CCW331-BUSINESS ANALYTICS

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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
3 data,” says Collins in an exclusive
 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 for 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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 How Does HR Analytics Drive
Business Value?
Collins offers an example of how HR
analytics can be used to enhance business
value.
“HR analytics could be used to measure
investments in reskilling, which will
deliver the right competencies to support a
new revenue model, using data-driven
insights to modify the training offering as
sales results emerge.”

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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. Measuring
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training efficiency can be crucial to evaluate
  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 their recruitment
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strategy to identify areas where the most
 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
employee happiness.
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 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.
The core HR system contains several data
points that can be used for an HR analytics
tool. Some of the metrics that an HRIS
system contains includes.

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 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: Organization-wide financial data
is key in any HR analysis to calculate, for instance,
the revenue per employee or the cost of hire.
2. Organization-specific data: Depending on the
type of organization and its core offering (product or
service), the type of data that HR needs to
supplement analytics will vary.

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 For example, says Collins, “HR leaders at a
global retailer should power their analytics
engine with store revenue and costs and
customer experience data, whereas HR at a
construction company might pursue
operational – health and safety – data and
data related to contingent labor costs.”

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  3. Passive data from employees: Employees continually
provide data that is stored in the HRIS from the moment they
are approached for a job. Additionally, data from their social
media posts and shares and from feedback surveys can be used
to guide HR data analysis.
 4. Historical data: Several global economic, political, or
environmental events determine patterns in employee behavior.
Such data can offer insights that limited internal data cannot.
 For example, the recession in 2008 was a global event that
changed the way employees perceived jobs or “work.” The
freelance, start-up and gig economies took off as people
continued to lose their jobs. Data from such a critical historical
event can help predict how the workforce may react to similar
shifts in the future. It can then be used to identify trends in the
current workforce and predict voluntary and involuntary
turnover.

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 How to Get Started With HR
Analytics
For HR leaders keen to get started with using HR
analytics for data-based decision making, here are
some tips:
I. Create a collective mindset
Before the operational and mathematical aspect
can kick in, HR leaders must prepare their teams
and organizations for a workflow-driven by
analytics.
While the discussion with the C-suite for the need
for analytics is one part of the change, the other is
preparing your team to deal with the amount of
data that they will now be using to measure the
change.
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 Bring in data scientists
The data scientist is expected to become
an integral part of HR teams. They are best
suited to assess the viability of an analytics
solution. They can also ensure the
robustness of the statistical modeling and
predictions.
As Collins says, “data scientists will play an
invaluable role in creating a culture of
analytics across HR. As the role of HR
business partners and generalists evolves
to include skills such as data strategy,
analysis, and communication (articulating
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‘the story behind the science’), the data
 Start small
A great technique to convince stakeholders
that HR analytics can drive business value
is to first implement a small project
successfully. Called “quick wins,” these
projects can deliver tangible results in a
short amount of time with high impact.

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 Get clearance from the legal team
The sort of data collection that HR analytics
uses is governed heavily by compliance
laws. Some legal considerations to keep in
mind when implementing an HR analytics
solution are:

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 Employee privacy and anonymity
Consent from employees about the amount
and type of data being collected
Establishing the goal of data collection and
informing employees accordingly IT
security when using third-party software to
run HR analytics
Location of the HR analytics vendor – with
whom the data will be stored –and their
compliance with local laws

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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 the C-
suite asks
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
29 They are available through a subscription
 Planning and Recruitment
Here’s an overview of the steps.
Read and understand your business plans
Scope out your DDHR (data-driven HR)
project Define your primary metric
Define your secondary and supporting
metrics Articulate the ‘What’ Articulate the
‘Why’ behind the ‘What’
Drive Decisions, Case for Change, Targets
and Change Plans
Implement, Measure Success,
Stabilize and Realize Value
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 Read and Understand Your
Business Plans
 It may seem obvious... but... have you read your most up-to-date
corporate business plan or objectives? If you don't have access to it
or don't have one, have you interviewed members of your
executive team to understand the overall direction?
 If you haven't, how will you be able to build people and
organizational capabilities?
 HR becoming data-driven is about achieving better balance with
your qualitative and quantitative data (i.e. gut feel and hard facts).
 This balanced approach needs to be applied within the context of
something relevant, juicy and purposeful for the organization –
whether that is a specific Line of Business (LoB) that you serve, or
a larger corporate objective.
 HR must understand the Corporate and Business Unit Plans,
understand what this means in terms of people programs and
capabilities, and must identify, scope, and deliver Data-Driven HR
projects which will help you achieve these business plan outcomes.

