BY JAMES COOKE, EDITOR AT LARGE
techwatch
Shippers show big interest
in big data
AS PILES OF DATA KEEP GETTING HIGHER, LOGISTICS MANagers are suiting up to dive into those bits and bytes in search of
insights that could improve their operations. That’s a key takeaway
from the first go-around of the 18th annual Third Party Logistics
(3PL) study. The study, which is sponsored by Penn State, Capgemini
Consulting, Korn Ferry International, and Penske Logistics, is conducted annually among contract logistics service providers as well as
shippers. Each year, the study identifies a few hot topics for further
examination, and for 2013, big data was one of the subjects chosen.
Big data refers to information stored in databases, both structured
repositories like warehouse and transportation management systems
and unstructured sources, such as chatter on social
media sites like Facebook. The thinking is that if
software could search through these data piles, it
might find connections or hidden patterns that
could then be parlayed into logistics operational
improvements. (See “Getting insight from ‘big
data,’” Tech Watch, DC VELOCITY, August 2012.)
At a recent Eyefortransport summit on big data in
the supply chain, Penn State University professor C.
John Langley provided a preliminary look at the
results of the latest study. (The survey was not formally closed at press time, and Langley, who heads
the study, was still hoping additional shippers would
take part.) To date, about 2,000 respondents from
around the globe have participated in the research.
If nothing else, the preliminary results confirmed
there’s substantial interest among shippers in this powerful data mining tool. Although it’s only been about a year since the buzz around
big data began, 7 percent of the respondents had already begun initiatives in this area and another 21 percent said they were planning to
implement big data analysis. On top of that, 56 percent of shipper
respondents and 43 percent of 3PL respondents said their organizations saw tremendous value in using big data.
What do shippers hope to achieve through big data analysis? As it
turned out, the respondents had several objectives in mind. At the top
of the list was obtaining clearer visibility into orders, shipments, and
inventory, which was cited by 50 percent of the respondents. Another
46 percent said they wanted to use big data analysis to improve transportation management planning, while 42 percent said they were
looking to enhance transportation management execution.
The study indicated that most shippers – as well as 3PL managers –
realize that when it comes to big data initiatives,
they can’t do it alone. They’ll have to get the folks
in the information technology (IT) department
on board as well. Seventy-nine percent of ship-
pers and 81 percent of third-party logistics serv-
ice providers said the effectiveness of any internal
big data initiatives would be highly dependent on
the alignment and working relationships
between the supply chain and IT staffs.
Editor’s note: The final results of the 18th annual Third Party Logistics study will be presented at
the Council of Supply Chain Management
Professionals’ Annual Global Conference in
Denver, Oct. 20–23.
