Big Data, Big Deal: How Data-Driven Decisions Are Driving Supply Chains
From sports to politics to the entertainment industry, big data is consistently being relied upon to optimize the decision making process in order to get the best results. The logistics industry is no different, as both shippers and third party logistics providers have, over the last several years, come to discover just how essential the use of big data is to their operations. Yet, there are still small discrepancies and concerns on both sides regarding data use, which can be overcome in order for the shipping industry, as a whole, to truly make the most of it.
Recently, a large survey of both shippers and logistics providers produced the 21stAnnual Third-Party Logistics Study. One of the main subjects of the study focused on the utilization of big data and analytics across both sides of the industry.
The results showed a continuation of the trend of the last several years: logistics providers have optimized their supply chains using insights garnered by data, with 71% of them placing the greatest value on data’s ability to improve process quality and performance. 70% also placed the highest value of data on its ability to improve logistical optimization, while 53% focused on improving integration.
Meanwhile, 60% of shippers surveyed said that improvement of supply chain integration was their main focus when relying on data-based decision making, while 55% sought to use it for data quality enhancement. In contrast to logistics providers, only 52% of shippers said that quality improvement was their main concern involving the application of big data and analytics.
From the 342 industry professionals canvassed for the study, there was an overwhelming consensus on the overall importance of big data application, with 86% of logistics providers and 81% of shippers agreeing that the use of analytics to improve organization would become a core part of their supply chain operations moving forward.
Despite the huge crossover between logistics providers and shippers when it comes to most matters relating to big data and analytics, there were some aspects where there is still room for consensus. For example, there is a disconnect (albeit a modest one) in the importance that logistics providers assume shippers put on big data. Although 79% of shippers said that they put a ‘significant value’ on the use of big data, only 65% of logistics providers assumed this to be the case. The survey also shows a drop in the faith that shippers put in logistics providers’ ability to support big data initiatives, down a full 9% from last year’s study.
One final area where there appears to be some friction is that of security. Where’s both parties agree on the necessity to freely share data with one another, shippers have less concerns about sharing their personal information than do logistics providers.
No one in the industry undervalues data, but for shippers and logistics providers to make the most of it—along with analytics—there needs to be a greater focus on structure and organization, as well as data scrubbing and storage. This will not only save time on both sides, but it will streamline the process so that what gaps there are between shippers and logistics providers—when it comes to using big data—can be closed.