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 Scope Out Your Chosen DDHR
(data-driven HR) Project
Your scoping exercise should include these
activities:
Read Your Corporate Business Plan
Read Your Line of Business Unit Plan (the plan for
your direct client)
Discuss and "play-back" your key observations to
the management team/LoB to ensure you've
created sufficient understanding.
Ensure and articulate how your first DDHR Project
supports Key Areas of Focus for your client (these
could be from the Corporate objectives, LoB
objectives, or a combination)

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 Define Your Primary Metric
You need to define something we call a Primary
Metric which captures the essence of what your
project is focused on accomplishing.
When defining the Primary Metric, it's advised to
be as specific, and detailed as possible - as this
is the foundation of all subsequent steps.
You may however decide, at this point in time, to
keep this directional in nature (i.e. decrease or
increase) and not get into specific targets.
This is all good. Targets can be estimated/set in
a subsequent stage when you have access to
hard data.

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  "Decrease Turnover of our Top Performers (Rated Outstanding and
Exceptional) in their First Year of Tenure in the Sales Department“
 Ensure you define the nuances of your Metric such as... Do you mean First
Year in the company, or First Year in Sales? Do you count a top performing
employee who spent 3 years in Marketing, then transferred to Sales and
then left the company 9 months into their Sales role?
 Quantify (state the current facts regarding) your Primary Metric in terms of
both rate
 and magnitude:
 In 2019 our Top Performer Turnover Rate for those employees in their First
Year of Tenure in the Sales Department was 23%
 In 2019, this represented 17 EEs departing on a total segment of 77 EEs
 To achieve a comprehensive understanding, your Primary Metric needs to
be looked at from many lenses - this means slicing and dicing your data
across the data dimensions which are available to you.
 If you are fortunate to have powerful workforce analytics or BI tools, this
will be simple. If you are calculating in a spreadsheet, this will be more
challenging so be prepared to dig in and spend some serious time on this.

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 Define Your Secondary or
Supporting Metrics
 Your Secondary or Supporting Metrics are the additional data
dimensions and segmentation which may be important to your
analysis.
 The extent of these Secondary Metrics and segmentation is really up to
you - but in our experience, this is where the most insightful
observations and story lines can come from.
 For example: Segment and slice your data so you can understand if
there are any anomalies based on demographics, location, manager,
manager's attendance at a People Manager training course,
recruitment channel, on boarding survey results and engagement,
among other things.
 You’re only limited by the data you have access to and your ability to
connect it.
 Again, if you’re working with a people analytics partner or use a
powerful BI tool this will be relatively easy.
 If you don’t and you’re dealing with spreadsheets and disconnected
systems, roll up your sleeves and tuck in… you’ll need time and some
analytics expertise on your side.

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 Make Quantitative Observations
- Articulate "The What"
Using your Secondary Metrics, continue
segmenting and analyzing your data,
making observations focused on anomalies
(outliers in your data, hot spots where
acceptable thresholds are exceeded, or
where the sheer mass/magnitude of an
issue can represent an opportunity, or lack
thereof).

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 Articulate “The Why Behind
The What"
At this point, you'll have a collection of
facts compiled about Top Performer
Turnover in Sales, for employees in their
First Year of Tenure.
Armed with this multidimensional and
segmented analysis, you must dig deeper
into the story lines, understand the context
in which they occurred, and ask "why" to
those who are best positioned to articulate
logical reasons and hypotheses.
This is qualitative understanding.

