• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • 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
    • 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
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » The Importance of Data in Supply Chains
ANALYSIS

The Importance of Data in Supply Chains

February 12, 2020
Rich Rosario, SCB Contributor
Analyst Insight: Data is important to businesses in formulating strategies, streamlining operations, introducing new products and services, and ensuring customer satisfaction. But data alone isn’t much good unless it’s analyzed, understood and acted upon. Data analysis is benefiting from new technology tools by allowing analysts to dig more deeply into supply chains. At the same time, human judgment remains the most important element in analysis.

Data is defined as facts, figures or information that are stored in a variety of places such as invoices, contracts, and bills of lading. By collecting data, a business can improve shipment transparency and visibility, operational efficiency, and products and services. All of which attracts more users.

Transparency and visibility are crucial, particularly if something goes wrong while shipments are in transit. By utilizing data, a split-second decision doesn’t have to be made without adequate support.

Transparency and visibility are also important when reviewing invoices and contracts with supply-chain partners. Despite good intentions, hidden costs can occur. They usually come in the form of surcharges such as extra delivery-area fees, additional handling, and fuel. Often they make the difference in a retailer’s ability to offer “free” or one-day delivery.

Access to data derived from goods fulfillment is central to the achievement of both visibility and speed. In today’s retail environment, speed to market, accurate order fulfillment and efficient last-mile delivery are keys to success. In addition, data plays a major role in forecasting and optimizing inventory. Consumption rates and inventory levels are among the data points critical to proper inventory planning and development.

However, data is just data unless it’s analyzed and acted upon.

Business consulting firm McKinsey describes supply-chain analytics as the ability to use data and quantitative methods to improve decision making for all activities across the supply chain. While data analysis has been utilized for years, the introduction of new technologies such as artificial intelligence, machine learning and more have led to the ability to uncover additional data elements that were never used before, and are now contributing to forecasting in today’s supply chains. For example, traditional data monitoring, which would involve sales and order tracking along with point-of-sale data, is now being supplemented with weather, events and news.

Nevertheless, the human element in data analysis must not be forgotten. Data needs context and interpretation. Often there are often variables at play that only humans can understand. In addition, data analytics needs people who have an understanding of how the models work, so that they can establish which information is useful. They’re also needed to provide an ethical and moral dimension to decision-making, which data alone can’t do.

Data analytics continues to grow in importance, along with new technology tools to support it. However, it’s important that companies recognize the importance of human judgment in having the last word when it comes to decision-making. The human element is needed throughout the chain, both in understanding when data analytics is needed, but also when it’s not.

Outlook:

The evolution of data analytics is underway. It will speed up processes by offering real-time analysis for solutions such as dynamic pricing, routing and inventory replenishment, aided by technology tools such as artificial intelligence and the internet of things. While the technologies hold great promise in providing more insights and deeper analyses of supply chains, the need for human judgment will continue to be equally important.

Rich Rosario is Director of Database Modeling & Data Analytics with Spend Management Experts.

RELATED CONTENT

RELATED VIDEOS

Technology SC Finance & Revenue Management
KEYWORDS SC Finance & Revenue Management
  • Related Articles

    The New 'Lean' - How Data Agility and Data Visibility Are Driving the Future of Supply Chains

    The Promise and Peril of Big Data in Retail Supply Chains

    The Promise and Peril of Big Data in Retail Supply Chains

Rich Rosario, SCB Contributor

The Importance of Data in Supply Chains

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: U.S. States Get Boost in Doses; Global Cargo Jam Could Last Into 2022

    Coronavirus
  • Shipping Logjam

    U.S. Retailers See Millions in Sales Delays Amid Shipping Logjam

    Coronavirus
  • Walmart

    Walmart Embraces a Local Fulfillment Model for Grocery

    Logistics
  • How Can E-Commerce Retailers Compete?

    Smaller E-Tailers Weigh Pros and Cons of Fulfillment by Amazon

    Logistics
  • E-Commerce

    How to Succeed in a New Era for Cross-Border E-Commerce

    Coronavirus

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact Geodis GEP
GreyOrange Honeywell Intelligrated Infor
Inmar Kibo Commerce Logility
Magnitude Software MPO Old Dominion
Oliver Wight OpenSky Paccurate
Ports America Purolator QAD Precision
Red Classic Riskmethods Snapfulfil
TGW Systems Tradepoint Atlantic Transportation Insights
Watson Land Company Westfalia Technologies Workjam
Yang Ming    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • 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 ©2021 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