BIG DATA IN THE SUPPLY CHAIN & TRANSPORTATION INDUSTRY

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1 BIG DATA IN THE SUPPLY CHAIN & TRANSPORTATION INDUSTRY

2 INTRODUCTION

3 Introduction Presenter: Adam Robinson, Marketing Manager Company: Cerasis Adam Robinson oversees the creation and execution of the marketing strategy for Cerasis. Cerasis is a non-asset based third party logistics service provider who specializes in transportation management solutions by providing shippers with power transportation technology and managed services. 3

4 Agenda What's Big Data in Supply Chain & Logistics? How Do Supply Chain & Transportation Leaders Get Started in Collecting & Using Big Data? What Is the Impact of Big Data on the Supply Chain & Transportation Industries? How Can Supply Chain Leaders Use Big Data as a Tool to Continuously Improve? What Does the Future Hold for Big Data Applications at My Company in the Next 5 Years? 4

5 WHAT'S BIG DATA IN SUPPLY CHAIN & LOGISTICS?

6 The History of Big Data by Bernard Marr 300 BCE 48 CE: Library of Alexandria was technically a data center. 1926: Nikola Tesla predicts a future of accessing and analyzing data using a pocketsized device. 1989: Erik Larson coined the term, Big Data. 1996: Data storage becomes cheaper than paper. 2008: 9.57 zettabytes of information is processed. paper. 1663: John Graunt completes first statistical-analysis experiments in response to Bubonic plague. 1965: US Government plans the world s first data center. 1991: The internet is born. 1999: Internet of Things is described by Kevin Ashton. 2010: Google estimates more data is produced every 48 hours than the entire previous history of humanity. 6

7 What is Big Data in General? Unstructured Data: Info not organized by traditional databases or models Typically Text Heavy Multi-Structured Data: Variety of Data formats & Types derived from interaction of people & machines 7

8 8 Growth of Big Data

9 When Did Big Data Become a Game- Changer? Cost Location Time 9

10 Why Is Everyone Interested in Big Data? Economical to Gather Big Data Storing Data is cheaper than physical copies Ability to get actionable insights to continually improve 10

11 What and Who Create and Use Big Data? Isolate Big Data collection to specific events. E.g. Fuel Efficiency 11

12 12 Where Is Big Data Impacting Business?

13 13 Do You Have a Big Data Strategy?

14 HOW TO START COLLECTING BIG DATA

15 Gather Stakeholders, and Explain the Potential ROI of Big Data. Stakeholders have a vested interest in Big Data. Stakeholders must be diverse. Involve all parts of an organization. 15

16 Identify Areas to Use Big Data Marketing. Performance management. Customer service improvements. Optimization of supply chain processes. Combining the benefits of ERP, WMS and preexisting systems into a comprehensive transportation management system (TMS). Preparation and bidding for outsourcing processes. Credit Management 16

17 Start Collecting Data Through a Platform of Other Well-Known Resource Radio-frequency identification. Bluetooth-connected sensors. Hand-held scanners. Internal Systems, such as Quickbooks Electronic Logging Devices Outsourced agencies that collect data for your company, such as third-party logistics providers (3PLs) as it relates to shippers. 17

18 Wait a Minimal Amount of Time for Feedback Big Data analysis is fast, but it does take time. More data to analyze requires more time to process. Internal processing capabilities may be limited as well. Consider using the power of the cloud to analyze vast volumes of data faster. Outsource where appropriate. 18

19 Follow Recommendations Appropriately Big Data analysis yields recommendations for improvements. Examples: Changes in workflows. Changes to procurement and shipping processes. 19

20 Continually Monitor the Performance Big Data provides real-time results. Big Data collection must continue after implementing changes. Determine if changes increased or decreased efficiency. Re-evaluate performance frequently and periodically. 20

21 BIG DATA IN LOGISTICS & SUPPLY CHAIN

22 22

23 23 Big Data Enables Better Shipping Options.

24 Benefits of Big Data Gathering Reduced Operational Costs Fewer Errors in Delivery, Pickup or Transportation Predictive Operations 24

25 25 Benefits Stemmed From 3 Big Areas

26 HOW CAN SUPPLY CHAIN LEADERS USE BIG DATA AS A TOOL TO CONTINUOUSLY IMPROVE?

27 Ask Traditional Questions, and Let Big Data Provide Answers Element Increasing order efficiency. Demand forecasts. Quantity of each product. Big Data Impact Big data allows for better forecasting. Demand forecasts are driven by accurate inventories and real-time feedback from POS. Inventory location and management. Raw material suppliers and logistics. Distribution of goods prior to purchase. Demand fluctuations. Inventory location and management allows for better ordering of raw materials. Finished products rely on raw materials and logistics before and after manufacturing. Distributed goods may change, so analysis of current flows is essential to better distribution methods. Demand fluctuations will naturally arise, impacting the previous step in the cycle. 27

28 28 Performance Measurement and Management

29 WHAT DOES THE FUTURE HOLD FOR BIG DATA APPLICATIONS AT MY COMPANY IN THE NEXT 5 YEARS?

30 30 Greater Value of Services or Products

31 31 Better Transparency and Visibility

32 32 Innovation in Next Level of Services or Goods

33 33 Better Sales and Operations Planning

34 34 Real-Time Decisions, Not Reactive Decisions

35 THANK YOU

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