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 Drive Decisions, Case for Change,
Targets and Change Plans
 In our opinion, it's futile and pointless to embark on Step 1 of
this process unless you are willing to drive a decision, and
implement change.
 GUT CHECK: If you don’t expect your data-driven HR efforts to
drive decisions and change, then seriously think about stopping
now and focusing on something that the business, or your HR
team, would value.
 Decision making must be done in collaboration, consultation and
with the support of your LoB client. It's therefore critical, that
you've been engaging with your LoB clients throughout the prior
steps - and have access to the facts, context and opinion.
 Decision making for the Line of Business is all about Return on
Investment (ROI) - which requires the development of a Case for
Change. Some might call this a Pitch Deck, others a Business
Case. Regardless, the Case for Change is a 10-15 slide summary
and recommendation which is structured as follows:

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 Executive Summary Background and
Context
Current Environment/Issue Identification
(Facts and Context)
The Opportunity
Proposed Solution(s) and Targeted
Outcomes Costs and Benefits (ROI)
Project/Implementation Approach
Resources Required Recommendation
Next Steps

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 Implement Change Plans, Stabilize,
Measure Success and Realize Value
 For more information on how to implement and create
sustainable change, please refer to Playbook 4 where we go deep
on this topic.
 Remarkably, “Business Case Realization” is incredibly easy to
ignore - in fact, we are often systematically forced to move onto
the next activity before we have captured results - and
metaphorically “banked the winnings”.
 You must try and avoid this pitfall at all costs:
 Remember, the only reason why you’ve been trusted to invest in
data-driven HR is to chase juicy business outcomes.
 You’ve sold this initiative on a business case - so you must spend
some time quantifying and counting your accomplishments and
success - and sharing that with those that matter.
 Simply determine the ROI of your initiative
 On one side of the ROI equation you will articulate the “New
Value” you have created through this initiative.

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 What is Human Resource
Planning?
• Human Resource Planning (HRP) is the process of forecasting
the future human resource requirements of the organization and
determining as to how the existing human resource capacity of
the organization can be utilized to fulfill these requirements.
 It, thus, focuses on the basic economic concept of demand and
supply in context to the human resource capacity of the
organization.
 It is the HRP process which helps the management of the
organization in meeting the future demand of human resource in
the organization with the supply of the appropriate people in
appropriate numbers at the appropriate time and place.
 Further, it is only after proper analysis of the HR requirements can
the process of recruitment and selection be initiated by the
management.
 Also, HRP is essential in successfully achieving the strategies and
objectives of organization.

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  In fact, with the element of strategies and long term objectives of the
organization being widely associated with human resource planning
these days, HR Planning has now became Strategic HR Planning.
 Though, HR Planning may sound quite simple a process of managing the
numbers in terms of human resource requirement of the organization,
yet, the actual activity may involve the HR manager to face many
roadblocks owing to the effect of the current workforce in the
organization, pressure to meet the business objectives and prevailing
workforce market condition.
 HR Planning, thus, help the organization in many ways as follows:
 HR managers are in a stage of anticipating the workforce requirements
rather
than getting surprised by the change of events
 Prevent the business from falling into the trap of shifting workforce
market, a common concern among all industries and sectors
 Work proactively as the expansion in the workforce market is not always
in conjunction with the workforce requirement of the organization in
terms of professional experience, talent needs, skills, etc.

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 An HR Planning process simply involves
the following four broad steps:
Current HR Supply: Assessment of the current human
resource availability in the organization is the
foremost step in HR Planning.
It includes a comprehensive study of the human
resource strength of the organization in terms of
numbers, skills, talents, competencies, qualifications,
experience, age, tenures, performance ratings,
designations, grades, compensations, benefits, etc.
At this stage, the consultants may conduct extensive
interviews with the managers to understand the
critical HR issues they face and workforce
capabilities they consider basic or crucial for various
business processes.

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  Future HR Demand: Analysis of the future workforce
requirements of the business is the second step in HR Planning.
 All the known HR variables like attrition, lay-offs, foreseeable
vacancies, retirements, promotions, pre-set transfers, etc. are
taken into consideration while determining future HR demand.
 Further, certain unknown workforce variables like competitive
factors, resignations, abrupt transfers or dismissals are also
included in the scope of analysis.
 Demand Forecast: Next step is to match the current supply with
the future demand of HR, and create a demand forecast.
 Here, it is also essential to understand the business strategy
and objectives in the long run so that the workforce demand
forecast is such that it is aligned to the organizational goals.

