An often-missing link: using Big Data to optimise supply chain management

A supply chain manager’s role is dependent on having the right insights in time to plan accordingly. Otherwise, it’s impossible to think analytically, because you don’t have the underlying information and statistics to create models and strategies. Having your internal data in order is a necessity for any company trading abroad. It’s hardly surprising that basic data hygiene within a company is essential not just for supply chain management, but other functions including finance, sales, and HR.

What’s more surprising is the number of companies investing in external aka ‘Big Data’ to optimise their supply chain management. Household names from Samsung to DHL are working with external data providers to gain outside insight into global trade, import/export activity, and competitors’ supply chains. We’ll explore three top reasons why it’s worth incorporating Big Data into your supply chain management.

1.   Select the best suppliers and routes internationally

Global trade comes with many considerations for businesses large and small. Managing your supply chain effectively between overseas territories requires a clear understanding of suppliers, customs legislation, and shipping routes in the country you’re working with. It might be that you’re setting up a business from scratch and need to import inventory from abroad. Or you could be expanding into a new market and are researching foreign manufacturers and ports. Either way, you need to ensure that you’re equipped with quality product supply and efficient trade routes.

The easiest way to get a holistic overview of international trade is to work with Big Data. For example, supply chain data providers amass and enrich records to shed light on global trade. Providers can also slice and dice their datasets so you only receive information for the geographies you’re interested in. This allows you to execute on your supply chain management faster, rid of noise and superfluous information, to get your global business off on the right foot.

2.   Learn about competitors’ supply chains

Don’t let your stock – and your business – fall behind. Utilise external data sources to uncover the shipping routes and freight carriers your competitors are using. Competitive insights allow you to identify efficiencies and vulnerabilities in other companies’ supply chains which your business can incorporate and avoid respectively. For instance, you might see that a rival business is procuring supply faster than you are. By consulting Big Data e.g. shipping manifest databases, you could identify your rival’s supplier and work with them to regain a competitive importing pace.

Likewise, Big Data comes into play for analysing your competitors’ exporting activities. It’s able to provide real-time updates whenever freight is forwarded. This gives you an early indication when a company is expanding into an overseas market. These kinds of growth signals from competitors mean you aren’t blindsided if they announce an expansion. As a result, you can collaborate with other stakeholders at your company to mitigate the damage this will cause your own supply chain, brand, and customer base.

3.   Mitigate risk in unstable trading environments

Supply chain management grows more challenging by the day. Strike action, trade sanctions, sudden changes to legislation, extreme weather events, and an increasingly volatile geo-political climate all present risks which threaten the breakdown of your supply chain. So it’s more important than ever that supply chain managers have the right knowledge to anticipate and respond to crises. Often, the only source of truth is Big Data. After Russia’s invasion of Ukraine, for example, there have been numerous cases where the status quo as stated in the law and reported by the media is in reality otherwise. External data providers collate information from multiple sources of trade data. This way, you’re not reliant on a single body, like one country’s customs office, for updates. Consequently, you can develop supply chain strategies based on reliable data.

Thanks to data supplied by Big Data provider, ImportGenius, UK companies were able to foresee chaotic delays in receiving products from Kellogg’s cereal to Guinness beer caused by European port strikes in 2022. This way, supermarkets and hospitality businesses were able to communicate unavoidable stock shortages to customers ahead of time to maintain positive public perception.

Examining just three core use cases for Big Data in supply chain management demonstrates how valuable a combination this can be. As access to external data proliferates, data-driven supply chain management is set to grow all the more sophisticated – and it’s the managers investing in data early which will future proof their operations.

Article by Lucy Kelly

Lucy is a researcher and Product Marketing Manager at Datarade, a platform facilitating the exchange of Big Data. She writes about the various use cases for external data, leading data providers, and developments in the tech industry, with a focus on data monetisation trends. She’s also written for Oxford University’s student newspaper and her own blog.

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