Generally, in the 1980s, supply chains—which were gaining widespread attention—were very simple processes.
However, supply chains have existed since the industrial era. The key difference between past operations and the way supply chains are managed today lies in their complexity. Technology and globalization have both increased economic interconnectivity and introduced unprecedented changes to supply chains. By the late 1990s and early 2000s, globalization was both a boon and a challenge for supply chains. With big data becoming more accessible and valuable, supply chains have been revolutionized and modernized.
Enabling Greater Knowledge Sharing
The biggest driver behind modern big data is that it can now be detected, understood, and leveraged. Forbes notes that while transactional data is constantly recorded, creating networks for knowledge sharing—based on insights derived from big data analysis—has become equally important. Transactions can reveal how, when, and where people make purchases.
With enhanced supply chain analytics, manufacturers, retailers, and distributors can now optimize the delivery of products to consumers more efficiently. Thanks to spatial pattern analysis, supply chains can reroute distribution rapidly and cost-effectively. This has reduced the order-to-delivery cycle by up to 425% and increased operational efficiency by 260%.
Managing Risk and Building Agility
Recent studies show that 61% of leading supply chain companies prioritize risk management. Improved spatial pattern analysis and better traceability allow companies to control the delivery process from start to finish more effectively.
By collecting data from sourcing routes, successful deliveries, and reported issues, modern supply chains now have the information needed to anticipate potential problems before they arise and proactively manage disruptions in the distribution network. This also enhances supply chain flexibility, as available insights allow companies to adjust delivery routes in response to issues even after the process has begun.
Improving Retention and Customer Satisfaction
We’ve all heard the saying, “The customer is always right.” If a customer suddenly changes an order or does so after delivery has started, they expect suppliers to respond as quickly as possible. This creates significant pressure on suppliers, as 90% of customers who encounter suppliers unable to meet their needs will not return to do business with them.
Given these statistics, suppliers must do everything possible to satisfy customers. Thanks to big data and analytics, suppliers can not only efficiently process and deliver orders but also anticipate demand based on previous orders and market trends.
