Big Data Can Inform Supplier Decisions and Transform Businesses
The application of big data is now ubiquitous, having an influence upon every industry, with algorithms and data scientists being employed in order to make businesses more efficient. These businesses are now gathering data at an unprecedented rate, and as this continues, the algorithms used to collate it will become increasingly valuable. The reason for this is that the algorithms can source from a plethora of factors and give impartial insight into any variations. The logistics and transportation industry and its customers have as much data available as anyone and companies are encouraged by experts to utilize it when making important business decisions.
However, it is not sufficient to use just any old data in the process of making business decisions—managers must make sure that the data they are using in their analysis is of the highest quality possible. Despite the fact that the amount of supply chain data available is growing by a factor of 10 every year, the amount is not the key factor for business analytics professionals. Prudent operatives need to use processes that can allow them to correct and remove inaccurate and error- strewn results from data sets, and they must also be able to recognize any data problems that are recurring. In the industry, it’s known as “data cleansing.”
Once this process is fulfilled, the algorithms can truly go to work on bringing to light previously unseen factors. Once these are collected and verified they must be compared to the findings of other key partners including stakeholders, management, customers and even competitors—the outcome should result in a discussion about the wider impact of the results, and big data and business analytics upon every interested party. These discussions will lead to companies fulfilling the potential of data in order to achieve their various goals.
Some businesses are aware that data analytics are an important strategic asset, however, there are still a few who are as yet unaware of how to unlock its potential in order to invigorate their processes. One major application that should be recognized by everyone is the ability for shippers to be able to recognize patterns and gain a depth of understanding about the nuances of working in tandem with a variety of carriers. The automated algorithms of today are capable of providing insight and identifying patterns on a scale, which is unprecedented.
This blog post is based off of an article from Cerasis, a 3PL with a focus on technology and managed transportation services.