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 HR Sourcing Strategy and Implementation:
After reviewing the gaps in the HR supply
and demand, the HR Consulting Firm
develops plans to meet these gaps as per
the demand forecast created by them.

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 Training and Development
 Training and Development is a subsystem of an organization which
emphasize on the improvement of the performance of individuals and
groups. training is an educational process which involves the
sharpening of skills, concepts, changing of attitude and gaining more
knowledge to enhance the performance of the employees.
 Training is about knowing where you are in the present and after some
time where will you reach with your abilities.
 By training, people can learn new information, new methodology and
refresh their existing knowledge and skills. Due to this there is much
improvement and adds up the effectiveness at work. The motive
behind giving the training is to create an impact that lasts beyond the
end time of the training itself and employee gets updated with the new
phenomenon.
 Training can be offered as skill development for individuals and groups.
 Organizational Development: Organizational Development is a process
that ―strives to build the capacity to achieve and sustain a new
desired state that benefits the organization or community and the
world around them.

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 TRAINING
 Training is meant for operatives
 It is reactive process
 AIM: To develop additional skills
 It is short term process
 OBJECTIVE: To meet the present need of
an employee
 Initiative is taken by the management

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 DEVELOPMENT
 Development is meant for executives
 It is pro- active process
 AIM: To develop the total personality
 It is continuous process
 OBJECTIVE: To meet the future need of an employee
 Initiative is taken by an individual Importance of
Training and Development:
 Optimum utilization of Human resources
 Development of skills
 To increase the productivity

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 To provide the zeal of team spirit
 For improvement of organization culture
 To improve quality, safety
 To increase profitability
 Improve the morale and corporate image

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 Reasons to go for Training and
Development:
 When management thinks that
there is a need to improve the
performances of employees.
To set up the benchmark of improvement
so far in the performance improvement
effort.
To train about the specific job responsibility.
To test the new methodology for increasing
the productivity
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 ORGANIZATION
DEVELOPMENT
The Behavioral Strategy takes an
employee training and development
approach.
It posits that employee learning would
bring about the organizational change
needed.
Learning would consist of gaining
knowledge, skills and new attitudes, which
would lead to new behaviors.
These new behaviors would then lead to
improved quality and performance.
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  The Structural Strategy takes an organizational design
approach.
 It posits that organization structure and design should be
aligned (or realigned) consistent with the vision, direction,
mission, or goals of the organization.
 The Structural Strategy would incorporate changes in the
organization chart.
 Employees, units, divisions, and departments could be
realigned to optimize resources.
 For example, hierarchies could be flattened and decision-
making could be placed closer to the point of action.
Significant work could be done in chartered, self-directed
teams.
 Such realigned relationships would lead to improved quality
and performance.

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 The Technical Strategy takes a continuous
improvement approach.
It posits that processes in the areas of customer
focus, product and service delivery, support, and
supplier and partnering could be improved.
This strategy also maintains that technology be
continuously updated and aligned with the processes
of production and service to make work more
efficient and effective.
Continuous process improvement with aligned
technology would lead to improved quality and
performance.
Training Best Practices and Organizational Success

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 Some of the most effective learning and development
programs today include the following best practices:
Training programs should be strategy-driven
Trainers should be well aware that all training and
development programs need to be in line with the
organization's overall strategic goals.
They should closely interact with the clients to ensure
that the designed and implemented programs help to
achieve business success by overcoming an area of
improvement.
The trainers should align the learning objectives and
business objectives to make the training more
relevant.

