Logistics and Supply Chain is a costly affair in any business. So, people try to cut costs here and there and are always looking for new ways to optimise supply chain costs. What works for one supply chain might not work for another. And what works during one point of time might not work another time.
So, supply chain costs are studied continuously to make changes here and there and land at minimal cost. There are several hassles in supply chains: government regulations, capacity issues, driver shortages and technology changes. So, SC managers are looking closely at their supply chains to gain insight into what is happening now and to be better prepared for the future. A good understanding of end-to-end supply chain data can help here. Here are the supply chain failures and how to avoid them. Studying this data can help formulate strategies to drive a competitive edge and help build a sustainable growth.
Today, every data point is a major factor in predicting trends. Armed with supply chain network design expertise, data analytics can help build an optimized network of facilities that cut costs while meeting customer service level requirements. Supply chain data analysis, along with value stream maps recognises bottlenecks and wastes within the supply chain. So, this creates a LEAN environment that also strives for continuous improvement.
Amazon uses Big Data in its supply chain and has recently filed a patent for technology to support “anticipatory shipping.” This will help the Amazon seller adjust inventory based on what Big Data analytic tells him to predict demand in specific locations. The factors on which these predictions are based are: previous purchases, products customers searched, how long the customer looked at specific products. In short, Amazon wants to pre-position items based on understanding its customers and their demographics, identifying trends, and ramping up to match them.
Big Data in supply chain deals with data from point-of-sale systems, bar-code scanners, radio frequency identification readers, global positioning system devices on vehicles and in cell phones, and software systems used to manage transportation, warehousing etc. Studying supply chain data can help in predicting trends and be invaluable in making informed decisions, identifying where one can save also identify scope for further cost optimisation. While several companies are going to third-party logistics (3PLs) providers with experience in supply data analytics and business intelligence to identify the whys, hows and whats of costs, small businesses cannot afford to do that. Nevertheless, they also need to study supply chain data because there is a horde of information that can help them demand fluctuations. Pulse, from LateShipment helps small businesses learn from their shipping data. Pulse is an application that tracks every shipment sent by a company and tells you of possible delays in delivery. So, you can be proactive and intimate the receiver about the delay.
