How is Big Data Affecting Supply Chain?

Information technology is thriving. Consequently, outcomes have turned creative and new. Thereby, people using them are enjoying greater benefits and even expecting more. Moreover, it is not just about one organization; many organizations are in the race to develop products creating huge competition in the market.

Also, competition exists between various supply chains to manage huge volumes of data possessing distinct data types. This led to developing systems that can assess data and generate solutions intelligently.

Big Data enhances supply chain management to address various issues strategically and affect the supply chain. Its role is prominent to promote good communication between the manufacturer and the supplier to enhance the delivery time. 

Supply chain analytics adds to data-driven decisions to improve service levels and cut costs. 

Role of supply chain analytics

All the activities in the supply chain experience better decisions with supply chain analytics. Primarily, it provides beginners the broadened data analysis apart from the data stored in the SCM and ERP systems. 

The modern advanced statistical methods help to assess the data sources. As a result, the insights are generated to support decisions relating to the supply chain. Such decisions enhance the most important operations and choose the best supply chain operating model. 

How does big data analytics influence the supply chain?

Various tools, algorithms, and processing systems play a significant role in extracting important information from the data. 

Supply chain analysis uses real-time information, which is in structured and unstructured formats. Moreover, we have three distinct elements, namely, volume, velocity, and speed, to categorize the data.

Let us look at Big Data’s role in various phases of the supply chain.

1. Planning:

Forecasting plays a major role in the planning process, and it can be improved with the integrated data through the complete supply chain. Performing inventory management and planning for replenishment ahead of time prevents the problem of no-stock. 

A worthy Big Data model considers the existing market trends and competitive data along with real-time information and historical data. 

2. Supply 

A greater scope lies for improving purchase coordination to reduce costs significantly. Moreover, conducting supplier performance periodically with the help of supply chain analysis helps define the scope of the future and step into the possible problems that would arise beforehand.

Also, data derived from suppliers is dependent on real-time conditions and is even free of expenses. 

3. Performance 

Big Data leverages available resources, including human resources, tools, space, etc., and generates maximum productivity. The IoT sensors applications increase the production capacity and asset performance. Majorly, it can forecast the problems to build efficiency. 

Let us know the benefits of Big Data in supply chain management. 

Improve traceability

Product traceability lies a prominent factor for rich supply chain operations. How do the supply chain managers trace the product? They use bar code scanners and connect radiofrequency devices to specific products. 

Also, businesses can make the best use of Big Data analytics tools to gain exact product information. Hence, it will help predict future challenges. 

Improved traceability helps businesses track the commodities in the supply chain and collaborate with them. 

Understand consumers 

Big Data analytics helps understand consumer patterns and habits. Any business can use these analytics to raise their income significantly. For instance, Jio uses Big Data analytics to check the possible areas for expanding its network. 

E-commerce efficiency

Flipkart and Snapdeal are renowned online stores that are making the best use of Big Data analytics to organize their management activities well. 

These online platforms are using Big Data to better estimate the date of delivery, leverage the routes and automate warehouse procedures. 


Incorporating Big Data technology during every phase of supply chain management can generate the best results. Tools are available for supply chain managers to make effective decisions. 

Though the cost of adopting Big Data technology during the initial stages might be high, the results generated prove its worthiness. Consequently, businesses would come forward to optimize Big Data technologies for a better future.