From Tech.Co, Published on May 23, 2016
Companies today are nearly overrun with massive amounts of data about their customers, suppliers, and even potential markets thanks to evolving digital technologies. While it’s commonly said that information is power, if you don’t make proper use of that data, it’s all but useless. The adage holds true when it comes to crunching numbers to benefit a crucial business capability such as the supply chain.
A recent Accenture study of more than 1,000 senior global executives found that, while 97 percent understood how Big Data could benefit their supply chain, only 17 percent reported implementing any of the findings. Here are some of the ways that Big Data can identify opportunities and revolutionize supply chain management in nearly any organization.
Big Data Analytics
A previous story on Tech.Co noted that the amount of data collected globally is growing at a rate of about 59 percent per year. Big Data analytics is the process by which analysts study massive quantities of data with the goal of identifying patterns and other useful information that can lead to better and more efficient business decisions. Big Data analysis was first used 20 years ago for marketing and sales purposes with great success. Today, companies are taking Big Data analytics to the next level and applying it to company operations, in particular to their various supply chain challenges.
Modern-Day Supply Chain Challenges
Leveraging Big Data on the supply chain level allows companies to improve their response to volatile demand and to reduce supply chain risk. The insight that Big Data analytics provides into the depth of the supply chain often creates efficiency and allows companies to overcome ongoing threats. Spend Matters recently shared its “5 Data-Driven Supply Chain Challenges to Overcome in 2016.” Here are those challenges and how Big Data analytics can help to meet them.
Revolutionizing Supply Chain Management with Big Data Analytics
In addition to addressing the particular supply chain management challenges that we just listed, Big Data has the potential to revolutionize business operations and results in many ways. Several more include:
Big Data Use for Predictive Lead Time Solutions
Have you missed delivery schedules in the past due to occasional stock-outs from suppliers? Do you have supplies that show up sooner than expected that you’re forced to store? Any of these issues, and a host of others, that involved suppliers can cost your business time and valuable clients. Big Data analytics makes use of massive stores of historical data about your suppliers to measure performance, predict future behavior, and make smart business decisions. Predictive lead time technology (PLT) applies big data solutions to supply chain management and eliminates the guess-work in production scheduling.
Companies that make use of Big Data analytics can quickly begin addressing their greatest supply chain challenges. Those that do not may miss out on huge efficiency gains and on the chance to grab a competitive advantage.
For additional reading regarding supply chain management, please refer to the following links:
Companies with the Greenest Supply Chains
Sustainability in the Supply Chain
The Need to Optimize an Organization’s Supply Chain
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