Big data is providing supplier networks with greater data accuracy, clarity, and insights, leading to more contextual intelligence shared across supply chains.
Forward-thinking manufacturers are orchestrating 80% or more of their supplier network activity outside their four walls, using big data and cloud-based technologies to get beyond the constraints of legacy enterprise resource planning (ERP) and supply chain management (SCM) systems. For manufacturers whose business models are based on rapid product lifecycles and speed, legacy ERP systems are a bottleneck. Designed for delivering order, shipment and transactional data, these systems aren’t capable of scaling to meet the challenges supply chains face today.
Choosing to compete on accuracy, speed and quality forces supplier networks to get to a level of contextual intelligence not possible with legacy ERP and SCM systems. While many companies today haven’t yet adopted big data into their supply chain operations, these ten factors taken together will be the catalyst that get many moving on their journey.
The ten ways big data is revolutionising supply chain management include:
- The scale, scope and depth of data supply chains are generating today is accelerating, providing ample data sets to drive contextual intelligence.
- Enabling more complex supplier networks that focus on knowledge sharing and collaboration as the value-add over just completing transactions.
- Big data and advanced analytics are being integrated into optimisation tools, demand forecasting, integrated business planning and supplier collaboration & risk analytics at a quickening pace.
- Big data and advanced analytics are being integrated into optimisation tools, demand forecasting, integrated business planning and supplier collaboration & risk analytics at a quickening pace.
- Using geoanalytics based on big data to merge and optimise delivery networks.
- Big data is having an impact on organizations’ reaction time to supply chain issues (41%), increased supply chain efficiency of 10% or greater (36%), and greater integration across the supply chain (36%).
- Embedding big data analytics in operations leads to a 4.25x improvement in order-to-cycle delivery times, and a 2.6x improvement in supply chain efficiency of 10% or greater.
- Greater contextual intelligence of how supply chain tactics, strategies and operations are influencing financial objectives.
- Traceability and recalls are by nature data-intensive, making big data’s contribution potentially significant.
- Increasing supplier quality from supplier audit to inbound inspection and final assembly with big data.
Read more at 10 ways big data is revolutionising supply chain management
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