With manufacturers and distributors rapidly adopting platforms to support continuous improvement, data mining and analysis systems are revolutionizing supply chain management. Now with greater accuracy, timeliness, insights, and clarity, suppliers can provide heightened contextual intelligence throughout all levels of the supply chain.
Here are ten ways data is positively impacting supply chain management:
- The scale, scope, and depth of data that supply chains are generating today is accelerating, providing ample data sets to drive contextual intelligence.
- Data analysis enables the existence of more complex supplier networks that focus on knowledge sharing and collaboration as the value-add over completing transactions.
- Data and advanced analytics are being integrated into optimization tools at a quickening pace, demanding forecasting, integrated business planning, supplier collaboration, and risk analytics.
- 64% of supply chain executives now consider big data analytics a priority, setting the foundation for long-term change management in their organizations.
- By using geo-analytics based on culled data, delivery networks can be merged and optimized.
- Organizations employing data analysis are seeing significant improvements, such as faster reaction time to supply chain issues, improvement in customer service, demand fulfillment of 10% or greater, and far more integration across the supply chain.
- Embedding 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.
- Data analysis allows for greater organization-wide contextual intelligence of how supply chain strategies and operations are influencing financial objectives.
- Traceability and recalls are by nature data-intensive, making big data’s contribution potentially significant.
- Data has helped supplier quality increase, from supplier audit to inbound inspection and final assembly. These new systems are isolating problems even faster than SPC and other traditional systems.
In order for companies to stay in the game, they must adapt to efficiency-based systems. It is critical to choose the right system for your company’s needs and fully implement it to stay ahead of the curve. By using data to create a culture of continuous improvement, prepare for new and exciting opportunities to grow, evolve, and succeed.