How can firms make sense of available data about suppliers and use this to drive decisions?

Question

Accepted Answer

As a result of modern technology, companies have access to a whole new world of data, allowing organizations to gather information on their suppliers, customers, and competitors across the globe. However, companies are quickly learning that having unprecedented amounts of data is a double-edged sword, with many firms struggling to determine what is relevant, reliable, and adds value to their business. This is especially true in times of global instability, with situations changing daily, if not hourly.Within the realm of supply chain, new data and analytics developments have spurred manufacturing efficiencies, yielded holistic views into performance, and provided insights into how to optimize operations. But in the face of crisis, many leaders end up scrambling to understand how their supply chain is affected, with some resorting to the use of manual processes to comb through supplier data. This forces executives to develop action plans based on information that is incomplete, inaccurate, or outdated.This is where a new tool is needed. Rather than using their data to create simple reports, executives need a tool that generates real-time, actionable insights that can be used in decision making. For supply chain leaders, this includes having the ability to drill down into specific aspects of their suppliers' health and stability, and understanding how this relates to their business. But how can this be done?While a number of approaches are being developed, one that appears promising is the use of "clustering." Through this approach, advanced analytical tools categorize information into distinct groups, or clusters, based on related and relevant themes. These tools automatically add context to the data, cut out irrelevant "noise," and draw correlations between seemingly unrelated insights. This is precisely the process used by Kearney's Sentiment Listening Engine, which scans data from thousands of digital sources to provide insights into supplier health and employee sentiments and create a 360-degree view of your supply chain. By grouping this information into understandable clusters, it allows for an easier comprehension of supply chain activities and areas of concern, which can be applied when prioritizing suppliers and creating crisis rapid response plans.For more information on our Sentiment Listening Engine and how it can benefit your supply chain, please read our article Managing the unmanageable: operating a global supply chain in crisis or contact an expert.