# In the supply chain, clean data is the fuel of the future Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-09-10 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Unlocking the Power of Big Data in Supply Chain Modelling Meta Description: Discover the key barriers modellers face in accessing clean, reliable data needed for supply chain design. Learn how to overcome these challenges to gain URL: https://financedigest.com/in-the-supply-chain-clean-data-is-the-fuel-of-the-futurehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/young-stylish-businessmanm-2-1736844522669-compressed.jpg) By **Richard Forrest**, EVP Supply Chain Planning,LLamasoft Richard Forrest When it comes to supply chain, volatility and change is the new norm and as the pace of competition heats up companies are having to redesign their supply chains more frequently to ensure that networks and flows are appropriate and optimal. However, the chief barrier for modellers remains quick access to clean, reliable, relevant and ready for use data that has to be blended from multiple sources. Just collecting all the necessary [data for a project can take five times](https://www.financedigest.com/data-time-for-some-levelling-up.html "Data – Time for some “Levelling Up”") as long as conducting the modelling itself. Just providing access to [Big Data](https://www.financedigest.com/marine-big-data-market-to-expand-at-cagr-of-21-5-during-forecast-period-tmr-insights.html "Marine Big Data Market to Expand at CAGR of 21.5% During Forecast Period – TMR Insights") resources alone will not be sufficient. Success in this field also requires supply chain expertise and understanding to [transform this Big](https://www.financedigest.com/how-to-avoid-tech-burnout-from-big-transformations.html "How to avoid tech burnout from big transformations") Data into the necessary supply chain centric information that will enable your modellers to answer the many questions you have regarding your supply chain. **Gaining the right data** As [supply chains](https://www.financedigest.com/the-road-ahead-what-does-2022-hold-for-the-automotive-supply-chain.html "The Road Ahead: What Does 2022 Hold for the Automotive Supply Chain?") become more driven by data, the accuracy and size of that data is becoming more critical. Today, organisations need to collect and blend together an increasing amount of [supply chain data](https://www.financedigest.com/mercedes-benz-and-microsoft-collaborate-on-supply-chain-data-platform.html "Mercedes-Benz and Microsoft collaborate on supply chain data platform") from multiple third-party sources, meaning that a large amount of the data needed to model your supply chain won’t regularly be available from within your own systems. The [type of data used in today’s modelling and simulation](https://www.financedigest.com/transportation-predictive-analytics-and-simulation-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2027.html "Transportation Predictive Analytics And Simulation Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2027") is also incredibly extensive, and will ideally cover a timeframe of at least three years. This data should cover all aspects of the [supply chain](https://www.financedigest.com/banks-must-bolster-supply-chain-resilience-ahead-of-new-outsourcing-regulations.html "Banks must bolster supply chain resilience ahead of new outsourcing regulations"), from stock data to past and future sales orders, supply orders, transportation information, route information and information detailing the relationship between hierarchies, orders, customer locations and more. While the [data required to effectively](https://www.financedigest.com/can-banks-compete-in-the-digitisation-race-without-effective-data-integrity.html "Can banks compete in the digitisation race without effective data integrity?") perform modelling and simulation is extensive, it won’t be of much use if it isn’t clean. This includes relatively simple tasks, like analysing the data for postal codes and linking terms like “US” and “USA” together. It also includes reformatting the [data so it is displayed in a uniform way](https://www.financedigest.com/5-ways-data-integration-solutions-are-helping-financial-organizations-deliver-improved-outcomes.html "5 Ways Data Integration Solutions Are Helping Financial Organizations Deliver Improved Outcomes"), enabling agile and automated analysis. **The benefits of end-to-end visibility** By acquiring large volumes of clean, end-to-end [supply chain](https://www.financedigest.com/ceo-steers-electric-truck-startup-rivian-through-supply-chain-twilight-zone.html "CEO steers electric truck startup Rivian through supply chain twilight zone") data, and enabling agile and efficient modelling, organisations cannot only see potential supply chain problems, they can also gain access to automatic and near-instant suggestions to remedy these problems. If the route regularly used for transportation is flooded, for example, an [alternative