Data analytics’ role in building a sustainable supply chain
For Channel firms wanting to make their supply chain more sustainable, the process of collecting and sharing data is often seen as a key challenge. Once the hard work of data collection is done, it is hugely beneficial for evaluating an organisation’s ESG performance, writes Deborah Johnson, head of sustainability at Agilitas.
So what can businesses expect?
- The need for reliable data will be crucial. and paying attention to data integrity cannot be underestimated.
- Leveraging digital solutions to aid the visibility and transparency of both supply chains can benefit operations.
- The supply chain of the future will be more automated, and incorporate new technologies, so decision-makers need to be ahead of the curve.
For Channel firms wanting to make their supply chain more sustainable, the process of collecting and sharing data is often seen as a key challenge. Once the hard work of data collection is done, it is hugely beneficial for evaluating an organisation’s ESG performance, writes Deborah Johnson, head of sustainability at Agilitas. So what can businesses expect?
For Channel firms wanting to make their supply chain more sustainable, the process of collecting and sharing data is often seen as a key challenge. Once the hard work of data collection is done, however, it is hugely beneficial for evaluating an organisation’s ESG performance.
But before companies can take that step, decision-makers will want some assurance that the data is trustworthy, which is where implementing data validation approaches comes in. Once that has been secured, progress can be made in improving the different areas of the supply chain.
Across the world, awareness of environmental and social issues is growing quickly. The majority of technology companies are already striving for overall improvement, but are still trying to overcome the hurdles that will make streamlining day-to-day operations easier. For example, finding the best way to address minimising Scope 3 emissions, improving transparency and bolstering internal support.
To achieve these sustainability goals, being able to collect, share, and analyse data is key, and will play a huge part in the running of the supply chain. According to Accenture, however, just 18% of companies identified the chief executive as the primary driving force behind sustainability, which makes implementing any changes much more difficult.
There may never be a time that an organisation has all the data it needs, so making a start is sometimes the biggest step. Only then will the barriers be revealed, so it’s important to keep the process as simple as possible. If it’s a complex process, it simply won’t work, which is a major barrier to supply chain sustainability.
The need for greater supply chain digitisation
Digitisation and the advanced digital technologies that are now at the forefront of the fourth industrial revolution will not only enhance the efficiency and connectivity of global supply chains but also have the potential to enhance sustainability.
By leveraging digital solutions to aid the visibility and transparency of both supply chains and in line with required sustainability metrics, companies can expect to deepen engagement with their customers, reduce risk and create trust with their supply chain stakeholders. Just as importantly, sustainability practices and corporate responsibility can deliver a positive impact both inside and outside of the business long term.
The need for greater sustainability, in line with advances in digitisation, is compelling. Achieving it, however, is still not so easy despite the greater integration of digital technologies. Retrieving reliable supply chain sustainability data in particular can be a challenge.
Supply chains remain complex, with most being multi-tiered, which limits access beyond the first tier. In fact, sourcing sustainability data is particularly difficult for smaller corporations that may not have the resources to deploy the necessary processes or technologies.
Why prioritise data integrity
Channel businesses, like many others, are relying heavily on data and analytics to make crucial business decisions. While this is seen as efficient, if decisions are being made based on data that is unreliable and inaccurate, the impact it can have could be huge.
This is the ongoing thought process of many senior executives, who are worried not only about the negative impacts of data and analytics but also about data getting compromised due to a lack of integrity.
Paying attention to data integrity cannot be underestimated and could cost companies millions if the worst were to happen. It is the basis for reliable insights, and when done right can provide searchability, traceability and quality of data, especially if it has been modified.
Simply put, data integrity is always the best choice to maintain the quality of data, but it can be easily hindered by human error, transfer errors, cyber threats, security issues and hardware or infrastructure issues.
Collecting data is not a big challenge but preserving data integrity is. Businesses are creating and gathering so much data that storing and managing it has become a major issue. Chances of errors have increased and cybercrimes have become more frequent, so keeping up to date with how it is stored, entered and gathered is key.
Supply chain audits are a powerful tool to keep operations running smoothly and compliantly. They provide transparency, enable businesses to track supplier performance, validate data accuracy, and assess ethical standards. Regular auditing is beneficial as it ensures that all stakeholders understand what is required of them and allows expectations to be set so goals can be achieved.
What the future holds for data analytics in the supply chain
Supply chains of the future will certainly require new data analytics capabilities, but with demands and requirements constantly changing, today’s supply chains need them too. Predictive analytics and other innovative technologies for example can, when implemented correctly, enable supply chains to be automated, be more responsive, resilient, and therefore more sustainable.
The modernisation of supply chain processes to include these new capabilities will be one of the priorities for chief supply chain officers. Those in these roles will also be tasked with implementing the right data platform to manage growing data volumes, allowing new data pipelines to be built easily so that analytic insights can be delivered at scale.
As supply chains stretch around the world, having visibility is critical but difficult. A scalable data platform is needed to integrate, manage and analyse data at the speed modern businesses require, while still offering strong price performance.
Modern supply chains need to be efficient, agile and connected, while also offering advanced forecasting capabilities to deliver detailed insights into supply and demand without causing costly inventory, storage or waste.
What can businesses expect? The supply chain of the future will be more automated, and incorporate technologies such as the Internet of Things (IoT), predictive analytics, and robotics. These technologies will enable real-time tracking and monitoring of supply chain processes such as procurement, manufacturing, and distribution of goods, therefore improving operations as we know it, both in terms of efficiency and the impact on the planet.
