The supply chain is gaining in complexity at an alarming rate, creating a deluge of information overload from data generated within supply chain processes. Ceramic and glass companies are using big data to better understand these massive amounts of information associated with processes and costs related to factors such as: procurement, manufacturing, distribution, customer service, inventory deployment, freight payment/audit and more. Others use big data to provide insights into driving key business initiatives such as managing risk, attracting and retaining customers, analyzing new market initiatives and creating new product lines.

Using Big Data

Big data is here to stay. Industry analyst firm Gartner predicts that by 2015, 4.4 million IT jobs will be created globally to support big data, 1.9 million of which will be in the U.S. The goal of using big data should be to see it as a way to turn information into revenue.

In a recent study by Capgemini Consulting, shippers were asked where they were applying their big data initiatives. Fifty-six percent have initiatives in transportation management (planning); 54% in supply chain planning; 53% in network modeling and optimization; and 51% in advanced analytics. When Capgemini analysts unveiled this study at the Council of Supply Chain Management Professionals (CSCMP) conference, they emphasized that shippers (97%) and third-party logistics providers (93%) feel strongly that improved, data-driven decision making is essential to the future success of their supply chain activities and processes.

Big data allows companies to make money from the insights gained. You can analyze the data collected within your supply chain network to discover improved shipment consolidation strategies, determine where inventory should be located, better understand customer purchasing strategies, and much more. Bringing together relevant data from increasing numbers of channels allows supply chain executives to make better decisions to meet changing customer demands. For example, if a company’s distribution centers are located in Georgia and Ohio, what are its best service options if demand increases in New England?

By using actionable data derived from historical shipment information and running what-if scenarios with regional data and characteristics, the company can assess whether to expand service in existing facilities or open a new distribution center in closer proximity to serve the area of increasing demand. The result is a more responsive and efficient supply chain, meeting customer demand more quickly and at lower cost.

Supply Chain Optimization

Having real-time supply chain information such as accurate freight rates, shipment tracking and optimal shipment routing empowers supply chain professionals to make data-driven decisions at the day-to-day level. When a company executes a shipment, factors such as its destination, required delivery date, weight, dimensions and freight class come into play. Actionable data gives shippers visibility to multiple options based on shipment characteristics. ABC Carrier might have a lower rate under minimum shipment requirements. In contrast, XYZ Carrier might have a greater discount for shipments exceeding minimum shipment thresholds. Having access to this data allows shippers to make smarter cost- and service-based decisions, saving money and positively enhancing the customer experience.

Companies can combine data from different data sources, such as procurement or bid data, transactional shipping records, and policies and best practices. Drilling down into this combined data provides a wealth of information from which to make decisions that set you above the competition. For example, you can:

•  Uncover invoice charges that contradict the contract and correct them to improve customer satisfaction

•  Compare historical supply chain event data to create strategies for continuous improvement

•  Solve out-of-stock issues by leveraging big data for more real-time demand

•  Determine wastes within your supply chain network

•  Analyze optimal transportation modes to improve efficiencies and lower costs

•  Overlay geographical supplier locations with weather statistics to calculate the probabilities of suppliers not being able to deliver raw materials, therefore creating a back-up list of suppliers

•  Alter your manufacturing process with suppliers to produce more of a product that is selling better than others

•  Track shipments in real time, which provides deep visibility and control and prevents bottlenecks, thereby optimizing cost

Optimized Analytics

Forward-thinking companies understand that using analytics is the only scalable approach to analyzing and gaining insights from big data. Businesses must establish effective strategies on a real-time basis on their supply chains for capturing data, analyzing it and then generating actions based on the results. Analytics create intelligence by helping businesses understand customer demand, gaps in performance, supplier and carrier execution, and much more.

For more information, call (828) 485-5000 or visit www.transportationinsight.com.