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 Set criteria to define success The
success of training programs should be
measured against different criteria.
Training programs should result in a return
on investment, either in the long term or
the short term.
Professional trainers should clearly outline
how the training initiatives help an
organization fully achieve its goals.
The timeframes should be identified at the
beginning, and a re-evaluation of the
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programs should be conducted on a regular
basis.
 Training programs should be
supported by key strategies, systems,
structures, policies and practices When
designing a training program, the trainers
should ensure that learning is aligned with
and directly supported by organizational
structures, lines of authority, decision-
making, values and other business
practices.
This would help to establish boundaries and
reinforce the desired results.
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 Training should be driven through many
channels Some of the best trainers in the industry
help the organizations to explore and utilize different
platforms to reinforce learning outcomes and ensure
that people get the right skills at the right time, in the
right way and at the right cost.
They closely liaison with the companies to tap
methods, such as classroom lecture and role-plays,
on-the-job application, e-learning, and use of other
technology and support tools to match learning styles
of each employee.
Each approach offers multiple benefits and should be
looked into for delivery of effective training programs.

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 Learning by doing and establishing
shared accountability Some of the best
programs enable the employees to
maximize their potential through self-
directed training and development.
By identifying their own needs, creating
individual learning plans and seeking
learning opportunities, employees are
encouraged to take responsibility for
learning and apply the learned concepts at
work.
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 Supply chain network (SCNet)
A company's supply chain network impacts
how quickly products get to the customer.
Once implemented, it's hard to make
changes, which can affect multiple
locations and departments.
Therefore, a thorough review of the plan is
required before modifying processes or
locations and resources.
An optimal supply chain network has to fit
with the organization's long-term
objectives.
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 What Is a Supply Chain
Network?
A supply chain network describes the
movement of both materials & information,
assessing the programs and policies that
impact the supply chain.
Most business units in an organization have
an interest in efficient supply chain
operations.
A supply chain network design documents
these interactions, tracks improvements
and sets long- term goals.

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 How Does a Supply Chain
Network Work?
 By analyzing their supply chain network (SCNet),
companies can collect quantitative measures that aid
strategic decision-making.
 The supply chain network takes into account plant locations
and capacity, possible pricing level changes, distribution
locations and capacity, supplier and product factors,
inventory management and customer service impacts.
 Companies implement supply chain network designs to
maximize profits and stay ahead of competitors.
 A key factor is how well the existing supply chain integrates
changes.
 New processes may mean substantial infrastructure
changes.
 The question becomes: is it worth it? Drivers that impact
the supply chain include the following:
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  Acquisitions
 Carbon footprint reduction
 Changing customer base
 Consolidation/Deconsolidation
 Divestment
 Expansion
 Growth
 Inventory
 Mergers
 New markets
 New product lines Sourcing
 Strategic planning

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 Outcomes and Benefits of
SCNet
Implementing a supply chain network has
numerous positive outcomes.
Your company can reduce supply chain
costs, improve services and increase return
on investment.
In order to mitigate the risk of making
global changes to your supply chain,
carefully weigh the cost of the changes
against the benefits of making them.
If your existing supply chain is fragile, it
may be worth a temporary disruption to
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develop a supply chain that can support
growth initiatives in a sustainable way.
 SCNet Elements and
Optimization
Supply chain network optimization allows
companies to pit current and future state
models against one another.
Using several "what-if" scenarios, these
models help planners design strategic goals
and realistic metrics.
At the end of the day, SCNet optimization
lets companies move forward with
confidence once a final plan is adopted.

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 Elements of a supply chain
network
Risk analysis: Gain perspective on changes
to your supply chain, including unexpected
hiccups or disruptions.
Complex problem solving: Design a
methodology to find the best routes to
customers based on multichannel e-
commerce or marketplace locations.
Project mentoring: Provide a project
framework that helps internal resources
identify the best software for your supply
chain.
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 Supply Chain Example: for apple
juice production.

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 Supply Chain Network: Information
flow, Flow of Materials

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 Planning Demand
How Demand Planning Can Improve the Supply Chain
What is 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 labour force changes, economic shifts,
severe weather, natural disasters or global crisis
events.

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 What are the Aspects of Demand Planning?
Demand planning spans several aspects, with the
three primary areas being:
Product Portfolio Management
Product portfolio management oversees the overall
product lifecycle, beginning with the introduction of
a new product through to its end-of-life planning.
In many cases, product lines are interdependent,
and understanding how new products may
influence demand for other products is important to
understanding the overall product mix required to
maximize market share.

