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Why Global supply chains are now adopting data-driven solutions

Data is a collection of fact-based values and observations that include qualitative and quantitative variables which enables reasoning or calculation is done. Through data, one can verify, understand, and quantify the logic of a particular situation, thus allowing one to formulate corrective measures to rectify the same if needed. It has been noticed that highly data-driven organizations are more likely to report significant improvements in decision-making than those who rely less on data. Data-driven decision-making is the process of using data to influence oneu2019s decision-making process.

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Why Global supply chains are now adopting data-driven solutions

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  1. Why Global supply chains are now adopting data-driven solutions Data is a collection of fact-based values and observations that include qualitative and quantitative variables which enables reasoning or calculation is done. Through data, one can verify, understand, and quantify the logic of a particular situation, thus allowing one to formulate corrective measures to rectify the same if needed. It has been noticed that highly data-driven organizations are more likely to report significant improvements in decision- making than those who rely less on data. Data-driven decision-making is the process of using data to influence one’s decision-making process and validate a course of action based on the data. 1. What is a data-driven supply chain? A ‘data-driven supply chain’ is supply chain quality management based on the collection and analysis of product information from every important point of production. When businesses utilize a ‘data-driven’ approach, it means strategic decisions are made based on data analysis and interpretation. A data-driven approach allows one to study and organise the data with the goal of better serving their customers and consumers. Customer data & supply chain analytics enable supply chain managers can help a business better predict future demand and helps businesses to decide on what products can be minimized when they become less profitable or understand what customer needs will be after the initial order. In short, one gets a ‘crystal ball’ to look into the customer’s mind and foretell their requirements. Data with the help of machine-based analytics can provide businesses with a clear picture of the supply chain’s current performance. Due to this clarity, it is easy to pinpoint areas along the supply chain that need quality, compliance, and efficiency improvement. A supply chain backed by data-driven research would help businesses increase sales, boost profit margins, and ensure customer retention and brand loyalty. A supply chain analyst’s

  2. job is to analyze the data and methods to predict and improve a business’s delivery of products and services to its customers. IIM supply chain management courses equip supply chain analysts with the required skill sets to cater to a business’s supply chain needs for it to run smoothly and efficiently. 2. Reasons for adopting data-driven solutions The modern supply chain is increasingly complex, global, and challenging to spot potential vulnerabilities in the supply chain, eliminate bottlenecks, and quickly respond to disruptions. Using information sources like data from the Internet of Things (IoT) devices makes it possible to adopt a more data-driven approach to supply chain management. The implementation of a data-driven supply chain ensures visibility across all the elements of the supply chain. a) Ability to predict and prevent problems A quantitative analysis of information like transportation tracking, humidity, temperature settings of goods during their journey, and speed of vehicle movement can shed light on exactly when and where delays or product damage are originating. With this information, supply chain managers can design strategic processes to eliminate the root cause of these issues. Data-driven logistics operations and supply chain management can move much quicker and with greater confidence in the decisions as it is backed by facts and figures. One can make decisions based on both the information in front of them and their own experience. b) Predict future demand Data-driven solutions help businesses make more informed decisions about the future, allowing them to become better prepared for whatever might happen. Predictive analytics makes it possible to predict consumer reactions with increasing accuracy. Businesses can

  3. use this information to understand better how changes will impact their operations. For example, sales trends and changing customer needs can all affect long-term estimates for growth, making data-driven solutions an essential part of business planning. With accurate forecasting, businesses can improve profitability, predict customer demands, and reduce supply chain waste. Predicting changing market trends and responding accordingly gives a business the edge over its competition. It helps implement smart logistics that allow near real-time tracking of movement and delivery of goods and services. A transparent and accessible view of supplier information will also provide information regarding supplier value, and available buying channels, thus enabling businesses to optimise the sourcing of materials and services. c) Improved collaboration Collaboration is the foundation of successful operations, and if one can communicate well with suppliers, business partners, and internal teams, success is easier to achieve. As a business cannot exist in a vacuum, data sharing can help one to quickly access information from a single accurate source, thus eliminating miscommunication among the various stakeholders or partners in the supply chain. Data-driven solutions can quickly consolidate and include the context needed to interpret the data to leverage it for competitive gain. Improved collaboration is only achievable if the data derived can be used as actionable information to make informed decisions. d) Improved traceability in supply chains Product traceability is one of the critical requirements for a successful supply chain operation. Supply chain managers can easily trace a product by using barcode readers and attaching radio frequency identification devices (RFID), thus enabling real-time tracking of the product in the supply chain. With the aid of data-driven solutions, global supply chains

  4. can gather accurate product information so one can stay on top of their distribution cycle. Enhanced traceability enables businesses to better coordinate with supply chain stakeholders to streamline distribution. Tracking and managing inventory is one way that data-driven applications can help with cost reduction. With smart inventory tracking, it is easy to identify purchasing patterns, so one can always have just the right amount of inventory available. e) Identify new business opportunities Data can reveal patterns that help businesses create additional revenue streams by innovating and developing products and services that meet consumer demands. Using data- driven solutions, data can be effectively utilised to easily understand what is in demand and quickly respond to the same. Business decisions need to use data to identify consumer requirements, address problems, and create new opportunities. Adopting data-driven solutions helps identify opportunities for product upgrades, personalized marketing and support communications. f) Better customer service Businesses are actively investing in big data analytics to analyze customers’ usage patterns and habits as it enables businesses to retain their customers and increase revenue significantly. Data-driven supply chain management allows businesses to provide better customer service and improve relationships across the board. Using data from past interactions, supply chain managers can improve customer satisfaction by identifying areas for improvement and implementing processes that might address common or recurring issues. A detailed picture of customers’ needs and wants allows employees to better understand how they can help them.

  5. To know more: https://executive.timespro.com/executive-education/blog/why- global-supply-chains-are-now-adopting-data-driven-solutions/

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