Dr. Yossi Sheffi, well-known supply chain expert, author and director of the Center for Transportation & Logistics at MIT, is not afraid to go against popular thinking.
“Today, it’s not people but data that tops the asset value list for companies,” he writes in an article on Medium.
The reason for this as that the amount of data any company has on its customers will be its competitive differential. Companies that are using current technology which includes artificial intelligence, machine learning, and sensor networks, will jump way ahead of those who don’t.
Some companies are already proficient at this and “have already carved out market positions that to all intents and purposes are impregnable,” Sheffi says.
And the most pressing use of this data is to be able to match supply and demand.
“These technologies will yield insights into customer buying behaviors that enable companies to track market fluctuations more precisely and to anticipate shifts in buying preferences with remarkable prescience," he says.
He points out that the data can be used in a more flexible way than was possible in the past. “Companies that are able to create granular, accurate demand forecasts that can be modified on the fly in response to unexpected demand shifts, and closely tie these to manufacturing and delivery operations, can avoid such missteps and stay ahead of the competition.”
Read the full article here.