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 Statistical Forecasting
Using historical data, statistical forecasting
creates supply chain forecasts with
advanced statistical algorithms.
In this area, it is important to determine the
accuracy of each model, identify outliers
and exclusions and understand
assumptions.
Seasonal shifts (think the spurt of holiday
shopping that occurs between October and
December for retailers, or the boost in yard
equipment sales in spring months) can also
be assessed with statistical forecasting.
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 Trade Promotion Management
Trade promotion or marketing events can
influence demand, especially in the retail
industry.
The goal of a trade promotion is to help a
brand connect with a customer, often
through an in-store giveaway, discount, or
promotion, and these events can impact
the demand for a product.

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 Why is Demand Planning
Important?
 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.
 Demand planning is a multi-step process, dependent on
the right tools, information and processes.
 Often, there can be unique nuances in the process, based
on product positioning, inventory needs and organizational
goals, but some best practices to keep in mind include:

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 Implement the Right Software
Gather and Prepare Data
Define Process Models

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 For most companies, the steps in the
demand planning process go something like
this:
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.
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 Implement and Monitor
Successful demand planners usually design
a pilot version of the plan using historical
data, or descriptive analytics, as a basis.
They also make regular adjustments and
have a team of people dedicated solely to
devising the plan, implementing it,
reducing error and bias, and designing
processes for execution.

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 Logistics
 Supply chain management (SCM) is one of the
main ways to optimize the budget of
enterprises producing goods and/or services.
 At the same time, a great role in the supply
chains is played by logistics – the management
of physical, informational, and human flows in
order to optimize them and avoid unnecessary
waste of resources.

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 What is the Difference Between
Logistics and Supply Chains?
 Logistics and supply chain should not be confused. Logistics is a
rather narrowly focused concept (narrower than the SCM), which
simply means globalization of resource management — from
every local unit to the entire network of production points.
 In turn, supply chain management is a more complex category.
Supply chain management involves logistics and thus performs
end-to-end optimization – that is, not only within the enterprise
but also when working with counterparties.
 The purpose of efficient logistics management is to achieve
maximum competitiveness and profitability of the company, as
well as the entire network structure of supply chains, including
the end-user.
 In this regard, the integration and introduction of innovations
into the processes of supply chains, as well as into the processes
of logistics, should be aimed at increasing the overall
productivity of all their participants.

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 The Functions of Logistics within
Supply Chain Management
If we systematize all areas of logistics that
need to be developed for the rational
management of production resources, we
can single out the following functions:
Warehouse design and management. This
role of logistics in supply chain
management covers several tasks at once:
from the design of storage facilities to the
requirements for storage of products and
ending with the introduction of various
automation solutions (for example, for
machinery intended for transporting goods
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within warehouses);
  The formation of packages. Packaging, tracking and accounting – all of
these tasks allow for end-to-end control of goods on the way to the
customer/distributor;
 Transportation of products. This includes work with cargo carriers and
vehicles listed in the company’s fleet: planning their routes, calculating fuel
costs, etc.;
 Working with customs. When an enterprise plans international delivery of
goods, it is very important that during their transportation the goods fully
comply with customs requirements and contain all the necessary
documentation;
 Working with intermediaries. Intermediaries in logistics are all third-party,
non- company resources that are directly involved in the implementation of
supply chains.
 In turn, finding intermediaries with the most acceptable ratio of quality to cost
of services, as well as establishing long-term, reliable relations with them are
also included in the list of tasks for efficient logistics management;
 Working with written off and returned goods. There is also such a thing as
“reverse logistics”, which establishes the rules and routes for transporting the
returned/discarded goods, as well as ways to dispose of them.

