Big Data is changing risk in the supply chain
December 2, 2016
in Top Stories
From the haystack to Action: Big Data and Artificial Intelligence are changing the way risk in the supply chain is measured and managed.
Like me, you are probably sick of seeing the terms Big Data and Artificial Intelligence (AI), some of the most popular high-tech buzzwords du jour. Please accept my apologies for the continued overuse and abuse but do read-on as there is real-world value from the application of these principles (or technologies) to enterprise supply risk.
What if you could utilize the overwhelming quantity of information to get ahead of supply threats and turn supply chain risk into a competitive advantage?
Big Data is a challenge for supply chains
This is the objective of transformative supply chain risk initiatives leading edge enterprises are seeking to achieve. All enterprises with global supply chains have experienced disruptions but most remain humbled in the face of the enormity of the challenge to gain a comprehensive view of risk and keeping it current.
These threats take many forms including financials, natural disasters and negative PR. Naturally the big events get all of the attention (Hanjin bankruptcy, Hurricane Sandy) but the smaller, localized events (a power outage in Pittsburgh, local political disputes, minor earthquakes, etc) occur more often and pose the same threats to revenue, brand and quality.
From two data sources to Big Data
Today, most organizations have two primary sources of information to manage their supply risk profile: 1. traditional credit scores and 2. the supplier themselves. Using periodic supplier questionnaires as the only source of information is especially problematic as it is akin to asking the fox to answer a questionnaire on the safety of the hen house. Credit scores and supplier questionnaires are good individual data points, but leave the organization unaware of the rapidly changing ecosystem and current events. The effort to go further (more suppliers, more risk topics, deeper into the supply chain) has been too costly for all but the largest of enterprises. This is where our friends Big Data and AI come into the picture.
In short, the use of Big Data and AI now make it affordable for all enterprises (I mean any enterprise with a supply base beyond a 25-mile perimeter of a manufacturing site) to build a comprehensive risk profile and actively monitor its supply base.
ISM Webinar “Big Data to the Rescue”
If you are interested in how this works, this webinar will be quite informative.
“Big Data to the Rescue: Overcoming the lack of visibility to the threats lurking in your supply chain”
Watch the ISM Webinar to learn:
- The scope of the challenge
- Techniques to overcome massive amounts of data. What is relevance?
- The insights that can be gleaned
- What these insights mean for how risk is managed in the organization
Risk Intelligence solutions more and more employ Big Data techniques utilizing the growing availability of content both structured and unstructured wrangled by artificial intelligence to deliver financial, delivery and compliance insights that increase resilience.
What are your experiences with ‘Big Data’ in your company? Is this a topic for your supply chain and procurement organization?