route](https://www.financedigest.com/companies-are-empowered-to-retain-control-with-alternative-routes-to-liquidity.html "Companies are empowered to retain control with alternative routes to liquidity") can be modelled and simulated to find the best replacement. Organisations can also enable a wide range of scenario planning, allowing them to [ask the “what ifs” of supply chain](https://www.financedigest.com/minimising-supply-chain-cyber-risks-by-asking-the-right-questions.html "MINIMISING SUPPLY CHAIN CYBER RISKS BY ASKING THE RIGHT QUESTIONS") planning that can help bring down costs on an ongoing basis. Typically, these functions are handled as silo-based activities, with supply chain design being part of the logistics function and cost-to-serve reporting being handled in [finance](https://www.financedigest.com/easing-the-burden-of-data-overwhelm-in-finance-functions.html "Easing the burden of data overwhelm in finance functions") functions. By bringing these two together, organisations can gain more insight into how new parts of the business will [benefit the business](https://www.financedigest.com/how-choosing-the-right-mtd-for-vat-software-can-maximise-business-benefits.html "How choosing the right MTD for VAT software can maximise business benefits") as a whole and how the fixed costs of networks should be shared throughout the business, for example. The ability to understand and challenge your supply chain is gaining prevalence in all sectors, though it is becoming especially [important for organisations operating in sectors](https://www.financedigest.com/the-importance-of-role-models-and-policy-in-encouraging-more-women-to-pursue-careers-in-the-finance-sector.html "The importance of role models and policy in encouraging more women to pursue careers in the finance sector") where tight margins are common practice, such as consumer goods and food manufacturing companies. Returns are also becoming a larger priority for the supply chain. Big data visibility is key to [managing returns](https://www.financedigest.com/asset-management-firms-are-using-ai-to-deliver-higher-returns-for-investors.html "Asset management firms are using AI to deliver higher returns for investors"), as organisations need to be able to filter out returns forecasts from actual forecasts, integrate returned goods into stock numbers and physically return these items to a location from which they can be redistributed. **Connecting the present and the future of supply chains** It isn’t just [retailers who need](https://www.financedigest.com/time-has-run-out-3ds2-is-here-and-retailers-need-to-be-on-board.html "Time has run out – 3DS2 is here and retailers need to be on board ") to rethink their supply chain. Omni-channel retailing, and by extension [online retailing](https://www.financedigest.com/why-online-retail-trading-needs-an-overhaul.html "Why online retail trading needs an overhaul"), is making end-to-end visibility of the supply chain more and more pressing for brand owners. The companies are now finding that efficient [home delivery](https://www.financedigest.com/ikeas-home-deliveries-will-be-fully-electric-by-2025-ceo.html "IKEA’s home deliveries will be fully electric by 2025 – CEO") strategies are just as crucial as the supply chains they use to connect to retailers carrying their products. [Customer’s now expect](https://www.financedigest.com/banking-from-anywhere-embracing-technology-to-exceed-customer-expectations.html "Banking from anywhere: embracing technology to exceed customer expectations") to be able to order goods from the brand’s website, in addition to online retailers. This means that brands are no longer simply maintaining volumes through [traditional retail](https://www.financedigest.com/the-power-of-digital-why-theres-still-life-in-the-traditional-retail-banks-yet.html "The power of digital: Why there’s still life in the traditional retail banks yet") channels, but also offering a comparable channel experience. Additionally, changing [consumer behaviour and increased reliance on online](https://www.financedigest.com/from-in-store-to-online-how-the-pandemic-affected-consumer-behaviour.html "From in Store to Online: How the Pandemic affected Consumer Behaviour") retail channels means that these brands need to be able to ensure that orders are processed and delivered at an increasingly fast pace. Having fast access to clean, accurate and relevant data is crucial for companies to be able to make effective decisions for the [present and simulate scenarios](https://www.financedigest.com/pyrometer-market-2021-present-scenario-and-growth-prospects-2030.html "Pyrometer Market 2021 | Present Scenario and Growth Prospects 2030") to make decisions for the future. The companies with the ability to do so will win, but those who are lacking clean data risk being [left behind](https://www.financedigest.com/is-africa-being-left-behind-in-the-push-for-a-net-zero-world.html "Is Africa being left behind in the push for a net zero world?"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---