The Revolution of Supply Chain Management Being Brought About by Big Data
The power of big data can provide networks of suppliers with greater insights, more clarity and superior data accuracy, which will allow for a higher level of contextual intelligence being shared between supply chains.
Manufacturers who are ahead of the curve orchestrate approximately 80% of supplier network activity beyond the walls their organization inhabits, by utilizing big data and cloud based technology to supersede the limitations of ERP (Enterprise Resource Planning) and SCM (Supply Chain Management) systems. This is because manufacturers who base their business models on product lifecycles, which are rapid and conducted at speed, but legacy ERP systems are holding them back. The legacy systems are designed to deliver shipments, orders and transaction data, and are not capable of being scaled to meet new supply chain problems present by the current scenario.
By choosing to compete on levels of quality, speed and accuracy, supplier networks are being forced to gain levels of contextual intelligence which legacy SCM and ERP systems can’t possibly provide. Even though many of today’s companies haven’t yet integrated big data into their supply chain systems, these are the factors that will provoke many to begin the journey to adoption.
• The depth, scope and scale of supply chain data being generated today is rapidly accelerating, and by doing so is providing an amount of data sets which can take contextual intelligence to the next level
• Growing complexity in supplier networks puts an emphasis on collaboration and knowledge sharing as providing value besides completing transactions
• Advanced analytics and big data are now being integrated with demand forecasting, optimization tools, business planning, risk analytics and supplier collaboration at a growing pace
• Two thirds of supply chain executives believe that big data analytics is an important and disruptive technology, providing a platform for long-term change management within their companies
• Geo-analytics, which have a basis in big data, can be used to merge and then optimize supply chain delivery networks
• Big data is impacting companies’ reaction times to problems in the supply chain, reducing them by two fifths; it has also increased the efficiency of supply chains by a third or more, and provided a third more integration within the supply chain
• By utilizing big data analytics in operations, order to cycle delivery times are 4.25 times improved, and efficiency is improved by 2.6 times