In the current digital era, big data plays a crucial role in accelerating the growth of the supply chain industry. It addresses operational issues and helps decision-makers monitor performance and mode optimization productivity. With more and more businesses streamlining their operations with big data, it is important to know why it’s crucial for your business’s growth.
Read on to learn more about the impact of big data on the global supply chain industry.
Why Do You Need Big Data in a Supply Chain?
Big data provides information to track the product from production to retail, improving product traceability. It helps streamline distribution and coordinate with the key stakeholders in the supply chain. PO uniformity is very key for traceability.
Many online retailers use big data and analytics to streamline their management processes. They utilize it to improve algorithms, provide accurate delivery dates, increase warehouse automation, and optimize routes through advanced mobile technology.
Identify Consumer Behavior and Buying Patterns
The top players in the industry invest in big data and analyze their customers’ usage patterns and habits. Businesses can retain their subscribers and increase revenue by analyzing the detailed reports they can generate with big data. It even helps them to predict growth and plan expansions.
Manufacturing industries lose billions due to faulty machines and maintenance issues. Big data analytics can help businesses monitor input parameters, predict situations that may affect machinery, and reduce machine downtime by 30-50%. Using big data in supply chain management can help reduce repair costs, eliminate unscheduled downtimes, and extend machine life.
Applications of Big Data in the Supply Chain Industry
Inventory Prediction & Management
Big data analytics in inventory management and demand forecasting has become a crucial element in streamlining operations. It can assist businesses in processing large amounts of past sales data and anticipating future demand, keeping inventory in mind.
An ideal big data model considers real-time, historical data, macroeconomic aspects, market trends, and even competitors’ data.
Product Quality Control
Many chemical process chains and other industries need thorough monitoring to ensure product quality. Big data analytics can play a significant role in quality control and help logistics businesses minimize errors. It provides a measured control system to eliminate waste and reduce defects.
Reduces Communication Gap
Supplier performance significantly contributes to the final product. Companies use big data analytics to reduce the communication gap between manufacturers and suppliers, improving the overall efficiency of the supply chain.
Supply Chain Process Optimization
Big data analytics helps businesses gather accurate product information so operators can stay on top of their distribution cycle. It improves traceability and assists in tracking goods from production to retail. Enhanced traceability enables businesses to better coordinate with supply chain stakeholders to streamline distribution and get optimum results. Utilizing big data can help the global supply chain industry improve its working structure and reduce its overall cost.
Traffic Data Exchange is an accounting, analytics, and supply chain logistics consultancy providing customized, tailor-based services and fulfilling the clients’ expectations. Reach out to Traffic Data Exchange for any queries.