2014 will be the year advanced analytics and predictive algorithms change both supply and demand chain processes for many companies, according to John Blyzinskyj, CEO of Elemica, providers of supply chain operating networks for the process industries.
“The wealth of data captured from raw material procurement through distribution to the end customer creates a comprehensive, holistic view of how a supply chain is performing,” he said, noting that the International Data Corporation (IDC) predicts that Big Data will grow to 40 trillion gigabytes by 2020.
In the process industry supply chain realm, Elemica predicts that Big Data and Advanced Analytics will enable companies to anticipate asset failures and adjust their supply chains accordingly, sense transportation hub congestions and re-route, or send the right finished products to the right locations 10 days in advance based on weather. It will also let shippers use the collective purchasing power of a network of carriers who bid their best rates, offering access to previously unknown shipping partners. This will help shippers unload inventory to another business on the network that is out of stock of the same products.
“In 2014, visualization tools for Big Data will be essential for presenting easily understood data so that people are empowered to better understand scenarios and make more-informed decisions,” adds Blyzinskyj. “By applying analysis to supply chain data, companies will realize margin improvements, predict commodity volatility, better sense market trends, improve supplier selection, and better negotiate pricing. Big data is here to stay; companies just need to find how to best exploit its power.”