the power of data: understanding supply chain analytics
TRANSCRIPT
The Power of Data: Understanding Supply Chain
Analytics
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This is why supply chain analytics matters:
Every day, every hour and every minute, countless packages and shipments are being moved around the world within never-ending flows of supply chains. These supply chains serve as the backbone of the world economy and, in truth, are what keeps the world moving.
But consider for a moment the amount of data, information, and decisions that are required to make a supply chain not only operate but to do so effectively.
While the end goal is to get the package from A to B as quickly and efficiently as possible, there’s a lot more going on behind the scenes that make it all work.
Simply put, in an age of growing technology, data is what drives a company.
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Understanding Analytics
Every day, every hour and every minute, countless packages and shipments are being moved around the world within never-ending flows of supply chains. These supply chains serve as the backbone of the world economy and, in truth, are what keeps the world moving.
Analytics-driven insight, or a procurement function relies on big data and advanced
analytics to drive insight and bolster decision-making. The hallmarks of
information-centric, world-class procurement organizations are the
presence of a sophisticated information/data architecture that makes
effective data analysis possible
- A Study From The Hackett Group
Simply put, in an age of growing technology, data is what drives a company.
Enhanced procurement, for example, is one of the many benefits that comes from data analysis. When procuring services, it’s a matter of having access to the right information at the right time and being able to act on it.
This actionable data is driving the change within the transportation industry, which has remained relatively unchanged for the past several decades.
Understanding the full measure of your business, being able to identify key metrics and lay out a plan for improvement; are the essence of big data and analytics.
Sharpening the Focus of Big Data
We only started to see our first glimpse of it in 2010 as mobile and cloud computing technologies begun to flourish. While there’s been a slow build up to it over the past seven years, it was only in the past two that companies have began to focus on Big Data and analytics.
While Big Data is a powerful tool, it can
be more than overwhelming for some companies,
especially if they can’t harness it properly.
Without the right support, trying to analyze big data
streams is like trying to use a wrecking ball to drive a nail. It’s just
too big.
In the 2017 Supply Chain Analytics Benchmark Study
created by American Shipper, they’ve found that only 5 percent of their respondents claimed to have truly accurate data while
respondents that had “somewhat accurate” data was at 35 percent
and growing.
The alarming results this year should give everyone reading this pause. The number of companies responding that they have ‘extremely accurate’ data has, if anything,
regressed, while the number of shipper respondents citing their data as ‘somewhat accurate’ has increased 35 percent from a
year ago.
- 2017 Supply Chain Analytics Benchmark Study
The Tools of Supply Chain Analytics
We only started to see our first glimpse of it in 2010 as mobile and cloud computing technologies begun to flourish. While there’s been a slow build up to it over the past seven years, it was only in the past two that companies have began to focus on Big Data and analytics.
More surprising is the fact that 60 percent of respondents said that they have no logistics technology system in place for analytics. While this more
than likely indicates that the technology is still new, it also suggests that quite a number of companies are a little slow on the uptake which could
prove disastrous in the future.
While having an in-house team to decode the data is important, so are the tools used to gather the data.
There are various technologies that are employed in data analysis. Machine learning and artificial intelligence are two ways that are algorithmic in nature.
The most widely used technology, The Internet of Things, can be used to gather data from virtually any link the supply chain. The IoT is utilized by 20 percent of shippers and 30 percent of 3PLs according to the American Shipper study.