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How Can Supply Chain Leaders Use Big Data as a Tool to Continuously Improve?

supply chain leaders

Supply chain leaders are enthralled with the idea of using big data, but they tend to fail to understand how to disseminate big data in their organization properly. True, they may know how to roll out big data in a single warehouse, or they may have heard their competitors used branded systems for implementing this new technology. However, the fundamental problem remains.

Supply chain leaders must be ready to implement big data and leverage it to improve their companies without any delay or inhibition This may sound impossible and frightening, but they must only understand how big always goes back to these two, simple principles of measurement, review, and action.

Ask Traditional Questions, and Let Big Data Provide Answers.

The most common complaint of newer companies using big data analytics capabilities tends to revolve around traditional questions of business strategy. Consider the following elements explains John Richardson of Inbound Logistics, that impact business strategy.

  • Increasing order efficiency.

  • Demand forecasts.

  • The quantity of each product.

  • Inventory location and management.

  • Raw material suppliers and logistics.

  • Transportation modes used in procurement and shipping.

  • Distribution of goods prior to purchase.

  • Demand fluctuations.

Each of these elements more traditionally handles by outsourcing analysis of processes to supply chain consultant. This is actually where the concept of third-party Logistics providers involved. However, rapid growth and diversification of products are making shippers, manufacturers, and suppliers rethink their business strategy. In other words, consumers can get practically anything they want at a moment’s notice, and more consumers are expressing a willingness to wait for a product a few days if free shipping is a possibility. So, this needs to adapt operations reflects the common concerns of traditional customers and supply chain entities. However, there is a distinction.

Previously, these entities only needed to focus on their local demographic for ensuring continued stability. But the rise of the internet has given consumers and everyone else the ability to access any product from any seller and any place on the globe. This is a traditional business strategy, and it is essential that the modern supply chain is willing to use big data all operations to create a more positive result than consumers , stakeholders or government organization ever needed before.

Performance Measurement and Management.

As explained in a previous blog post, continuous improvement in an organization can be achieved through the use of performance measurement tools via big data. Mostly, this reflects the skills and actual working capacity of employees. Since employees represent one of the largest expenses, n organization may face.

Having the best staff members available can mean the difference between success or failure in a company. Furthermore, big data can help employees understand what they do and do not need to do in order to improve their performance scores. This will also help to prevent oversight from managers and keep all employees on track to complete their responsibilities as assigned.

Performance measurement does not have to be limited to the performance of employees either. It can be supply chain leadersexpanded to identify poorly performing machines, or it can be used to isolate in efficiencies in collaboration with suppliers or vendors. Ultimately, performance measurement is a metaphor for tracking any metric in the course of the supply chain, but it's key to being effective is found in transferring the insights gleaned from big data into actionable results.

For example the operational efficiency of a given loading is directly related to how quickly Pickers are able to fulfill orders and move them onto the dock. Obviously trucks can only be loaded so fast what is the number of pickers is not appropriate for the current workload or what is the route taken through a factory is adding an extra 20 minutes to pick to the duties of each worker?

These questions identify the most insignificant of details can truly be driving forces  of inefficiency in the supply chain. But the possibilities for continuously improving. Changes in the design or layout of the warehouse or alterations to the truck schedule  may require the cooking duties of a certain worker to change at a moment's notice. Essentially, tthe worker must be able to access continuous data measurements on all factors affecting his or her responsibilities comment by accessing the system.

Supply Chain Leaders need to Focus on Continuous Improvement

Continuous Improvement is a complex notion. It is based on hundreds,  if not hundreds of thousands, of individual from various collection points and analyzed in real time. All of this reflects a very large volume of data comment it can be digested and broken down into usable bits, much like the biological processes of the stomach making it essential to surviving the coming season.

This comparison is much more than a metaphor;  it is the real issues being faced by supply chain entities and their leaders. Supply chain leaders must use big data to gather insight and create quantifiable measures of performance and functionality across their enterprises on a recurring, frequent and immediate basis

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Adam Robinson
Adam Robinson oversees the overall marketing strategy for Cerasis including website development, social media and content marketing, trade show marketing, email campaigns, and webinar marketing. Mr. Robinson works with the business development department to create messaging that attracts the right decision makers, gaining inbound leads and increasing brand awareness all while shortening sales cycles, the time it takes to gain sales appointments and set proper sales and execution expectations.
Adam Robinson
Adam Robinson
[WHITE PAPER] The Top Supply Chain Trends that Will Impact Supply Chain Management in 2018Download Now

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