Supply chains worldwide have faced massive challenges over the last several years. Product shortages, port bottlenecks, labor crises, and more have prompted manufacturers and retailers to invest in emerging technologies such as artificial intelligence, machine learning, and automation to alleviate the impacts of supply chain disruptions and help manage optimized logistics. As companies increase their investment in supply chain technology, many are leveraging Big Data to drive their supply chains and meet growing demand.
What is Big Data?
Among other things, Big Data involves the immense amounts of information businesses collect from consumers that can help them determine trends and patterns in their markets. With the advent of new technological advancements in recent years, it has become easier to collect massive and ever-increasing amounts of data that can be used to drive decision-making on inventory management, marketing, logistics, and more.
Companies that are already using Big Data include Amazon and Starbucks, for example.
- One way Amazon uses Big Data is by collecting information as shoppers browse the site, using it to make product recommendations based on search and purchase history. The data collected allows Amazon to make predictions on what else the customer may be interested in, and to provide personalized recommendations to customers. Amazon also uses Big Data to track customers’ shipping locations, allowing them to connect purchases with the closest distribution centers to streamline their supply chain and ensure fast deliveries.
- By launching its rewards program and mobile application in 2009, Starbucks dramatically increased the amount of data it could collect and use to get to know its customers. After years of data collection, the company is continuously personalizing the customer experience by tracking habits such as coffee orders, locations visited, times of day they typically stop at a Starbucks store, and more. Capturing Big Data has allowed the enterprise not only to make personalized recommendations to their consumers but also to streamline their supply chains by tracking what products are performing well and which are not so that they can manage materials and inventory accordingly.
Benefits of Big Data for the Supply Chain
By embracing the latest technological advances and using them to collect and harness the power of Big Data, companies can realize key benefits throughout their supply chains:
- Enhanced inventory management
- Improved consumer and brand loyalty
- Streamlined e-commerce management
- Expanded traceability
Companies that employ the benefits of Big Data to enhance their supply chains may also use lightweight plastic pallets from iGPS, which incorporate smart features that make them traceable throughout the supply chain. These features allow companies to capture data at any point of distribution, ensuring better planning and efficiency, and helping to lower a company’s Total Cost of Business (TCOB).
Technological innovations have allowed businesses to collect and analyze more information about their consumers and marketplace than ever before. Those who leverage the capabilities of Big Data to streamline and modernize their supply chains will come out ahead.
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