Big data applications are already impacting supply chain entities around the globe, but some of its most interesting possibilities may have yet to be realized. Since the digital universe will expand to more than 40 trillion gigabytes by 2020, reports Jim Taylor of Inbound Logistics, future possibilities through big data may not even be fathomable.
However, the current progression of big data does give rise to some very tangible benefits to your company within the next five years.
6 Benefits to Using Big Data Applications
Access to More Raw Materials.
The ability to access more raw materials is a defining factor in future production, and according to Mark van Rijmenam, big data will likely have an impact on the ability to extract more oil deposits. While this may appear disconnected, more fossil fuels actually will lead to reduced fuel costs and better overall profit margins in your company. Apparently, it does not negate the need to work toward green initiatives and reduce your overall carbon footprint.
Greater Value of Services or Products.
Predictive analytics capabilities within big data will help more organization improve production without increasing operating costs. In a sense, the value placed on services or Goods will rise, making purchasing or utilizing such services more cost effective to consumers. This impact will be felt across all industries, but it may be most notable for supply-chain entities that are directly involved in the health industry.
For example, a pharmaceutical company may use big data applications to identify more efficient way of manufacturing life-saving medications. As a result, the end cost to hospitals, doctors, prescribers or patient will be lower. This is mostly allowed better health and functionality of all people in need of medications.
Now, imagine how this same example could be applied to different Industries served by the supply chain and transportation industry. This application also includes the use of big data for enhancing the efficiency of routes and overall operations to produce greater value of services.
Better Transparency and Visibility.
Transparency and visibility or concerns of supply chain entities. Government organization AR are continually reviewing a company’s carbon footprint for violations of existing environmental standards. Unfortunately, a violation may result in significant penalties or punishments against the respective organization. As a result, better transparency and visibility achieved through big data applications may reduce the risk involved in the supply chain.
Consumers are also demanding better visibility into the day-to-day operations of companies they engage way. While this may be seen on social media and across mainstream media, the present known to consumers will always be shrouded in darkness. Supply chain partners and transportation providers must go beyond a reasonable expectation to provide more information to consumers, stakeholders, governments or any other interested party, provided it is not a competitor.
Innovation in Next Level of Services or Goods.
Innovation is one of the key areas big data can help organizations over the next five years. Computer processing capabilities to identify severe inefficiencies or problems in manufacturing, storing, shipping or repairing processes in the manufacturing and logistics industry. However, Innovation must also be led by human involvement, and companies must be willing to accept that computer simulation they provide better results than traditional thoughts on innovation.
Better Sales and Operations Planning.
A company is only as good as its salespersons. if a company wants to truly expand operations and Achieve maximum optimization of resources, it must be able to produce higher new customer Acquisitions and better customer retention ratios. Ultimately, a company must be willing to embrace any and all possibilities for managing and tracking the performance of cells person across the Enterprise.
This ability is already in use through various customer relationship management (CRM) platform, but it is becoming involved as it is integrated with systems most used in the supply chain and Logistics Industries.
For example, a transportation management system (TMS) May combine the big data analytics capabilities of a CRM tool with factors independent of that respective company’s operation.
Real-Time Decisions, Not Reactive Decisions.
Decisions made in the course of business tend to reflect issues presented to see company. This may include problems encountered during the manufacturing, storing or transportation of goods. Unfortunately, these decisions have always been reactive comment reacting to a stimulus that cause them to material line. However, big data alone and organization to Define likelihood of occurrence and given problems and propose workable, cost-effective solution before an incident occurs. Consequently a company can predict and react to it issue in a proactive, non-threatening manner.
The future of big data applications could go beyond your wildest dreams, but it will certainly prove to be an exciting to be involved in manufacturing and the supply chain. Fortunately, you get to be present for the possibilities if you start embracing, implementing, utilizing and preparing for transition a big data-based methodology in your company’s operations today.