Did you know that over 86% of third-party logistics providers and 80% of shippers predict that the effective utilization of data will become a core competency in their supply chain organizations? To become successful, a data-driven supply chain does not mean gathering a mountain of information, but it is about achieving a 360-degree view of the business. And with the high precision details accessible with various sources of information can be incredibly rewarding. Read on to learn everything about the data-driven supply chain, how a data-driven approach helps you achieve a competitive edge and steps to implement a data-driven strategy.
What is a data-drive supply chain?
It is a supply chain management based on the collection analysis of data related to the product movement and other important factors related to production. For example, quality control data like manufacturing speed, quality inspection results, and delivery efficiency can be gathered at different production points. Then, machine-learning analytics can provide a clear picture of the current supply chain performance of the businesses. When implemented successfully, data-driven supply chain management can help you address all the concerns related to sourcing, manufacturing, and delivery. As a result, a proactive supply chain system backed by a data-driven approach can be the best bet for your business to boost profit margins, increase sales, garner brand loyalty, and enhance customer retention rates.
How does a data-driven approach increase your competitive edge?
Businesses can easily have real-time insights related to end-to-end supply chain processes with the right data, regardless of whether you are shipping from stores or distribution centers, across borders, or with gig economy carriers. But how to use the data?
Let’s explore some use cases of a data-driven strategy in the supply chain.
Production efficiency
- Utilization and effectiveness of machine
- Internet of Things Analytics
- Maintenance of assets
- Data analysis of reverse logistics
Supply chain analytics
- Reduced lead time
- Strategic management of risks
- Evaluation of vendors
Demand forecasting and planning
- Planning of the capacity
- Optimization of inventory space
- Collaboration of store and distribution center
Tracking of labour costs and overheads
- Evaluation of direct costs
- Tracking of business overheads
- Tracking of labour costs and other floor activities
Many successful companies have proved that the adoption of data-driven strategy works. However, in today’s unprecedented supply chain management landscape, now is the time to drive a data-driven approach that future-proofs the business operations. In this case, the next-generation intelligent supply chain solution can address all your problems related to the entire supply chain while turning data into a competitive edge for your business.
Steps to adopting a data-driven strategy in your supply chain
If you are still thinking that adopting a data-driven supply chain strategy is only for larger companies, you are mistaken. A data-driven strategy is equally important for small and medium enterprises. It has become vital for businesses to make intelligent decisions to survive in today’s competitive world.
Let’s start with 5 easy steps to get started.
1- Identifying the knowledge gaps: The first step is to understand the information required by the team to monitor the business’s health. For example, the production team will require machinery, labor, efficiency, output, and delivery data. Similarly, other departments will require specific information to track the business activities and performance.
2- Locating the sources: Once the data requirements are clear, the next step is to find out the data sources to get the information. This can include internal sources, partners, third-party, or technology.
3- Determining the data consumers: Identify who in the organization needs access to which data and its purpose. It Is important to understand the relevance of the information for the team members before providing them access rights.
4- Making data accessible: There is no use of data if it lacks the right context or is buried in some corner of the organization. Consider the internal and external stakeholders while making the data accessible to everyone. And accordingly, the data can be shared to ensure smooth supply chain operations.
5- Utilizing modern technology to collect and organize data in a unified place: With the benefits of intelligent technologies like machine learning and artificial intelligence, you can leverage increased transparency and agility with accurate and real-time data.
Take your supply chain business to the next level with DforD
In a demanding business world with fluctuating circumstances and high expectations, it has become super important to improve the quality of information and prioritize efficiency. Taking a systematic data-driven approach to the supply chain can drive tremendous operational and financial results for your business. So, don’t wait to leverage the magic of data to build a robust supply chain. Instead, talk to our experts to consult your business requirements and get a next-generation intelligent digital supply chain solution.
