Everyone is talking about big data, but few are trying to benefit from it, notably in the supply chain risk management. According to statistics, 97% of supply chain analysts believe that big data can be extremely useful for the supply chain, but only 17% are actually using it. A supply chain is a great source of data, produced by customers, the business itself, and its operations. By analyzing and capitalizing on this data, businesses open for themselves the door to endless possibilities and obtain a considerable competitive advantage. So, let’s take a closer look at how the supply chain can benefit from big data analytics in risk management and how everything works.
The incredible amount of data produced by the supply chain can be transformed into valuable insights to help identify both issues and opportunities to transform the company’s business strategy from reactive to proactive. Supply chain analytics use data and quantitative methods for enhanced decision making. It becomes possible with the evolution of datasets for analytics from the conventional, in many cases unstructured, data stored on both Enterprise Resource Planning and Supply Chain Management Systems.
These insights become especially important for supply chain risk management in the age of increased interconnectivity. The new risks, like cyber-threats, arise along with the traditional ones, making the supply chain more vulnerable than ever. Big data can help considerably in detecting and preventing these hazards. Moreover, the processing of supply chain data can contribute to improving customer service – it can help better preserve products during transportation and prevent shipment delays due to unforeseen circumstances.