PL
Third Party Logistics or 3PL refers to the
outsourcing of activities, ranging from a
specific task, such as trucking or marine
cargo transport to broader activities
serving the whole supply chain such as
inventory management, order processing
and consulting.“

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 Fourth Party Logistics or 4PL
Fourth Party Logistics or 4PL refers to a
party who works on behalf of the
client to do contract negotiations and
management of performance of 3PL
providers, including the design of the whole
supply chain network and control of day-to-
day operations.

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 Supply Chain Network
Many companies have a department that
controls supply chain activity so they
believe that SCM is a "function".
Some companies think SCM is a kind of
management system under IT (information
system or enterprise resource planning.) In
fact, SCM is actually a "network" consisting
of many players as below,

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 Supply Chain Relationship
To work as the same team, a long-term
relationship is key. Otherwise, you're just a
separate company with a different
strategy/agenda.
So academia keeps preaching about the
importance of relationship-building but is
not for everyone.

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 ANALYTICS APPLICATIONS IN
HR & SUPPLY CHAIN
 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 need to be hired.
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 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.

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  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 team will 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.
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  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.

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 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 course to suit
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 Capacity Analytics And Utilization:
One of the major business benefits of advanced
analytics in HR is in cutting down costs. 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 and how much they cost the company.
How operationally efficient the team is – helps determine
if the team is either overworked or underutilized.
The capacity for growth.

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  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.

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 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.
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 Examples Of Companies Using
HR Analytics
 UPS Improves Employee Performance And Productivity:
 An example of a company using HR analytics to improve employee
performance can be seen in the logistics giant, UPS.
 UPS has provided its drivers with intelligent handheld computers
that help drivers make better decisions, such as determining which
order to deliver parcels in for the most efficient route.
 Additionally, the company collects crucial data on the behavior of the
driver with the help of more than 200 sensors that are fitted onto
the trucks. These sensors record data on everything the driver does,
such as whether or not they wore a seatbelt or how many
times they reversed the vehicle.
 This data is then used to provide feedback to the drivers and suggest
improvements or training wherever needed. Another major impact the
insights have had is on the revenue of the company –UPS has
achieved a reduction of 8.5 million gallons of fuel and 85
million miles per year. Drivers are now making more deliveries per
day with an average of 120 stops a day as opposed to less than 100 in
the past.
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  Bank Of America Saves $15 Million With Retention
Analytics:
 Turnover rates in US-based call centres are generally high –
about 40%. And Bank of America was experiencing a similar
problem with its call centres as well. This in turn led to poor
customer experience and customer frustration. After
collecting data from all its call centers, the company leveraged
analytics to understand the root cause for such high
turnover rates. The company found that the call centers which
promoted inter-office collaboration have higher retention
compared to the ones that did not.
 Using this insight, the bank optimized its business policies and
allowed everyone to take breaks together. After just a few
weeks of this change, Bank of America witnessed that the call
handling time was 23% faster and cohesiveness was up by 18%.
This led to the company saving $15 million with the increased
productivity and decreased employee turnover.

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