The pandemic has brought with it a wind of change. Big data, which was gradually climbing its way up into the core values of businesses after the pandemic, got a much-needed push. The supply chain industry is now more aggressively leveraging data science to drive down costs, improve operational efficiency and increase the velocity of turnover. These are much needed improvements in this notoriously complex global industry. In this feature, we take a look at the application of Data Science in the logistics and Supply Chain industry, how it has helped during the pandemic, its impact on procurement processes and the dearth of skilled workforce.
Author and Consultant Geoffrey Moore once quoted, “Without big data analytics, companies are blind and deaf; wandering out onto the web like deer on a freeway.”
Now, as businesses come to understand the importance of Big Data Science and analytics, we see them abiding by the slogan, “Data is King.” In this era, data is transforming many industries and businesses. This budding trend plays a prime role in business operations, whether it is research, understanding consumer preferences, or deploying cutting-edge applications.
Companies are now gathering more data than ever before, enabling them to build applications to tackle continuous business challenges. While processing and managing Big Data becomes highly complex, it is worth the effort to adapt the data culture, as advanced data analytics help consolidate an industry that is traditionally fragmented.
“Large enterprises are generating data in staggering amounts, and systems are being put in place to make sense of it all. The advent of new technologies and being able to track signals at a granular level is enabling this data collection based on which applications are built to help humans solve problems at scale.”~Dhruvil Sanghvi, CEO, LogiNext,
Processing Big Data is becoming critical for businesses by the hour to develop new competitive strategies, optimise their functioning and provide
“When used with the right techniques, data can become a treasured tool that gives companies a competitive edge to make their business more cost-effective in the long run.”~Saahil Goel, CEO, and Co-founder, Shiprocket
Businesses across the nation are capitalising on the multiple benefits of data to boost their business. India’s Big Data Analytics market is valued at USD 2 billion and is estimated to grow at a CAGR of 26% to reach USD 16 billion by 2025, thereby contributing 32% to the global market.
“Big Data will blend more into our everyday lives with businesses increasing their utilisation of data, creating a booming market that provides a plethora of opportunities for firms, investors, and professionals wanting to explore the space,” says Mr Goel.
The logistics industry, earlier considered a traditional sector, is also leveraging Data analytics to keep in touch with the changing landscape caused due to internal and external pressures, rising costs, the prevalence of challenger start-ups, etc.
“There is a new era which is growing in the logistics industry which is driven by data, powered by analytics, which helps companies serve their customers and reach a speed and cost that were not possible even a decade ago.”~Uday Sharma, COO, Spoton Logistics
The arrival and spread of Big Data usage is dramatically changing the way businesses used to work with their analytics. But how is the Logistics Industry applying Data Science for operational productivity?
Application of Data Science in the Logistics Industry
Data science is expanding its roots to the core of every business; logistics and supply chain sectors are no exception to the transformation brought about by it.
Mr Sanghvi says that while Data Science can be applied to all areas and industries, it has special relevance for the logistics and supply chain industry, especially in 2020 and this entire decade. The dynamic nature of this sector makes it a perfect use case for Data Science.
According to Mr Goel “The valuable insights gathered from data enables players in the logistics and supply chain industries to optimise routing, streamline business functions and offer transparency to the supply chain for the benefit of both logistics and shipping companies.”
Mr Goel says, “Utilising data enables the digitisation of crucial business operations and we believe that this trend in the logistics and supply chain industry is providing the industry with the much-needed solutions to remove inefficiencies”.
At present, the industry is leveraging data for numerous purposes.
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