With the advent of Big Data in the warehouse and supply chain management, enhanced business intelligence has emerged as the obvious consequence. The ‘monetary value’ of data has a lot to do with how warehouses efficiently manage their core functionalities. With data and technology working in tandem, the chances of making a fruitful warehouse business proposition intensify in a magnanimous manner.
Evolution of data analytics in warehouse management
Data analytics has significantly improved the process of warehouse management. The manner in which data and information is getting substantial toehold in the warehouses is definitely worth acknowledging. The prominent warehouses in Chennai, Mumbai, Pune etc. are leveraging cloud systems for the purpose of data collection and storage, thus, enhancing their intrinsic and extrinsic propensities.
From combating challenges like omnichannel sales, order returns, demand irregularities etc. to estimating future requirements, predictive data analysis has been significant in transforming the way warehouses operate. The predictive algorithm models that are created for the same purpose combine advanced data-based techniques including data statistics, AI data mining, data modeling, etc., leveraging data in the best way possible.
The key performance indicators (KPIs) that are used to analyze the performance of a warehouse leverage data analytics to the core. If the data is insightful, better decision-making is inevitable. According to McKinsey Global Institute (MGI) and McKinsey & Company’s Business Technology Office, the quality of the data collected is directly proportional to the capability of making financial decisions. With the help of data, organizations are able to outweigh their competitors. The intervention of advanced data sensor technologies like barcodes has made it easy to analyze the consumption of the products. Based on that, new offerings can be introduced in the future.
It must be understood that the volume of the data doesn’t solely influence the Business Intelligence methodologies; the quality of data makes the world of difference here.
With more advanced, streamlined data in-hand that fosters real-time updates, business agility can be very well expected. However, in case wrong data starts slipping, the results can be extremely unfavourable for the reputation, operational balance and profitability.
Big Data Analytics: The Future of Warehouse Management
Bringing discrete information in a consolidated, user-friendly format, Big Data has been aiding the warehouse managers tremendously. As per Bernard Marr of Forbes magazine, big data analytics has been advancing the supply chains through monitoring and forecasting.
Eliminating the need for traditional warehouse management methodologies including legacy data architectures and ERP systems, big data analytics has advanced real-time information sharing to aid customers in a plethora of useful ways. For instance, if a customer wants to know about the availability of a product or wants to inquire about its manufacturing schema on a real-time basis, big data analytics provide him or her with an integrated solution. It also assists the warehouse managers to understand the customer requirements in a better way and how their services can be improved in the view of that.
According to Supply Chain Management Review, around 79% of companies that boast of high-performance supply chains achieved by the means of Big Data analytics show advantageous revenue proposition. From enhancing the risk management process to furthering the shorter cycle times, Big Data fosters the supply chain in multiple ways, propelling tremendous revenue growth while also helping the organizations stay ahead in the competition.
What are the benefits of big data analytics?
The following are the benefits of data analytics in warehouses:
- Recognition of crucial trends
- Better analysis of the consumer habits
- Improve performance related issues.
- Swift business decision-making process
- Streamlining of the core processes
- Real-time traction of goods
Several renowned warehousing companies in Mumbai are looking forward to strengthening their data analysis methodologies to be able to perform holistically and drive better insights which, in turn, will enhance their viability and credibility in the long-run, besides improving their profitability.