How Big Data Is Helping Food Supply Chain Management
By Melissa Lind, contributing writer
Appropriate use of big data can provide insight into management of the food supply chain, but executives need to be willing to put all their eggs in the big data basket.
Unlike years past where all of our information could be contained within the confines of an office kept inside folders and filing cabinets, managers in the food industry now face files of information that if printed, would fill thousands upon thousands of pages. From information about product temperature, shipping times, food pedigrees, supplier dockets, and hundreds of other collection points, all of this needs to be managed and put to use.
Within all of these pieces of data is real information about our sourcing, manufacturing, delivery and consumption. This information can be collected, extracted, and analyzed to provide knowledge about processes, outcomes, and how to improve them. However, a major problem is managing all of that data.
A recent survey conducted by the Fortune Knowledge Group shows that well over half of all executives believe that gut feelings and “soft factors” should be given the same weight as hard data. This may be an unsupportable position as in today’s food industry, any company that isn’t taking advantage of big data risks losing out to the competition who is. Big data doesn’t have all the answers and executives may be reluctant to buy into the hype. The reality, though, is it won’t solve all of the problems food supply-chain managers face, it can provide tremendous insight.
Smart management of big data doesn’t mean the food industry needs to throw a lot of money at it. It also doesn’t mean that food companies will need to hire a statistician and a programmer. There are low-cost, user-friendly, smart-management platforms that can work well in the food industry. When employed appropriately, these systems can help a company to:
Identify Trends
Trend identification is one of the best features of information-management systems. Identifying trends in quality performance or any other metric used to be a long, tedious process that required dull hours spent viewing numbers on a spreadsheet or multiple charts. Modern technology allows for rapidly sifting through large volumes of data to locate important information and identify variances. From that, changes can be adopted and that will improve processes.
Provide Transparency
Transparency within the food supply chain is a hot topic, but it is also more than trendy. From a safety standpoint, products should always be visible within their journey across the supply chain so that in case of a food-safety emergency, immediate and appropriate actions can be taken. From a business standpoint, changes in supply and demand need to be quickly addressed. This provides food makers’ customers with visibility, giving a competitive edge.
Improve Communication
One big problem in supply-chain management is communication. A well-designed information management system can help improve your communication — both inside and outside of an organization. Having information at your fingertip will allow you to address issues as they arise, in a concise manner that will produce the best results.
Restructure Procedures
Nearly every process and procedure a food maker has done in the past can be done easier, faster, and better using information management systems. No more manual invoices, no more manual data input to excel spreadsheets, no more need for research to chase down a trend. Information management systems can collect data automatically and compile it in a way that is useable to identify issues and improve your company’s performance.
Buying into big data isn’t a magic cure — but it isn’t snake oil either. Food makers generate thousands upon thousands of pieces of information generated every day which need to be harnessed and put to work to offer a competitive advantage. Big data, partnered with good management practices, can help pave the way.