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 Challenges Logistics Helps to Overcome in
Supply Chain Management
 Given the above list of tasks that logistics performs in
supply chain management,
 we can single out a number of advantages provided by
its correct implementation:
 Minimization of enterprise expenses. The main role of
logistics in supply chain management is primarily to
increase the overall value of each delivery, which is
identified by customer satisfaction.
 This means that the reduction and optimization of
labor resources must be tied in with keeping up a
certain level of quality customer service.
 This problem is solved both by reducing the total labor
resources (primarily by eliminating unnecessary chain
links), and by introducing automation solutions;
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  Consolidation of traffic volumes. Transportation costs are one of the
largest expense categories in logistics management.
 In general, transportation costs increase depending on the distance,
batch size, and product exposure to damage.
 On the other hand, the transportation cost per unit of weight decreases
as the lot size increases on long runs.
 Thus, the maximum consolidation of transportation volumes can help
reduce transportation costs.
 Enlargement can be achieved by combining small lots into a single
large one, intended for a long run (i.e., for a longer distance);
 Improving the quality of service. With regard to the quality of service, it
is largely influenced by the speed of delivery of the goods to the end-
user, as well as its transportation in proper conditions (for example,
many products today are supplied with RFID tags so that both the
manufacturer and the end customer could track whether all storage
conditions are being observed during the transportation of the goods)
and within the allowed time limits (this refers primarily to perishable
goods);

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  Reduction of actual losses and reduction of possible risks. As you know, a
business is profitable if the value it creates exceeds the costs associated
with the implementation of activities. To achieve a competitive advantage,
a company must either carry out these activities at lower costs or carry
them out in a way that will lead to differentiation and price increment. The
first thing to be done to effectively solve this problem is reducing the
losses that are associated with the return of goods. It is very important to
plan not only the routes on the way to the distributor or the end-user but
also the routes by which the goods are delivered back to the warehouse or
to the establishments for their disposal. The second factor affecting risk
reduction is the correct planning of enterprise resources, which minimizes
the likelihood of damage or loss of goods or manufacturing components on
the way from the extraction of raw materials to delivery of the finished
product/service to the end-user;
 Minimization of the need for intermediary services. Intermediary services
(transportation, storage, marketing, recycling, etc.) take up the lion’s
share of the cost of the implementation of supply chains. Experienced
logisticians plan routes so as to minimize the need for involving third-party
services for efficient logistics management;

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 Supporting goods with the necessary
documentation. Insurance and support of
documentation are two fundamental tasks of
logistics, solving which helps to eliminate any
problems associated with legal restrictions in the
storage, transportation, and marketing of goods;
Timely response to changing market demands.
Advanced logistics scenarios also help to quickly
adapt to changing market requirements and,
thereby, maintain top positions against the
backdrop of competitors and remain in demand
for the target audience.

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 Why Is Logistics Management
Important?
Logistics Management can be reduced to
the fundamentals of the most efficient and
effective ways to move resources and
products to the customer.
This ultimately provides the best service to
customers who are ever demanding faster
and more efficient services.

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 Logistics management is also able to create
visibility within an organisation's supply chains,
provide data on real-time movements and therefore
advise on and implement change that directly
affects the organisation as a whole.
Want to learn more about advancing visibility within
supply chains? Join us on the 29th of September
when we are hosting an exclusive webinar for HERE
Technologies and Sigfox.
Logistics Management forms a core part of a supply
chain for any organisation, managing and
overseeing the distribution network to ensure that
inventory management is under control.

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 Definition of Logistics
Management
 The management process which integrates the movement of goods,
services, information, and capital, right from the sourcing of raw
material, till it reaches its end consumer is known as Logistics
Management.
 The objective behind this process is to provide the right product with
the right quality at the right time in the right place at the right price to
the ultimate customer.
 The logistic activities are divided into two broad categories they are:
 Inbound Logistics: The activities which are concerned with
procurement of
 material, handling, storage and transportation
 Outbound Logistics: The activities which are concerned with the
collection, maintenance, and distribution or delivery to the final
consumer.
 Apart from these, other activities are warehousing, protective packing,
order fulfillment, stock control, maintaining equilibrium between
demand and supply, stock management. This will result in savings in
cost and time, high-quality products, etc.

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 Definition of Supply Chain
Management
Supply Chain Management (SCM) is a
series of interconnected activities related to
the transformation and movement of raw
material to the finished goods till it reaches
to the end user.
It is the outcome of the efforts of multiple
organizations that helped in making this
chain of activities successful.

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 Analytics applications in HR &
Supply Chain
 1. 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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 2. 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
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assessing KPIs such as the return per
 3. 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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 4. 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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 5. 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
the learner.
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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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 7. 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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 8. 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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