DC Velocity - April 2015

BY MICHAEL WATSON

SUPPLY CHAIN IT 101

WHEREVER YOU LOOK LATELY, THE CONCEPTS of “analytics” and “big data” are being hyped by the media, consultants, and software vendors. Some of that hype is justified, as a number of companies are indeed using analytics and big data to transform their businesses. But most supply chain managers aren’t getting a clear definition of what “analytics” and “big data” really mean. They are either hearing those terms being used by vendors that are trying to sell a specific solution, or they are seeing the terms used, without being clearly defined, in the popular business press. And even if the definitions themselves are clear, it may not be clear to the supply chain manager what value those concepts offer.

Without a full understanding of what the field of analytics is about, supply chain managers may be missing out on many opportunities—both for their companies and for themselves. For one thing, more and more companies are finding they can gain a competitive advantage by better using data and analytics to make decisions. For another, more companies are demanding that their managers understand data and analytics. Before supply chain managers can grasp how analytics and big data can be applied in their own world, though, they’ll first need to understand not only what those concepts actually mean but also what difference they can make. With that in mind, here are three things that supply chain managers should know.

technologyreview

The terms “big data” and “analytics” are widely used but often are not clearly defined. The explanations presented here will help managers understand what these concepts really mean and how they can use them to improve their supply chains.

This story first appeared in the Quarter 3/2014 edition of CSCMP’s Supply Chain Quarterly, a journal of thought leadership for the supply chain management profession and a sister publication to AGiLE Business Media’s DC VELOCITY. Readers can obtain a subscription by joining the Council of Supply Chain Management Professionals (whose membership dues include the Quarterly’s subscription fee). Subscriptions are also available to non-members for $89 a year (print) or $34.95 (digital). For more information, visit www.SupplyChainQuarterly.com.