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Big Data: The Latest Rage in Supply Chain Management
December 11, 2015 Blog big data

This article was originally published by ww2.cfo.com and can be viewed in full here

Early uses of big data were concentrated in two areas: customer segmentation/marketing effectiveness, and financial services, particularly in trading. Recently, supply chain has become the “next big thing.”

A company’s supply chain is rich with data, and it’s also a large cost component. Combined, those facts mean that advanced analytics can become a strategic weapon for optimizing the supply chain.

However, many companies can’t see the forest for the trees. They are optimizing, but not strategically.

When applying data to supply chain, it’s critical to step back and look at what truly drives business value.

Using advanced analytics to predict customer preferences and patterns, along with microeconomic and macroeconomic trends, leaders can prioritize the right levers to pull for supply chain advantage.

These supply chain decisions directly impact financial allocations. Making the best decision for the organization requires identifying and measuring key performance indicators (KPIs) directly related to key supply chain areas.

New data-driven decisions have become game changers for many supply chain transformation efforts. To start, identify KPIs, which can be both leading and lagging financial indicators, with the greatest impact in these areas:

  • Reliability
  • Responsiveness
  • Supply chain costs
  • Asset management efficiency
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