Big data and supply chain management
Before defining how important Big Data is for the application of supply chain management, we must first define what big data is. It is basically a study and application of data sets which cannot be processed by the traditional software as they cannot deal with it accurately. After losing its relevance for quite some time, big database again has become a game changer in supply chain management. For businesses with a rapid product lifecycle, the old obsolete ERP supply chain management software is a stoppage, and big data is well on the path to creating its own legacy in supply chain management. Below are some ways in which it has revolutionized supply chain management-
1. Generation of More Complex Data – Big data helped in the generation of far more complex data in terms of its scope and depth. The is a vast number of data sets that are generated today, which provide a lot of contextual information and which drives the supply chain forward. It is also interesting to see that most of the big data which is created are done outside the walls of the company.
2. Allowing Much Bigger Supplier Networks – Big Data has enabled the creation of much bigger, better and more complex network of suppliers whose only goal is not a transaction but instead, it is the creation of a knowledge-based network. It has also changed the way these networks grow and integrate themselves within the business environment, which is quite a thing.
3. Stepping up the Analytics Game – With the help of big data, companies are now integrating into their supply chain management software various data analytics tools which help in a deep study of factors such as forecasting of demand and supply, risk management, business planning among others. This has helped the companies in saving costs as now they don’t have to spend more on the calculation of this analytical data.
4. Faster Reaction Time and Efficient Reaction – With the help of big data, business houses now work with an increased efficiency and are working with an increased reaction time as compared to before. Statistics show that businesses which use big data services react 41% faster to supply chain issues, and with the increased efficiency ranging between 10% to 36%.
5. Combining Big Data with Geoanalytics – With the modern big data supply chain management software, companies are combining geo-analytics with big data analysis to speed up the time in which the demand of one geographical location arises. This way the services of companies has improved drastically, resulting in increased customer satisfaction, as their demand is fulfilled more quickly with big data analysis.
Conclusion – Inculcating the big data analysis in your already running business might be a tricky work for you, and no doubt you and your whole supply chain workers will take some time to adapt to it. But with the kind of results which companies are getting out of it, it is a must for every business to integrate into their supply chain management process.