Saturday, August 1, 2020

Big Data Analytics and Supply Chain Logistics Coming Together

Big Data Analytics and Supply Chain Logistics Coming Together

With the help of data analytics, the data generated from Supply chain can be used to generate real insights. Applying data analytics techniques such as Artificial Intelligence, could shape the way Supply Chains are identified and handled.

Now, what restrains us from fully utilising data analytics in Supply chain ?

·       Shortage of capabilities: The Supply chain managers lack experience with the data analysis tools and hence miss out on the opportunities that Supply chain analytics holds.

·       There is a deficiency of structured processes that could discover, comprehend and grasping opportunities in their respective supply chain.

Why is Supply Chain Analytics gaining importance?

·       Better understanding of risks: With the available data, Supply chain analytics is able to predict the future and any potential risks by spotting patterns or trends in the Supply chain field.

·       Improving precision in planning:  By analysing the customer data, Supply chain analytics will help in forecasting the future demand by evaluating the customer needs.

·       Prepared for the future:  It can help to improve the decision making skills of the organisation by developing patterns from the data of different data sources and thus minimising the risks associated with it.

 

 

For eg: , IBM became one of the first to join a Cognitive Supply Chain

 

                           https://youtu.be/5MAetpGPHnI

How Supply chain analytics can be used in different areas of Supply chain?

·       Sales Inventory and Operations Planning

Planning being one of the major process under Supply chain can be  made to consider the various data sources making it more aligned with the real time demand and supply. By using the data from Point of sale , Inventory data, production volume etc, a company could identify the mismatch in supply and demand, based on which there is a realignment of activities.

Example:  IBM had developed links between production planning  and weather forecasting for bakeries. By integrating temperature and Sunshine data , baking companies can forecast the demand for various products and well as customer preferences.


·       Manufacturing

Analytics plays a major role in improving manufacturing by evaluating the various manufacturing parameters to identify the root cause of defects. The Internet of Things along with its wide set of sensors and cameras opens door to many manufacturing opportunities that can be used in the future.

Example: From the information of machine’s condition could trigger 3D- printed spare part which is taken by a drone to engineer who may be using augmented reality  glasses for guidance in replacing the part.

 


As more and more technologies are being developed in Supply chain analytics , companies may be looking ahead at an explosion of benefits. With more advancements in Supply chain analytics , it is leading to an era of Supply chain optimisation.

Future of Supply chain: https://youtu.be/W-zdoZf57vI

1 comment:

  1. The introduction of analytics has really helped in the bringing the vastness of supply chains right in front of their eyes using data. A lot of developments are being made by many companies to make the supply chain as seamless as possible with automation to reduce inefficiencies in the supply chain

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