• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » The Big Data Imperative in Forecasting & Demand Planning

The Big Data Imperative in Forecasting & Demand Planning

March 6, 2013
SupplyChainBrain

A recent survey of 214 senior executives and managers finds the majority (78 percent) to believe "big data" a forecasting priority for the future. Sixty-eight percent expected to be making some degree of technological forecasting software investment in the coming year. However, eighty-three expressed substantial concerns regarding costs of the technology and the adoption decision for their individual needs, considering costs versus capabilities needed. This was especially true of smaller and medium-sized firms. Further, they expressed concern regarding adapting the technology to their organizational processes. Specifically:

"¢ Data Versus Information. Big data enables mining of huge quantities of data. The trick is converting this massive data into usable information the organization can absorb and effectively use to make decisions. There are two critical elements for success. First is having a good forecasting process in place before technology adoption. Also, a rudimentary knowledge of forecasting continues to be essential. Technology overlaid on top of poor processes just solidifies poor performance.  Leading companies understand that they cannot just invest in these technologies without adequate organizational processes in place. Second is having an organizational structure that can absorb the information into their decision making processes. This requires creating a learning organization where processes are in place to absorb the new information.

"¢ Customer Service Driver.One of the primary reasons for investing in analytics software is to improve operational performance. This includes improving forecast accuracy, reducing demand variability, and improving supply chain visibility. However, another high-ranking reason is to improve customer service. In fact, a large percentage of companies today are placing greater importance on enhancing the customer experience, as a driver of growth, rather than merely cutting costs. Leading manufacturers are expanding their product offerings to include a service component - called "servitization" - which is adding additional supply chain complexities. Analytics helps identify key elements of the product-service bundle customers consider most important.

"¢ 
Dismantling Information Silos. Past investments in sophisticated technologies - such as CRM or supplier management software - have created information silos at many organizations. Using insights from big data, companies can better integrate information residing in disparate organizational areas, such as purchasing, operations and distribution. Effective performance will come from unifying these into a single data base.

"¢ 
Sales & Operations Planning.  Best-in-class companies are breaking down the silos with big data sharing across the organization, improved collaboration, and use of unifying metrics. Unifying data bases from CRM, supplier management, and operations enables better understanding of end-to-end processes. Further, incorporating pricing, inventory, and risk as decision factors within the S&OP and S&IOP (inventory) process provides greater understanding.

The Outlook

Technology and analytics rapidly continue to provide a competitive advantage to leading-edge firms. In 2013, companies will increasingly commit resources to new technologies, maintain technology upgrades, and hire analytical capabilities, such as decision scientists.  Leading-edge companies will also redesign internal processes - breaking down silos and improving collaboration - in order to utilize new information capabilities to their fullest extent. Expect these companies to ensure that organizational processes are in place to use this new information for improved decision making.


Keywords: servitization, Big Data, forecast accuracy, information silos, data vs. information, supply chain management IT, value chain IT, supply chain solutions

RELATED CONTENT

RELATED VIDEOS

Logistics Outsourcing Sales & Operations Planning Forecasting & Demand Planning Supply Chain Visibility Technology Global Supply Chain Management Quality & Metrics
KEYWORDS Big Data data vs. information forecast accuracy Forecasting & Demand Planning Global Supply Chain Management information silos Logistics Outsourcing Quality & Metrics Sales & Operations Planning servitization Supply Chain Analysis & Consulting supply chain management IT supply chain solutions Supply Chain Visibility Technology value chain IT
  • Related Articles

    Go Back to the Basics for Future Success in Demand Planning, Forecasting

    A Much More Holistic Approach Is Required in Forecasting & Demand Planning

    Forecasting, Demand Planning in a Difficult Economy

SupplyChainBrain

Boeing-DOJ ‘Sweetheart Deal’ Decried by Victim’s Wife

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • INTERIOR OF A CHICKEN FARM, WITH WHITE CHICKENS AS FAR AS THE EYE CAN SEE

    Worst Avian Flu in U.S. History Is Hitting Poultry

    Food & Beverage
  • TWO FINGERS MANIPULATE WOODEN LETTER BLOCKS TO TURN FROM SHOWING THE WORD RECOVERY TO RESILIENCE

    Five Challenges to Supply Chain Resilience in 2023

    Supply Chain Visibility
  • A PERSON HOLDS UP A TABLET COMPUTER IN A WAREHOUSE, SUPER-IMPOSED BY A GRAPHIC SHOWING A COMPLEX WEB OF SUPPLY CHAIN ELEMENTS

    Three Post-Pandemic Actions for Repairing Global Supply Chains

    Data Management (Big Data/IoT/Blockchain)
  • A MAN IN A SUIT SHAKES HANDS WITH A WOMAN IN A HARD HAT, NEXT TO A STACK OF CONTAINERS

    Three Procurement Technology Evolutions for 2023

    Sourcing/Procurement/SRM
  • The blank stare of a child's eye who is standing behind what appears to be a wooden frame

    The Alarming Continued Rise of Modern Slavery in Supply Chains: How Procurement Can Help Reverse the Trend

    Sourcing/Procurement/SRM

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing