How Real-time Data Translates to Better Supply Chain Management Decisions

The advent of technologies such as AI and IoT has revolutionized managing supply chains. These advancements have enabled companies to stay up-to-date regarding all events in their supply chains by collecting real-time data.

What is real-time data?

Data accessible immediately after it is generated and stored is classified as real-time data. Therefore, it is the core of real-time decision-making. Today, amassing large volumes of real-time data and extracting insights has become more accessible, making it extremely valuable for businesses. To understand how real-time data can translate to faster and smarter business decisions, we must know how it is processed and analyzed and the typical insights it can provide.

How is real-time data processed, and why does it matter?

In the past, data engineers and scientists collected and analyzed all data. Today, vast volumes of data can be processed and analyzed in seconds, thanks to artificial intelligence (AI) and machine learning (ML) algorithms. Once data is collected, all corrupt or unnecessary components are filtered out, and then the 'clean' data is passed on to the AI and ML algorithms to be processed. Finally, the processed information returns to the end user in a readable form, such as documents or data visualizations. Businesses or end-users can also store this information for posterity. This entire cycle only takes a few milliseconds or seconds, and business leaders receive the reports in 'real time.' Moreover, the information received is always current, which ensures that key decision-makers can act on the data in the minimum amount of time. It is important to note that not only are the business leaders receiving instantaneous data, but also real-time analytics. Also known as business intelligence (BI), these analytics provide real-time insights on various topics, starting from customer experience to problems in the supply chain to ways to get a competitive advantage and more. Leveraging real-time analytics is how real-time data enables faster AND smarter decision-making.

Types of analytics derived from real-time data

Let us go deeper into the type of analytics derived from real-time data. There are essentially four types:

1. Descriptive: Descriptive analytics deals with identifying problems. It only points to 'What happened?' and does not get into the reason for an occurrence.

2. Diagnostic: Diagnostic analytics delves deeper into the data and figures out "why" an event occurred. It is also sometimes called root-cause analysis.

3. Predictive: Predictive analytics takes historical data—the product of descriptive and diagnostic analytics—identifies patterns, and predicts what will happen in the future.

4. Prescriptive: As the name suggests, prescriptive analytics offers the best action to prevent a problem before it occurs. It uses machine learning and other algorithms to make recommendations.

Benefits of real-time data

With real-time data, businesses can unlock tremendous potential: they can improve agility, increase their productivity, optimize decision-making, and gain valuable insights, but they also provide beneficial forecasts, customer insights, potential risks, and opportunities. Here are some ways real-time data can be helpful:

1. Proactive approach 

For years, businesses have 'reacted' to supply chain disruptions, trying to make the best of whichever situation they faced. However, thanks to real-time data and analytics, companies can adopt a more proactive approach, utilizing predictive strategies and machine learning algorithms to identify previously impossible patterns.

2 Greater visibility

Real-time data coupled with analytics tools gives business owners a comprehensive view of their supply chains, making it easier to understand and improve their operations to increase profits.

3. Ability to pivot with shifting market forces 

Business owners can use real-time data from a supply chain to better understand customer demands. Predictive analytics enables business owners to make accurate forecasts. So, businesses can avoid common supply chain problems such as overstocking or understocking, ensuring efficient replenishment of goods. Using real-time data provides them the added advantage of responding to sudden changes in demand or unforeseen fluctuations.

4. Improved business strategies

Business owners can use real-time data to derive insights into upcoming and recent trends and understand demand. These insights enable them to formulate effective business strategies and plan for fluctuations. In addition, businesses can use the information to improve the accuracy of production volumes and iron out creases in the supply chain.

5. Better customer experiences

Real-time decision-making can result in significantly improved customer experience. Managers can analyze operations as they're happening and find ways to decrease waiting times and increase accuracy, ensuring customers receive their deliveries on time, in full, and in good condition.

6. Cost savings

With the help of real-time data, supply chain managers can find the weak links in the chain and fix them to increase efficiency. Any new challenge or hurdle is visible to the managers instantly, enabling them to take immediate corrective action to save precious time and money. Real-time data can also help determine and follow the quickest routes, saving time and boosting profits.

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To Conclude

Real-time data, business intelligence, and analytics are powerful tools that allow faster and smarter decision-making for businesses to unlock their true potential and can be a key differentiator in today's competitive market.

Please get in touch with us here to learn more about how real-time data can help transform your supply chain. With over 27 years of experience, we at Barcode India Ltd (BCI) have the expertise you can leverage to upgrade your supply chains and grow your business exponentially. BCI's Supply Chain Control Tower is a high-quality solution that allows you to utilize real-time data to derive business intelligence and analytics. If you want to know more about our Supply Chain Control Tower, contact us for a discussion. We'd be happy to answer any/all of your queries about the technology. We have helped several businesses with our Supply Chain Control Tower solution and would love to do the same for your business.

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