Big Data Analytics in Supply Chain Management

Jun 6, 2022

5/5 - (3 votes)

Do you know the impact of big data analytics on supply chain management? In recent years, the volumes of Big Data have reached incalculable levels for the analytical management of a more demanding Supply Chain. There are many possibilities offered by big data to predict, in the short and medium-term, the risks in operations and to optimize supply chain planning.

There are two different approaches in which big data applications in the supply chain are oriented :
  • To improve existing processes by focusing on current business needs and challenges.
  • To create products and services to launch new value propositions.
In this sense, both the supply chain of physical products and service deliveries can benefit from big data. And it is that the exploration of big data results in very interesting benefits for the supply chain, such as:

The Possibility of Segmenting Suppliers

  • Greater ease in evaluating supply channel options.
  • The most effective way to win in sync with suppliers.
  • A very effective tool when preparing for the negotiation.
  • The starting point for mitigating capacity constraints.
  • An indispensable resource for inventory optimization.
  • The source of knowledge that allows the redesign of processes.
  • An objective instrument to carry out the analysis of the workforce.
  • A way to find more cost-efficient alternatives for the transport function.
  • This means that makes it possible to optimize vehicle maintenance.
  • The tool allows the micro-segmentation of customers.
  • a valuable asset when it comes to predicting fluctuations in demand.
  • The only way to delve into customer behavior.
  • The greatest ally of the inventory function, by optimizing both prices and assortment.
Each supply chain will have to choose where to invest in big data applications in the supply chain, which areas to prioritize, and to what extent it is necessary to implement capacity-building programs that allow the full potential of big data to be harnessed.

The Importance of Using Big Data Analytics in Supply Chain Management

As they say, “saving time and putting more effort is equivalent to greater profitability.” All the information that comes from various sources, platforms, and operations of the Supply Chain, plays an essential role in positioning a business in a situation of advantage over the competition and to anticipate market changes. In a supply chain of any nature, the important thing is to know how to manage data and KPIs efficiently. Since many companies deal with several key performance indicators, hence it is quite obvious that they may not know how to digest so much information. Although there are many measurable aspects in the supply chain, Big Data is required to make increasingly intelligent use of data. It leads to reduce errors.
Big Data Analytics in Supply Chain Management - BainsLabs | Big Data Experts In Toronto, Canada

Now, let us learn about the relationship between Data and Big Data Applications in the Supply Chain Management?

There are many reasons why we need an objective extraction of information that allows us to make the right decisions in our business. It is a way of streamlining movements in the supply chain to keep up with the immediacy that customers demand in the delivery of their orders. To predict customer behavior, strengthen the relationship of companies with their customers by improving their offers and ensuring optimal delivery, etc.

In logistics, applications for data analysis in inventory management, forecasting, and transportation routes are required. In warehouses, to monitor stock levels, as unstructured and messy data can provide alerts when merchandise replenishment is needed, as well as to analyze and collect data from point-of-sale systems, order books, and shipping information.

The Perfect Complement To Big Data Analytics

Much additional information that was not analyzed as much before is now fully updated and integrated into Big Data software, such as weather data that may have an imminent effect on sales or transport. On the other hand, CRM (Customer Relationship Management) tools, such as Microsoft Dynamics CRM, allow managing the relationship with customers in sales processes and at customer service points. This tool or platform is included in an online management technology that simplifies work. Thanks to the use of Big Data.

Now that you know a bit about Big Data Analytics in Supply Chain Management, if your organization is looking for big data consulting or data architecture consulting, feel free to contact us.