Thursday 18 April 2024

How Big Data Will Revolutionize Supply Chains

Supply Chain management

Big data innovations are helping companies in various industries including supply chain management. Real-time data converted into actionable insights make manufacturing and retail companies responsive and customer centric. They have more streamlined supply chain processes and that is opening up scope for bigger profits.

 What does Big Data Technology do?

Big data technologies are data-driven innovations, which are designed to collate raw data into well-defined structures. Any software used to process big data uses a broad range of information such as purchase history, customer relationship data, market intelligence, etc.

Why is Big Data Increasingly Relevant?

With global expansion of supply chains, there has been an increase in the complexity of data interpretation. Big data doesn’t just increase visibility of strategies; it provides valuable and in-depth insights for supply chain management. Unlike legacy ERP and SCM, big data technologies tackle challenges in modern supply chains with efficiency and unlimited capacity. Owing to big data analytics, firms can now segregate, filter, and analyze internal data, as well as get an external consumer and market-oriented data. Technology can help with data to optimize decision making at all levels.

A few indicators why big data will revolutionize supply chain management:

1. Better customer segmentation

A brand’s success depends on customer satisfaction. The lack of it can be a nightmare for any company. It’s very important to offer the right product to the right people, when they need it. Big data enables better customer segmentation for accurate targeting of products and services. It provides a 360-degree view of customer needs and helps create unique branding.

2. Improved optimization

Big data helps optimize the entire supply chain by streamlining distribution, production, and logistics. Powerful data-processing and analytics capabilities can be integrated for forecasting demand planning and supplier collaboration. According to Accenture, companies with big data embedded in their supply chain planning systems, have experienced an average improvement of 51.6%. Even with ad hoc usage of planning systems, the average improvement was nearly 17%. The parameters included inventory productivity, efficiency, cycle times, etc.

3. Quicker pace

Speed is one of the most important factors for companies. How quickly, as well as how efficiently a company meets customer expectations determines how fast it will grow. Based on the report by Accenture, big data has an impact on organization reaction time to supply chain issues (41% better) and integration across the supply chain (36% more). With big data technologies, companies can also examine the volume, variety, and velocity of data quickly.

4. Facilitating collaborative supplier network

Big data is bringing about a revolution in how supplier networks form, grow, proliferate into new market spaces, and then become popular over a period of time. The big data approach helps in going beyond transactions and is conducive for a knowledge-sharing network based on insights.

5. Risk assessment in a supply chain

Big data and advanced analytics can analyze risks quickly and with great accuracy. With greater visibility and predictability, companies can help forecast a problem and assess its potential risk. They can formulate a risk management approach with analytics. The data used may cover historical charts, risk mapping, and planning methods.

6. Geoanalytics for optimized delivery

Geoanalytics based on big data can revolutionize delivery networks by merging and optimizing them. A combination of geoanalytics and big data can reduce the wait time drastically, and at the same time, ensure service accuracy. Big data can be used to manage supply chain routes and help reduce transportation costs by 15-20% by assimilating deliveries.

Companies can manage the volatile nature of demand and supply in a network by integrating big data in their IBP system. Supply chain executives in most companies know how big data is going to benefit them. Most agree that big data technologies will bring impactful changes in their organizations.

Author Bio:-

Amy Jackson is a lead technology writer and she has an array of experience in Technology and software industry. Currently, she has been writing about supply chain planning process, Predictive Analytics Solutions and procurement solutions.  Follow her on Google+ and learn more about the latest tech trends.